There are a total three types of NGO Registration in India. NGO includes societies, trust, and Section 8 Company. All three of them are governed by three different laws: the Society Act of 1860, the Trust Act of 1882, and the Company Act of 2013 respectively. When we talk about NGO registration most people have confusion regarding the same. In fact, some people don’t even know that there are three types of NGOs. In the current blog, a broad comparison between NGO and society has been made. This will help you to understand the difference between NGOs and society. While comparing both of them we can say that society is a type of NGO.
Both society and NGOs share the desire to see society prosper. But they are still very different from one another if you properly do the comparison between NGO and society. NGOs are mostly run by volunteers while society is a group of members who run and look after it. Many people in India desire to register their non-profit organization, however, they are unsure about the kind of organization they should register. And this occurs because they are unsure of the many kinds of NGOs. Without proper comparison between NGO and Society one cannot choose between them.
What is a Non-Government Organization?
A non-profit organization is a non-government organization, or NGO for short. It works to improve society and ensure its welfare. It functions with the help of its volunteers. NGOs are formed for charitable purposes. They cannot be formed with the purpose of making a profit. An NGO can be a trust, society, or section 8 company. They could work for the promotion and advancement of various things like the protection of the environment, science, and scientific research, artistic, dramatic, and literary work, women’s empowerment, etc. The government does not impede their work because they are contributing to society’s welfare. They are assisting the government in numerous social concerns either directly or indirectly. Under the Income Tax Act, the NGOs are eligible for a number of tax exemptions. NGOs can be national or International and mostly get their funds from government organizations, individuals, and corporations.
Meaning of Society Registration under the Society Act
An association established under the Societies Act, driven by altruistic purpose and comprising a minimum of seven members, is known as a society. In simpler terms, it signifies an institution devoted to the betterment of the community. They do not work with profit-centric intentions. They are acknowledged under the Societies Act as a registered society. These societies are founded with various goals and intentions. Tribal, agrarian, industrial, and other forms of society can all be found in India. Societies enjoy legal recognition and operate through their members as their representatives.
In India, different types of organizations exist, and what sets societies apart is their mission. Societies are formed for charitable purposes only, not for making money. They focus on things like advancing science, encouraging art and literature, maintaining libraries, helping military orphans, sharing knowledge, running museums and galleries, providing aid to those in need, promoting education, and other causes approved by the Indian government.
Society a Type of NGO
Although society is a type of NGO, they are not as effective as NGOs. Both society and NGO work for charitable purposes but NGOs are more effective than society’s. Their contribution is on the higher side when we compare their work with respect to the welfare of society. NGOs help people during times of crisis. They advance to the front and defend the populace. To individuals who require assistance, they extend a helpful hand. On the other hand, societies do not as effectively work as NGOs.
For example, if we take the COVID situation there are a lot of NGOs who are working for different people in different places while there are very few societies that are working for the same cause. The level of operation of societies is not as broad as NGOs.Twenty to thirty people make up society, each of whom is dedicated to advancing a specific cause in a particular area. NGOs, however, can operate at the state, federal, and worldwide levels. And their level of operation is broader than the societies.
Comparison Between NGO And Society
There are individuals and entities who want to register an NGO but are confused about which type of NGO they should register. They come into this phase because they cannot make a difference among all three types of NGOs and never tried to do a comparison between NGO and society. And due to lack of knowledge sometimes end up making wrong decisions. Here a broad comparison between NGO and Society has been given which can help you to make the right decision.
| Particulars | NGO | Society |
| Governing Law | NGO includes societies, trust, and Section 8 Company. All three of them are governed by three different laws: the Society Act of 1860, the Trust Act of 1882, and the Company Act of 2013 respectively. | Societies are governed by Society Act, of 1860 |
| Governing Body | Registrar of Companies | Registrar of Societies |
| Reliability and credibility | As NGOs are registered with ROC and work on a broader level their reliability and credibility are more | As societies are registered with the local registrar as per the jurisdiction and work on a small level their reliability and credibility are less |
| Trust | The trustworthiness of NGOs is more as they are registered with ROC and work on a broader level with high reliability and credibility | The trustworthiness of society is less as they are registered with the local registrar and work on a small level with less reliability and credibility |
| Maximum Members | There is no ward on the maximum number of directors | There is no ward on the maximum number of members |
| Minimum Members | The minimum number of directors is two | The minimum number of members is seven |
| Scope | The level of operation of an NGO is wider | The level of operation of societies is not as broad as NGOs |
| Time taken in Registration | It will take 10-15 working days to register an NGO in India. | It will take 1-2 months to register a society in India. |
| Function | They work at state, national and international level. | They work for a particular agenda in a particular region |
| Mode of Registration | The process of registration of an NGO is online. It is registered through the Ministry of Corporate Affairs website. | In some places the process of society registration is online and in some places it is offline. |
| Management | Their management is sometimes chaotic as they are small institutions and their functioning is looked after by its members. | NGO’s management is efficient and they work in a proper manner as they are working on a broader level. |
| Decision making | NGOs work on a larger scale, with more people, and follow proper procedures while making any decision, hence their decision-making process is a little slow. | Societies work on a smaller scale, with less number of people and their procedure of decision-making is not as hectic as NGOs, hence their decision-making process is a little fast. |
With the above table after the broad comparison between NGO and society, their difference is clear to some extent. NGOs and Societies differ in governance laws, oversight bodies, membership limits, operational scope, registration speed, management approach, and decision-making speed. NGOs are of three different types and society is one of them. Societies have a specific governing law which is the Societies Act. NGOs operate across levels, while Societies focus locally. NGOs register online quickly, Societies take longer online or offline. Management and decision-making vary due to scale.
Conclusion
Both NGOs and societies aim to enhance societal well-being, but they diverge in key aspects. After diving into a broad comparison between NGO and Society one can find their differences. Once their differences are clear, choice becomes easy. If one is thinking about working on a national or international level NGO will be the perfect choice. But if your work is limited to some local area and not for the bigger cause you can opt for society registration. From the above broad comparison between NGO and Society registration, the difference between them is quite clear. The decision between these categories depends on what an organization wants to achieve, how big it is, and the impact it wants to make.
