A

PROJECT REPORT
ON
NON PROFIT SECTOR IN INDIA
“THINKSHARP FOUNDATION”
25th Jan. 2019 – 15th Feb. 2019
Submitted By:
NITISH P. BANDIVADEKAR
MMS (FINANCE)
ROLL NO: 06

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

1
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 6
and opportunities
3 Current scenario of Non-profit sector in India and 10
scope
4 Define NGO registration process in Maharashtra. 13
(Types of NGO, Legal structures and process)

5 What is 80G and 12AA Income tax ACT and its 20

benefits to NGO and Donors
6 What is FCRA Act and how it helps NGO 26
7 Which are the various fund raising options for non- 27
profit / NGO
8 Describe CSR ACT in details and how it helps to 33
NGO’s and corporate
9 About Thinksharp Foundation (Profile, Work, 37
Team, Awards, etc)
10 Write about field visit and your learning (Project 42
details, Impact, you
11 Your feedback / suggestion to Thinksharp 43
Foundation (Please be specific about your
suggestion’s. E.g in social media or fund raising or
project implementation)
12 Social problem you concern about and solutions 43
for it (Select the social problem around you at
small or large level and provide solutions)

13 Learning from research and field visit 44

14 References 46

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1. Define Non-for-profit organization / NGO, it’s types and legal structures?
Definition
A non-governmental organization (NGO) is any non-profit, voluntary citizens'
group which is organized on a local, national or international level. Task-oriented and
driven by people with a common interest, NGOs perform a variety of service and
humanitarian functions, bring citizen concerns to Governments, advocate and monitor
policies and encourage political particpation through provision of information. Some are
organized around specific issues, such as human rights, environment or health. They
provide analysis and expertise, serve as early warning mechanisms and help monitor
and implement international agreements. Their relationship with offices and agencies of
the United Nations system differs depending on their goals, their venue and the
mandate of a particular institution.
NGO as a association includes groups and institutions with primary humanitarian
and co opearative objectives rather than commercial objectives completely or widely
independent from government. NGOs are private agencies to support development at
local, national and international by organized indigenous groups. NGO as a citizen
groups raises awareness and influence policies and includes independent cooperatives,
community associations, societies, groups and various associations.
NGO works for the betterment and upliftment of socio-economically and
politically weaker section of community to bring them in the main stream of society and
move the society towards more improved and developed way of living and existence. As
a community group and organization NGO provides and fulfils certain services,
development oriented task and works with aims and objectives to bring about required
positive changes in society, community, areas and Situations.
NGO helps and supports people for their legal rights and powers in society NGO
supports, maintain sand governs the status of Government organizations, ministries,
departments, agencies, authorities, for the aim, task, rules and purpose those are
formed and running for, this is done in legal and democratic way and with people
participation pattern to fulfil common interest. NGO is known and works for people’s

3
participation in various required issues and tasks to support and improve the
circumstances, conditions and situations.

NGO types can be understood by their orientation and level of ooperation.

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 pplanning or education services in which the programme is
designed by the NGO and people are expected to participate in its
impementation 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 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 aroud 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.

4
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, neighbourhood
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 andindustry, 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 cuty branches and
assist local NGOs.
 International NGOs range from secular gencies such as Redda BArna and Save
the Children organizations, OXFAM, CARE, Ford and Rockefeller Foundations to
religiously motivated groups. Their activities vary from mainly funding local
NGOs, institutions and projects, to implementing the projects themselves.

Types of NGOs
A number of 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])

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

Opportunities:
Securing financial support is just the start of the challenging non-profit journey.
Let’s examine some of the top challenges non-profits face, and the potential solutions
for overcoming them.

1. Not Enough Funding

About 46% of non-profits can’t find the funding they need to support their staff in
carrying out the organization’s mission. Most non-profits seek ways to attract funds
without selling a product or service, which can lead to serious budget problems.No
matter whether they bring in revenue or not, non-profits still need to find ways to attract
and retain key staff, promote themselves, and find new opportunities.While some
organizations can turn to grants for help, the truth is that charities need to be largely
established and capable of sustainability before they can access most grants.
Research from the National Center for Charitable Statistics shows that about 50% of
non-profit funding comes from fees for goods and services, while only 9.2% comes from
government grants. As government funding dwindles and competition in the sector
thrives, non-profits must look for alternative ways to earn the bulk of their income.

