There will be unavoidable shortcomings in any culture and society the structure that will cause certain people a lack of opportunities. These organizations’ job is to alleviate this disparity.

Introduction of NGO and SHG

SHG may be a CBO, beneficiary organization. It works out for its members, for the promotion of their economic and other interests. SHG or CBO isn’t an NGO.

NGO works for the advantage of others, not its members. NGO may help promote an SHG or a CBO, together of its activities. Earnings from SHG or CBO can’t form a part of NGO income.

NGO

The non-governmental organization stands for NGOs. Although the concept of an NGO is not wide. It usually a voluntary organization or entity with a social mission that operates independently of the government.

SHG

The Self-Help Groups refer to self-governed, peer controlled, informal communities of individuals of the same socio-economic context and a willingness to carry out shared purposes collectively. Poor people gladly come together here to save whatever sum they can easily save from their earnings, to collectively agree to contribute to a common fund, and to lend to members to meet their efficient and evolving needs.

Role of NGOs in promoting and strengthening SHGs

In supporting SHGs, NGOs play an important role. The NGO regularly conducts skills training programs for SHGs to encourage leadership abilities and income-generating activities. These types of training carry SHGs, for their creation and work, close to NGOs.

As an efficient distribution tool, NGOs can play a decisive role in rural growth, thereby improving the quality of life and the socio-economic status of women. Most SHG members believe that rural development programs have had a positive effect and have greatly enhanced their quality of life.

As an intermediate, NGOs promote the play of an important role in initiating the right enterprises and technical skills to SHGs. Technical expertise, skills training, and marketing strategies offer to women to help develop a sustainable business. An NGO serves as the key to building capacity.

Through preparation, the NGO’s capacity planning system has brought beneficial improvements in the lives of many women, thus improving their skills and abilities. Capacity planning empowers women to meet the challenging challenges required for jobs.

Few important key points

• The average workforce size of SHG is 20 to 30 members. Most maximum of the members is females.
• They every work as a cohesive unit for the upliftment of their economic and social condition
• NGOs help several prospects collectively. They provide to the larger portion of the population and work for their advantages.
• NGOs are typically well established as opposed to SHG.

Benefits of SHGs

• Women became more vocal and certain on social and family issues. It also heightens their self-esteem.
•  The SHG program has given to a reduced dependency on informal money lenders. SHGs also develop relations of debtors with credit delivery institutions. To promote the habit of saving among members and promote the buildup of their capital resource base.
• It promotes the concept of group accountability ensuring that the loans are applicable to pay back. The SHGs enable the members to find out, cooperate and add a gaggle environment.
• SHGs support people in rural areas in fixing micro-enterprises. Ex: Personalized business ventures like tailoring, grocery, and gear repair shops.
• The SHGs create a team of local resource persons. Because NGOs support often consists of coaching people on the way to manage bank accounts, the way to assess the tiny business potential of the local markets, and the way to upgrade their skills.
• The financial inclusion attains through SHGs has led to reduced child mortality, improved maternal health. Therefore, the ability of the poor to combat disease through better nutrition, housing, and health and particularly among women and youngsters.

Differences between NGO and SHG: Table Format

Point of Differentiation between NGO and SGH

The difference between NGO and SGH:

Functions of NGO and SHG

No society is problem-free. There are specific issues concerning social and economic that prevail in society now then. Problems like women’s safety, malnutrition, and casteism are quite prominent within the community today. NGOs work on a bigger scale to deal with these issues effectively.

SHGs, on the opposite hand, work with an equivalent intention but with limited access to society. They only affect small groups and provides aid to the people. NGOs and SHGs also affect the prospects of healthcare, living, sanitation, and education.

Operational Structures of NGO and SHG

• NGOs represent non-governmental organizations, and SHG stands for self-help groups. The NGO’s volunteering workforce is more organized and holds a legal registration under the Societies Registration Act of 1860.
• SHG is an independent entity that’s not accountable to answering their action to the law authority. there’s no such Act/provision that controls the SHG’s operation at this moment. it’s formed as per the principle of Article 19 (1), which states that folks are independent in forming any group with their mutual agreement.
• NGO and SHG work on an equivalent ground when it involves actions, but they are doing differently in terms of structure and mechanism of function. Non-governmental organizations conduct their operation on a bigger scale to support an outsized  Meanwhile, SHG always lags behind NGOs in terms of the workforce. Typically, SHG has 20 to 30 active members under their umbrella.
• SHG usually focused on a little section of society that seeks advancement, especially in backward or rural areas. the first working protocol of SHG confined around mutual help.
• The SHG’s existence depends on the collaborative efforts of the member with the groups. Women dominate the bulk of the Self-Help Group. They work for the prosperity of girls in their respective committees.

