How To Form An NGO In The US By An NRI
What Is An NGO And What Is Society?
In India, a Non-Government Organisation or NGO is so-called because it functions in a manner akin to the state. It works towards the development, welfare, and advancement of the public. The objective of an NGO can be:
A single individual does not own an NGO. Any profit the NGO makes is not distributed among its members; instead, it is reinvested in the activities of the NGO. The various modes through which an NGO may earn are:
- membership fees
- interest on investments
An NGO can be a registered society, trust or non-profit company. Societies are the most popular form of charitable organisations. To form a society, at least seven members are needed, and an application for the same is submitted to the Registrar of Societies with jurisdiction in the state or complete a Society registration online. The society is run by either a managing committee or a governing council.
The members of the committee or the council can be:
- Indian citizens
- Non-natural legal persons
The Societies Registration Act of 1860 that govern all societies doesn’t require only Indian citizens to manage one.
How To Form An NGO In The USA?
Typically, in the US, any group of persons can band together to discuss a common idea or interest. This forms an informal organisation which doesn’t necessitate approval from the government. In case, the organisation wants to leverage legal advantages like tax exemption; then it has to be formally incorporated.
An NGO in the US can be registered in any of the states of the country. The persons forming the society need not be citizens of the USA. The actual requirements for the formation change in each state, but overall, they are pretty straightforward. It ensures that anyone can form an NGO, at the state level, within a few short days.
The process of forming an NGO in the US includes:
- Providing a short description of the society
- Mission statement
- Name and address of the person within the concerned state
- A minimal fee
In the majority states, there is no need to gain the approval of a government authority or legislation to form the NGO. There is an incorporation statue that must be fulfilled. The absence of consent ensures that authorities do not abuse their power and prevent society from being formed.
Most states in the country offer NGOs exemption from taxes at state and federal level once they have been legally incorporated. It is much easier for an NGO to run a non-profit organisation as these don’t require payment of tax on any money, funding, or income they receive or obtain. To be exempt from paying taxes, the organisation has to apply to the IRS. The benefit the NGO gets is dependent on the work they do. For example, societies built for educational, religious, or charitable purpose are exempt.
Easy To Form An NGO In The United States
The United States has about 1.5 million NGOs running currently. The societies and organisation encompass a range of activities. Just a handful of issues which the NGOs cover are:
- Economic development
- Political advocacy
- Women’s rights
- Labour unions
These organisations are built to create new ways of solving problems or address issues that the government cannot or doesn’t. For instance, volunteer groups work to help the poor or the disabled, organisation work to empower the youth of the country or promote a marginalised section.
Because the country has made it so simple to start an NGO, they exist for every possible cause with the help of funding from:
- Private individuals who can be American citizens or foreigners
- Private firms that work for-profit
- Grants given by local, state or federal government
- philanthropic foundations
- foreign governments
Non-government sources of foreign lands can also fund the NGO. The US highly encourages the formation of non-government organisations, which means there are rarely any obstacles to starting one.