NGO & Civil Society Handbook

Section 23: NGO & Civil Society Handbook

23.1 Legal Incorporation Types & Statutory Framework

Indian Non-Governmental Organisations operating on Sangathan typically register under one of three legal vehicles:

1. Public Charitable Trust (Indian Trusts Act 1882): Managed by a Board of Trustees through a registered Trust Deed. Ideal for family-founded or closed governing bodies with permanent trustees.
2. Society (Societies Registration Act 1860): Governed by a minimum of 7 members with a Memorandum of Association (MoA) and democratic Managing Committee elected at AGMs.
3. Section 8 Non-Profit Company (Companies Act 2013): Most structured vehicle with national jurisdiction, high transparency, registered with the Ministry of Corporate Affairs (MCA).

23.2 Essential Regulatory Registrations Checklist

• Permanent Account Number (PAN): Institutional tax identity issued by the Income Tax Department.
• NITI Aayog NGO Darpan: Unique Darpan ID required to access central government grants, Ministry portal funding, and CSR partnerships. Register at ngodarpan.gov.in.
• Section 12A & 80G Tax Certificates:
  • 12A Exemption: Exempts the NGO's surplus income from corporate income tax under Section 11/12 of Income Tax Act.
  • 80G Deduction: Grants donors a 50% tax deduction on qualifying contributions. Sangathan automatically generates 80G compliant digital tax receipts with donor PAN and certificate numbers.
• MCA Form CSR-1: Mandatory filing with MCA to receive Corporate Social Responsibility allocations under Section 135 of the Companies Act.
• Foreign Contribution Regulation Act (FCRA): Required prior to soliciting or receiving any international donation. Requires mandatory account with State Bank of India, Main Branch, New Delhi.

23.3 Public Trust Ledger & Financial Disclosure

Sangathan empowers NGOs to run transparent, audit-ready operations:

• Real-time Utilization Ledger: Map expenditures directly against public fundraising campaigns.
• SHA-256 Verified Receipts: Cryptographically verifiable digital receipts to prevent duplicate issuance.
• Volunteer Log: Track volunteer service hours, project assignments, and impact milestones.

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