LEGAL FRAMEWORK OF NGOS AND NON-PROFIT GROUP

Abstract

At present, the appearance of the Non-Governmental Organizations and the role of non-profit groups in the social and economic development of India require a more detailed consideration of the legal and regulatory context of the latter. The following are just a few organizations that are likely to act as highly influential mediators between state agencies and with the marginalized groups. They are functioning within the framework of a convoluted network of legislation, legal judgments and rulings (Aras and Crowther, 2010). The chapter briefly flings at the legal system that has instigated NGOs and non-profits within India. It speaks about the different form of forms that such organizations may take, the registration process that they must go through as well as the compliance issues to which such organizations face. It also weighs the comparative costs of these regulations on operational freedom of NGOs and their economic existence. This is important as these organizations are key stakeholders of national welfare and development projects (Choto et al., 2020). He or she will also analyze the threat faced by the existing regulatory environment and even opportunities. It will focus on its funding, donation by foreigners, and its responsibility (Zulkhibri, 2014). It will present the details of their operations. It will give due credit to their huge achievements and the efforts they go through to sustain transparency and effectiveness as the regulations change (Mubecua, 2019). This chapter provides a virtuous analysis of the statutory policies, which also affect the set up and the operations of some of the organizations. It includes the Act of registration of societies, 1860, Indian trusts Act, 1882 and section 8 of companies Act 2013. It also talks about the Foreign Contribution Act, 2010 that governs the manner in which such organizations are financed by foreign. Along with these key laws, the chapter investigates the increasing direction towards the attention to governance and accountability in the non-profit sector. It examines systems present to utilize them in order to verify adherence and abuse of funds. The matter has gained significance not only in the developed but also the developing nations (LeClair and Venable, 2008). The establishment of this kind of regulatory model in India was influenced significantly by the necessity both on the one hand, to support the civil society movements and engage, on the other hand, with the areas of national security and financial control. This particularly is needed given the fact that NGOs tend to play different and in some cases critical roles in governance and overall service provision (Sahoo, 2013). The particular circumstances of South Asian NGOs, which necessitate a more dynamic and more adaptable legal system, as described in this chapter include the extremely close government intervention and emphasis on projects as the core activities in this field. This structure ought to consider their unique operating environments and efforts towards their core vision and mission (Mustaghis-ur-Rahman, 2007).