NGOs India

How to run and manage NGO?

Start with General Body – Board of Directors Meeting
After the registration of the NGO the first meeting of all or most of the members should be held. This will be the meeting of Board of Directors or Board of Trustees or Managing Committee or Governing council that means the meeting of General body members. In the meeting the resolution should be passed about the formation or clarification of formation of Board of Directors or Board of Trustees or Managing Committee or Governing council. In the meeting the board members have to adopt the bylaws that explain about the functioning of board and NGO. If you take consultancy service then consultants can guide you about the meeting and bylaws. In the first meeting of General body of NGO it should be resolved to form the Board members or Board of Trustees or Managing Committee or Governing council. After the formation of Board of Directors or Board of Trustees or Managing Committee or Governing council_ the meeting of General Body of NGO should be for the Executive Committee members and Office Bearers. In the meeting the resolution should be passed by the consent and approval of majority of the members present in the members that the certain members of NGO are appointed the Executive Body Members and office bearers with certain designations such as President, General Secretary, Treasurer, Vice President, Joint Secretary, Organising Secretary, Members etc. The meeting to form the other committees and implement the preliminary programmes and projects should be there. In this regard NGO Consultant can guide you in better and legal way about the proper proceedings.

Meetings for Decision with Resolutions
If the NGO and the members or General body or the Executive Committee want to take any decision or appoint any person/body/authority or start any programme or project or any task then the meeting of the concerned body is to be held. In the meeting the resolution on such action or decision should be taken with the consent and approval of all or majority of the members of the committee. In any organisation the decision of more than the half of the total members are acceptable, that is based on the democratic way and parameter to take decision and run organisations.
The committee members or the office bearers/Executive officers like president, secretary etc. has to write the proceedings of meetings and passed/approved resolutions, as the resolutions and decisions are require in written with signature for the concerned issues it has decided or approved or taken decision on that issue or topic or matter.

Requirements to Run and Manage NGO
Manage Accounting System
The NGOs have to keep records of transaction of received, expenditure and provided belongings and money that is executed for the various purpose and objectives. NGO has to appoint the Treasurer or any persons for bookkeeping to keep record of transactions and expenditures of organisation. In the transactions it should be mentioned that form where the money comes from and how it is used for what purpose. It is usually recommended_ that with the help of treasurer or accountant who can keep record of transactions and setup the bookkeeping system is to be made for the transactions. The transparency at accounting part must be there because financial transactions can be scrutinised at any part if you expect to get funds or keep it as a change maker organisation. So there must be a effective accounting system to deal with the implication of_ accounting. If your NGO is in working condition and have some transactions then you have to appoint a part time of full time accountant.

It is important to decide whether the bookkeeping system should be cash or accrual. Cash based accounting is a system where:

  • Revenue is recorded when added to a bank account.
  • Expenses are recorded when money is withdrawn from the bank.

This system is very straightforward. However, it only tells the NGO how much money is in a bank account and nothing more. It does not reveal how much money might be owed to the organization or how much money the NGO owes.

Accrual based accounting records:

  • Revenue that is earned (may be before or after it is received)
  • Expenses when incurred (may be before or after payment)

In general, it seems that the information provided through accrual based accounting is more useful to an organization than cash based accounting because it paints a broader financial picture. It allows an NGO to see not just its immediate payments and deposits, but also what kind of money they owe or may be receiving in the future. This allows an organization to be more aware of its financial status.
Lastly, once the NGO decides what the bookkeeping system should be, it is essential that all financial transactions are documented and recorded into financial journals by the bookkeeper. Transactions should be numbered and put in chronological order and thank you notes are essential for every donation received. Thank you notes should be copied and added to the journals, as well as check stubs and deposit receipts. The bookkeeper must be well organized in order to prevent the misuse of funds and ensure efficient spending for programs.

Come Up With a Fundraising Plan
Money required for an NGO to operate primarily goes into their educational and social programs, the overall operation of the NGO (administration, utilities), and projects (surveys, giving programs). Both the board of directors and the executive director should be active participants in fundraising and it is important that writing grants, seeking contributions, and other fundraising skills are acquired skills early in the NGOs development.
In order to come up with the best fundraising strategy, it is important to identify what the needs are of the NGO and what sources can best fulfill these needs. Professionalism, communication, and accountability are crucial for building trust with a potential donor. Also,

understanding why a person or group is supporting a program, activity, or the NGO as whole is useful in soliciting them to contribute for a second time or even continuously.

The following presents some examples of ways in which an NGO may choose to pursue funding:

  • Foundations. Generally, they all have readily available guidelines that can befound through researching that explain what kind of NGOs they fund and how to apply for grants. There tend to be three different types of foundations.
    • Most foundations fall under the category of independent foundations where most of the funding comes from individual, family, or group endowments.
    • Community Foundations receive money from local sources and distribute it to local NGOs.
    • Corporate Foundations are set up legally through business corporations and is governed by trustees. They tend to support communities in which the corporation operates.
  • Corporations and businesses that have staff working in community relations or public relations departments.
  • These departments fund many charities in communities where the company operates and usually provides grants to NGOs regardless of location.
  • Religious groups tend to fund organizations regardless of location.
  • Individuals may provide long term funding or short term funding to an NGO.

Additional Steps
Once the previous ten steps have been completed, the foundation of an NGO has essentially been established. There are only a few miscellaneous tasks that must be completed before the NGO can fully operate. Some of these include:

  • Hiring staff and volunteers
  • Reaching out and becoming known in the community
  • Seeking office supplies (furniture, computers, machinery)
  • Insuring the NGO
  • Holding orientation.

After this point program activities can be discussed and implemented. It may take about a year before these prove to be successful. Finally, at the end of the first year, it is important to review the mission, goals, and vision to make sure the NGO has stayed on track. Critiquing programs and activities to see what can stay or be changed is also beneficial.

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NGO – Trust or Society

Non-Governmental Organisation (NGO) or Non Profit Organisation (NPO) can be registered by many registration processes in India like Society, Company, Trust or any valid formation but status of the registered organisation is equal and equally recognised as NGO (Non Governmental Organisation /Non-Profit Organisation).

Registration process of NGO under Indian Trust Act, Society Registration Act, Company Registration Act or any other act/ law are different but the status of the registered organisation is equal as NGO. There is no difference in the status of NGO to get funding from Central/State Government Departments/ Ministries, Foreign funding agencies, Indian funding agencies, companies for Corporate social responsibility, individuals or any support agencies.
NGO registered through any process/ act can get registered under Income Tax Act, Foreign Currency Regulation Act (FCRA) or any kind of registration with any Government requirement. Every registered NGO are not eligible for the registration under various departments’ registration. The NGO must fulfill the registration process and parameters as required by the concerned department or authority. But the basic registration parameters do not matter that by which act the Voluntary Organisation is registered as NGO.

Just check here the comparison, difference and similarity between Trust, Society and Non Profit Company: Trust, Society and Company.
So now question is that how to register and under which act you have to register NGO? What kind of NGO is suitable to operate and manage? For answer and solution you can discuss with NGO Consultants at NGOsIndia.net