A PROJECT

REPORT ON
NON-PROFIT SECTOR IN INDIA
“THINKSHARP FOUNDATION”
25th Jan. 2019 – 15th Feb. 2019
Submitted By: SONU
SHRIMANT AYARE
MMS (FINANCE)
ROLL NO: 04

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

MASTER OF MANAGEMENT STUDIES
BATCH 2017-2019

ALKESH DINESH MODY INSTITUTE FOR FINANCIAL &

MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI

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 Table of Contents
SR. Content Page Number
No.
1 Define Non-for-profit organization / NGO, it’s types 3
and legal structures
2 Explain Non-for-profit organization’s challenges 9
and opportunities
3 Current scenario of Non-profit sector in India and 13
scope
4 Define NGO registration process in Maharashtra. 16
(Types of NGO, Legal structures and process)

5 What is 80G and 12AA Income tax ACT and its 23

benefits to NGO and Donors
6 What is FCRA Act and how it helps NGO 28
7 Which are the various fund-raising options for non- 30
profit / NGO
8 Describe CSR ACT in details and how it helps to 36
NGO’s and corporate
9 About Thinksharp Foundation (Profile, Work, 41
Team, Awards, etc.)
10 Write about field visit and your learning (Project 46
details, Impact, you
11 Your feedback / suggestion to Thinksharp
Foundation (Please be specific about your 47
suggestion’s. E.g. in social media or fund raising
or project implementation)
12 Social problem you concern about and solutions
for it (Select the social problem around you at 47
small or large level and provide solutions)
13 Learning from research and field visit 49

14 Reference 50

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1.Define Non-for-profit organization / NGO, it’s types and legal structures?

Definition

A nonprofit organization is a business granted tax-exempt status by the Internal

Revenue Service (IRS). Donations made to a nonprofit organization are typically
tax deductible to individuals or businesses that make them, but the nonprofits
must make financial and operating information public so that donors are certain
their contributions have been used effectively. Nonprofits pay no income tax on the
donations they receive or on any money they earn through fundraising activities.
Nonprofit organizations are sometimes called NPOs or 501(c)(3) organizations
based on the section of the tax code that permits them to operate.

Two broad groups of NGOs are identified by the World Bank:

Operational NGOs, which focus on development projects.

Advocacy NGOs, which are organized to promote causes.

Certain NGOs may fall under both categories simultaneously.

Examples of NGOs include those that support human rights, advocate for
improved health or encourage political participation.

While the term "NGO" has various interpretations, it is generally accepted to

include private organizations that operate without government control and that are
non-profit and non-criminal. Other definitions further clarify NGOs as associations
that are non- religious and non-military.

Some NGOs rely primarily on volunteers, while others support a paid staff.

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 NGO types by orientation:

1. Charitable oriented NGOs,

2. Service Oriented NGOs,
3. Participatory Oriented NGOs,
4. Empowerment-Oriented NGOs.

NGO types by Co-operation levels:

1. Communal based NGOs,

2. City Wide NGOs,
3. Nationwide NGOs,
4. International NGOs.

NGO Structural types in India:

1. Trust
2. Society
3. Nonprofit Companies. (Charitable Foundations including private & public)

The structure of the NGOs and NPOs in India vary by its nature and bye-laws which
represents the objects of the organization. Bye-law or memorandum will be
created during the establishment of the above structural types of NGOs. The structural
types of NGOs vary by the body of the organization like a minimum number of
members, maximum number of members, filing of accounts, operation of
organization, area of operation, nature of an organization like revocable or non-
revocable and several other
structural elements.

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Legal Structure of NGO

Top Management:

The top management of an NGO consists of three entities - the Board of Directors, the
General Assembly, and the Executive Director.

1. At the top is the Board of Directors of the NGO. An NGO Board is a

legal requirement in most countries in order to get it officially registered with the
local authorities. Many NGOs stipulate that membership in a board is
voluntary and non-remunerative 2 . Board meetings are kept closed,
though written proceedings, reports and minutes may be made public
for transparency
purposes.

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 Depending on the type of NGO, a Board may be responsible for a few tasks, for
example hire and supervise the Executive Director, develop and
approve budgets, etc. Board members will also be expected to champion
the NGO's cause, and represent the NGO to the larger community. Many NGOs
also expect board members to help raise fund for their projects 3 .

2. Next comes the Executive Director, who may also be called by other names such
as Coordinator, Chief Operating Officer, or CEO. He or she is responsible for the
overall direction in which the NGO moves, and the responsibility for
managing the day-to-day activities of the NGO. The Executive Director is also
member of the board - usually its Executive Secretary. He or she reports to the
Board.
3. The Board of Directors and the Executive Director may be assisted by advisors.
These advisors are optional but are useful to create a good image of the NGO
and enhance its "brand name" besides providing specialist advice for the NGO.
4. In some cases, a General Assembly may be set up at this level.
Especially in cases where the NGO is a membership-based NGO, the General
Assembly is a group of all such members, including its board members and staff
members. The General Assembly usually meets annually or biannually and is
held sequential to a Board Meeting.

While day-to-day decisions activities and management are taken care of by the board,
the executive director and the staff members, the highest body that guides and advises
the overall development and progress of the NGO. A general assembly may or may not
be required by law, but such a body helps in creating a good transparent image for the
NGO, in building trust with its partners and stakeholders, and in public relations
and fund-raising activities.

Depending on the NGO's by-laws, members of the General Assembly can also
participate in the meetings by proxy, usually deferring to the Executive Director to cast
their vote when needed.

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Staff Members

Staff members of an NGO are responsible for the day-to-day functioning

and implementing of its programmes and projects. They report to the Executive
Director, who overall is responsible for the NGO's activities. (See Figure 3) Staff
members of an NGO fall into three groups - responsible for activities related to (1)
administration, (2) publicity and (3) programmes/projects.

1. Administrative activities are led by an administrative manager. This manager may

have several staff members assisting him/her, including a Finance Assistant or a
Membership Coordinator. Besides the financial management of an NGO, a
Finance Assistant may also be responsible for fund-raising activities of the NGO.
This means that he/she will have to work closely with the staff members
responsible for communications and dissemination, as well as those responsible
for programmes/projects. In the case of larger NGOs, this fund-raising
responsibility may fall under a separate position specifically set up for the
purpose. The membership coordinator manages the NGO's
members, membership fees, customer relations etc.
2. Communications and dissemination activities are the responsibility of a staff
member at the level of a manager. This manger may be assisted by other staff
members such as a Public Relations Assistant, a Publications Assistant, or
a Web/Social Media Assistant. The Public Relations assistant works closely
with both the Finance Assistant and Membership Coordinator on one hand, and
the Programme Manager on the other, to publicize its activities and build a
"brand name" for the NGO. Similarly, the publications assistant will have to work
with the public relations and web/social media assistant in order to make sure the
NGO'S publications are disseminated widely and in a timely manner.
3. Programme and project activities of an NGO are led by a manager. This is, of
course, the biggest part of an NGO's activities, and forms its structural core. A
Programme Manager may be assisted by several Project Assistants,
Training

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 Assistants, and other Assistants, depending on the number and size of the
projects being implemented. Short-term external consultants, who
provide specific services for projects, or field staff who are hired to implement
projects in the target community, also fall under this section.

The staff positions and responsibilities outlined above are not, of course, fixed. NGOs
can have other staff members too, or shared/related responsibilities can be held by one
person. For example, related responsibilities of Membership Coordination and
Public Relations can be handled by the same staff member. In cases where an NGO is
just starting, or in the process of developing, this consolidation will particularly be
true, where one staff member may be handling more than one and related
responsibilities.

Details of all staff members, their roles and responsibilities, and overall NGO structure
are concretized by including them in the NGO's by-laws. By-laws are needed for
the legal registration of an NGO, and can be added to, or changed, with the approval of
the Board of Directors and the General Assembly. The organizational structure itself
may change over time, depending on how the programmes and projects are, and new
ones initiated.