 Powers of NGO and SHG

The NGO and SHG hold limited power. the most disparity between NGOs and SHG is that an SHG is a smaller amount potent than NGOs. the popularity level of non-governmental organizations is unparalleled as compared to SHG.

They operate welfare activities generally within a gaggle of states or the entire nation. This makes their work more prominent within the eyes of individuals also because of the government. It makes them attain more applause and distinction as compared to self-help groups.

What is the functionality of work under NGO and SHG?

The self-help group serves a limited area of governance, and that they operate with narrow working criteria. Their motto is to support help seekers who are handling uncertainties and pounded by financial issues.

Let’s understand the notion of NGO and an SHG via some practical examples.

• An NGO radically addresses a more significant segment of the population. CRY, which is considered the leading NGO in India works for the upliftment of underprivileged children. The dominance and reach of this NGO are somewhat unparalleled because it works pan India. It addresses an outsized pool of underprivileged children within the country and provides them with better education, food, and sanitation, unlike SHGs.
• This organization is functioning proactively for the prosperity of youngsters and prevents them from becoming a victim child labour. As an example, the Anganwadi, a welfare program, provides food for under-nourished children. Thus, this welfare work renders dual benefits. On the one hand, it gives better food to the needy children and, on another, helps the workforce of Anganwadi proportion the work.
• SHG generally provides aid to the smaller section of society. A women-oriented workforce usually backs them. they supply support to every other, and that they raise the fund within the group. The SHG work profile is smaller than NGOs, but their commitment toward their goals is unparalleled.

Conclusion

Therefore, this is the complete guide to the NGO and SHG variations. Hopefully, for now, you have no problem with the idea of NGO and SHG. The two organizations, at least in terms of purpose, do not adhere to complexity. Despite many differences, its motto is more or less identical.

However, for someone whose purpose is to do good deeds for society, the creation of an NGO may be a tedious affair. The explanation is that the new NGO needs to get NGO registration to carry out its operations. The Ngo registration comes with various benefits for the NGO.

We provide all kinds of legal services like Trademark Registration, Company Registration, FSSAI License, and many more. So, contact the expert team of “LegalRaasta”, for a completely smooth and hassle-free process.

For NGO Registration– in Trust, Society and Section 8 company. Log into our website LegalRaasta..  You can download our app which is easy to access in android mobiles  LegalRaasta APP. Also, you can give us a call at 8750008585 and feel free to send your query on Email:contact@legalraasta.com

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NGO Registration is mandatory for the organization which is planning to work for the welfare of society. An NGO is a non-government organization with a charitable purpose, for the progress of society worldwide. It can be started as a Trust, a Society or Section 8 Company (a Non-Profit Company ) depending on the project you want to undertake. NGO’s could have a broad variety of interests of society in mind.

This could add Environmental causes, human and/or animal rights, improving the health and welfare of children, expansion work and could even involve raising awareness regarding some causes or activities of social importance.
In India, NGO is a term for all non-profit organizations involving Trust, Society and Section 8 Company. Other titles for such not-for-profit organizations are “Sangathan”, “Sangh”, “Sangam”. Income tax exemption is open for all non-profit NGOs. These are sometimes mixed with non-profitable companies, which refers to a regular business is not making a profit.

Forms in NGO Registration

• Form INC 1: Name registration of NGO
• Form INC 12: Form should be submitted to acquire a license to run an NGO
• Form INC 13: Memorandum of Association
• Form INC-15: It is a declaration by each subscriber to the Memorandum
• Form INC 7: Application for Incorporation of the NGO.
• FORM INC 22: Details of the Registered Address
• Form DIR 12: To appoint directors of the NGO
• DIR 2: Consent of Directors
• DIR 3: Application to ROC to get DIN
• DIR 12:Appointment of Directors

Laws Governing NGO Registration

The NGO registration procedure in India comes under the jurisdiction of the laws established under the procedure to register NGOs in India. The NGO registration system in India is regulated as follows:

• Indian Trusts Act, 1882 for Trust Registration
• Societies Registration Act, 1860 for Society Registration
• Companies Act, 2013 for Section 8 Company Registration

Types of Registration of NGO in India

Trust

The first way to register an NGO is Trust or more commonly called Charitable trust. Trust is a legal entity formed by the “trustor” or “settlor” who shifts the assets to the second party or “trustee” for the profit of the third party or “beneficiary”. Trusts are created to assist and encourage the seized sections of society. Any group of individuals can register a trust and in India, as such there are no particular laws to administer the public trust, though, some states like Maharashtra and Tamil Nadu have their own Public Trust Act.

Societies

A society is an entity that can be formed by a group of individuals united in their cause for developing science, arts, literature, social welfare, and useful information. Also, societies work for building military orphan funds, maintaining public museums and libraries.

Societies are administered by the Societies Registration Act, 1860. They must be listed with the respective state Registrar of Societies to be eligible for tax exemption.

