A non-governmental organization (NGO) is a non-profit group that functions independently of any government. NGOs,
sometimes called civil societies, are organized on community, national and international levels to serve a social or political
goal such as humanitarian causes or the environment.
● NGOs, or non-governmental organizations, play a major role in international development, aid and philanthropy.
● NGOs are non-profit by definition, but may run budgets of millions or up to billions of dollars each year.
● As such, NGOs rely on a variety of funding sources from private donations and membership dues to government
How NGOs are Funded?
As nonprofits, NGOs rely on a variety of sources for funding, including:
● membership dues
● private donations
● the sale of goods and services
Despite their independence from governments, some NGOs rely heavily on government funding. Large NGOs may have
budgets in the millions or billions of dollars.
● An NGO Board usually has 10 to 15 members, with a President, a
Treasurer and other positions designated to specific tasks/issues
related to the NGO's programme areas.
● The member positions could be rotating and/or renewable.
● Trustees are normally elected or appointed to the board at an Annual General
Meeting, normally for a specific period of time.
Some of the skills and qualities that your NGO should be looking for in a board of
■ A passion for your cause
■ Knowledge of either your cause, non-profit management, business
knowledge or some other relevant professional experience
■ Commitment and reliability
■ A beneficiary of your organisation’s services
Who is a trustee in an NGO?
The definition of a trustee is a person or a member of a board given control over
the property or affairs of another.
Sometimes referred to as a Board of Trustees, these volunteers act as guardians
for your organisation who protect and maintain the core values and purposes of
the organisation. As a collective body, the trustees hold the authority and
responsibility to ensure the fulfillment of an organisation's mission
The three primary functions of a trustee are:
● To make, or prudently delegate, investment decisions regarding the trust
● To make discretionary distributions of trust assets to or for the benefit of
the beneficiaries; and
● To fulfill the basic administrative functions of administering the trust
Executive Director - Responsible for overall direction in which the NGO moves
Responsible for managing day to day activities of NGO
Executive director is also member of the- usually its executive secretary.he or she reports to the board
I In some cases, a General Assembly may be set up at this level. Especially in cases where the NGO is a
membership-based NGO, the General Assembly is a group of all such members, including its board
members and staff members
decisions activities and management are taken care of by the board, the executive director and the staff
members, the highest body that guides and advises the overall development and progress of the NGO is
the General Assembly Also be called by other names such as Coordinator, Chief Operating Officer, or
are responsible for the day-to-day functioning, and implementing of its programmes and projects.
They report to the Executive Director, who overall is responsible for the NGO's activities.
Staff members of an NGO fall into three groups
Functions of NGO:
● Educating the general public about consumer rights
● Entrepreneurial development programme (EDP)
● Construction of housing facility
● Supporting innovation and pilot facility
● Providing technical assistance
ADVANTAGES OF NGO
● Ability to experiment freely.
● Ability to communicate at all levels.
● Ability to recruit experts and highly motivated staff.
● Flexible in adapting to local needs.
● Enjoy good rapport with people.
● Less restrictions from the government.
DISADVANTAGES OF NGO
● Lack of funds.
● Lack of dedicated leadership.
● Inadequate trained personnel.
● Misuse of funds.
● Monopolization of leadership
● Lack of public participation.
● Centralization in urban areas.
● Lack of co-ordination.
ACTS & LAWS RELATED TO NGO
● The following laws or Constitutional Articles of the Republic of India are relevant to
● Articles 19(1)(c) and 30 of the Constitution of India
● Income Tax Act, 1961
● Public Trusts Acts of various states
● Societies Registration Act, 1860
● Section 25 of the Indian Companies Act, 1956 (Section 8 as per the new Companies
● Foreign Contribution (Regulation) Act, 1976.
● Child related laws
● Public welfare related laws
INDIAN TRUST ACT 1882 - ACT NO 02
● Commencement- came into force on the first day of March, 1882.
● Local extent- 2 [It extends to 3 [the whole of India Kashmir] and] the Andaman and
Nicobar Islands 5 4 [except the State of Jammu and ***; but the Central Government
may, from time to time, by notification in the Official Gazette, extend it to 6 [the,
Andaman and Nicobar Islands] or to any part thereof.]