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2. Explain Non-for-profit organization’s challenges and opportunitiesChallenges:

1. Philanthropy and the War Against Economic Inequality

For many people, a donation of millions of dollars to their alma mater or an art program
perpetuates the income gap. Instead, they believe the money should be used to combat
poverty. Unfortunately, this trend means that your nonprofit may have a tough
time convincing donor to contribute.
2. Shrinking Help from the Government
Many nonprofit organizations depend on the assistance of the government. Assistance
may be in the form of grants or part of a matching scheme, or it may merely serve as a
safety net to fill the gap when funds are short. Shrinking budgets at state, national and
city levels mean there is less to go around. Most nonprofits end up getting less than
they are used to receiving, and some are cut out completely.
3. Stable Income and Accurate Budgeting
Having a steady income from any source is hard for nonprofits, and that can
make budgeting a real challenge. Moreover, income may be unsteady throughout the
year, so your focus usually falls on securing enough to cover overhead before seeing
what is left for projects, and the organization often runs on a shoestring just in case.
4. Pressure to Show Results
In the past, the emphasis in the not-for-profit world was on showing that programs were
being used. Foot traffic and event attendance mattered most. Now, largely
because there is less to go around, the pressure has shifted. Your NfP must
demonstrate that its objectives are being achieved. For example, a program for adult
literacy must prove that students are learning to read and comprehend material rather
than show strong class attendance.
5. Not Running It Like a Business
With some much emphasis on performance, your nonprofit may struggle
with remembering that it's still a business that must have a positive bottom line, or at
least, it must break even. Nonprofits often put their local goals at the forefront
and their business objectives second, which is fine until there's not enough coming
in to cover
what is going out.

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 6. Attracting the Right Staff with Limited Resources
This leads to a secondary issue: attracting the right staff. When money is tight,
you might be able to attract people who believe in your cause, but they may not always
be the top talent in their fields. It can be difficult to justify a large salary or benefits
package at a nonprofit, and that can lead the best and brightest to look elsewhere.
7. Increase in Need for Services
Across the board, nonprofits are seeing an increase in the need for their
services. Poverty is a real issue, and many people are facing economic
hardships. The environment needs saving, and arts programs in many schools
are being cut, which puts the burden on local nonprofits.
8. Growth Is Risky
On the flip side, even if your nonprofit gets enough funding to serve all the
people it wants, attracts the right talent, and manages to turn a small profit, growth is
precarious. Usually, that funding is not guaranteed, and the staff is not contracted to
stay, so putting money into growth is a gamble.
9. Working Itself Out of a Job
Successful nonprofits face additional issues: They could work themselves right out of a
job. Let's say that the objective of your organization is to find employment for
area veterans, and it does so, continually growing and evolving its services to meet that
goal. Once it does, the demand for its services may decrease, which then puts the
pressure on the nonprofit to either scale back or expand its offerings in size, scope or
geography.
10.Eye on the Bottom Line
Qualified financial professionals and business managers may be able to analysis your
nonprofit's finances and suggest the most useful places to put its efforts, but having a
dedicated financial staff is beyond the means of most nonprofits. Instead, people
in nonprofits tend to wear many hats. Being generalists can mean that there is no one in
your organization who has the dedicated knowledge those upper-level business
and finance functions require.
Not-for-profit organizations face a range of challenges, some of which are
obvious, while others are less so. In order to remain solvent and functional enough to
achieve the
social goals set by your nonprofit, you need to be aware of these issues and how they
could be affecting your business. Nonprofits that are serious about being around for the
long-term need to create strategies to mitigate these challenges and use them
as a starting point for developing a comprehensive business strategy. Approaching not-
for- profit strategy from this perspective is essential to developing the nonprofit's
business operations.

Opportunities:

Local Resource Mobilization provides potential for NGOs to raise funds from local
businesses, individuals, government and locally generated income. To do this
NGOs must have strong governance and accountability mechanisms, clear strategies
and local credibility.
Local Networking provides opportunities for mutual learning, identifying appropriate
development initiatives, generating learning resources, improving coordination and
cooperation with local government, harmonizing approaches to development, and
pursuing effective local advocacy. Form consortia to source funding from the
donor community (larger projects to access larger donors).
Regional NGO Networks: Regional and thematic networks present opportunities to
NGOs to share research, approaches, resources, capacity and work with and the
corporate sector. Strong regional networks also provide the basis for supporting district
level networks and ensuring the NGO Council remains strong by keeping
its membership strong.
Corporate Social Responsibility: The concept and practice of CSR is taking hold in India
and many companies are now establishing foundations and development funds for use
by CSOs.
Use Volunteers: India has a huge supply of idealistic, young, energetic and well-
educated graduates who are unemployed or underemployed. Many of them are
searching for opportunities to serve their country and get work experience. There are
also many older experienced professionals willing to give their time to NGOs.
Many companies will loan experienced personnel to NGOs. Finally, there are
opportunities to
appoint international volunteers to fill vacancies that would otherwise require

11
unavailable funds to fill. Student exchange programmes also offer NGOs low cost
human resources that can support research, documentation and staff capacity building
initiatives
NGO Income Generation: NGOs with excess assets can use them to generate income
which may be used as the NGO determines. Consider renting buildings, providing
consultancy, offering training, trading on your name or with locally made products.
Selected INGOs provide potential partnerships: Progressive INGOs are looking to
partner with local institutions and can provide financial, technical and institution building
support. Some also support thematic and issue-based advocacy initiatives that enhance
local networking and address the structural causes of poverty, inequity and injustice.

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3.Current scenario of Non-profit sector in India and scope?
The presence of the British in India influenced the concept of secular voluntary
activity. In the eighteenth and nineteenth centuries, the work of Christian missionaries in
the field of education and health care, especially in remote tribal areas, were examples
of dedicated service to the poor and marginalized. The Christian missionaries delivered
charity and social service to the poor in an organized manner. The
BrahmoSamaj in Bengal, AryaSamaj in north India and the Ramakrishna Mission in
different parts of the country also provided outstanding social services. Following closely
the earlier pioneers, Mahatma Gandhi promoted secular activities through spinning,
promotion of cottage industries, decentralization of power and village economy
that promoted meeting immediate physical and livelihood needs. The origin and
development of the voluntary sector in India has been shaped by two major
influences: one rooted in indigenous traditions and value systems, and the other
a product of the interface between the Indian society and the western world.
After the Independence, there was awareness that development to be
meaningful requires mobilization of resources, public cooperation and creation
of social capital. Gradually, professionals from various disciplines joined the
voluntary sector to undertake multi-sectoral development work. According to the
Report of the Steering Committee on Voluntary Sector for the Tenth Five Year Plan
(2002-07), Planning Commission, Government of India 3 (January
2002), ‘India has a rich tradition of voluntary action. Over the years, the voluntary sector
in India has expanded considerably covering almost all development related activities.
Last year's report highlighted the growing importance of individual givers in
India's philanthropic landscape and defined what constitutes "strategic giving." This
year's report, developed in collaboration with Dasra, goes a step further to
explore how philanthropists can give more effectively to increase the impact of their
giving. But more importantly, it marks an inspiring stage for philanthropy in India,
where an increasing number of philanthropists are joining the cadre of structured and
strategic philanthropy, irrespective of their quantum of giving.
Giving in itself is a noble act regardless of the motivation or approach. It can be one of
the most personally rewarding experiences. However, the seriousness, scale and

13
complexity of India's social problems require philanthropists to go beyond
personal satisfaction. Between 2004 and 2015, India recorded 2.24 million crimes
against women, and 1.08 million children died before their fifth birthday in 2017 alone.
These ongoing problems underscore the need for individuals not only to
contribute greater resources but also to ensure that their contributions are
strategic enough to have a marked effect on key social development indicators.
Fortunately, a growing number of philanthropists in India are beginning to act upon this
need. This report focuses on the philanthropists who have already begun their
giving journeys and are now strategically exploring or revisiting questions such as: How
has my giving made a difference? How can I achieve the desired change? Whilst there
is no single right way to give, philanthropists can achieve their full potential by
contemplating those questions and seeking a path to answering them. This report
attempts to uncover lessons and best practices to help them on their path.
In-depth interviews with more than 30 philanthropists revealed four key mindsets that, if
embraced, can help givers realize their full philanthropic potential. The report begins by
breaking down these four mindsets, articulating steps each donor can take
to strengthen these mindsets and illustrating real-life examples of philanthropists who
have successfully done so.
It is worth noting that the philanthropists profiled in this report are newer to philanthropy
than those showcased in the 2017 report. They are often first-generation givers
who make their own decisions about their philanthropy. Most of them have chosen to
give to existing nonprofits in India and are in fact investing in multiple
organizations simultaneously. We highlight the insights of this new cohort with
case studies in the hope that many more will be inspired to take the leap into
giving in an ambitious yet strategic manner and to contribute towards a
transformed India, where 1.3 billion
Indians can thrive with dignity and equity.

