The term NGO is used as an umbrella term to cover all legal entities that seek philanthropic and charitable funds and utilize them towards social development without the motive to earn profit from it or use the profit from the business of the NGO in the implementation of its objects.
NGO’s are not “owned” by anyone and cannot distribute profits in the form of dividends as such. Whatever profits they may earn from economic activities are reinvested in the activities as per their objects. The typical sources of revenue for NGOs are donations, funding grants from unilateral and multi-lateral agencies, membership fees, rentals from let-out immovable properties, miscellaneous sources and interest and dividends on investments.
In India, an NGO can either be registered as a Trust, Society or as a Company under Section 8. In this module, the learners will learn about major laws applicable to Indian NGOs and the related legal compliances required to be carried out by the NGOs.
1 Subject
5 Exercises • 5 Learning Materials
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