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Netcharity.org is a website owned and managed by a section 8 company “Atheist Monk Foundation“ who is committed to and specialised in bridging the gap between donors and recipients by efficiently matching resources with needs to maximise impact and create positive change within communities. It is registered under/s 12A and 80G of the Income Tax Act. Netcharity plays a pivotal role in facilitating connections and streamlining the process of giving and receiving to ensure resources reach those in need efficiently and effectively between the donors and donee and also facilitate CSR activities. The website establishes a connect between NGO to NGO, NGO to Needy, General Public to Needy, CSR donors to NGO within India. It provides education to the NGOs in the field of taxation, philanthropy, maintenance of records, current updated rules and regulations, guidelines to be followed while carrying out philanthropic activities, guidance by professionals etc., through website, mobiles, social platforms, emails etc. In short Netcharity is a hub and network of NGOs, Needy, CSRs and General Public who are helping each other for carrying out philanthropic activities.
In the finance act 2020, Government of India has come up with new schemes of registration for exemption of NGOs u/s 12AB from 1.4.21. All the old NGOs having registration before 31.3.21, u/s 12A or 12AA , 10(23C), 80G, 35 has to get themselves registered on the income tax portal under the new scheme electronically. All the old and newly formed trusts seeking registration for exemption also have to enrolled themselves electronically on the portal. The procedure for registration very simple yet tricky and draconian if not followed and act correctly. The new NGOs are getting provisional registration within one month from filing of Form 10A electronically. Further it is seen that due to lack of knowledge of procedure 80% of the NGOs are denied regular registration. The trustees and professionals are equally responsible for non regularisation of registration of the NGOs as they are not obtaining and getting proper and correct information about the process. In India, from Financial Year 2021-22 , per month 150 new NGOs are getting provisionally registered I.e 1800 NGOs annually. Out of that per month only 20% I.e. 30 NGOs are getting regular registration and rest 120 NGOs monthly denied further registration, this is due to unawareness about the registration procedure, non-compliance, non activity, improper maintenance of records etc. After seeing the bad situation of NGOs Mr. Vipin Batavia, CA a very senior tax practitioner in NGOs and Mrs. Seema Hiwrale, Fashion Designer, Professor in Mumbai and Social activist join hands to save the NGOs with their professional skills. They formed section 8 company namely Atheist Monk Foundation and through it formed a website Netcharity.org to save these NGOs from cancellation and provide proper and correct information and knowledge to the trustees and professionals about how to run and flourish NGO smoothly without any technical problem.
In India, as on date there are 52,00,000 NGOs which consists of charitable trusts, private trusts, charitable societies, housing societies, section 8 companies etc. Out of that around 33,00,000 NGOs are active and remaining 19,00,000 NGOs are either dormant, non-registered, non-active, denied registration in one or the other way. Out of 33,00,000 active NGOs only 4,50,000 NGOs are having tax exemption registration being charitable and remaining 28,50,000 NGOs are non-registered. Out of 4,50,000 NGOs approximately 1,00,000 NGOs are running schools, college, university and hospitals. Only around 6300 NGOs are big NGOs who are grabbing all the CSR funds and Government funds as they are owned by politicians or their relatives or foundation of big corporate houses. They are having team of professionals to carry out the activities and legal procedures but remaining NGOs are walking in dark they may got cancelled or rejected any time due to one or the other mistakes. Though they are having charitable goals, kind heart for doing philanthropy but due to procedural mistakes they may get rejected or cancelled for which they all have to pay huge penalty. In the FY 2023-24, Income Tax Department has reopened and taxed all the NGOs who were rejected or cancelled due to procedural lapses and errors in the FY- 2021-22 and FY- 22-23. Netcharity is religiously working for providing knowledge, latest information in various areas of philanthropy, support and services through social platform and website. It is formed to uplift the NGOs and make them capable of what they are meant for.