NGO Scope
Non-Government Organizations are the non-profit voluntary groups established at local,
national or international level. They perform different tasks for solving problems
and development of society. NGOs relate to government or private sector firms. They
deal
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with some social issues like women empowerment, girl child, gender issues, education,
pollution, street children, slum dwellers, health, urban development, human rights,
concerns of less privileged etc. NGOs bring up people's concerns and issues to
the government and policy makers non-profit making, voluntary,
service- oriented/development-oriented organization, either for the benefit of
members or of other members of the population.
It is an organization of private individuals who believe in definite basic social principles
and who structure their activities to bring about development to communities that they
are servicing. An independent, democratic, non-sectarian people’s
organizations working for the empowerment of economic and/or socially
marginalized groups. As a result, development of courses in the non-profit stream
had also taken a back seat. However, now the scene is entirely different.
Government policies, work of the existing NGOs and the media have a lot to do
with bringing Non-profit management into a normal career option.

NGO Scope India

A Non-Governmental Organization (NGO) is an organization of certain individuals who
have come together to work for a cause with a non-profit motive. If you wish to start an
NGO in India, you need to get it registered either as a charitable trust or as a society
registered under the society’s registration act or as a company licensed under section
25 of the companies act.
Non-Government Organizations are the non-profit voluntary groups established at local,
national or international level. They perform different tasks for solving problems
and development of society. NGOs relate to government or private sector firms. They
deal with some social issues like women empowerment, girl child, gender issues,
education, pollution, health, slum dwellers, street children, urban development,
human rights, concerns of less privileged etc. NGOs bring up people's concerns
and issues to the
government and policy makers.

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 4. Define NGO registration process in Maharashtra. (Types of NGO, Legal
structures and process)

Two broad groups of NGOs:

Operational NGOs, which focus on development projects.
Advocacy NGOs, which are organized to promote causes.
Types of NGOs
Several NGO variations exist, including:
BINGO: business-friendly international NGO (example: Red Cross)
ENGO: environmental NGO (Greenpeace and World Wildlife Fund)
GONGO: government-organized non-governmental organization (International
Union for Conservation of Nature)
INGO: international NGO (Oxfam)
QUANGO: quasi-autonomous NGO (International Organization for
Standardization [ISO])
NGO types by orientation:
Charitable Orientation often involves a top-down paternalistic effort
with little participation by the "beneficiaries". It includes NGOs with
activities directed toward meeting the needs of the poor -distribution
of food, clothing or medicine; provision of housing, transport, schools
etc. Such NGOs may also undertake relief activities during a natural or
man-made disaster.
Service Orientation includes NGOs with activities such as the provision of
health, family planning or education services in which the programme
is designed by the NGO and people are expected to participate in
its implementation and in receiving the service.
Participatory Orientation is characterized by self-help projects where local
people are involved particularly in the implementation of a project by
contributing cash, tools, land, materials, labour etc. In the classical
community development project, participation begins with the need

16
 definition and continues into the planning and implementation stages.
Cooperatives often have a participatory orientation.
Empowering Orientation is where the aim is to help poor people develop a
clearer understanding of the social, political and economic
factors affecting their lives, and to strengthen their awareness of their
own potential power to control their lives. Sometimes, these groups
develop spontaneously around a problem or an issue, at other times
outside workers from NGOs play a facilitating role in their
development. In any case, there is maximum involvement of the people
with NGOs acting as facilitators.
NGO Types by level of operation:
Community-based Organizations (CBOs) arise out of people's own
initiatives. These can include sports clubs, women's
organizations, neighborhood organizations, religious or educational
organizations. There are a large variety of these, some supported by
NGOs, national or international NGOs, or bilateral or international
agencies, and others independent of outside help. Some are
devoted to rising the consciousness of the urban poor or helping
them to understand their rights in gaining access to needed services
while others are involved in providing such services.
Citywide Organizations include organizations such as the Rotary or lion's
Club, chambers of commerce and industry, coalitions of business, ethnic
or educational groups and associations of community organizations. Some
exist for other purposes and become involved in helping the poor as one of
many activities, while others are created for the specific purpose of
helping the poor.
National NGOs include organizations such as the Red Cross,
YMCAs/YWCAs, professional organizations etc. Some of these have state
and city branches and assist local NGOs.
International NGOs range from secular agencies such as ReddaBArna
and Save the Children organizations, OXFAM, CARE, Ford and

17
 Rockefeller Foundations to religiously motivated groups. Their activities
vary from mainly funding local NGOs, institutions and projects,
to implementing the projects themselves.

Prerequisites
Prior to the registration of an NGO and its functioning thereof, there are certain
prerequisites that are to be followed (or kept in mind): The first step is to decide
the concerns and the issues that the NGO would be dealing with. An NGO can deal
with social issues such as poverty, education, woman empowerment etc. The purpose
of the NGO would be guided by section 2(15) of the Income Tax Act, 1961. This
will give direction to your actions and would ensure that your actions are in consonance
with the objectives (in mind). This would, thus, ensure the meeting of ‘theory’ and
‘practice’. Hence, to plan and give objective and vision to your charitable venture
becomes the first and one of the most important steps. The next important step is
the formation of a
‘governing body’ that would be responsible for taking all the decisions regarding
the establishment, working and functioning of the NGO. Therefore, such a body would
deal with all important matters from planning, fund raising, human resource, IT etc. The
next step is the formulation of a Memorandum of Association (MOA). It is not
merely a procedural formality, but a legal requirement. The MOA should include details
such as the name of the NGO, its members, address of the office, addresses of the
members, mission and objectives, rules and regulations of the NGO etc.
Registration Process
After the prerequisites have been met, the NGO can be registered as per the provisions
of any three of the Acts i.e. (Companies Act (2013), Societies Registration Act (1860) or
Indian Trusts Act (1882)).
1. NGO as a ‘Section-8 Company’: If the NGO is intended to be in the form of an
organization ‘for promoting commerce, art, science, sports, education,
research, social welfare, religion, charity, protection of environment or
any such other object[2]’, the NGO can be registered as a ‘Section-8
Company’. Thereafter, it must function as a not-for-profit organization and
thus, all profits
generated during its functioning must be applied for promoting the objectives
 of the organization i.e. no dividend can be paid to the members of the
company.
2. NGO as a Society: An NGO with seven or more members can be registered as
a society (under the provisions of Societies Registration Act). Even though the
process of registration is more cumbersome and complex than other
methods, a society gives more flexibility in its functioning and working.
3. NGO as a Trust: A charitable trust offers the simplest process of formation. It is
not legally required to get a trust registered. However, registered charitable
trusts enjoy certain benefits and exemptions such as income tax benefits. The
subject-matter of a trust must be property transferable from one person
to another.
Fund Raising
The next step after the registration process is complete is the raising of funds. Funds are
necessary for the working of the NGO. And the required funds can be raised from two
sources i.e. internal sources as well as external sources.
1. Internal sources: NGOs majorly depend on internal sources for funds. These
funds are generated from within the organization. These types of
sources include subscription, donation, membership fees, charges etc.
2. External sources: Funds generated from outside the organization are covered
under external sources. Grant-in-aid from the governments, grants or
loans from private individuals or institutions within the country or inflow of
foreign
funds are termed as external sources.
Network
No organization can work in isolation. Therefore, it is necessary for an NGO to develop
its network with government agencies, other NGOs, media, institutions such as schools,
hospitals etc. This would not only help generate more funds for the NGO or
more participation in the NGO but would also be important for spreading awareness and
the benefits of the activities undertaken by the NGO. Thus, helping the NGO
achieve its objectives in a more efficient and seamless manner. After understanding the
steps for the formation of an NGO, it is imperative to look at the various procedures
involved and
the benefits provided by the three structures of the NGOs i.e. NGO as a
Section-8

