Starting a charity

Carolina · Oct 15th, 2006, 14:37

Hi all,
Has anyone attempted to set up a charity based in their home country to support a cause in India? I have a couple of ideas:
Having been inspired by the story of a girl who after teaching in Uganda, went home and raised enough money to set up new schools there. i would like to try and do a similar thing for India, namely a school for girls. Women's literacy needs a lot of help, my main concern would be getting an Indian connection who could assist in some of the practicalities.
My other idea is paying needy families directly, travelling to poor areas, asking what people need (a bicycle, a cow etc) and trying to raise money back home for them. Any experiences, help or advice?

TimMakins · Oct 15th, 2006, 15:31

I did some research on this just last week! The best place to look is the Charity Commissioner's website. It is rather complicated, and hard to find just what you want, but I have un-earthed a few documents that might be of use to you:

This page is probably the key one - it is called 'Registering as a Charity and explains everything you need to know about starting a charity':

http://www.charity-commission.gov.uk...tions/cc21.asp

This one tells you whether or not you need to register a charity, and explains some of the thinking behind it:

http://www.charity-commission.gov.uk...charregvol.pdf

This one is meant for a new Trustee to a charity, and explains the requirements of the job. In doing so, it mentions a lot of the legal requirements that you are interested in - look for the purple 'L' from time to time throughout the text:

http://www.charity-commission.gov.uk...ations/cc3.asp

Responsibilities of a trustee can be found on the sub-pages here:
http://www.charity-commission.gov.uk...s/index086.asp

I hope that's enough to be going along with...

Tim in England

manreet_16 · Oct 16th, 2006, 01:29

gr8 idea carolina..i know Shanti..I want to be a volunteer there but there is no vacancy now..why dont u start with it..they need no. of things..she is the only person i know..not personally..Sahnti the street kids Links r as follws

www.shanthistreekids.org

I hope u love it..

regards
manreet_16

Sama · Oct 16th, 2006, 01:38

I sure hope it's easier for you in the UK than it is in the US. I know people who have spent thousands of dollars trying to start non-profits in the US and it's a huge pain in the butt, with no guarantee of being "approved".

greenchutney · Oct 16th, 2006, 01:49

carolina,

good ideas and good intentions. you might want to share more about what your experience is with india. have you travelled here a lot? have you lived here somewhere? are you already associated with any other groups back home? or here in India?

i am afraid if you dont have much experience, then i would suggest that first you get experience with some groups on the ground here in India.

there are a lot of beaurocratic hurdles to set up a tax free aid group.. these days of charity money ending in the wrong places, governments are putting in new rules for auditing what not... not only that, how are you going find a genuine Indian connection that you can trust or have that relationship with to provide the service to your standards?

i have some friends supporting groups in Cambodia, Thailand/Burma mainly dealing with exploitation against kids/women.....and after a while, they decided to form their own group. things went dandy for six months but now i see the stress, constant fund raising, dealing from long distance...they still love doing it, dont get me wrong, but now they feel the weight, the weight of ownership for 20 or so lives that they are trying to change.....i think its a long term commitment if you get in it, sometimes full-time...and i am just saying that you be better prepared for it.

i would recommend CRY and RoomToRead...both who are associated with children and education in the subcontinent. search at IM threads from before for more links to Indian specific/local charity/aid group websites

good luck..

Nick-H · Oct 16th, 2006, 02:14

Have to second GreenChutney on that one. Quite apart from the fact that doing almost anything in India is a beaurocratic nightmare --- you will immediately hit problems with visas, for a start: no, the fact that you want to do something good here is not an acceptable reason to be granted anything other than a tourist visa.
See IMer Shanthi's posts on some of the troubles she faces.

The other thing is that, unless you know India -- or at least the part of it that you intend to focus on, how will you know what is really needed? You might, for instance, be surprised at how many people speak English already.

You may know all this already, you may be way ahead of it. If so, don't mind us posting it, it may be useful to somebody else.

poipleshadow · Oct 17th, 2006, 09:14

Setting up a charity in India... Blimey... If I'd known then what I know now... (Would I have started??? - Not too sure!)! - Myself and a friend first volunteered for a charity in Goa but left as we really didnt like how they did things (still not happy), so we thought (and were talked into by friends and family) to start our own... Neither of us had done anything like it before but how hard could t be?! - The UK side is pretty damn easy actually. The only thing you really need is a friend (unless you can afford to pay) who is an accountant (as you need to provide your accounts to the Charity Commision. The Charity commision makes it quite easy and there is help all the way, there's even basic deeds that you can use (easiest way).

Then... India... Hmmm... Not so straight forward. I have to say there's LOTS of NGO's in India that aren't registered (which really gets my back up!) as we have spent so much effort trying to get ours done 'the right way' hitting obsticle after obsticle when the ones that aren't registered just keep going without a care in the world... we actually started in Goa (which is probably the hardest place to start as there are the tightest controls and lots more issues... The reason we choose Goa was that we already knew the place and although it's far from the worst place in India, there was still lots of children that needed help and the lots of visitors also helped with volunteers and funding.

You REALLY need to know at least 1 (preferably 3) good, trustworthy Indians... I have been in India 3 years and have been 'done over' several times and find it very difficult (compared to the UK) to find people I can trust. Many times I've known people for 8 to 12 months and then, they do you over.. So be very careful. I am lucky to know a good handful that I trust completely know, but have definately found out the hard way.

