NGO Fund Raising

1. NGO Fund Raising Dr.V.Bastin Jerome Assistant Professor of Commerce St.Joseph’s College (Autonomous) Tiruchirappalli - 2

2. NGO Fundraising: for Social Cause & Issues through Donations & Proposals Grants. • NGO organizations operate with their own funds and with the funds raised through its volunteers or through donation for a social cause. • Some times the Government use to fund the NGO organization totally or partially in project based or in object and social activity based. • NGO can raise fund to do good for the society and for a needed social cause. • NGOs use to raise funds from the public, corporate, Institutions and from the Government by exposing their objects and reasons.

3. NGO Fundraising Continues… • NGO fundraising is of different types. • Micro fund raising, • Macro fund raising, • Online fundraising, • Corporate fundraising, • Institutional fundraising, and Foreign fundraising.  • Before fundraising for a cause, NGOs use to create a Proposal and budget towards their aims and vision. • And that proposal will be sent to the relevant resources to raise the funds and when NGO reaches the Goal of their fundraising for that specific project, that project will be implemented, which will become a beneficial activity for the public community through their organisation.

4. NGO Fundraising Continues… • Towards NGO fundraising, organization use the tools like • keeping donation boxes, • using volunteers for fundraising, • Making fundraising advertisements, • running camps for fundraising, • Online proposal submissions, • Direct meeting of the Donors and Individuals to raise the funds, • Creating the perfect project and submitting it to the funding agencies all over the world, and • selling their own products which was manufactured by the organization.

5. LIST OF FUNDING AGENCIES IN INDIA

6. List of Indian Funding Agencies 1)Royal Geographical Society IBGTeaching: Grants for geography teachers and lecturers For general advice on applying to the RGS-IBG Grants programme http://www.rgs.org/OurWork/Grants/Grants.htm 2)Child Fund India22 Museum RoadBangalore , Karnataka 50000191-80- 25587157ccfindia@ccfindia.comActivities: Education, Micro Finance, Health, Livelihood, Disaster Management3)Centre for World Solidarity12-13-438, Street No.1, SecunderabadSecunderabad , Andhra Pradesh 50001791-40-2701 8257Activities: Agriculture, Forest & Environment, Women, Tribal, AIDS, Livelihood, Disaster Management, Others

7. List of Indian Funding Agencies 4)The Global Fund for ChildrenActivities: Children, Education, Organisational Devp, ResearchGFC supports organizations and programs that focus on four specific issues: Learning, Enterprise, Safety, and Healthy Minds and Bodies.5)BORDA (Brement Overseas Research and Devp. Agency)Activities: Health,Water/Climate,OthersBORDA (Brement Overseas Research and Devp. Agency) - working on issues like Decentralised Water Supply, Decentralised Waste Water Treatment, Community Based Sanitation, Decentralised Solid Waste Management, Decentralised Energy Supply, Knowledge and Quality Management.http://www.borda-sa.org6)World Vision India16 VOC Main Road, Kodambakkam, Chennai-600 024044 24807070http://www.worldvisionindia.org/Activities: Children,Disaster Management,Others

8. List of Indian Funding Agencies 7)Give Indiahttp://www.giveindia.org8)FIRSTActivities: Othershttp://www.firstinitiative.org9)NIH grantshttp://grants.nih.gov/training/responsibleconduct.htm10)Helpage Indiahttp://www.helpageindia.org/aboutus.php11)The Sasakawa Peace Foundationhttp://www.spf.org12)AAUW - Breaking through Barriers for Women and Girlshttp://www.aauw.org/education/fga/fellows_directory/index.cfm13)BILL & MELINDA GATES FOUNDATIONhttp://www.gatesfoundation.org/grantseeker/Pages/foundation-grant-making-priorities.aspx The Big Tech of Nasscom Foundation Proghttp://bigtech.in/getting-started

9. List of Indian Funding Agencies 14)AIFO INDIAFor further information contact: #58, 4th Cross, Kavery LayoutTavarekere Main Road, DRC PostBangalore – 560 029Tel: +91-080-25531264/51106294Fax: +91-080-25520630Email: aifo@aifoindia.orghttp://www.aifoindia.org15)Ambuja Cement Foundationhttp://www.ambujacementfoundation.org/focus_areas16)AMITY HUMANITY FOUNDATIONhttp://www.amity.edu/ahfEmail: ahf@amity.edu17)Elsa U.Pardee Foundation - Cancer Research Grantswww.pardeefoundation.orgElsa U. Pardee Foundation, Lucille Dougherty, Staff Assistant P.O. Box 2767, Midland MI 48641-2767, Phone: 989/832-3691Email: info@pardeefoundation.org

