NGO REGISTRATION AS A TRUST

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ABOUT NGO REGISTRATION AS A TRUST

An NGO is a non-governmental organization with a charitable goal, for the benefit of  society in general. It can be started as a Trust, Corporation or Non-Profit [Part 8 Company], depending on what you want to do.In India, NGO is a generic term for all non-profit organizations, including Trust, Society and Section 8 Company. Other names for these non-profit organizations are "Sangathan", "Sangh", "Sangam". All non-profit NGOs are exempt from income tax.These are sometimes confused with unprofitable business, which refers to ordinary business that does not make a profit.

With all of the above, NGOs are sometimes created that serve as covers for political and religious interests. However, as NGOs are not-for-profit organizations, these organizations are not permitted to pay their profits as dividends to their members. Any profit an organization earns should be invested in the social cause the NGO serves. NGOs receive money from donors who may or may not receive a tax deduction for their donations. Basically, India  has 3 ways to create an NGO-

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