2. No Strategic Planning
Many non-profits fail to think of themselves as businesses. Even if your
organization doesn’t seek to profit off consumers, you’re still producing some kind of
service or material product, and you still have operating costs just as any business
would. Since a non-profit budget is tighter than that of a for-profit business, these
organizations must be especially strategic in their business planning techniques
In other words, you need to examine where you’re going to allocate funds. For instance,
most non-profits can’t afford to pay the price for attracting top talent, which means they
need to find alternative solutions for staff retention.
A good strategic plan involves:

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  The evaluation of the competitive environment
 A consideration of where to get sources of funding
 A defined plan for how and where to offer products and services
 A record of all sources of revenue streams (private funding, government contracts,
etc.
 Insights into how the organization can save money

3. Lack of Engagement
Engagement is crucial to non-profit business function — not only in retaining key
staff members, but also in convincing people to donate to the cause. All businesses
need to convince people to spend money, but non-profits face an additional challenge,
because they’re not generally exchanging money for goods or services.
Non-profits need to lead their marketing messages with emotion. The problem is they
don’t often have the funding to allow for quality marketing solutions, like digital
advertising and social media. Unfortunately, most donors responding to print campaigns
are over 55 years old, which means that using print-only methods is cutting out a huge
demographic.
The non-profit sector has struggled to keep up with technological advances. Websites
and online campaigns can have a huge impact in driving donations. Online campaigns
generate engagement — an element that’s severely lacking for most non-profits. To
survive, non-profits need to attract and hire staff that can not only help with budget
management and planning, but also inspiring engagement and support from the general
public.

4. Not Enough Key Staff

This may be the challenge that underpins all other concerns for non-profits. With
the right personnel, an organization can achieve anything. Tragically, 74% of non-profits
cite staff shortage as their biggest challenge, and budget constraints often get in the
way of successful hiring and recruitment processes
Non-profits have a unique advantage over standard companies, because they can
foster employee engagement around the mission of the organization. Yet, they still need

7
to offer compensation — an area where they often struggle to live up to the private
sector. Since budgets for wages are low, benefits packages and other perks can
provide opportunities to strengthen employee contentment and loyalty. For instance,
employer-paid life insurance may be a win-win solution for employee retention — it can
ensure strength and liquidity for the organization, while offering long term security to
staff members.

Challenges:
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 donors 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 has to demonstrate that
its objectives are being achieved. For example, a program for adult literacy has to prove
that students are learning to read and comprehend material rather than show strong
class attendance.

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 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 has to have a positive bottom line, or at least,
it has to 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.
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

9
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.

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

10
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
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 realise 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.

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 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
organisations 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 are connected with government or private sector
firms. They deal 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 peoples
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

12
a NGO in India you need to get it registered either as a charitable trust or as a society
registered under the societies 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 are connected with 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.

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 particular causes.

Types of NGOs
A number of 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

13
 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 pplanning or education services in which the programme is designed by
the NGO and people are expected to participate in its impementation 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 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 aroud 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, neighbourhood
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

14
 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 cuty branches and
assist local NGOs.
 International NGOs range from secular gencies such as ReddaBArna and Save
the Children organizations, OXFAM, CARE, Ford and 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.

15
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
has to function as a not-for-profit organization and thus, all profits generated
during the course of its functioning have to 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

16
 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
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 similar to 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’ has to 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

17
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
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.

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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, has to 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 more often than not all powers are
vested with one person only. Thus, a trust facilitates quick decision making and
centralization.
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
particular form and then decide accordingly whether to form a company, a society or a
trust so as to facilitate the objectives of the NGO.

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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 scrutinised 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

20
funds receive a 100% tax exemption for the amount paid. The others are only
categorised 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 organisation, name, date and PAN Number.

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

The receipt should also contain the registration number (80G certificate number). The
receipts from the registered organisations 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 organisations by the

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

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To apply for an 80G certificate, however, the organisation 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 organisation has to 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 scrutinising 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 organisation, 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 organisation. 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 particular 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 scrutinised
thoroughly before 80G certification is issued.

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Tax Benefits to the Organisation

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 organisation.

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 organisation 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 organisation. 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 organisation is undertaking any business, it has to maintain a separate

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

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

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

4. The organisation 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 organisation or dissatisfaction found by the department
towards the non-profit organisation activities.