10. List of Indian Funding Agencies 18)ANaRDe Foundation (ACIL Navasarjan Rural Devp Foundation)http://www.anardefoundation.org Email: anrdefoundation@hathway.com20)Azim Premji Foundationhttp://www.azimpremjifoundation.org Advocacy and Communication,Azim Premji Foundation 134 Doddakannelli,Next to Wipro Corporate Office,Sarjapur Road, Bangalore - 560035Telephone: 91- 80 - 66144900 / 01 / 02Fax: 91 - 80 - 66144903Email us at : info@azimpremjifoundation.org21)UJJAWALA (a Scheme for Women and Children)For the scheme details see the document link given below: http://wcd.nic.in/schemes/Ujjawala

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12. This list comprises funding agencies, which have supported specific research and pilot projects and programmes • environmental restoration • organic farming • rural development • education • health • renewable energy • appropriate building technologies • innovative urban planning • arts and culture. • Free residential school for the poor children. • Rehabilitation center for HIV • Cerebral palsy / MR home. • Old age home. • Oncology rehabilitation center for poor. • Children care  adoption center. • Free Medication Center • Adoption of primitive villages for health and education • Educational support to the poor by way of scholarship • Free text book & notes for the poor and orphan children • Adoption of orphan children

13. Important factors which are considered for an organization plans to raise funds from government resources, institutional resources or outer sources: • A real worthy project which will solve the need of the social beneficiaries. • All infrastructures to run out the proposed NGO project. • All legal eligibilities to run the proposed NGO project. • Raising the funds in your own to your NGO project by learning without any mediators help. • Knowledge about preparing the NGO proposals and NGO project paper works. • Presenting the project information to the perfect place. • Explaining your NGO project to the funding institution or Government resources in a detailed elaborate manner. • Check yourself for the fitness to raise the funds for your specific project with legal qualifications & certifications. • Elimination of improper proposal presentations. • Get the recognition from funding resource and run out the project. • Be perfect in transparency of NGO accountability. • Achieve your organizational Goal and say thanks to all.

14. What are the tools required for NGO fundraising? 1.Knowledge about fundraising in budgeting, proposal writing, planning to sustain. 2. Perfect infrastructure to maintain the fundraising project. 3. Fundraising Management System. 4. Volunteers for micro fundraising and macro fundraising. 5.Advertisement for your proposed project through local media. 6.Successive Organizational mission brochures submission to funding resources. 7.Online tools like a Website portal for your organization which explains about your fundraising need organizational facts, vision, mission and other information. 8. Workshop which broadcasts your project. 9.Exhibition tools like camping, on road programs.

15. International Organisations European Commission (EC) ICEF (India - Canadian Environment Facility) OECD/Hunger Campaign United Nations Centre for Human Settlements (UNCHS) United Nations Food and Agricultural Organization (FAO) UNESCO

16. Foreign Governments & Governmental OrganisationsBELGIUM : AlgemeneBelgischeOntwikkelingssamenwerking (ABOS) CANADA : Canadian High Commission in India DENMARK : Danish International Development Agency (DANIDA) FRANCE : Ministère des Affaires Etrangères GERMANY : BundesministeriumfürWirtschaftlicheZusammenarbeit Deutsche WelthungerHilfe (FAO) Deutsche GesellschaftfürTechnischeZusammenarbeit (GTZ)Foerdergemeinschaft Rotary Ludwigshafen German Agro-Action German Appropriate Technology Exchange(GATE)KreditanstaltfürWiederaufbau (KFW)MinisteriumfürBundes- und Europa-angelegenheiten desLandes Schleswig-Holstein JAPAN : Japanese Embassy in India NETHERLANDS: Royal Netherlands Embassy in India NEW ZEALAND: New Zealand High Commission in India SPAIN : Government of Navarra, Municipality of Pamplona SWITZERLAND : SWISSAID U.K. : Overseas Development Administration (ODA now DFID) USA : V.I.T.A. (Volunteers in Technical Assistance)