19
Company, Society or Trust. This would help choose the ideal form for the purpose of
which the NGO has to be established. Therefore, there are certain factors upon which
this decision rests. These factors include time constraints, aims and objectives of the
NGO, required funds, fund raising ability, location of the NGO, amount of
flexibility desired etc.
Section – 8 Companies Act,
2013
To register as a Section-8 company, the provisions regarding incorporation of a
company as contained in the Companies Act, 2013 would be applicable. Thus, Section-
8 companies would be governed by the same act throughout the country. In this sense,
they are very similar to other limited companies. Only few differences exist such as a
section-8 company does not have to add the word ‘limited’ at the end, the
income generated through its working cannot be paid as dividend to the shareholders, it
enjoys tax benefits which are enjoyed by the trusts etc. The incorporation and the
registration of the section-8 companies are also like that of normal companies. Thus,
Memorandum of Association (MoA) and Articles of Association (AoA) form the cardinal
documents of the Section-8 Companies too. Apart from the normal procedure, an
application ‘Form INC-12’ must be submitted to the Registrar to grant the
permission to drop the word
‘limited’. A minimum of three trustees are required for the incorporation of such
a company however, no upper limit has been provided for. It is important to note that
such a company can be found only if the intention of such a company is ‘for
promoting commerce, art, science, sports, education, research, social welfare,
religion, charity, protection of environment or any such other object. It usually takes
around 3-6 months for completing the formalities and legal requirements. Even
though it takes comparatively longer time to establish, it is preferred by many because
it can generate lot of funds on one hand (by issuing new shares) and it also leads to
democratization of the decision-making power as every member gets voting rights
proportionate to their shares. Thus, it ensures higher level of participation and
involvement of the maximum people.
Society
An NGO can be established as a society under the Societies Registration Act,
1860. Section 20 of the Act lays down certain areas of working in which an
NGO can be
20
formulated as a society. These include Charitable societies, the military orphan funds or
societies established at the several presidencies of India, societies established for the
promotion of science, literature, or the fine arts for instruction, the diffusion of
useful knowledge, the diffusion of political education, the foundation or
maintenance of libraries or reading-rooms for general use among the members or open
to the public, or public museums and galleries of paintings and other works of art,
collections of natural history, mechanical and philosophical inventions, instruments, or
designs.
It is imperative to note that, unlike Section-8 companies that are governed by
the provisions of the same act throughout the country, Societies are governed by
the respective state acts (in the absence of which, they are governed by the
Societies Registration Act). Legally, minimum 7 members are required in the
managing committee of a society. For registering as a society, certain documents
such as the Memorandum of Association (MoA), Document enlisting the rules and
regulations governing the society and other documents from the members such as
affidavits, consent letters etc. The incorporation of a society takes around 1-2
months only. Moreover, a society is more democratic and provides more flexibility than
other forms by providing powers and duties in the documents themselves.
Charitable Trust
An NGO can be established as a trust when there is a property involved. Thus,
the subject-matter of a trust must be property transferable from one person
(settlor) to another (trustee). The trustee must act according to the ‘trust deed’
and utilize the property for the benefit of the ‘beneficiary’. A public trust is governed by
the laws passed by the respective states (in the absence of which, it will be
governed by the Indian Trusts Act). With regards to immovable properties, a
written trust deed is necessary which is to be registered with the Sub-Registrar
whereas, with respect to movable properties, no written document is required by law.
A trust deed includes the terms of the trust, number of trustees, objective of the trust
etc. The trust deed, accompanied by an application form, must be submitted for
registration. The trust takes around 2 days to one week for its formation and hence,
is the quickest one out of the three forms. Furthermore, trustees have a high level
of control as often all powers are vested with
one person only. Thus, a trust facilitates quick decision making and centralization.

21
It is imperative to note that when an NGO adopts any form, only its structure
varies.
Along with the structure, there may be some rights or limitations associated. However,
there is no difference in the status of the NGO. An NGO formed under any provision
(Company, Society or Trust) is at par with other NGOs that may differ in structure. Thus,
a person should analyze various advantages (or disadvantages) associated with a form
and then decide accordingly whether to form a company, a society or a trust to facilitate
the objectives of the NGO.

22
5. What is 80G and 12AA Income tax ACT and its benefits to NGO and Donors?
Under the Income Tax Act, certain contributions or donations are eligible for a tax
deduction under Section 80G. NGOs or other non-profits must apply for registration and
are intensely scrutinized by the IT Department before being granted such a certification.
This is because such institutions tend to attract a larger number of donations
from corporates and individuals looking to give to charity while saving on tax.

Eligibility for 80G exemptions

Only donations made to charities prescribed under category 80G are eligible for
an 80G deduction. Charities with a religious or business angle are not typically granted
80G certification. Also, gifts made to trusts operating outside India (a foreign trust) are
not eligible for tax deduction.

Similarly, if you are donating for a private trust, which is not registered under
80G certification or have given any funding for a political party, you cannot avail
of tax exemption for the amount donated. It will be computed as your taxable income.

Tax deductions under 80G

There are some funds which are specified under 80G; wherein the taxpayer is
eligible for an exemption. However, there are certain specifications as to the mode of
payment, the percentage eligible for deduction and so on.

Payment Mode

The 80G of the Income Tax Act declares that contributions to the funds should be
made in the form of cheques or demand drafts. In case of a cash contribution,
the amount should be below Rs. 10,000 for it to be eligible for a tax deduction.

Any contributions made in kind, like clothes, gift items or food, cannot be claimed
as donation for tax exemption.

Percentage of contribution eligible for deductions

Not all funds come under 80G category. Even then, only donations to individual

23
funds receive a 100% tax exemption for the amount paid. The others are only
categorized for 50% tax exemption.

Here is the complete list of funds which are eligible for either a 100% or 50%
tax exemption.

Any other donations to the trust or NGO that are not specified in the list, and which do
not have an 80G certification, are not eligible for tax exemption.

It is, therefore, essential for trusts and NGOs or welfare societies which are looking for
donations from fellow citizens to go ahead and apply for an 80G certification.

Documentation Required as Proof

If you have donated towards a fund or a charitable institution with an 80G certificate, you
are required to submit, apart from the usual documents for filing returns, the
following:

Stamped Receipt

A stamped receipt for the donations made. Whenever a donation is made

towards a fund or a trust, it is mandatory for them to give a receipt. Keep it safe and
submit it while filing tax to get an exemption for the amount. The receipts should contain
the stamp of the organization, name, date and PAN Number.

Form 58: For donations made towards funds with 100% exemptions, a Form 58 from
the organization is also necessary.

The receipt should also contain the registration number (80G certificate number). The
receipts from the registered organizations always have the number printed on
them. However, if you cannot locate it on the receipt, ask for it to file for tax exemption.

Applying for 80G Certificate

An 80G certification is one that is granted to certain non-for-profit organizations by the

Income Tax Department, granting their donors the ability to avail of a tax deduction on
donations.

24
To apply for an 80G certificate, however, the organization must first have a 12A
certificate. Only NGOs and non-profitable institutions with a 12A certificate are eligible
for 80G certification.

In order to get an 80G certificate, the organizationmust fill in Form 10G and attach its
activity report for the past one to three years, with an audited statement for the
past three years, or even from the date of establishment in certain cases. The form for
80G registration is available on the IT department website. After scrutinizing your
application, the activity report and audited statement, an IT officer will pay a visit to your
premises for an inspection.

