The NGO (Non government organizations) means any organizations formed by a group of private persons for performing society welfare activities on behalf of government.
Mainly these organization carries out its work from the funds given by normal persons and private firms. Government also encourages these organizations by issuing tax free policy for these firms for the welfare of society.
It’s a Non-Governmental Organization that may be formed by a group of private persons, registered within the Society Registration Act of 1860 and recognized by the government for performing some of the functions or allocated focus on behalf of the government. It is a very unique and informal kind of arrangement made by the government wherein the government extents the assistance, support, and authority to the private body to do some of the work of the government on behalf of it.
We are able to thus say that an NGO is really a body performing certain duties from the government which might or may not be funded by the government. The activities of the NGOs mostly are welfare activities which can be of various types. In some instances, the activities assigned to the NGO are also administrative also.
The NGO is popular for the registered trusts in addition to societies in India which perform such work. The federal government is more concerned about the compliance of the several norms related to the grants to be given to the society as well as utilization of the funds by the NGO.
The management of NGO is mainly in the hands of the persons who have formed it as per the bye-laws and regulations prescribed by the government. Since most of the NGOs are run on government donated funds, some measures to guarantee the appropriate expenditure from the funds provided by the government are taken in the management level. The government also seeks the audit from the funds and the way in which the funds have been spent.
This all is done in a transparent manner which provides a lot of operational freedom to the NGO to function and achieve its goals. In most of such cases, there’s a provision in the bye-laws that all the income, earning, movable & immovable properties of the NGO shall be solely utilized and applied towards of the promotion of its aims and objects as set for in the memorandum of association.
No profit on the website shall be paid or transferred directly by means of dividends, bonus, profits or even in any manner whatsoever to the present or future members of the society or any person, through any one or more of the present of the future members. No member of the society shall have any personal claim on any movable or immovable properties of the society or make any profit whatsoever by virtue of this membership.
Establishing an NGO in India- legal framework. An NGO can be established either through a registered Society or through a Trust. NGO by a Society under The Society Registration Act, 1860.