Fundraising for NGO in India
Fundraising for NGO in India is a procedure of collecting or receiving funds in the form of donations from both personalities and business bodies. It does not mean that the process of online fundraising supports accumulation of funds but also decides the structure of a new company and running of the existing company too.
Concept of online fundraising
The term “Online Fundraising” defines a way by which non-government organizations or NGOs raise money and donations with the help of internet. Along with an online cover mobile giving, peer to peer fundraising services, it also have an online donation page.
This thought allows donors to give donations in a quick, easy and secured manner permitting NGOs to collect donations as well around the world.
Concept of NGO
NGO is a unit that works independently without any government aid. Aim of these units is to work towards public welfare, social agenda, wildlife protection, environment care, child education etc. To get acknowledgement in the eyes of law, these entities require NGO Registration. Further the profits earned by these entities can be utilised only for the decided plans and purposes. That means they are not suitable to dispense dividends to its members.
Need for online fundraising for NGO
There are some reasons why online fundraising is considered significant nowadays:
- Grips up the capital projects.
- Suggest funds and operating expenses for several programs.
- Supports both start-ups and existing companies.
- Confirms funding from investors.
- Helps NGOs in achieving goals.
Profits of online fundraising for NGO in India
Online fundraising in India is of great importance. Some of them are as follows:
For non-government organizations:
Collect donations from anywhere
Note to consider that online fundraising allows NGOs to raise money and funds both across the country and around the world.
Collect donor information
NGOs or non-governmental organizations are able to gather various types of details from their loyal supporters and contributors.
Raising funds in cost effective manner
Point to be noted that online fundraising is one of the most productive and cost effective manner to raise money and funds from donors. The donation page provider will possibly collects a percentage or portion of each donation or will change a flat fee per contribution.
Increases capability and consciousness
Online fundraising helps NGOs in enhancing viability and awareness. Looking forward this concept encourages donors to give a contribution by providing them access and info on the official website.
For donors
For donors too, online fundraising is beneficial. Some of the benefits are given below:
Easy access
Donors can now give donations and contributions with great ease by using online fundraising. For online funding donor only needs to have adequate internet access along with the knowledge of the donation page.
Personal information security
Online fundraising is equipped with adequate safety measures like PCI compliance and encryption.as a result there is no point about the loss of personal information of the donor.
Regular donations set up
Donors who wanted to contribute to the organization on a regular basis needed to mail as a reminder every month or year. With the online fundraising donors can easily set up periodic donations automatically made on a regular basis.
Provides donation information
Donors who are interested to contribute to an NGO or non-governmental organization can now access information about the NGO and can make donation in a simple and hassle freeway.
Points to remember before online fundraising for NGO in India
Before online fundraising for NGO in India, some factors needs to be consider like:
- Precise legal organization.
- Appropriate market analysis.
- Recognize market competition
- Growth aspect
- Form a business model.
- Build investor’s trust
- Capitalization of equity.
- Build a good network.
- Exploration on potential investors
Best practices for online fundraising in India
Best practices for online in India are as follows:
- Make the form simple.
- Make use of constant branding.
- Reduce the information required.
- Covers of images.
- Offers regular donations.
- Proposes different giving levels.
Documents needed for online fundraising for NGO in India
The documents mandatory for online fundraising for NGO in India are:
- Section 12A registration certificate.
- Section 80 G certificate.
- FCRA registration certificate (in the case of foreign funds)
Conclusion
In the last, internet not only become an essential part of our lives but also favors NGOs as well to remain in trend. Ultimately online fundraising forms automation into the process to save time and money. Looking forward, it is useful in tracking the real time of incoming funds also it reduces the chances of human error eliminating manual entry. Main objective behind the implementation of fund raising is to reduce friction and making the process easier for contributing donors.
In case of any doubt or query, reach out to Techbuddies IT, our experts are there to serve you with end to end assistance regarding the concept of online fundraising and NGO registration.