Eligibility for 80G Certification

Not all NGOs or trusts are eligible for 80G certification. There are certain rules which
need to be followed to obtain it. Here are the details under which the government can
reject your claim for an 80G
certification.
1. Separation of Business & Charity: As a non-profit organization, if the entity
is
involved in any business/financial transactions which do not account for donations
alone, you might have to segregate it. If not, your 80G certification request will
be rejected.
2. No Misuse: The donations received so far, towards the cause should not be misused
on any account or used for any other purpose, even within the organization. A
strict accounting is essential to show as
proof.
3. No Religious Activity: Any NGO/Trust, which is operated as a part of an
activity
which involves religious preaching, or for a caste or creed is not eligible for 80G
certification.
4. Proper Accounting: As mentioned earlier, the accounting books and all transactions
should be kept as a proof before applying for 80G. These documents will be scrutinized
thoroughly before 80G certification is issued.
Tax Benefits to the Organization

The 80 G certification not only provides the donors with a tax exemption on the amount
donated (depending upon the annual income of the donor), but also gives tax benefits to
the non-profitable organization.

The institution can get an exemption of 10% for the gross income earned
through donations and contributions.

The Income Tax Department has the power to approve or reject such approval
upon disqualification of the non-profit organization or dissatisfaction found by the
department towards the NGO’s activities.

The primary role of 80G certification is to encourage donors to donate funds to the non-
profit organization. With the certification, donors can save reduce their tax liability by up
to 10% for 50% of the amount donated.

Requirements for 80G certificate

1. If a non-profit organization is undertaking any business, it must maintain a separate

account and should not mix the donations they receive for a social cause.

2. Other than the charitable cause, the organization or its byelaws should not represent
any other cause. None of the donations can be spent toward anything but the charitable
cause.

3. The organization shall not be able to apply for 80G if it supports religion-
based, caste- or creed-based activities.

4. The organization should be registered under the Societies Registration Act, 1860, or
registered under section 25 of the Companies Act, 1956.

The Income Tax Department has the power to approve or reject such approval
upon disqualification of the non-profit organization or dissatisfaction found by the
department
towards the non-profit organization activities.
12AA
Section 12AA, read with section 12A, of the Income-tax Act, 1961 - Charitable or
religious trust - Registration procedure - Whether it is mandatory for Commissioner to
dispose of application for registration under section 12A within six months from end of
month in which application was filed - Held, yes - Whether in a case
where Commissioner does not pass order, granting or refusing registration of trust
within period laid down in section 12AA(2) (i.e., within period of six months from end of
month in which application for registration under section 12A was filed) then registration
would be deemed to have been granted to Trust or Institution automatically on expiry of
period specified in section 12AA(2) - Held, yes CIRCULARS AND NOTIFICATIONS
Circular No. 762, dated 18-2-1998 FACTS The assessee, a charitable trust/institution,
applied to the Commissioner for registration under section 12A on 23-10-
2001. The Commissioner, however, passed the order under section 12AA refusing
registration to the assessee-trust on 26-5-2003 which was beyond the period laid
down in section
12AA (2) (i.e., not within the period of six months from the end of the month in which the
application for registration was filed). He had, however, initiated certain enquiries
by letter dated 3-4-2002, which was well within the period of six months, to
which the assessee responded by furnishing the relevant details. The enquiry
continued well beyond 30-4-2002. Butfinally, order was passed under section
12AA refusing registration on 26-5-2003. Aggrieved by the said order the
assessee filed the instant appeal before the Tribunal and contended that once the
time-limit fixed by section 12AA (2) expired without the Commissioner having passed
any order, it must be deemed that the registration had been granted. However, since a
contrary view had been expressed by two co-ordinate Benches of the Tribunal, on said
issue the matter was referred to the
Special Bench, for decision.
27
6. What is FCRA Act and how it helps NGO’s?
The Foreign Contribution (regulation) Act, 2010 is an act of the Parliament
of India, by the 42nd Act of 2010. It is a consolidating act whose scope is to regulate the
acceptance and utilization of foreign contribution or foreign hospitality by certain
individuals or associations or companies and to prohibit acceptance and utilization
of foreign contribution or foreign hospitality for any activities detrimental to the
national interest and for matters connected therewith or incidental thereto. FCRA
Act: Major relief for NGOs in India as Centre eases penalties
In a relief for Non-governmental organizations (NGOs) in India, the central government
has relaxed the penalties if found violating norms under Foreign
Contribution (Regulation) Act (FCRA). The Home Ministry order came after the Centre
had cancelled or ceased to exist the licenses of 18,000 NGOs for alleged violations of
the FCRA. From now on, instead of suspension or cancellation of licenses, hefty fines
will be levied on NGOs under ACT, according to an Indian Express report. The
new rules will not be applicable retrospectively, as per the Home Ministry.
Home Minister Orders
The Ministry of Home Affairs (MHA) order dated June 5, said that “for offence
punishable under Section 37 for transferring any foreign contribution to any other
person in contravention of Section 7 of the Act, a penalty of Rs 1 lakh or 10 per cent of
such transferred foreign contribution, whichever is higher,” will have to be paid.
Similarly, for offences punishable under “Section 37 read with Section 17 of the Act for
receiving foreign contributions in any account other than specified account, a fine of Rs
1 lakh or 5 per cent of the foreign contribution received in such account, whichever is
higher can be paid as penalty.” “In case more than one offence has been committed by
a person, the total amount of compounding for such offences shall not be more than the
value of the foreign contribution involved,” the MHA said in its statement.

Impact of the change

The latest Home Ministry guidelines said, “the receiving and depositing of any
fund other than foreign contribution account or accounts opened for receiving
foreign

28
contributions or for utilizing the foreign contribution will attract a penalty of Rs 1 lakh or 2
per cent of such deposit, whichever is higher.”

Foreign funding decreased

After the Centre’s crackdown, foreign funding of NGOs in the past four years witnessed
a significant decline. “NGOs received Rs 6,499 crore in 2016-17, as compared to Rs
17,773 crore in 2015-16. The amount received during 2014-15 was Rs 15,299 crore,”
said an MHA’s statement to Parliament. In 2015, the CBI in its report to the Supreme
Court had said that “less than 10 per cent out of the 29 lakh registered NGOs across the
country file their annual income and expenditure statements.”

29
7. Which are the various fund-raising options for non-profit /NGO?
NGOs should never really on just one form of fundraising, however lucrative or
secure it may seem at the time. It leaves your organization open to significant risks that
could bring down an otherwise successful operation. Nothing should be taken for
granted, as we’ve all experienced through the recent financial crisis and recession, not
even large endowment funds locked up in banks are immune from changes in
the economic climate.
Rather, NGOs should seek to create a balanced mix of different income streams
that enable them to be sustainable and resist shocks to their finances. Creating the right
mix of fundraising sources is not just a vital component in your NGOs financial health,
but also a major factor in encouraging other donors to contribute to your cause,
especially over the long term. Major grant making organizations, corporate
business and increasingly individuals will be reluctant to contribute funds to your NGO if
they are fearful that you are too reliant on a single type of income that could dry up at
any point. Not only does a healthy mix of income sources reduce the likelihood of
financial collapse, it serves to encourage donors to invest more in your organization
than they might otherwise. Allorganizations are different and they all operate in
their own unique environments, but a general rule for the industry is to be conscious if
any of your income streams account for more than 30 percent of your total
income. The theory behind this rule is that NGOs and similar organizations give
themselves an opportunity to adapt if they suddenly lose 30% of their income, but
if they lose much more it becomes exceptionally difficult to survive in a
meaningful way. With these issues in mind, each NGO needs to reach its own
conclusions about the different types of income it wishes to target. Established NGOs
may already be successful in a few areas and are simply looking to diversify their
income whereas new organizations have a great opportunity to start on the right foot.
A common frustration remains within many NGOs though in that often
people don’t appreciate the wealth of different fundraising options available to
them. We’ve produced an overview of all the major income streams that are common
within NGOs
around the world to help you decide which income streams are right for your

30
organization. Different income sources work better in different environments. For
example, legacies are a much more significant source of funding in the developed world
than in less developed countries. You should select the income streams you wish
to target by evaluating your strengths and assets. If you can work to your
strengths, whether that is a great board of directors or great community links, you will be
able to identify which sources are best for your NGO.
Online Fundraising
An ever-increasing number of NGOs are turning to the internet to raise funds to
support their work. The methods vary hugely from the basic donate button on an
organization’s website through to crowdsourced fundraising tools such as
Kickstarter and Indiegogo. Other great examples of organization’sutilizing the internet to
raise funds are the NSPCC in the UK who operate a search engine which
generates micro donations every time it is used. Whilst Better the World provides
tools that allow supporters to view adverts in return for small donations to the charity.
New opportunities are emerging all the time with an ever-greater proportion of charitable
income stemming from online sources.
Corporate
Corporate support to NGOs was estimated at around $15 billion in 2010 and as
one of the fastest growing sectors of giving that figure is only likely to grow
further. Corporate support comes in a huge variety of forms with the
biggest being corporate grants, employee fundraising and gift matching. Throughout
the world more and more corporations are investing in Corporate Social
Responsibility (CSR) and already more 65% of Fortune 500 companies offer gift
matching programs whilst 40% offer employee fundraising and volunteer programs.
Like funding from grant making organizations, securing corporate support can be
extremely competitive and generally it is best to approach companies that your
organization has a synergy with. For example, a company that specialize in children’s
products and services are more likely to support a cause related to children whilst a
company that sells spectacles is more likely to
support organizations that support older people.

