7 innovative ways to raise funds for your NGO according to Impact Guru

Although the large majority of funding for NGOs is still done offline, online platforms offering this crowdfunding service are playing an important part in the increasing role of technology within the nonprofit sector

NGOs need funds. It's as simple as that. Raising them is a different story. With the rise in non-profit competition, gaining funds is becoming a denser marketplace to crack. Amongst the clamour and competition, the smarter NGOs are having to come up with new and increasingly more innovative ways to compete with each other for that ever-important cash.  Let's see what these innovative ideas really mean when we're standing head on in the fierce fundraising race.

1. Crowdfunding

Although the large majority of funding for NGOs is still done offline, online platforms offering this crowdfunding service are playing an important part in the increasing role of technology within the nonprofit sector. A trend that has taken off globally over the last decade, online crowdfunding is fast becoming one of the most viable sources of funding for social good.

2. Competitions

Smart NGOs are leveraging initiatives and competitions that are being run through various online platforms, fundraising portals or associated bodies. Such initiatives may offer some form of financial benefit for competing in a fundraising challenge,  or boast various tax benefits for the participants.

3. Go mobile

It's no secret that mobile usage is fast outgrowing desktop, the majority of web traffic is accessed through mobile already. Its vital then to maximise the platforms hat not only you're ready to take donations online, but also that your page is mobile compatible.

4. Tax Saving

To encourage people to donate to good causes, the Indian Income Tax Department allows donors to claim tax exemption under Section 80G on the amount donated to charities and NGOs. This offers a great opportunity for savvy NGOs to capitalise on this and provides a USP to gain donors and draw in funds, particularly around the tax saving season.

5. Jump on the bandwagon

Popular trends and hot topics create a great opportunity for you to capitalise on the talking point and direct the audience towards your cause. Keep a lookout on social media platforms such as Twitter and Facebook for trending topics that you could utilise to point towards your cause.

6. Reward your donors

Give something back to your donors. Not necessarily a free gift, although if you can afford it then giving the option for a small branded item acts as a consistent reminder of your brand to the donor and will work towards building a brand presence. Try partnering with larger consumer brands to finance this.

7. Love loyalty

Don't forget to nurture the loyalty of repeat donors. Create a reason for them to keep coming back to donate. This might be through loyalty schemes, or encouraging them to donate again by gifting vouchers or coupons. Similarly to above, contact corporates to partner with for this.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the publication

Source: https://mybigplunge.com/opinion/innovative-ways-to-raise-funds-according-to-impact-guru/

NGOs, clubs will face higher taxes on fundraisers, charity events under GST

Mumbai: Beginning July 1, the Goods and Services Tax will play spoilsport to fundraisers or charity events organised by non-government organisations (NGOs).

As total landed cost of holding such events would increase by at least 20 per cent, there will likely be a decline in hosting them, an Economic Times report said.

Clubs and NGOs that hold fundraisers or meetings will not be able to get an input credit on the food expenses under GST, unlike the current tax regime where they receive sales tax credit.

Apart from that, NGOs are complaining that they won't get any input credit on GST paid on subscription fees paid by their members.

Clubs such as Rotary Club and Lions Club fear that under GST there could be double taxation for them.

Read: What is GST and how will you benefit from it?

The idea behind double taxation implies that clubs, NGO's will have to pay 18 per cent GST on subscription fees of their members. While under the current tax regime, they receive an input credit of around 10.15 - 14.5 per cent on food and beverages costs at a fundraising event, the same will not hold once the indirect tax regime takes effect.

The GST framework does not allow credit for expenses incurred for activities that may not be directly construed as related to business. This includes expenses incurred for food and beverages.

Sources stated that many clubs would try to create structures that can bypass the GST regulations.

Source: http://www.timesnow.tv/business-economy/article/club-ngo-holding-fundraiser-charity-higher-tax-gst-double-taxation/63861

Future of 10,000 NGOs uncertain over issue of filing I-T returns

All NGOs need to register themselves with the ministry of home affairs under the Foreign Contribution Regulation Act (FCRA) in order to receive foreign funding.

Fate of around 10,000 NGOs registered with the Union home ministry to receive foreign funding is hanging in the balance as they have yet not been able to comply with the condition of submitting their annual returns for the last five years.

All NGOs need to register themselves with the ministry of home affairs under the Foreign Contribution Regulation Act (FCRA) in order to receive foreign funding. All these NGOs are required to file annual details of their income and expenses.

About four years ago, there were around 42,500 NGOs registered under the FCRA. But according to the government, there were only 33,300 NGOs registered under the forex act as on December 31 last year. Their number may come down further.

