NGO is the acronym for Non-Governmental Organization. Though any reserved association is, starkly tongue, a non-governmental association, the word NGO is used to identify organizations that are not part of the governmental spheres and are not companies whose fundamental purpose is profit.
Table of Contents
6 Steps to Follow to Create an NGO
If you want to create an NGO, you must follow the steps we show you.
Establishment of Principles
To establish an NGO, it is necessary that several people are interest. These people should meet to study the needs that the organization is going to cover. Once the requirements are known, it is necessary to define some principles that will govern the work of the NGO and then formalize them in the procedures. In other words, the founders of the NGO have to define in writing its motive, purpose, the type of tasks it will carry out and how.
Preparation of the Statutes
When we speak of statutes, we refer to the document containing the NGO’s internal operating rules. These statutes must compulsorily include the following:
- Name of the NGO: before choosing a name, make sure that there is no other organization with the same name.
- The physical address of the headquarters.
- Scope of action: local, regional, state or international.
- Purpose: In establishing principles, you must have already defined this part.
- Activities: this is what the NGO will do to achieve its objectives.
- Decision-making systems: it is necessary to have them clear to avoid blockages.
- Members: the founding members must be detail in the statutes and all their data.
- Financing: typically, an NGO will be finance through donations from people or public or private companies. It may also be funded through services provide if this is the case.
The statutes must include the code of ethics that guides the organization’s actions, considering that the basic requirements of the laws of foundations or associations must be met. Likewise, the statute must be notarize before a notary and registered in the corresponding ministry.
Determine the Legal Form of the NGO
An NGO can adopt certain legal forms, the most frequent being the association and the foundation. Each of these has some requirements that we will see briefly later.
The Founding act of the NGO
It is the administrative act by which the NGO is formally constitute. The minutes include the charges, acceptance of the statutes, the organization’s data, and the founding members.
Entry in the Registry
There are several registration types, so the form and obligation to register the organization will depend on whether you have set up an association or a foundation.
Request a NIF and Registration with Social Security
The NIF (Tax Identification Number) is necessary to carry out commercial transactions and have a legal personality. If you are going to provide services or sell something, you must request exemption from the tax on economic activities since the entity is not for profit. Registration with Social Security is only necessary if workers are to be hire.
General Characteristics of Associations and Foundations
Most NGOs are associations or foundations, so that we will give them a brief review.
Associations
Each Autonomous Community may have a specific register of associations that has a declaratory effect, that is, of advertising to third parties. Most of the associations are report due to access to subsidies and liability to third parties. To establish an association, at least three people are need, physical or legal, and it is not necessary to register it to have a legal personality.
Foundations
Foundations are organizations that require minimum equity of 30,000 euros for their constitution. This birthright has to be destine for purposes of general interest. The public interest goals are found in a list, and the foundations cannot adhere to others. Some examples of these purposes are:
- Defence of human rights.
- Social inclusion.
- Scientific investigation.
- Technological development.
- Promotion of constitutional values.
NGOs have benefits if they are of public utility. And many more. The autonomous communities have also enacted their laws for foundations, and you should find out about them if the foundation is not national in scope.
What Comes After Creating an NGO?
Once the paperwork has been complete, and not before, we will start raising funds for the cause through donations from members, individuals, sales of items, forms of crowdfunding and any other idea that the promoters of the NGO.
Conclusion
NGO stands for non-governmental organization. While there is no generally agree-upon meaning of an NGO, it is typically a voluntary group or institution with a social mission that operates independently from the government.
Also Read: What is GST? – Objectives and Benefits