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Trading
Most fundraising opportunities involve securing a charitable gift to support your
work with little or no tangible return for a contribution. Trading is more in keeping with a
traditional business where a price is set on the delivery of products and services. This is
the mainstay of most social enterprises who work to be sustainable by selling something
of value. This may be as big as a major service to a government or as small as charity
beneficiaries making small but regular contributions to support the organizationwho
provides services to them. The Girl Scouts in the USA are a great example of a non-
profit organizationwho derive a significant amount of income from trading, in their case
the selling of cookies. Sponsorship is another option for NGOs who can include
a company’s name on a building, vehicle, promotional materials or some other
form of recognition in return for their support. Charity shops that sell second hand
goods are another great example of NGOs using for profit tactics to support their
non-profit activities.
Events
Events are another source of funds for many NGOs. From sponsored runs and
gala balls to concerts, non-profits often use events to raise both money and awareness
of their work which help them to reach new audiences and attract donors to
other income streams. Income can be generated from sponsored participation as is
common in sponsored events like runs or they can come from ticket sales themselves
which you would expect at a concert. Normally organizations provide further
opportunities to donate to their cause through other income streams at the event
whether through a simple donations box, text giving, auctions, raffles or sponsorship in
the event program. Events can be quite time consuming and there is often competition
so NGOs should be aware of what is demanded of them before deciding to raise money
through events. Individual Donations
For many NGOs, especially in the developed world, individual donors have long
been and continue to be the greatest source of funding available. This donor balance is
also common in countries with an established record of philanthropy. NGOs in India for
example have reported that 75.7% of them receive the majority of their income
from
individuals whereas just 24.3% reported that they receive the bulk of their income in the

32
form of grant funding. Individual donors can be targeted through a myriad of means and
represent a less intensive form of fundraising compared to project proposals and
corporate fundraising. NGOs can particularly benefit from individual donors by working
to develop and nurture their donors over time to create a stronger bond and in
turn greater financial contributions as well as powerful word of mouth recommendations.
In Kind Gifts
Contributions in the form of goods or professional services can be a great asset
to an NGO and operates as a cost-effective way for a business or corporation to offer
effective support. Examples of In-Kind gifts include a telecommunications
company donating either phone handsets or discounted air time to an NGO. This
serves to reduce costs for the NGO and allow them to spend a greater proportion of
their income on supporting their beneficiaries.
Legacies
Gifts from estates via a Will, trust or another beneficiary designation represent a
potentially lucrative opportunity for well-established NGOs. Securing legacies is a much
longer-term investment than almost all other forms of fundraising but can also provide
significant rewards that can make a huge different to the prospects of your organization.
Contributions of this type are normally from long term supporters of organizations, often
from services users and their families. Many people will arrange their Wills of their own
accord but to maximize this potential income stream NGOs can provide access,
information and support that can encourage and enable supporters to leave a
legacy gift.
Grants
Grants are normally larger sums of money that are designed to fulfil a
specific NGO need. Support for development projects is normally secured by an
application process to a grant making organization that details what your NGO plans to
do, how it will do it, what difference it will make and how much it will cost. Grant
applications vary from just a short, unsolicited letter through to demanding,
technical and multi-stage proposals than can take up to two years to generate a
result. Grant income if often targeted by NGOs due to the size of contributions
which can kickstart new projects,
purchase equipment and buildings and generally provide a large financial injection into

33
the organization. Due to the significant sums involved, most grant opportunities
are
oversubscribed with rival competition meaning that a significant amount of work and skill
is required to be successful.
Campaigns
Such campaigns are generally conducted to raise a significant sum of
money, often for a specific cause, whether it is to provide support in an
emergency or make major purchases such as buildings and sophisticated
equipment. Campaigns are designed to encourage both new donors to support the
organization for the first time as well as encourage regular donors to make either
additional or larger donations than they would normally. Campaigns can be conducted
privately in person or among a smaller selection of targeted donors as well as opened to
the greater public at large.
Financial Endowments
A good number of NGOs, especially larger organizations, receive annual income
from financial endowments, which is a sum of money that is invested to generate
an annual return. These are often created when an NGO receives a large sum of money
from a major donor, legacy or variety of sources. They are designed to provide
a relatively secure and stable income to the NGO that will enable it to go forward
with additional financial security.
Face to face Fundraising
F2F as Face-to-face funding is known as can be a cost-effective way for NGOs to
find new donors to their cause. This type of fundraising is characterized by a
representative requesting a donation either on the street, in shopping centers, events
and by visiting people’s homes. Either one off donations or regular gifts via credit cards
can be solicited with the former often generating a better response and the latter
offering greater returns over the long term. This tactic demands the ability to sell
the benefits of your NGO quickly and powerfully as the window to secure a
donation is limited.
Major Donors
A few NGOs owe their existence to just a single individual who has either
provided seed money or repeat injections of funding to support the organizations
activities. Some individual donors will be sufficiently invested and supportive of
your
organization’s mission as well as having the financial means to make significant
contributions. Attracting and nurturing these individuals involves a different approach to
smaller donors with a greater investment in one on one time a common tactic to secure
major gifts, often over several months or years. Most major donors or prospective major
donors are well known in their communities and are often targeted for financial
contributions meaning that you need to be as sophisticated and adaptable to
their personality and values in your approach. Most major donations are ultimately
secured by a simple ask, but suitable groundwork needs to be done beforehand and
NGOs will get the best result if they are able to offer a tangible return, in the form
of impact or development, for any contribution. Does your NGO have an
established fundraising mix? How important do you think it is to have a diverse
range of income sources?
Support the community and let us know in the comments.

35
8. Describe CSR ACT in details and how it helps to NGO’s and corporates
Ministry of Corporate Affairs has recently notified Section 135 and Schedule VII of
the Companies Act as well as the provisions of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 (CRS Rules) which has come into effect from 1 April
2014.
Applicability:
Section 135 of the Companies Act provides the threshold limit for applicability of the
CSR to a Company i.e.
(a) net worth of the company to be Rs 500 crore or more;
(b) turnover of the company to be Rs 1000 crore or more;
(c) net profit of the company to be Rs 5 crore or more.
Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian
companies, but also applicable to branch and project offices of a foreign company
in India.
Activities under CSR: The activities that can be done by the company to achieve its
CSR obligations include
1 Eradicating extreme hunger and poverty,
2.Promotion of education,
3.Promoting gender equality
4.Empowering women,
5. Reducing child mortality and
6.Improving maternal health,
7.Combating human immunodeficiency virus, acquired, immune deficiency
syndrome, malaria and other diseases,
8. Ensuring environmental sustainability,
9.Employment enhancing vocational skills,
10.Social business projects,
11.Contribution to the Prime Minister's National Relief Fund or any other fund set up by
the Central Government or the State Governments for socio-economic
development
and relief and funds for the welfare of the Scheduled Castes, the Scheduled
Tribes,

36
other backward classes, minorities and women and such other matters as may
be
prescribed.