● A “trust” is an obligation annexed to the ownership of property, and arising out of a
confidence reposed in and accepted by the owner, or declared and accepted by him,
for the benefit of another, or of another and the owner: “author of the trust”:
“trustee”: “beneficiary”: “trust-property”: “beneficial interest”: “instrument of trust”
● Purpose of a trust is lawful unless it is :
1. Forbidden by law
2. Is such a nature that, if permitted, it would defeat the provision of any law
3. Fraudulent activity
4. Involves or implies injury to the person or to the property of another
5. The court
● Who may create trusts.—A trust may be created— (a) by every person competent to contracts 1 , and
(b) with the permission of a principal Civil Court of original jurisdiction, by or on behalf of a minor.
● Who may be trustee & beneficiary.—Every person capable of holding property may be a beneficiary.
● A beneficiary can renounce his interest under the trust.
● Acceptance of trust.—A trust is accepted by any words or acts of the trustee indicating with
reasonable certainty such acceptance.
● Sub of trust - the sub matter of the trust must be
1. Property transferable to the beneficiary
2. It must not be merely beneficial interest under a subsisting trust.
● Trustee to execute trust :
1. Purpose of the trust and to obey the direction of the author of the
2. Trust given at the time of its creation, except as modified by the
3. Consent of all the beneficiary being component to contract.
RIGHTS AND POWERS OF TRUSTEES:
● Right to title-deed.
● Right to reimbursement of expenses
● Right to be recouped for erroneous over-payment
● Right to indemnity from gainer by breach of trust.
● Right to apply to Court for opinion in management of trust-property.
● Rights to settlement of accounts.
● Time allowed for selling trust-property
● General authority of trustee.
● Power to sell in lots, and either by public auction or private contract
● Power to sell under special conditions. Power to buy-in and re-sell.
DISABILITIES OF TRUSTEES
● Trustee cannot renounce after acceptance.
● Trustee cannot delegate.
● Co-trustees cannot act singly.
● Control of discretionary power.
● Trustee may not charge for services.
● Trustee may not use trust-property for his own profit.
● Trustee may not buy beneficiary’s interest without permission.
● Co-trustees may not lend to one of themselves.
THE EXTINCTION OF TRUSTS
● Trust how extinguished.—A trust is extinguished
(a) when its purpose is completely fulfilled; or
(b) when its purpose becomes unlawful; or
(c) when the fulfilment of its purpose becomes impossible by destruction of the trust-
property or otherwise; or
(d) when the trust, being revocable, is expressly revoked.
● Revocation of trust.—A trust created by will may be revoked at the pleasure of the
testator. A trust otherwise created can be revoked only
(a) where all the beneficiaries are competent to contract—by their consent;
(b) where the trust has been declared by a non-testamentary instrument or by word
of mouth—in exercise of a power of revocation expressly reserved to the author of
the trust; or
(c) where the trust is for the payment of the debts of the author of the trust, and
has not been communicated to the creditors—at the pleasure of the author of the trust.
SOCIETIES REGISTRATION ACT 1860 - ACT NO 21
● An Act for the registration of literary, scientific and charitable societies.
● It is enacted as follows :-
1. Societies formed by memorandum of association and registration : Any seven or more persons
associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in
section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the
same with Registrar of Joint-stock Companies 2[***] form themselves into a society under this Act.
2. Memorandum of association The memorandum of association shall contain the following things, that
is to say,- the name of the society; the object of the society; the names, addresses, and occupations of
the governors, council, directors, committee, or other governing body to whom, by the rules of the
society, the management of its affairs is entrusted. A copy of the rules and regulations of the society,
certified to be a correct copy by not less than three of the members of the governing body, shall be filed
with the memorandum of association.
3. Registration and fees: There shall be paid to the Registrar for every such registration
a fee of fifty rupees.
