1: Credibility: Registered NGOs gain credibility, attracting donors, collaborators, and supporters. Registration lends authenticity to the organization’s mission.
2: Operational Development: NGO registration enables local operations to expand, leading to greater exposure and increased community impact.
3: Resource Expansion: The scope of financial and human resources expands as NGOs become eligible for income tax exemption, making them more appealing to potential volunteers and contributors.
4: Tax Benefits: NGOs registered under the Income Tax Act of 2013 in India enjoy various tax benefits, contributing to financial sustainability.
5: Asset and Liability Management: Registered NGOs can own assets, incur liabilities, and manage interest-earning claims, providing a solid foundation for organizational growth.
6: Stamp Duty Exemption: Section 8 companies are exempt from stamp duty, offering additional avenues for tax savings and resource allocation.
Benefits of NGO Registration
The following are the benefits of NGO Registration in India:
1: Tax Exemption: NGOs registered under Sections 12A and 80G of the Income Tax Act enjoy tax benefits, encouraging financial support.
2: Asset Ownership: Registered NGOs can acquire, retain, and sell assets, enhancing financial stability and organizational capability.
3: Transparent Financial Operations: Opening a bank account under the NGO’s name ensures transparency in financial transactions, instilling trust in donors and stakeholders.
4: Enhanced Credibility: Registration elevates the credibility of NGOs, attracting collaborators and donors who prefer working with recognized and accountable entities.
5: Stability and Succession: A registered NGO is perceived as more stable, with provisions for perpetual succession, ensuring sustained impact.
6: Access to Credit: Registered NGOs can secure loans for various initiatives, broadening their financial capabilities and supporting expansion.
7: Name Preservation: Registration protects the NGO’s name, preventing unauthorized use and safeguarding its brand and reputation.
8: Bank Account Necessity: A registered NGO can convey transparency by operating through a corporate bank account, instilling confidence in donors and stakeholders.