Background
In 2017, the Ministry of Home Affairs of India cancelled the license of 4800 non-governmental organisations (NGOs). According to Foreign Contribution Regulation Act (FCRA) these NGOs have not filed their annual returns between 2011 and 2015. The attack on foreign funding of civil society has society hasn’t resulted in the sudden rise of domestic donations and supporters, and the optimism of those in the NGO world has faded. Instead, the clampdown has seen many organisations simply fold. It’s estimated that at least 10,000 FCRA licenses, needed to receive foreign funds, have been revoked. Some of this is purely administrative – organisations failing to submit the proper paperwork. But it was also tactical on the part of the government: requiring short turnaround times, or digital returns for small organisations presents a huge barrier to organisations lacking capacity.
After proper registration under the relevant Act, an NGO, whether it is a Society, Trust or a Section – 8 Company may require to get a variety of optional and mandatory registrations, depending upon the works and size of the NGO. Again, these registrations can be applied for as and when specific requirement arises. Thus, it is vital to understand various compliances to be maintained by non-governmental organisations (NGOs). Some of these compliances are:
- PAN Card for NGOs
- Service Tax, VAT, Professional Tax Registrations
- TAN Registration
- FCRA Registrations
- 12 A certificate & 80G certificate
- Registrations related with retirement benefits, including Provident Fund, ESIC, Gratuity
Objectives
The main objective of the second edition of ‘Skill to Succeed’ is to reflect on various compliance issues related to social sector. The specific objectives are as follows:
- To understand the compliances related to NGO
- Annual Report and the updated List of the members of Governing Body
- Financial Statements
- Income Tax Returns
- Compliance under the FCRA, 2010
- Important Resolutions
- Compliances under the above-mentioned legal authorities applicable.
Format
This edition will be divided into two sections:
- Chalk-talk that will have reflections from experts to understand the compliance challenges of social sector
- Avsar training program that will cater compliance management of the social sector.
Stakeholders
Non-profit organizations, community-based organizations, small enterprises, start-ups, micro-finance institutions.
