Meaning of Charitable and Religious Organisation
In the society charitable and religious organisation plays an important role. Income of these organisations are exempt from tax subject fulfilment of some terms and condition.
These organisations are not meant to make profit. Therefore, such type of organisations are known as NPOs i.e. Non Profit Making Organisation.
These are also known as NGO i.e. Non-Government Organisation because such type of organization do the work which ought to have been done by the government.
NPOs or NGOs play a critical role in the development of society, communities, and promoting citizen participation.
Among the wide variety of roles that NGOs play, some of the important roles are as follows:
- Development of Infrastructure and operation in the society.
- Facilitating Communication: NGOs can facilitate communication from public to the government and from government to the public.
- Advocating for and with the poor
- Technical support and training to the human being.
- Overall Development of society
Type of NGOs:
There are two types of NGOs that usually function in a society:
- Non-Registered NGOs
- Registered NGOs : Click to know more about registered NGOs
Advantages Of Registering An NGO:
Some of the main advantages of registered NGOs as compared to non-registered NGOs are under:
- Systematic functioning of NGOs due to the legal obligations required of a registered NGO.
- Registered NGOs obtain legal status.
- Members represent the organisation
- A registered NGO can open a bank account in the name of the organisation
- A registered NGO can seek tax exemption.
- The legal framework also provides limited liability for membership, particularly those who founded it and helped set it up in the beginning
Where should an NGO register?
In India there are three forms of registration, which are as under:
- Companies Act, 2013
- Society Registration Act, 1860
- Indian Registration Act, 1908
Indian Trust Act, 1882 for private trusts but is used as reference statute for public charitable trust also: General law is applied for public trusts except in a few states such as Gujarat and Maharashtra, which have their own state laws.
