HISTORY OF NON-PROFIT

ORGANIZATION IN INDIA

PRESENTED BY
S.GURUGOMATHI AKSHAYA
 CONTENT

• INTRODUCTION-NPO
• NON PROFIT AND ITS FUNCTIONS
• NON-PROFIT LAWS OF INDIA
• HISTORY OF NGOS IN INDIA
• HISTORY OF NON-PROFIT COMPANIES IN
INDIA
• NGOS TODAY
• CONCLUSION
 INTRODUCTION
• A non-profit organization (NPO), also known as a non-business
entity or non-profit institution, is dedicated to furthering a particular
social cause or advocating for a shared point of view
• They can operate in religious, scientific, research, or educational settings.
• Nonprofit organizations are accountable to the donors, funders,
volunteers, program recipients, and the public community.
 NON-PROFIT AND ITS FUNCTIONS

• Non profits have both volunteers and working staffs

• Non profits raise money from individual donors or
foundations, sponsorships from corporations, income from
government funding, income from programs, services or
merchandise sales, and income from investments
 FUNCTIONS

• Management provisions
• Accountability and auditing provisions
• Provisory for the amendment of the statutes or
articles of incorporation
• Provisions for the dissolution of the entity
• Tax statuses of corporate and private donors
• Tax status of the founders.
 NON-PROFIT LAWS OF INDIA
• Registering a Non Profit in India can be done in a total of five
ways:
• Trust
• Society
• Section-8 Company
• Special Licensing
• Section-25 Company (old companies Act - Companies Act,
1956)
• TRUST-Public charitable trusts can be established for a
number of purposes, including the relief of poverty,
education, medical relief, provision of facilities for recreation,
and any other object of general public utility.
• SOCIETY-public charitable trusts can be established for a
number of purposes, including the relief of poverty,
education, medical relief, provision of facilities for recreation,
and any other object of general public utility.
• SECTION-8 COMPANY-A section 8 company (old section
25 company) is a company with limited liability that may be
formed for”promoting commerce, art, science, religion,
charity or any other useful object," provided that no profits, if
any, or other income derived through promoting the
company's objects may be distributed in any form to its
members.
SPECIAL LICENSING:
• A place of work in a restricted area (like a tribal area or a border area
requires a special permit – the Inner Line Permit – usually issues either
by the Ministry of Home Affairs or by the relevant local authority (i.e.,
district magistrate).
• To open an office and employ people, the NGO should be registered
under the Shop and Establishment Act.
• To employ foreign staff, an Indian non-profit needs to be registered as a
trust/society/company, have FCRA registration and also obtain a No
Objection Certificate. The intended employee also needs a work visa.
• A foreign not-for-profit may be registered as a branch, liaison or project
office [and not necessarily as an Indian entity] after the requisite
permission has been granted by the RBI. Upon receipt of approval from
the RBI, the foreign office must within 30 days seek registration under
the Companies Act, 1956. Alongside of these permissions, the office
must acquire tax registrations.
Evolution of charity
 Volunteerism
• Involvement of oneself into the community
services with one’s own free will
• Action taken due to free will are more
effective and efficient
• It has created hopes in the lives of people
 HISTORY OF NGOS IN INDIA
• India has a long history of civil society based on
the concepts of daana (giving) and seva (service).
• During the second half of the 19th century, nationalist
consciousness spread across India and self-help
emerged as the primary focus of sociopolitical
movements. Numerous organizations were
established during this period, including the Friend-
in-Need Society (1858), Prathana Samaj (1864),
Satya Shodhan Samaj (1873), Arya Samaj (1875), the
National Council for Women in India (1875), and the
Indian National Conference (1887).
 CONT..
• The Societies Registration Act (SRA) was approved
in 1860 to confirm the legal status of the growing
body of nongovernment organizations (NGOs)
• Christian missionaries active in India at this time
directed their efforts toward reducing poverty and