Last month, the ministry had given as many as 18,523 NGOs one-time opportunity to file their missing annual returns. "But till June 15, only 8267 NGOs managed to submit their returns for the period between 2010 and 2015. For the rest of 10526 NGOs, the ministry is yet to take a final call," said a home ministry spokesperson.

The official clarified there are 1,549 NGOs, which have not submitted return for even one year, while 2,339, 2,057, 2,079 and 2,239 NGOs have submitted their returns for one, two, three and four years, respectively. "The home ministry will not take a lenient view in this regard," said the spokesperson. The ministry had given time to the NGOs to submit their returns till June 14.

Source: http://www.hindustantimes.com/india-news/future-of-10-000-ngos-uncertain-over-issue-of-filing-i-t-returns/story-tbYE3V7A158EovQw55LbjI.html

Over 10,000 NGOs set to face Home Ministry crackdown over foreign funding

The MHA in May had given 18,523 NGOs a one-time opportunity to furnish details of their income sourced from abroad. MHA had asked these agencies to declare income and its source from abroad by June 14.

Over 10,000 Non-Government Organisations (NGOs) have come under the scanner of the Ministry of Home Affairs (MHA) for not declaring their source of funding from foreign countries and they may even lose their license required to get grants from other nations. The MHA in May had given 18,523 NGOs a one-time opportunity to furnish details of their income sourced from abroad. MHA had asked these agencies to declare income and its source from abroad by June 14.

The MHA had asked these NGOs to declare income received from abroad from the 2010-11 financial year to 2014-15 financial year – a time frame of five years. Out of the 18,523 NGOs who were asked to furnish details only 8,267 NGOs filed details with the Ministry of Home Affairs an official told the Indian Express. The 10,256 NGOs which have failed to file the details are under examination. According to the official, the ministry will decide whether to give these NGOs an extension to furnish details or to revoke the license of these NGOs.

Out of the aforementioned 10,256 NGOs, 2,239 have filed details for four years, 2,071 have filed details for three years, 2,057 have filed details for two years and 2,339 NGOs have only filed details for a single year, according to the report.

The Home Ministry had told these NGOs that they may lose their license if they do not divulge details of the funds they have received from other countries. Mukesh Mittal, Joint Secretary (Foreigners), had in an order stated "Failure to upload returns for these five years will lead to cancellation of licenses which are issued or renewed".

According to the Indian Express report, the NGOs could upload their missing returns between May 15 and June 14. There are 20,000 NGOs registered under the FCRA.

Source: http://www.financialexpress.com/india-news/over-10000-ngos-set-to-face-home-ministry-crackdown-over-foreign-funding/729225/

10,000 NGOs may face action for not filing FCRA returns

NEW DELHI: The home ministry is contemplating penal action against around 10,000 NGOs that have not filed their missing annual returns under the Foreign Contribution Regulation Rules, 2011, for all for some years between 2010-11 to 2014-15, despite the one-month grace window offered by the home ministry to do the same. Ministry sources said as many as 286 NGOs that were yet to file the returns for a single year upon expiry of grace period on June 15, 2017, could face cancellation of registration under the Foreign Contributions Regulation Act (FCRA) and review of renewal already granted. For the remaining defaulters with partial compliance, action is still being discussed and may be graded depending on the level of compliance.

The home ministry had, upon noticing that as many as 18,523 NGOs registered under FCRA had not filed their annual returns for some or all five years between 2010-11 and 2014-15, issued a public notice on May 12 asking them to file the same between May 15 and June 15. While describing it as a last chance for the defaulting NGOs, the ministry had assured them that no late fee would be imposed for late filing of returns.

Of the 18,523 defaulting NGOs as on May 14, 2017, as many as 1,835 had not filed returns for all five years in question, 5,766 had not done so for four years, 4,379 for three years, 3,398 for 2 years and 3,145 for one year.

At the end of the grace period, while 8,267 NGOs completely fell in line by filing annual returns for all five years, 2,239 did so for four missed years, 2,072 for three years, 2,057 for two years and 2,339 for one year. As many as 1,549 of the 1,835 NGOs who had not filed annual returns for a single year between 2010-11 to 2014-15, in gross violation of FCRA and Rule 17 of FCRR, have done so now.

Home ministry sources said the ministry is contemplating a graded response depending on the extent of compliance by the aforesaid NGOs, with the 286 defaulters yet to file a single return most likely to face cancellation of registration and review of renewal already granted. "As for the remaining, the likely penal action is still being discussed....Chances are that a graded penalty may be imposed, with the NGOs that have filed returns for four of five years being shown leniency and those who have filed returns for just one year facing tougher penalty," said a home ministry spokesperson.

