What is a Non-Profit Organization / Non Government Organization?
A Non-Profit Organization means a trust, company or other association of persons, that is established and incorporated for a public purpose.
The income and property of such organization are distributive neither to its members nor to office bearers except as reasonable compensation for services rendered.
In India, NGO includes all kinds of Non Profit Organization i.e. Trust, Society and Section 8 Company.
In a Charitable Trust at least two people are required, there is no limit of maximum members.
I n society, a minimum of seven members are required to be members.
A non-profit Company can also be registered under section 8 of the Companies Act with the Registrar of Companies.
Other names for such not-for-profit organizations are “Sangathan”, “Sangh”, “Sangam”. Income tax exemption is available for all non-profit NGOs.