4. Annual list of managing body to be filed
5. Property of society how vested
6. Suits by and against societies
7. Suits not to abate
8. Enforcement of judgment against society
9. Recovery of penalty accruing under bye-law
10. Members liable to be sued as strangers
11. Members guilty of offences punishable as strangers
12. Societies enabled to alter, extend or abridge their purposes
13. Provision for dissolution of societies and adjustment of their affairs
14. Upon a dissolution no member to receive profit
15. Member defined
16. Governing body defined
17. Registration of societies formed before Act.
18. Such societies to file memorandum, etc., with Registrar of Joint-stock Companies.
19. Inspection of documents, Certified copies.
20. To what societies Act applies.
RIGHT TO INFORMATION ACT 2005 (RTI)
● Provides a legal framework of citizen’s democratic rights to access to
information under the control of public authorities.
● To promote transparency and accountability in the functioning of every
● Information means : records, documents, memos, opinions & advices,
press release, circulars, orders & logbooks, contracts, reports, paper,
samples & models.
● Reduces corruption.
PROCEDURES TO REQUEST INFORMATION
● Apply in writing or through electronic device in English or Hindi to the public
information officer (PIO) specifying the particulars of the information u seek
● Reason for seeking information are not required to be given.
● Application fee is rs 10/-
● If information is required through electronic media like CD extra charges might
● Photocopy charge rs 2/- per page
● Inspection charges for relevant files, documents and records:
No fee for first hour of inspection.
Rs 5/- for every subsequent hour or fraction therefore.
TIME LIMIT TO GET THE INFORMATION
● 30 days if the application is filed with the PIO
● 35days incase it is filed with the assistant PIO
● 48 hours in case the matter to which the information pertains affects the life and
liberty of an individual.
● RTI Act came into effect from 12th oct 2005
● Covers central, state and local governments and all bodies owned, controlled or
substantially financed by the respective government. Sec2(h)
● NGO substantially financed directly or indirectly by funds provided by the
appropriate government. Sec2(e)
● Executive, judiciary & legislature.
EXEMPTIONS FROM DISCLOSURE OF INFORMATION
● National security
● Contempt of court
● Parliamentary privilege
● Trade secrecy
● Foreign government
● Copyright- Sec9
● The penalty levied under the RTI Act at the rate of Rs. 250/- a day upto a
maximum of Rs 25000/- is recovered from the salary of the officials.
Roles of NGO
● NGO’ play a significant role in bringing social change in society and development of
society. In different parts of the world, it has proven that these organizations have
many sides. To be a member of it people need to be educated, enthusiastic and
● Now we shall discuss the roles of NGO’
● The organization i.e. NGO’ help educates those section of society which was left
behind in the society since its inception and never enjoyed benefits that government
has facilitated them with. Such as women’s education, STs, and SCs.
Roles of NGO
NGO’s Are the reason why women are not able to move out of the four walls of the houses and
participate in politics, business, social activities.now women have witnessed a whole new world
due to the efforts of NGO’s and academic institutions. We have seen increasement in the number
of women workers. There are many foundations such as Agrani foundation, Eklavya, Sewa and
Environmental Action Group etc. Day by day women are seeing new opportunities for themselves
due to the help of NGO’s.
The use of technology, level of production, a pattern of utilization is almost same all over the world
whereas the world is destroying natural resources to achieve their goals and selfish reasons. That
is why NGO’s take birth to keep eyes on such activities. There have been many health issues due
to the overutilization of natural resources causing pollution which later cause health problems and
calamities. In this case, NGO’s deserve an appreciation as they have done a lot to work for such
Roles of NGO
It’s not just that because of developmental processes environment has been affected
but it also has moved people from their place of origin or birth not just that they are
no even compensated and given other place to live. They are left homeless. Hence
NGO’s play a significant role to provide them shelter and look after all the legal
processes. Many projects are taking place such as the construction of houses,
roadways, dams etc and compensate these people.
NGO’s one of the most important task would be that they are helping and restoring
the dignity of those who always have been ignored and never enjoyed those activities
which other people did such as women facing gender inequality, untouchables
discrimination, racial, religious discrimination in society.
Roles of NGO
NGO’s are working on a national and international level and have gained great
importance in the development of society.
It helps in maintaining a society which is free from all the biases and social
evils. It is setting an example of humanity is still alive. They help in spreading
awareness and guiding and pressurizing government when they fail to meet
Roles of NGO
. Supporting democratic system
.Function on non- profit basics
. Voluntary work
. Human rights
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