Benefits of Registering an NGO in Delhi
Registering an NGO in Delhi provides legal status, allowing for tax exemptions under sections 12A and 80G, eligibility for government grants and access to foreign funding (FCRA). It enhances credibility with donors, enables receipt of corporate CSR funds, and ensures perpetual succession, allowing the organisation to operate continuously.
Legal Recognition: The NGO becomes a separate legal entity, enabling it to own property, enter into contracts, and sue or be sued in its own name.
Tax Exemptions (12A & 80G): Registered NGOs can apply for 12A certification to exempt income from tax and 80G certification, allowing donors to claim tax deductions.
CSR Funding Eligibility: Registered entities are eligible to apply for Corporate Social Responsibility (CSR) funds from companies that require registration with the Ministry of Corporate Affairs (MCA).
Foreign Funding (FCRA): Registration is a prerequisite for obtaining approval under the Foreign Contribution Regulation Act (FCRA), which allows the receipt of international grants and donations.
Government Support: Registered NGOs can apply for government schemes, grants, and subsidies, often via the NGO Darpan portal.
Credibility and Trust: Official registration enhances trust, making it easier to attract donors, volunteers, and partners.
Perpetual Succession: The NGO continues to exist regardless of changes in its members or governing body.
Eligibility for CSR funding after NGO registration: Delhi saw ₹365 Cr CSR in 2020-21 alone. Govt grants for registered NGOs flow more easily with Darpan ID.