Getting A Basic Understanding Of The Functioning Of An NGO

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HelpAge India Getting A Basic Understanding Of The Functioning Of An NGO NGO is an acronym which stands for a non-government organisation. They are voluntary citizen based non profit organisations who work for causes directly or indirectly benefitting the supressed and the deprived sections of the society. These organisations can function on a local scale, a national scale and even on an international scale.

In India an NGO is also referred to as a non profit organisation and as the name suggests profits earned by these organisations cannot be distributed or gained from. They have to be either reinvested or used for the better performance of a social cause. The source of funding for an NGO may be in the following forms:     

Donations, Monetary grants obtained from unilateral as well as multilateral agencies, Membership fees collected, Interests or dividends obtained from investments made in its name and Other miscellaneous sources.

In India, the types of associations which can be classified as an NGO are:  

A registered trust with one or more trustees which can register itself as per the provisions of the Indian Trusts Act of 1982 and A company which is registered under section 25 of the Companies Act of 1956,

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