Is an NGO the right vehicle?

Four ways to do good work, and the signs that you're ready to register.

9 minBefore you register

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Most NGOs start the same way: a few people see a problem and start doing something about it. Evening classes in a basti, a blood donation group on WhatsApp, a weekly clean-up of a lake. Sooner or later someone asks, “Should we register?”

Registering gives you a legal identity, a bank account in the organisation's name and the chance to raise donations, grants and CSR money. It also brings a board, accounts, audits and filings every year, for as long as the organisation exists. So before the paperwork, ask whether a registered NGO is the right vehicle for what you want to do.

Four ways to do good work

Your options, and what each is good for
Option	What it is	Good for	Watch out for
Join or partner with an existing NGO	Volunteer with one, or run your programme as a project of a registered NGO	Testing an idea quickly, using an organisation's registrations and systems	You don't control it. Agree in writing who owns the programme, the money and the data
Stay an informal group	An unregistered collective, such as a residents' or parents' group	Small, local work paid for by the members themselves	No tax registrations, no CSR and few grants. Money tends to sit in someone's personal account
Register an NGO	A public charitable trust, a registered society or a Section 8 company	Long-term work funded by donations, grants and CSR	Yearly compliance, a board that meets, audited accounts and real costs
Start a social enterprise	A company or LLP that earns money by selling goods or services	Ideas that can pay for themselves through sales	Funded by customers and investors, not donors. No charitable tax benefits and no CSR implementing agency status

Signs you're ready

You've been doing the work for months, not weeks, and the people you serve want it to continue.
At least two or three people outside your family are willing to share responsibility as trustees or board members.
You can name who will keep the accounts and the records.
You have a rough budget for the first year and some idea where the money will come from.
Donors, a company or a government scheme have asked for registration papers before they can support you.

Try it: sort these

Sort each situation. Is it a sign you're ready to register, or a sign to wait or partner first?

You've run the classes for a year and parents keep asking how they can donate
You have an idea but haven't tried it with the community yet
Three people from outside your family have agreed to serve on the board
A company has asked for your registration certificate before it can fund you
An NGO in your district already does the same work well and wants volunteers
You mainly want an NGO to save tax on your family business's income
Nobody on the team is willing to keep the accounts
You have a first-year budget and know where half of it will come from

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