Project Report Social.pdf

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

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Table Of Contents SR. Content No.

Page Number

1

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

3

2

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

6

3

Current scenario of Non-profit sector in India and scope Define NGO registration process in Maharashtra. (Types of NGO, Legal structures and process)

10

5

What is 80G and 12AA Income tax ACT and its benefits to NGO and Donors

20

6 7

What is FCRA Act and how it helps NGO Which are the various fund raising options for nonprofit / NGO

26 27

8

Describe CSR ACT in details and how it helps to NGO’s and corporate

33

9

About Thinksharp Foundation (Profile, Work, Team, Awards, etc)

37

10

Write about field visit and your learning (Project details, Impact, you

42

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) Social problem you concern about and solutions for it (Select the social problem around you at small or large level and provide solutions)

43

13

Learning from research and field visit

44

14

References

46

4

12

13

43

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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

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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]) 5

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: 6



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. 8

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-forprofit 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, serviceoriented/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.

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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 subjectmatter 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

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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, Section8 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. 18

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.

21

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.

22

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 nonprofit 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.

23

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 subsection (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.

25

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 27

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 28

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 nonprofit 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 29

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. 30

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 31

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.

32

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.

35

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 36

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 RuralUrban 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 37

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 38

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.

39

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.

40

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.

41

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, 43



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 44

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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