constructing hospitals, schools, roads, and other
infrastructure. Meanwhile, NGOs focused their
efforts on education, health, relief, and social welfare
• A firm foundation for secular voluntary action in
India was not laid until the Servants of India, a
secular NGO, was established in 1905.
 CONT..
• Mahatma Gandhi’s return to India in 1916 shifted the
focus of development activities to economic self-
sufficiency-Gandhi identified the root of India’s
problem as the poverty of the rural masses and held
that the only way to bring the nation to prosperity was
to develop the villages’.
• The Central Social Welfare Board was established in
1953 to promote social welfare activities and support
people’s participation programs through NGOs
 CONT..
• The establishment of the National Community Development
Program and the National Extension Service were early steps
in this direction
• In 1958, the Association for Voluntary Agencies for Rural
Development (AVARD) was founded as a consortium of major
voluntary agencies.
• International NGOs entered India in significant numbers to
provide drought relief during two consecutive agricultural
seasons, 1965–1966 and 1966–1967.
• With community participation as a defined component in a
number of social sector projects during the 1970s and 1980s,
NGOs began to be formally recognized as development
partners of the state.
 CONT..
• The process of structural adjustment begun in the
early 1990s—and the more recent approach of
bilateral and international donors channeling funds
directly through the government, NGO networks, and
large corporate NGOs—have somewhat pushed
peoples’ organizations into the background.
NGO Types
• BINGO = Big International NGO
• CSO = Civil Society Organization
• DONGO = Donor Organized NGO
• ENGO = Environmental NGO
• GONGO = Government-operated NGOs
• INGO = International NGO
• QUANGO = Quasi-autonomous NGO
• TANGO = Technical Assistance NGO
• GSO = Grassroots Support Organization
• MANGO = Market Advocacy Organization
 HISTORICAL BACKGROUND OF
COMPANY ACT IN INDIA
• Joint Stock Companies act 1850:This Act was based on the
English company Act, 1844 (known as the Joint stock Company
Act 1844) which recognized company as a distinct legal entity,
but did not grant to its privilege of limited liability
• Joint Stock Companies act of 1857: The Joint stock
companies’ act of 1850 was replaced by the Joint stock
companies’ act of 1857.It conferred the limited liability on the
members of companies.
• Joint Stock Companies Act or 1860:The Joint stock companies
Act of 1860 extended the benefit of limited liability to the
members of Banking companies and insurance companies.
• The companies Act or 1866:The companies Act of 1866 was
intended to consolidate and amend the law relating to the
incorporation, regulation and winding up of trading companies
and other associations.
• Companies Act of 1913:The Indian Companies Act, 1913 did
not take into account the peculiar features of the Indian trade
and commerce and some peculiar institution such as
"Managing Agency.”
• The companies Act of 1956: Came into force from 1st April,
1956. This act contains 658 sections and 14 schedules. Section
25 of Company Act 1956 is well known for incorporation of
section 25 companies which is consider as non profit
Organization.
• Companies Act, 2013:Companies’ Act 2013 n repealed the
Company Act 1956 and provides resolution for many unheard
concepts. The act comprise of 29 chapters, 470 clauses & 7
schedules.
 NGOS TODAY
• Today, about 1.5 million NGOs work in India (i.e.,
• nonprofit, voluntary citizens’ groups organized on a
• local, national, or international level). This includes
• temples, churches, mosques, gurudwaras (Sikh place of
• workshop), sports associations, hospitals, educational
• institutions, and ganeshotsav mandals (temporary
• structures set up to house Ganesh festival
celebrations).
• Most NGOs in India are small and dependent on
• volunteers.
 REFERENCES
• https://www.adb.org/sites/default/files/publicati
on/28966/csb-ind.pdf
• https://en.wikipedia.org/wiki/Non-
governmental_organization
• https://en.wikipedia.org/wiki/Nonprofit_organiza
tion
• http://www.macca.in/Image/NGO,%20Trust.pdf
• http://ijiset.com/vol2/v2s12/IJISET_V2_I12_41.p
df
• https://www.slideshare.net/richisimon/module-i-
39038622