TYPE OF NON PROFIT ORGANISATION

Non-profit provides a verity of service to the public, including tutoring children,

feeding the homeless, services to the not so fortunate and proving scholarships.
Public charities, foundation, social advocacy groups and trade organization are
common types of non-profit organizations:

Public Charities: Most non-profits organization are public charities. Here these
organizations provide free and low-cost services, such as computer training for
children and career workshops for the unemployed. They receive funding from the
public through the government, individuals, business houses and foundation.
Libraries, museums, hospitals and private schools are also as playas public charity
non-profits. Many public charities host fundraisers to obtain additional funding to
support their missions.
Foundation: Foundations sponsor many programs and event in the community and
they often fund other non-profits. Foundation can be established through a family,
a community groups, an association or through a business. Board Source reports
that more than 1,00,000 foundations operate in India. Private foundations form to
distribute funding to public charities. Corporate foundations give grants to other
non-profits on behalf of a corporation. Community foundations also fund non-
profits in a specific region or city.
Social Advocacy Organizations: Many non-profits are established as social
advocacy organizations. These are mostly membership organizations that form to
advance a specific set of beliefs or to reach specific goals or objectives. The National
Organization for Women and Greenpeace are examples of social advocacy non-
profits. Social advocacy non-profits like these use donations and membership dues
to disseminate information and advocate social change according to their mission
statements. An example of an advocacy is non-profit organization which works to
help women who face domestic abuse and who feel too afraid to speak for
themselves.
Professional and Trade Organizations: According to the society for non-profits
Organizations, professional and trade organizations from to provide programs and
services for a group of people in the same profession. The National Writers Union
and the International Association of Meeting Planners are a part of this category.
Although members pay fees to join these non-profits, they also receive free and
discounted classes and career training of their chosen fields.
Charities: Registered charities are often indicated to as non-profit organizations
(NPOs). Here the both types of organizations operate on a non-profit basis, the
two types are defined differently under the Income Tax Act. “The word ‘Charity’
connotes altruism in through and action that involves an idea of benefiting others
rather than oneself” Supreme Court in the case Andhra Chamber of Commerce
[1965] 55 ITR 722 (SC). It is a voluntary help either in money or kind to the needy.
Combined efforts are always more fruitful and hence there are various Non-
Governmental Organization (NGOs) and non-profit entities constantly working on
charitable activities by raising funds all over the world by forming either an
institution or trust.
NPOs AND NGOs: Common usage varies between counties – for example NGO is
commonly used for domestic organization in Australia that would be referred to as
non-profit organization in the United States. Such organizations that operate on
the international level are fairly consistently referred to as ‘non-government
organizations’, in the United State and elsewhere.
There is a growing movement within the non-profit organization/ non-
government sector to defined itself in a more constructive, accurate way. The ‘non-
profit’ designation is seen to be particularly dysfunctional for at least three reasons:
1) It says nothing about the purpose of the organization, only what it is not;
2) It focuses the mind on “Profit” as being the opposite of the organization’s
purpose;
3) It implies that the organization has few financial resources and may run out
of money before completing its mission.
Instead of being defined by “non”- words, organization are suggesting new
terminology to describe the sector. The term “social benefit organization” (SBO) is
being adopted by some organizations. This defines them in terms of their positive
mission. The term “civil society organization” (CSO) has also been used by a growing
number of organizations, such as the center for the study of Global Governance.
The term “citizen sector organization” (CSO) has also been advocated to describe
the sector – as one of citizens, for citizens. These labels, SBO and CSO, Position the
sector as its own entity, without relying on language used for the government or
business sectors. However, some have argued that CSO is not particularly helpful,
given that most NGOs are in fact funded by government and/or Profit-driven
business and that some NGOs are clearly hostile to independently organized
people’s organizations. The term “social benefit organization” seems to avoid that
problem, since it does not assume any particular structure, but rather focuses on
the organization’s mission.

NGOS AND THEIR INDEPEDENCE FROM GOVRENMETS

The most difficult question about the independence of NGOs is whether they
come under government influence. Individuals governments do at times try to
influence the NGO community in a particular filed, by established NGOs that
promote their policies. This has been recognized by quite common use of the
acronym GONGO, to label a government-organized NGO. Also, in more
authoritarian societies, NGOs may find it very difficult to act independently and
they may not receive acknowledgement from other political actors even when they
are acting independently. Beyond these unusual situations. There is a widespread
prejudice that government funding leads to government funding leads to
government control. In the field of human rights, it would damage an NGO for such
a perception to arise, so amnesty International has strict rules that it will not accept
direct government funding for normal activities. On the other hand, development
and humanitarian relief NGOs need substantial resources, to run their operational
programs, so most of them readily accept official funds. While these NGOs would
like the security of guaranteed budget of their administrative overheads.
Governments generally only want to support field cost for project.
Nominally NGOs may appear to be independent, when they design their own
programs, but government influence can arise indirectly if the program is designed
to make it more likely that government grants or contacts will be forthcoming. On
the other hand, confident experience NGOs can appeal for funding for new
approaches and in so doing cause government officials to re-assess policy. The best
example of this is the way in which NGOs, particularly the International Planned
Parenthood Federation, dragged government into adopting population programs.
There is no obvious method to identify the direction of influence, without detailed
knowledge of the relationship between an NGO and a government. Environment
NGOs may have either type of funding relationship. Conversation and research
groups may happily obtain government funds to support their programs; some are
innovative and some are not. Beyond these situations, radical campaigning groups
may be unwilling and unable to attract government funds.
LEGAL ASPECTS
NGOs have aa wide diversity of structure and purposes. For legal classification,
there are, nevertheless, some elements of importance:
Economic activity.
Supervision and management provision.
Representation.
Accountability and auditing provisions.
Provisions for the dissolution of the entity.
Tax status of the foundation.
Some of the above must be, in most jurisdictions, expressed in the charter of
establishment. Others may be provided by the supervising authority at each
particular jurisdiction.
While affiliations will not affect a legal status, they may be taken into
consideration by legal proceeding as an indication of purpose.
Most counties have laws which regulate the established and management of
NGOs, and which require compliance with corporate governance regimes.
Both not-for-profit and for profit entities must have board