CSR Committee and Policy:

Every qualifying company requires spending of at least 2% of its average net profit for
the immediately preceding 3 financial years on CSR activities. Further, the
qualifying company will be required to constitute a committee (CSR Committee) of the
Board of Directors (Board) consisting of 3 or more directors.
The CSR Committee shall formulate and recommend to the Board, a policy which shall
indicate the activities to be undertaken (CSR Policy); recommend the amount of
expenditure to be incurred on the activities referred monitor the CSR Policy of
the company. The Board shall consider the recommendations made by the CSR
Committee and approve the CSR Policy of the company.

How NGO benefit from CSR?

NGO gets Financial and other support from the corporate sector.
The funds provided under CSR are for social development issues and make positive
impact on living standard of the economically poor and disadvantaged people
of society so they can live productive and dignified life
Varied Sources of Revenue: Granted, individuals make up roughly three-fourths of
an organization’s total monetary contributions, but this doesn’t mean that non-profits
should discount corporations and businesses as viable sources of revenue.
In fact, companies with strong corporate social responsibility programs are looking for
nonprofits to be the recipient of grants, matching gift programs, and volunteer
grant programs.CSR initiatives can help nonprofits make up that left over 25% after
they’ve looked to individual donors. Corporate social responsibility programs can
be another source of revenue for nonprofits.
More Volunteer Participation: Corporations that offer volunteer grants are
outsourcing helping hands to eligible non-profit organizations.
A corporation with this kind of program might offer (for example) $250 to a
nonprofit
once an employee has volunteered at least 10 hours with the organization. There are

37
also pay-per-hour grants that many corporations offer that pay a certain amount
per
hour volunteered.
This kind of socially responsible program is a win-win for every
party involved. Employees of corporations are seen volunteering and donating their
time to important causes in the community, and nonprofits are receiving free time and
volunteer work, which are essential for the success of so many nonprofits.
Volunteer grant programs are a crucial component of CSR that bring in more revenue
and volunteer time for nonprofits.
Forging Corporate Partnerships: These partnerships are vital to the work
a corporation can do in the local community and important to a non-profit that may
not have the resources for major marketing campaigns.
For a nonprofit organization, a partnership with a local or national corporation puts its
name on tons of marketing materials that otherwise could not have been afforded on
tight budgets. A key benefit is that the partnership brings additional awareness to the
nonprofit’s cause. CSR brings nonprofits and companies together, creating strong
partnerships between the two.
Increase and improve awareness about social problems.
Promote positive social and environmental change
Promotion of education,health,water,environment,social empowerment, employee
generation vocation skills for youth and women,child welfare and differently
abled people (Divyang) by the livelihood enhancement projects.
Funding Via Matching Gift Programs
Corporations that offer matching gift programs essentially double the donations
that their employees are giving to eligible nonprofits. ach company has a different
set of guidelines, deadlines, and requirements that must be met before they’ll
match an employee’s contribution to a nonprofit.
However, the opportunity to receive twice as many donations still hangs in the air for
organizations looking to benefit from corporate social responsibility programs. Matching
gift programs have the potential to double, and sometimes even triple, an organization’s
fundraising revenue.

38
How corporate benefit from CSR?

1.Improve Public Image: Positive social responsibility improves a company’s

public image and relationship with consumers. Corporations can improve their public
image by supporting nonprofits through monetary donations, volunteerism, in-kind
donations of products and services, and strong partnerships. By publicizing their efforts
and letting the general public know about their philanthropy, companies increase their
chances of becoming favorable in the eyes of consumers.
2.Increases Media Coverage: Having a strong CSR program can increase the chances
that your company gets news coverage.
3.Boost employee engagement: When companies show that they are dedicated
to improving their communities through corporate giving programs (like matching gifts
and volunteer grants!), they are more likely to attract and retain valuable, hardworking,
and engaged employees. Corporate social responsibility helps attract and retain
engaged and productive employees.
4.Attracts & Retains Investor:When companies donate money to nonprofit
organizations and encourage their employees to volunteer their time, they demonstrate
to investors that they don’t just care about profits. Investors care about corporate social
responsibility and so should companies.
5. Positive Workplace Environment: Instilling a strong culture of corporate
social responsibility within every employee from the top down will help to create a
positive and productive environment where employees can thrive. Business
environments are more enjoyable when companies engage in corporate social
responsibility.
6. Increase in Creativity: Employers have identified creativity as one of the
most important leadership qualities that an employee can possess. Creative employees
enjoy working for companies that they can believe in and stand behind.
Companies that maximize their social responsibility potential foster innovative and
creative employees.
7. Encourages Professional & Personal Growth: When employees contribute
their
time and money to worthy causes, they develop professionally
and
personally.Employees can professionally and personally develop as a result
of
corporate social responsibility.
8. Promotes Individual Philanthropy: If a company encourages group
volunteerism and matches donations to nonprofits with a matching gift program, an
employee is more likely to take advantage of those programs and become
more individually philanthropically minded.Employees become more
philanthropically aware when they
work for companies that are socially responsible.
9.About Think Sharp Foundation

WHO WE ARE?
Thinksharp Foundation is a non-profit organization with a vision “To bridge the Rural-
Urban education divide”.
At Thinksharp Foundation, we believe that every child has a right for better education.
They should have opportunity to access the education they deserve.
OUR MISSION
"To improve the quality of rural education in schools and after schools’ hours by
providing access to better educational infrastructure includes digital tools, library,
games, financial support and creating progressive and positive learning environment by
working with the village community, teachers, government and other stakeholders".
CORE TEAM
Santosh Phad :-Founder & Managing Trustee
“He firmly believes in giving back to society”
He was born and brought up in a small village named Mandwa, Parli Vaijanath,
Dist.Beed, Maharashtra. His primary education was completed in this same
village. Later, he went on to complete his Bachelor of Engineering in semi urban city and
Post- graduation in metro city, Mumbai.Due to this educational background he faced
similar problems which most of the rural children face to access quality education in
ruralareas. Problems such as, he never had access to library or any other modern
learning tools, neither had access to computer before he was enrolled in computer
engineering course. All these facilities are usually available to most urban children. He
made his first power pointpresentation during his Post-Graduation Diploma in
Business management (PGDM) at Rizvi Academy of
Management, Mumbai.
His idea of starting a social organization to bridge this education gap comes from
this first-hand experience of Rural-Urban education divide that he faced. That’s how and
why he set up Thinksharp Foundation in Sep 2011.Professionally, he has a work
experience of more than a decade in finance industry. He has worked in retail, SME and
corporate lending departments. He has worked with companies which includes HDFC

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Bank, Reliance Capital, DCB Bank, Magma Fincorp Ltd, Edelweiss Retail Finance and
TATA capital.
Dr. Shraddha Bhange :- Communication & Fund raising
Shraddha was born and bought up in semi urban town in Maharashtra and has
experienced both Rural and Urban education gap. Professionally, she is a
M.B.B.S doctor with Master’s in Biomedical Technology from United Kingdom
(UK), and she handles our communication strategy by helping us in content and
social media development.
Bhagwan Jadhav :- Branding & Communication

Bhagwan was born and bought up in small village in Maharashtra (which is our
first project StudyMall site, village Surangali) and later moved to semi urban town for
higher studies. He has completed his Bachelor of Fine Arts, (Applied Arts) from
Government School of Art, Aurangabad. He is handling our branding & communication.
VOLUNTEER
o Nilesh Darade
o Rahul Sonawane
o Amol Nikam
o Shamika khanolkar
o Amol Awatare
o Disha Karale
o Zahid Azmi

THE APPROACH
We provide better and modern learning tools in rural schools and financial
support to financially disadvantaged children. We work with school authorities and
villagers to create progressive and positive learning environment in school
and community at large. Our Projects StudyMall program aim to bridge
educational infrastructure gap. We set up DIGITAL CLASS and LIBRARY in rural
schools. We also
involve and work with school community includes teachers, parents and
other

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stakeholders for overall development of school. StudyFin program offers financial
support for economically disadvantaged school children for secondary school education.
Our aim is to increase children’s interest in education, their better engagement in
school, after school engagement in learning activities, improving their
learning outcomes, prevent school dropout from secondary school education and
make them ready for 21th century education. We want to reach to each rural part in
India where accessibility and quality of education needs
improvement.
We are currently working in 20 villages of Maharashtra.

