How to get funding for an NGO and their source of funding
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 the 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 for which you need money. If they approve your project, you will receive funds. If they disapprove of you, you can’t get funds.
Corporate Funding: What is Corporate Funding? There is a rule in the 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 grants from abroad which are called Foreign Funding. However, only those non-profit organizations can receive funds that hold FCRA (Foreign Contribution Regulation Act) certificates. An NGO is applicable to get an 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 are 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 a 35AC certificate, the person or organization donating money gets 100% tax exemption. If an NGO does have neither of these certificates and it receives funds, it has to pay tax for it.