Over the past few decades, foundations or organizations that work for society’s well-being have gained popularity as one of the most important pillars of development and played a significant role in providing essential services to the backward sections of society.
The number of such organizations has grown enormously across the world in providing the basics, like social and economic services, and these have played a major role in reforming policies. They have worked very successfully in areas where even government and private corporations have failed bitterly. And the skill of these foundations in working in the most delicate situations and remotest of places has garnered wide recognition and praise internationally.
Starting such a non-profit foundation can be a great inspiration so that you can give back to society and help communities in need. But it is very important to understand each step involved in this community building process before you take up the initiative. Even sustaining a non-profit organization may take you years of hard work and plenty of determination, let alone growing it.
Foundations that work for communities improve their poor condition and help them progress in life comprehensively. If you build a non-profit charitable organization that has been provided tax exemption by the Revenue Department, donors can get the benefit for their contributions on their tax returns. This will make donors more likely to support your foundation that has a tax-exempt status. Here are a few tips to help you start your novel initiative…
Do Your Homework Well
You have to do your homework first and find out if any organization is already doing something similar to the work you plan to do for your community. It will be more difficult to get support if you replicate existing services than adding new ones to them. Also, dig out data about those who need your service, and make it clear how that need is not being met.
Find A Name And Purpose
The first thing you should do is find a good name for your foundation. You must also define the purpose of your foundation, along with the guidelines it will follow while offering funds or grants. This will give your organization a proper direction for its activities. It will also be needed to get your tax-exempt status.
Define the Structure
You must decide on the structure of your foundation, too—whether it will be a non-profit company, or a charitable trust. A charitable trust is easier to operate, but trustees may not get as much legal security as a non-profit organization since they have more stringent operational needs. Although non-profit companies are harder to create, they are more common than charitable trusts because they restrict your liabilities and are more flexible in using their funds. If you want to build a trust, you have to choose trustees. But, if you create a non-profit company, you have to follow the relevant steps and register it.
Register Your Foundation
It does not matter how you structure your foundation, but you must get an employer identification number (EIN). Revenue or tax rules require you to have an EIN even if you do not plan to hire employees. It will be your tax identification number (TIN) for your foundation.
Get A Tax-Exempt Status
Your next step should be to file your papers with the Revenue or Income-Tax Department. For this, you must fill out the required form/s and also get all the supporting documents ready. The form will require the basic information about your foundation and the way it will be structured and operate. You will also have to pay a fee for this and submit it to the respective department duly to get your tax-exempt status from the authorities concerned.
About the Author
Mr. Harish Jagtani, a philanthropist, visionary, businessman of Indian origin, currently based in Democratic Republic of Congo for more than 20 years now, is one of the most reputed business owners in the Indian diaspora as well as the entire expat business community in DRC. The business house caters to multiple domains, including but not limited to Domestic as well as International Air Cargo, real Estate and infrastructure development, healthcare, hospitality as well as CSR.
Coming from humble beginnings from Jaipur, Rajasthan, Mr. Harish Jagtani has come a long way in building this conglomerate with a strong and clear vision, sheer dedication and grit. Starting with a small job in sales, Mr. Harish Jagtani today is a proud and righteous owner of a fleet of airplanes and multiple businesses that cater to the basic and advanced needs of the people of Dem. Rep. of Congo in different sectors.