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 Section 12AA(1)

(1) The Commissioner, on receipt of an application for registration of a trust or institution

made under clause (a) [or clause (aa) of sub-section (1)] of section 12A, shall—
(a) call for such documents or information from the trust or institution as he thinks
necessary in order to satisfy himself about the genuineness of activities of the trust or
institution and may also make such inquiries as he may deem necessary in this behalf;
and
(b) after satisfying himself about the objects of the trust or institution and the
genuineness of its activities, he -
(i) shall pass an order in writing registering the trust or institution;
(ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or
institution, and a copy of such order shall be sent to the applicant :
Provided that no order under sub-clause (ii) shall be passed unless the applicant has
been given a reasonable opportunity of being heard.
Section 12AA(1A)
(1A) All applications, pending before the Chief Commissioner on which no order has
been passed under clause (b) of sub-section (1) before the 1st day of June, 1999, shall
stand transferred on that day to the Commissioner and the Commissioner may proceed
with such applications under that sub-section from the stage at which they were on that
day.
Section 12AA(2)
(2) Every order granting or refusing registration under clause (b) of sub-section (1) shall
be passed before the expiry of six months from the end of the month in which the
application was received under clause (a) [or clause (aa) of sub-section (1)] of section
12A.]
Section 12AA(3)
[(3) Where a trust or an institution has been granted registration under clause (b) of sub-
section (1) [or has obtained registration at any time under section 12A [as it stood
before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996) and subsequently
the Commissioner is satisfied that the activities of such trust or institution are not

24
genuine or are not being carried out in accordance with the objects of the trust or
institution, as the case may be, he shall pass an order in writing cancelling the
registration of such trust or institution:
Provided that no order under this sub-section shall be passed unless such trust or
institution has been given a reasonable opportunity of being heard.]

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. But, finally 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.

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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 utilisation of foreign contribution or foreign hospitality by certain
individuals or associations or companies and to prohibit acceptance and utilisation 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 licences of 18,000 NGOs for alleged violations of
the FCRA. From now on, instead of suspension or cancellation of licences, hefty fines
will be levied on NGOs under aforementioned 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

26
contributions or for utilising 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.”

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 organisation 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 organisations, 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 actually serves to encourage donors to invest more in your organisation than
they might otherwise.All organisations 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

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behind this rule is that NGOs and similar organisations 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 organisations 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
organisation. 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
organisation’s website through to crowdsourced fundraising tools such as Kickstarter
and Indiegogo. Other great examples of organisation’sutilising 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

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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
organisations, securing corporate support can be extremely competitive and generally it
is best to approach companies that your organisation has a synergy with. For example,
a company that specialise in childrens products and services are more likely to support
a cause related to children whilst a company that sells spectacles is more likely to
support organisations that support older people.
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 organisationwho
provides services to them. The Girl Scouts in the USA are a great example of a non-
profit organisationwho 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
companys 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 organisations provide further opportunities to
donate to their cause through other income streams at the event whether through a

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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 recieve the bulk of their income in the
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 organisation.
Contributions of this type are normally from long term supporters of organisations, often
from services users and their familys. Many people will arrange their Wills of their own
accord but to maximise this potential income stream NGOs can provide access,
information and support that can encourage and enable supporters to leave a legacy
gift.

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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 organisation 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
the organisation. Due to the significant sums involved, most grant opportunities are over
subscribed 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 situation or
make major purchases such as buildings and sophisticated equipment. Campaigns are
designed to encourage both new donors to support the organisation 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 up to the greater public at large.
Financial Endowments
A good number of NGOs, especially larger organisations, 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 characterised by a

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representitive requesting a donation either on the street, in shopping centres, events
and by visiting peoples 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 number of NGOs owe their existence to just a single individual who has either
provided seed money or repeat injections of funding to support the organisations
activities. Some individual donors will be sufficiently invested and supportive of your
organisation’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 a number of months or years. Most major donors or propsective
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.

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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,

33
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 referredmonitor the CSR Policy of the
company. The Board shall take into account 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 nonprofits
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 nonprofit 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

34
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 nonprofit 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.

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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

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When employees contribute their time and money to worthy causes, they develop
professionally and personally. Employees are able to 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 believe 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 on 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

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rural areas. 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 this facilities are usually available to most urban children. He
made his first power point presentation during his Post-Graduation Diploma in Business
management (PGDM) at Rizvi Academy of Management, Mumbai.

His idea of starting a social organisation 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 an 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
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 Masters 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

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 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
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 colourful, safe and clean. Workshops and trainings on
digital literacy and educational guidance.

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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 connects 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.

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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 motivates children to visit project regularly. They learn team
activity, soft skills, drawing, painting, writing and other skills in their free time.

Workshops and trainings connects 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 provides 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 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 into 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.

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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 these work 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 problem . 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,

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  Promotes Inequality,
 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.

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 its our responsibility to contribute something from our own side. This
internship help 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

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problems faced by rural kids. It actually was an eye opener for us as a 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 really thankful and obliged to thinksharp foundation for giving us
the opportunity to be a part of them.

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 Reference :-
www.investopedia.com

www.wikipedia.org

www.thinksharpfoundation.org

https://cleartax.in/s/donation-under-section-80g-and-80gga

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