▪ When an individual/ or a number of individuals coming together and raising donations and start the work but there is no ownership. An individual may start and leave half- way and there may not be any accountability.
▪ When one buys assets for the organization, they may be in individual names as the organization is not registered. However, when an organization is registered, all the assets will have to be in the organisation’s name.
▪ Once registered, the organisation’s members will have to be bound by the rules and cannot act as they wish.
▪ Even when one wish to open a bank account, the bank may ask the registration details alongwith the bye-laws of the organization.
▪ To apply for funds either within the country the foremost thing that needs to be done is to get the organization registered.
▪ To apply or tobe eligible to get funds from foreign donor agencies, they need to get either prior permission or permanent registration under Foreign Contribution Regulation Act. To apply for this FCRA registration, the ngo concerned must have been registered.
▪ Even for applying for Income tax Registration under 12A, an organization must be a registered one.
▪ A registered organization will have more credibility and funding agencies will be interested to support registered NGOs than individuals (it depends upon the funding agencies priorities and criteria).