Section 8 Companies

A Section 8 company is related to trust and society. The purposes of Section 8 Companies are to better arts, science, commerce, sports, social welfare, religion, charity, and environmental protection. They are registered under the Companies Act, 2013 for a charitable purpose. They have bigger credibility amongst government bodies, donors and other stakeholders.

Procedure for NGO Trust registration

 1. Complete our NGO Registration Form. You are expected to fill your details in our simple online questionnaire.

 2. Get the Prerequisites details and complete the documentation.

 3. Compile a trust deed on the basis of the details provided by you for Trust Deed registration, a Trust deed will be compiled.

 4. Trust Deed Registration, Society Registration or section 8 company Depends on which type you are applying for. The trust deed so compiled will be submitted to the relevant local registrar for registration

5. Your Trust NGO is now registered. Once your Trust NGO is registered, we shall send you Trust Deed via courier.

Benefits of register an NGO in India

• A registered NGO gets the legal status and becomes responsible for the funds received. For instance, when an individual donates funds to a charitable trust, it is taken under the name of the organization and used for the trust’s activities. In an unregistered firm, the assets can be taken under anyone’s name and maybe practiced for their own profit.
• An organization that is registered as an NGO strengthens the ethical, social and legal standards of our society.
• The basic necessity for running an NGO is to have a bank account under its name. To open an account, it is compulsory to be registered as a Trust, Society or Section 8 Company.
• The registration of an NGO is required to seek tax exemption from the Income Tax Authority.

Documents Required for NGO Registration

Here we list down the mandatory documents required for registration of an NGO

• Copy of MOA & R.R of the Society in duplicate.
• Copies of Special Resolution in duplicate (General Body).
• Copies of Notice in duplicate.
• A sworn affidavit by President or sectary
• Declaration by President of Society
• Copies of Minute of Society Governing Body).
• List of Governing Body. f. Copy of Comparative List of Amendment.
• Copy of Election proceedings with Notice. h. Proof of Notice received.
• Copies of application form for new members.
• Copies of resignation letter. k. Annual List of Governing Body (Sec.4).
• N.O.C. from the owner of the new registered office of the Society.
• Ownership proof of the new registered office of the Society. n. ‘No Dispute’ affidavit from President.
• Address Proof of Registered office and No-Objection Certificate (NOC) from the landlord

Difference Between Trust, Society and Section 8 company

Frequently Asked Questions 

1)What is the full form of NGO?

The full form of NGO is Non-Governmental Organization.

2)What is the NGO Registration?

Register an NGO means any non-profit organization that serves for a charitable cause. In India, an NGO can be set up as a Trust, a Society, or a Section 8 Company this NGO registration.

3)What to register – Trust, Society or Section 8 Company?

It’s all depending on the type of work you want to do, it is best to apply accordingly. For making an NGO registration log into our portal Legalraasta. Our expert team will guide you.

4)How to register NGOs?

1. Decide the purpose and mission of your NGO
2. Set up the board of Directors/members
3. Select the name of your NGO
4. Memorandum – Articles of Incorporation/ Articles of Association
5. Get your NGO registered
6. Start raising funds
7. Get connected

5)How to open NGO?

Besides having the enthusiasm to work for the welfare of society, legally, there are some procedures to follow, these are:-

• Firstly, lay down the purpose of your NGO, this means what cause you would like to take up.
• Form a regulatory body, this body ensures the smooth running of the NGO.
• Finally, register your NGO with the government authorities. This step can be long and severe. But, for a seamless experience, you can contact Legalraasta.

Our experts will guide you at every stage of the registration process.

6)Why register an NGO?

There are many reasons why it is more satisfying to register an NGO. One of the most important ones in funds. As an NGO you will get funds from different quarters. The money you get from donors has to be put in a bank. To open a bank account under a company or an NGO, you require to have some documents. The registration of an NGO gives you documents to show that funds are taken in the NGO’s name.

7)Can any government employees or officer be a member of NGO?

Yes, Government employees or officers can be part of NGOs gave the NGO is not anti-government. There are some rules too that these people have to follow, one of them is to make sure that the NGO is not profit-making.

8) What are the documents required for NGO Registration?

• A requesting letter for registration signed by founding members stating the purpose of formation
• Certified copy of MoA
• Copy of the rules and regulations members will abide by
• Name, Address, Occupation of all members of society with signatures
• Minutes of meeting
• Declaration by President of Society
• Sworn affidavit
• Address Proof

9) Which are the laws applicable to an NGO?

NGOs can be registered in India under any of the following laws:

a. Trust under Indian Trusts Act, 1882
b. Society under Societies Registration Act 1860
c. Section 8 Company under Companies Act, 2013

For NGO Registration– in Trust, Society and Section 8 company. Log into our website LegalRaasta.

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