17. Foreign Non-Governmental OrganisationsAUSTRALIA : Quaker Service Australia CANADA : Centre Créatif l'Elan FRANCE : Alliance FrançaiseAssociation VitalisCommunautés d'EmmausINERPSecours Populaire Français GERMANY : BORDACaritasDeutsch - Indisches Kinderhilfswerk (DIK)Dritte Welt Kreis (DWK)Friedrich-Naumann Stiftung ISRAEL : GIFRID ITALY : Association VIDYAHimalaya Trust JAPAN : Human Performance Institute NETHERLANDS: Stichting de Zaaier SPAIN : Fundacion Centro Sri Aurobindo

18. Foreign Non-Governmental OrganisationsU.K. : Commonwealth Human Ecology Council (CHEC)Findhorn FoundationOXFAM U.S.A. : Earthstewards NetworkFoundation for World EducationInfinity FoundationInstitute of Evolutionary ResearchMatagiri CentreMerriam Hill CentreSri Aurobindo's Action CentreThreshold FoundationTrickle-up ProgramTurtle Island Fund

19. Indian Government and Governmental Organisations Government of India • Building Material & Technology Promotion Council (BMTPC) • Ministry of Education • Ministry of Environment • Ministry of Human Resource Development • Ministry of Non-conventional Energy Sources • Ministry of Rural Development • Ministry of Science and Technology • Housing and Urban Development Corporation (HUDCO) • Indian Council of Philosophical Research (ICPR) • Indian Navy • Indian Renewable Energy Development Agency (IREDA) • National Wasteland Development Board (NWDB)

20. Pondicherry Government • District Rural Development Agency (DRDA) Tamil Nadu Government • Tamil Fund • Tamil Nadu Energy Development Agency (TEDA) • Tamil Nadu Family Welfare Board • Tamil Nadu Social Welfare Board • Tamil Nadu State Forest Department • TRYSEM Programme Pondicherry Government • District Rural Development Agency (DRDA) Tamil Nadu Government • Tamil Fund • Tamil Nadu Energy Development Agency (TEDA) • Tamil Nadu Family Welfare Board • Tamil Nadu Social Welfare Board • Tamil Nadu State Forest Department • TRYSEM Programme

21. Indian Non-Governmental Organisations & Businesses • All India Books • Aurofood • Auroshikha • Bombay Natural History Society • Credit Himatsingka • Indian Oil Corporation • Indian Tobacco Company • INTACH • Janagri • J.R.D.Tata Trust • Modi Charitable Trust • New Horizon Sugar Mills • Oil and Natural Gas Corporation • Sri Aurobindo's Action • Sri Aurobindo Memorial Fund • Sri. Dorabji Tata Trust • Sri. Ratan Tata Trust • Tata Energy Research Institute

22. 12a form for TAX exemption Under Income Tax Act 1961

23. How to apply for 12A towards registration of NGO under Income Tax Act 1961 • When NGO organization get registered with Income Tax department, to claim tax exemption for their income, it gets the 12 A certification. • From the Date of establishment of an NGO like trust, society or nonprofit company, it should apply for registration with Income tax department to get 12A certificate. • If delayed in applying for registration then the NGO should submit Audit Reports for the past three years or as may be available.

24. How to apply for 12A (a) towards registration of NGO under Income Tax Act 1961 • If your NGO established in metropolitan cities like Delhi, Calcutta, Mumbai and Chennai, then you have to produce the FORM 10A to the Director of Income Tax (Exemption), Income tax department office. • Before submitting FORM 10a, please make sure that you have received PAN CARD for your NGO. • When you produce the form 10A to the above Income tax department, you have also required to enclosed the proofs and copies of the following.

25. How to apply for 12A (a) towards registration of NGO under Income Tax Act 1961 • Original basic documents of organization, which evidencing the creation of the NGO should be enclosed, like Trust deed / Bye laws / Rules and Regulations / Memorandum and Articles of Association as per the shape of the nonprofit ngo organization. • Two copies of the Accounts of Three previous years should be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of for minimum years may also be submitted. 

26. How to apply for 12A (a) towards registration of NGO under Income Tax Act 1961 3. After you have produced the above FORM 10A either through registered post with acknowledgement due or directly in the Income Tax office. 4. The department will over look your application for fitness towards registration. It may also monitor your organization directly in person to know the genuinity of your NGO organization. 5. The Income tax officers have the rights to grant or to refuse registration to your application. If the Income tax office get satisfied with your proper documents and with the genuinity of your organization, then you will be certified. 6. Even a 12a certified NGO organization, shall be rejected or cancel the grant by the Income tax department, if it feels your organization is not fit as per law at any time.

