The proper functioning of an NGO depends upon the funds received from various sources. The first question that comes to mind is that how you will generate funds. Without funding, an NGO can not work. In this resourceful content, we will discuss different types of funding available for NGO and how to get them.
There are basically 4 different types of funding:
1.> Government Funding
2.> Corporate Funding
3.> Foreign Funding
4.> Personal Funding
Government Funding: What is Government Funding? Any monetary fund granted by Government of India to the NGO comes under the category of Government funding. If you wish to obtain Government funding, you need to submit a project in the ministry for the work which you need money. If they approve your project, you will receive funds. If they disapprove you, you can’t get funds.
Corporate Funding: What is Corporate Funding? There is rule in Indian constitution with the name of CSR rule. CSR means Corporate Social Responsibility. According to CSR, a company is liable to give 3% of its annual benefit to charitable organizations or spend this 3% of money doing charitable work. If you run an NGO, you can submit a project to a company asking for money under the CSR rule. If they like your project, they will give you funds for your specific project.
Foreign Funding: What is Foreign Funding? An NGO can also receive grant from abroad which is called Foreign Funding. However only those non-profit organization can receive funds which hold FCRA (Foreign Contribution Regulation Act) certificate. An NGO is applicable to get FCRA certificate once it has completed 3 years.
Personal Funding: What is Personal Funding? Personal Funding means a person can donate independently to an NGO. There is no fixed criteria for getting funds from an individual. If an NGO has an 80G certificate, the individual or company donating to that NGO will get a 50% tax rebate on the total amount of donation made to the NGO. If an NGO has 35AC certificate, the person or organization donating money gets 100% tax exemption. If an NGO does have neither of this certificate and it receives funds, it has to pay tax for it.
If you are looking for funding from Government sector and you want your project to be made, mail us on firstname.lastname@example.org. We can make your project and help you to receive funds.