Not For Profit

Non-profit organizations (NPOs) or non-governmental organizations (NGOs) serve diverse purposes, ranging from the promotion of sports and education to supporting research activities. Contrary to common misconception, the term "non-profit" does not imply an inability to generate income but rather denotes a commitment to reinvesting that income for the advancement of the organization's objectives rather than distributing it to its founders or members.

In India, an NGO encompasses various legal structures, including trusts, societies, and Section 8 companies, all established for public benefit. Trusts require a minimum of two individuals, while societies necessitate at least seven members. Section 8 companies, registered under the Companies Act, are also viable options for non-profit entities.

These organizations may go by different names such as "Sangathan," "Sangh," or "Sangam." Regardless of their nomenclature, NGOs are eligible for income tax exemptions, further incentivizing their pursuit of public welfare objectives.

Benefits of registering an NPO:

• Improves the credibility of the sector because NPOs can account to a public office.
• Brings organizations into a formal system.
• Helps the sector to get organized.
• Helps in finding ways of getting benefits like tax exemptions and funding opportunities.
• Donations made by individuals to the nonprofit corporation may be tax-deductible