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28. 35ac form for TAX exemption Under Income Tax Act 1961

29. NGO shall apply for 35ac, to get approval to provide tax exemption to the donors • NGO shall apply for 35ac, to get approval to provide tax exemption to the donors who donates funds only for a specific social welfare project or social welfare schemes. • Also through 35ac NGO cannot raise funds from Government. • It can raise funds only from public for the specified projects. • Several people are still in dream that they shall get 35ac certificate approval for their NGO.  • But its not so easy. Because, only the best reputation with credibility of a NGO, may help to get such approval from the National committee of Central Government. • Even several mediators, consultants and brokers are playing with donors and with organization by giving false information and assurances towards 35ac tax exemption.

30. NGO shall apply for 35ac, to get approval to provide tax exemption to the donors • Now first of all, we should understand that the Central Government of India is not giving approval of 35ac for all nonprofit NGO organizations. • It shall provide 35 ac approval only for the organization which has the basic object, which supports at least the following sectors. • Family Welfare and immunization • Tree plantation • Social Forestry • Development of Irrigation Resources • Rural Sanitation - Construction of low cost latrines • Medical camps in rural areas • Rural Health Programs • Land development and recovering of waste land with special concern on ecological improvement • Soil and water conservation including harvesting of run off water

31. NGO shall apply for 35ac, to get approval to provide tax exemption to the donors 9. Non formal education and literacy, especially for children and women 10. Rural and non farm activities 11.Creation of employment opportunities for urban and rural population living below the poverty line 12.Supportive services for women to engage in productive work (Children care crèches of working women) 13. Leprosy eradication 14. Promotion of sports 15.Construction of dwelling units for the economically weaker sections 16.Construction of school building for children belonging to the economically weaker sections of the society  17.Establishment and running of non-conventional and renewable sources of energy systems 18.Any other program for uplift of the rural poor or the urban slum dwellers.

32. NGO shall apply for 35ac, to get approval to provide tax exemption to the donors • The national committee of central Government of India approves 35 ac for a period of 3 years normally. • Extension may be provided as per the satisfactory implementation of project. • The National committee may also approve new object oriented projects if it is finding useful for the society or if they are satisfied as per the requirement of the community.  Kind Attention • If you got the approval, don't misuse it. • The misuse of 35 ac by giving fake donation receipt may lead you, up to 7 years of imprisonment and several penalties both for the donor and for the organization.

33. How to apply for 35ac approval? • If you have above specific objects and if you have a special cause to do a social welfare project, you can avail this 35ac approval, if you feel that you have best fundraising source. • Also the donors can get 100% tax exemption for the fund they are donating towards this 35 ac projects. • When they donate funds to 35ac project, as a receiver (nonprofit NGO) you should provide the certificate FORM 58A. • Even if you get such 35ac approval, if you don’t have proper fundraising source, then please don’t waste your time and efforts. • You can download the 35ac application form and after filling as per the instruction in the given form, Make 4 sets of this application ( 2 sets- For your office copy and send the balance 2 sets to the below address) • The Secretary, National Committee for Promotion of Social and Economic Welfare, Department of Revenue, Ministry of Finance, Room No. 149, North Block, New Delhi-110 001 • After you have sent the application, it will take much time to receive your approval and there are several possibilities to reject your application. So please fill the 35 ac form with due care.

34. Size is not a matter but the attitude NICK VUJICIC, who was born without arms or legs, gave a motivational speech. Vujicic, 25, travels 40 weeks out of the year sharing his story and trying to give inspiration and hope to others. Look at yourself after watching this ….

35. 80g TAX exemption Under Income Tax Act 1961

36. 80G tax exemption certificate given by NGO. How to provide 80g tax relief to the donor.  • When a NGO received money donation in cash or cheque, the NGO should issue a receipt to the donor. • That donation receipt should bear the CIT approval period and the number of 80g certificate. • Nonprofit NGO should avoid receiving money donation through cash which is safe both for the donor and the organisation.  (Form 80g) • The basic rule for a donor to donate an organisation is 10% of his annual income. If the donor donates more than the 10%, then the excess amount will not be considered for tax relief and it will be ignored. • Same time the donor get 50% tax exemption for the amount which he donated on the Gross total income. • After the deduction under 80 g on the Gross total income, the payable tax value of the net taxable income will be deducted from actual payable tax value. • So the differential value from Actual payable tax and net payable tax will be the tax relief for the donor.