There are roughly around 25,000 NGOs in the country registered under FCRA.

Source: http://timesofindia.indiatimes.com/india/10000-ngos-may-face-action-for-not-filing-fcra-returns/articleshow/59246858.cms

10,000 More NGOs To Lose Their FCRA Licence Because They Failed, To File Their Annual Returns.

The Union Home Ministry is Examining if the Foreign Contribution Regulation Act (FCRA) Licences of over 10,000 NGOs should be Cancelled, as they have not Complied with the Center's Order to File Annual Returns under 5 Categories. While over 8,000 NGOs did File their Returns under all the 5 Formats, most did not Comply Entirely.

NGOs that Receive Foreign Grants are Required to get a FCRA Licence & File 5 Annual Return Forms. There are over 20,000 NGOs Registered under the FCRA.

Since the NDA Government came to Power, the FCRA Licences of more than 11,000 NGOs have been Cancelled. More than 1,300 were Refused Renewal of their Licence for Violations of the FCRA.

'Deemed Expired'

In May this Year, the Home Ministry gave 18,523 NGOs whose Licences were "Deemed Expired" on Account of Non-Compliance, a 1 Time Opportunity to give Details of their Income & Expenses by June 14. The NGOs were asked to Submit their Annual Returns for 5 Years, from 2010-11 to 2014-15. However, so far only 8,267 NGOs have Filed such Returns, a Ministry Spokesperson said.

The Home Ministry is Examining what Action it could take against the Remaining 10,256 NGOs that have still not Filed all the Returns. 1 of the Options it's Considering is Cancelling their Registration.

Government Warning

A Home Ministry Spokesperson said that 2,239 NGOs had Filed Returns for 4 Years, 2,071 for 3 Years, 2,057 for 2 Years, & 2,339 for 1 Year. The Ministry had earlier Warned these NGOs that they might Lose their Registration if they Failed to give all the Details.

"The Last Date for Uploading Annual Returns for 2010-11 to 2014-15 is June 14, 2017. Failure to Upload all Annual Returns will lead to Cancellation of Registration/Renewal already Granted," Joint Secretary (Foreigners) in the Home Ministry Mukesh Mittal had said in an Order.

The Ministry had said that Starting May 15 & till June 14, NGOs could Upload their Missing Annual Returns along with the Requisite Documents within 30 Days. No Compounding Fee would be Imposed on them for Late Filing of Annual Returns during this Period, & this Exemption was a 1 Time Measure.

As per the Rules, the Renewal of Registration for Receiving Foreign Aid cannot be Granted unless the Organisation Uploads its Annual Returns to the FCRA Website.

Source: http://www.worldtvnews.co.in/?p=169400

Failure to furnish income details: Over 10,000 NGOs under MHA scanner

The ministry had said that between May 15 and June 14, all NGOs could upload their missing annual returns along with the requisite documents.

With many non-government organisations (NGOs) failing to furnish details of their income and expenditure to the government, more than 10,000 of them have come under the scanner of the Home Ministry and may end up losing the licence required to receive any foreign grant.

As many as 18,523 NGOs were given a one-time opportunity by the MHA in May this year to furnish details of their income and expenses by June 14.

The NGOs, which are registered under the Foreign Contribution (Regulation) Act or FCRA, which allows them to receive financial aid from abroad, were told to submit their annual returns for five years—2010-11 to 2014-15. However, only 8,267 NGOs filed such returns for all the five years, an official said.

The remaining 10,256 NGOs have still not filed all the returns but their details are under examination. A decision whether to give them another opportunity or cancel their licenses will be taken after the analysis, the official added.

There are 2,239 NGOs, which have filed returns for four years, 2,071 for three years, 2,057 for two years and 2,339 for one year, said the official.

The Home Ministry had earlier warned the NGOs that they will lose the registration if they fail to furnish the details. "The last date for uploading annual returns for 2010-11 to 2014-15 is June 14, 2017. Failure to upload the annual returns will lead to cancellation of registration/renewal already granted," joint secretary (foreigners) in the Home Ministry, Mukesh Mittal, had said in an order.

The ministry had said that between May 15 and June 14, all NGOs could upload their missing annual returns along with the requisite documents. No compounding fee will be imposed on them for late filing of annual returns during this period and this exemption was a one-time measure.

According to the rules, the renewal of registration for receiving the foreign aid cannot be granted unless the annual returns are uploaded to the FCRA website by the organisation. There are over 20,000 NGOs registered under the FCRA, the official said.

Source: http://indianexpress.com/article/india/failure-to-furnish-income-details-over-10000-ngos-under-mha-scanner-4714202/