StudyMall In-School
StudyMall in school project is improving the quality of rural education specially in
government run schools by giving access to better educational infrastructure such
as digital learning tools, library and other educational resources for children and
teachers.
StudyMall offers Digital Class with modern digital learning tools such
as window/android projector, computers, multimedia content and power backup
through UPS or solar. Library with poem, story, environment, science and general
knowledge books. Classrooms that are colorful, safe and clean. Workshops and
trainings on digital literacy and educational guidance.

Project Benefits
Digital content due to its interactive nature makes learning concepts easy
to grasp. It also helps teachers to teach in more demonstrative and effective
manner.
Library with engaging and colorful books instils a love of reading and improves
reading skills.
Classrooms that are with positive and progressive environment
improves education interest.
Workshops and trainings connect with the current
world. In overall sense, improves learning outcomes of children.

How It Runs
 Running a StudyMall In-School requires the involvement and participation of all
stakeholders including teachers, school authorities, the village community and
government officials. We set up and maintain the StudyMalls, however, day-to-
day running is entrusted to teachers and school authorities. We have monthly
follow-ups with the school and teachers. A visit to each centre is carried out once or
twice a year.

StudyMall After-School
StudyMall after school project in rural areas is providing educational
infrastructure to engage children in learning activities after school hours to the children
of age group 10 to 20 years.

StudyMall Offers
Physical Environment (room) that is safe, clean with electricity supply and solar lantern
in case of power cut off.
Library with poem, story, environment, science, general knowledge and academic
books.
Computer literacy program.
Indoor & educational games and stationery.
Workshops and trainings on digital literacy and educational guidance.

The Benefits
Physical environment allows children to use their time to read, learn, play, and
spend after-school hours in productive manner instead of roaming around. This
also helps parents as they are often busy in earning a livelihood or are
unknowledgeable about importance of education.
Library with engaging and colourful books instils a love of reading and improves reading
skills. We encourage children to write feedback after they complete reading a book to
measure their takeaway message from book Computers Learning which helps to
develop computer skills that will help for further studies and in career
progression.

Games and stationery motivate children to visit project regularly. They learn team
activity, soft skills, drawing, painting, writing and other skills in their free time.
Workshops and trainings connect children with the current world.

How It Runs
Running StudyMalls requires the involvement and participation of
all stakeholders in the village. Volunteers, the village community and government
officials are involved in setting up, maintaining and encouraging their use. We
have regular
interaction with the volunteers running them.

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10.Write about field visit and your learning (Project details, Impact,
your observations and feedback)
On 17th Feb. I went to school for Study Mall Opening Ceremony at village
chandai khurd, Bhivpuri in Karjat District. Visiting the schools in
Chandai was the favourite part of my time with THINKSHARP Foundation.
ThinkSharp Foundation help school which are in rural areas for
digitalization. They provideDigital Class with modern digital learning tools such as
window/android projector, computers, multimedia content and power backup
through UPS or solar. Library with poem, story, environment, science and
general knowledge books. Classrooms that are colourful, safe and clean.
Workshops and trainings on digital literacy and educational guidance.
They named this project as a Study Mall; the main moto of this project is
to makes learning concepts easy to grasp. It also helps teachers to teach in
more demonstrative and effective manner.
I am glad to help them in this project. Where I come to know about
school structure and condition in rural areas. Me and my team had conversation with
student, parents and Teacher about education system, problems they are
facing, how ThinkSharp help them, what are challenges that they were facing
before Study Mall Project. All we get is positive reply because of ThinkSharp work. All
were very happy as student are entering digital world. Because of Projector it will be
very easy for teacher to teach as well as for students to learns through stories and
videos.
ThninkSharp also help in other parts like sports, drawing, wall painting of school
which also help for positive environment and to encourage students in their
interest. They provide tools and things related to it.
These visits to Chandai School showed me a side of life I could never
have imagined. They made me thankful for my plentiful life in the City and optimistic
about India’s future. India is a complex country with a variety of cultures and
traditions. To lead in tomorrow’s world, it needs something or someone to help it
achieve its vast potential – a good education is that something and ThinkSharp
Foundation is that
someone.
11.Your feedback / suggestion to Thinksharp Foundation (Please be specific
about your suggestion’s. E.g in social media or fund raising or
project
implementation)

It was very nice experience for me. I am glad to be part of this project and adding some
amount of help for student.
You are doing a very big role in today’s fast and modern world by helping needy student
which are really facing problem to get good education.
The only suggestion from me is to keep theseworks going and to run such wonderful
foundation for more and more decades.

12. Social problem you concern about and solutions for it (Select the social
problem around you at small or large level and provide solutions)
Cast Problem is one of the social problems. Caste system is a system of defining class
or assigning status to individuals from the time of birth. In India, the caste
system is mainly profession based. India has been a victim of caste system since ages.
The main reason behind the growth of Caste system in India is the assignment of caste
based on job specialization. There were different types of jobs in the society which were
done by the people based on their capability. This division of job based
on specialization resulted into caste system.
1. The Brahmins – the priestly class. They were mainly engaged in religious
and priestly activities. They were also appointed as advisors to the Kings.
2. The Kshatriyas – the warrior and ruler class. They were mainly engaged in warfare
activities.
3. The Vaishyas – the trader class. They were mainly engaged in
business, agriculture, and trading activities.
4. The Sudras – the lowest of the four traditional class engaged as domestic servants
and laborers, etc.
Negative effect of Cast System.
Encourages untouchability,
Promotes Inequality,

47
 Undemocratic in nature,
Fake differentiation in superiority and inferiority.
Increases gap between upper and lower caste people.
Caste system is also a danger towards the National integration of the country.
Caste system is a major cause for many inhuman and immoral social practices
such as untouchability, child marriage, sati system (sati pratha), prostitution.
Solution:
Education will help the people to become aware of the disadvantages of
Caste system.
There is a need for widespread social change in favor of equality of human-beings.
Caste system can be discouraged through social education in rural areas.
There should be special classes at schools that imparts value and moral education
to the children.
Superstitious people are extremely fearful and discourage any change in
social norms. Education will help shed away superstition, which in turn, will
help shed casteism as well.
With better education and economic progress, people belonging to diverse caste
get opportunity to mix and work together. Many of them become friends while
working
together on a project.

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13. Learning from Research and field visit

From this internship,I get to learn about how Non-Profit Sector works. Its
Different Types and Legal structure.What are the different challenges faced by NGO.
What will be the future Opportunities? I learnt about the registration process of
NGO. Being a citizen of India it’s our responsibility to contribute something from
our own side. This internship helps me realize my responsibility towards my society. I
think every individual can do their own part to help the needy, NGO acts as a mediator
between the needy and rest of the society. From this internship I got to know about
Think sharp Foundation and different projects running under this foundation. We
got to know the various problems faced by rural kids. It was an eye opener for us as
an MMS student we always tend to focus on studies, placements etc. but we often forget
our roots that is to give it back to the society. After the visit we could understand
the importance of education, good studying infrastructure and conducive environment.
It was real fun to interact with young creative minds. It is always said that people who
are away from all facilities are the most successful and creative people. Their ambitions
were high some wanted to be pilot, teacher, army officer, engineer etc. The four
walls of their class room have not stopped them from dreaming big. The
foundation is doing the perfect thing by supporting these young talented students
who can be future leaders of our nation. Initially students were scared to interact
with us but once they started interacting it was real fun and a kind of self-realization
started to kick in that even we should do our bit to help the society. I am thankful and
obliged to Thinksharp foundation for giving us the
opportunity to be a part of them.

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References :-

http://www.gdrc.org

https://www.unit4.com/blog/2017/11/10-challenges-for-not-for-profit-organizations

http://www.thinksharpfoundation.org/#home

https://www.wikipedia.org/

http://www.gdrc.org/ngo/org-chart.html

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