37. Lets see how the donor gets 80g tax relief ? Example : Mr. Xyz is working in a company and drawing a monthly salary of 20,000 Rupees. He donates an organisation in a month for Rs. 6000/- Now lets calculate his 80g tax relief: Annual salary income of Mr. Xyz                           =     2,40,000   ( Income tax on this 24,200 /- )            Several Deductions                                         =        80,000                                                                             -----------------      Gross Total income of Mr. Xyz                         =      1,60,000 Less: Deduction under 80g on taxable income =          3,000  ( 50% of the donation amount )                                                                                         -----------------      Net Income                                                      =      1,57,000  ( Income tax on this 23,210 /- ) -------------------    So the payable tax on Annual salary                      = 24,200Less: the payable tax after deduction under 80g  = 23,210                                                                       ---------------Actual tax relief to the donor  (Mr. Xyz)            =    990 Rupees.

38. To get the 80g certificate • To get the 80g certificate NGO have to fill the FORM 10G and they have to attach the activity report for the past 3 years or the least year with the audited report right from the date of establishment or of the past 3 years.  • Approval from income tax department. This process may take several months, to receive the approvals. • When you apply for 80g you shall check yourself for the fitness of 80g approval under the following factors. • If NGO is under going with any business, then they have to maintain a separate account and should not mix the donations they receive for social cause.  • Other than charitable cause the organization or its byelaw should not represent any other causes towards spending of such donation amounts or the assets and incomes of the NGO. 

39. To get the 80g certificate • When you apply for 80g you shall check yourself for the fitness of 80g approval under the following factors. Continues… • The NGO shall not be able to apply for 80g if it support religion based, caste and creeds based activity.  • The NGO should have the qualification of registration which might have been registered under Societies registration act 1860 or registered under section 25 of Companies act 1956.  • Proper annual returns, accounting, book keeping should be in manner before applying for 80g. • If you have already received the 80 g certificate, then proper renewal is must to hold such tax benefits. • Income tax department has the power to approve or reject such approval upon disqualification of the nonprofit organization or dissatisfaction found by the department towards the nonprofit NGO organization activities.

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41. How to apply for 80 g certification? • NGO shall fill FORM 10G of Income tax department to get approval and after 80 g certificate NGO shall provide tax exemptions to the donors who donates NGO. • If nonprofit NGO organization is under going with any business, then they have to maintain a separate account and should not mix the donations they receive for social cause.  • Other than charitable cause the organization or its byelaw should not represent any other causes towards spending of such donation amounts or the assets and incomes of the nonprofit NGO organization.  • The nonprofit NGO organization shall not be able to apply for 80 g if it support religion based, caste and creeds based activity.

42. How to apply for 80g certification? • The nonprofit NGO organization should have the qualification of registration which might have been registered under Societies registration act 1860 or registered under section 25 of Companies act 1956.  • Proper annual returns, accounting, book keeping should be in manner before applying for 80g.  • If you have already received the 80 g certificate, then proper renewal is must to hold such tax benefits. • Income tax department has the power to approve or reject such approval upon disqualification of the nonprofit organization or dissatisfaction found by the department towards the nonprofit NGO organization activities.

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46. Apply for FCRA for FUND raising

47. About applying for FCRA 1976 • In all countries, all governments have their own rules and regulation towards foreign contribution to their native country. It may be in currency form or it may be in material form.  • However, it’s our duty and our responsibility to inform our government before our foreign deals. • In this vision every nonprofit organization has the responsibility to inform about their contribution in any form, which they are going to receive from outside their native country.

48. About applying for FCRA 1976 • Our Indian government has specified several procedures and rules to received foreign funds or materials from outside sources of India. • And the Home ministry and External affairs ministry plays and empowered to monitor and to administrate such foreign deals. • So here the Foreign Contribution Regulation Act of India applies. • An authorization certificate is being issued by the home ministry of India which is called FCRA to the ngo before their play with any type of foreign contribution. 

49. About applying for FCRA 1976 • So apply for FCRA, nonprofit ngo organization have to apply by opening a separate bank account where they should not transact any of their local funds. • A separate book keeping, accounting procedures should be followed as per the Foreign contribution regulation Act. • It will be better, if the NGO is applying specifically for a cause or project, to get the prior permission.

50. About applying for FCRA 1976 • NGO sector people use to say, that there are some special routes to receive foreign currency, even without prior permission and it shall be informed to the Government within 30 days on receipt of such foreign contribution, which is not a healthy approach and it may lead the nonprofit organization to several enquiries which may result as punishable offense. • So the suggestion is, without the knowledge and prior permission of Indian Government any citizen, or ngo, should not receive or deal with any foreign currency or any type of foreign contribution.