For India you need to do lots of things like register as a Trust/Society (At least one Indian Trustee (preferably all Indian)), You would also need to register with the local Women and Child office. There are then other concerns about where funding is coming from. If you're expecting to get all funding from outside India then you will need to apply for the FCRA (Foreign contributions Regulations Act) - They're making this easier but at the moment they're expecting to be set up for 3 years in India before having money sent from abroad. We've been very lucky and have lots of locals supporting us. you can also apply for one of acceptance of funds (PRIOR) to receiving it..

Then there's Income Tax (80G)? - To get tax benefits.. And then finding someone to do your accounts/legal etc in India...

It is LOTS of hard work. If you have any specific questions then please get in touch (via the website) www.ChildrenWalkingTall.com

We're a reistereed trust, have a fantastic house "The Mango house" ready, had our inspection but have been waiting for our licence for nearly a year now...! - So the wheels can turn very slowly...

Good luck

poipleshadow · Jan 1st, 2008, 21:28

So has there been anyone recently thinking of starting a charity in India... Just curious....

mama4us · Jan 9th, 2008, 16:34

Yes, actually! We're moving to Reis Magos pretty soon (yes, we found our heaven!) and through the persuasion of friends who have visited Goa over the past decade or so, is what we're probably going to do - amongst other things anyway. I have seen loads of charities as we have travelled through India this time, and also in times past and met some of their undesirable 'leaders' We have a lot of funders from the UK who have already put funds into an account over the past year and three very good Indian friends, one of whom is an accountant! SO, I don't know where you are in Goa poipleshadow, but we'll be setting up pretty soon - for abused, neglected and children like that. Got loads of volunteers lined up for next year too - SO it'll hopefully come about in the next 6 months or so.

The_Londoner · Jan 9th, 2008, 19:14

Carolina

Hi from a fellow Londoner..

To be honest, the charity will have to have people on ground so that money goes direct to people and the Charity is managed by you in India. Setting up a charity may be the easiest step. Getting money to those who needs it will be the hardest.

Saying that, I came across a charity set up in the UK, run by Asian elders that is running a great project. They bought land in Gujarat, India, and people in the UK were sponsoring each home built on that land. Cost of building one house for a homeless family from what I understood is around £1,000. They are also employed to work on the site.

bhattacharya.ratul · Jan 9th, 2008, 19:30

Hey guys,
how much did this work out?? Even I have lot of plans on this...let me know as to how concrete is the plan..i have ideas on microcredit microfinance and microinsurance..and some innovative ideas too which actually suits indias political and social perspective..am free to share them..

Lets do something good in life..

god bless
ratul

poipleshadow · Jan 10th, 2008, 13:24

mama4us

Hi... Good Luck with the project, a few things to look into while you have a spare moment (beleive me nce you start you won't have a spare moment

)

FCRA (Foreign Contributions Regulation Act)
You can NOT have any foreign donations (or donations from foreign citizens even in Rupees) without getting permission from Delhi...

Set Up A Trust/Society
To do work you need to be a legal entity, for example a Trust / Society, these are pretty easy to set up, but it's good to have an example trust deed from another charity so the lawyer has something to work off.

Goa Children's Act
Just had a look where Reis Magos was (North Goa). As you're thinking of starting in Goa then you MUST read the Goa Children's Act first. There are lots of rules/regulations when looking after children, 'foreigners' will also be treated roughly when trying to register anything in Goa.. (been there - done that!) so be sure to be persistant and determined.

Accounts
When buying ANYTHING make sure you get a proper bill, some vendors like writing bills on sheets with estimate written on them - DON't ACCEPT! - as you'll be out of pocket when you get them audited. Be warned!

Here's a link to the original, although it's been updated twice since (can't find a copy online).

http://goagovt.nic.in/documents/goachildact2003.pdf

One major difference is that you MUST get permission BEFORE looking after children.

You're more than welcome to come and see us there's a map of where we are on our website here

Simple Map Of Goa

Do come and see us and you can see what we do and I can give you lots of advice, which you can take or not... but it's better to know than not!!

The_Londoner - Beleive me setting up the charity is far from easy... (I still have headaches now!) As long as you're in India then you can make sure the money goes to the right place. I guess it's easier when it's small.. When it gets bigger it gets a bit frantic, but it is imporant to make sure all money is spent wisely...

Thanks

Rob

mama4us · Jan 12th, 2008, 06:20

Thankfully most of it is pre-emptied as we are fortunate enough to have made some good contacts along the way - and it will almost be done for us. No worries tehre thank God as I wouldn't have liked to have had to go through it all myself. Bank accounts, BTW, were set up in India two years back and people simply put money into it as and when they wish to. The manager is aware of what the funds will be used for...again we have contacts...luckily!

I took a look at your website Poipleshadow, nice to know we will be neighbours. Best of luck!

poipleshadow · Jan 13th, 2008, 21:51

Just a note : I would tripple check your bank account. You can set one up that's no problem, and you can also have money put into it.. But it is a MUST to have it registered with the FCRA. Unfortunately Bank Managers, Lawyers and Auditors aren't used to handling foreign contributions and the huge amounts of spaggetti associated with it so they rarely know...

Try here

Thanks

Rob

mama4us · Jan 14th, 2008, 13:09

All done and checked out very well - thanks!

Oct 15th, 2006, 14:37	#1
Carolina Member Join Date: Jul 2005 Location: London, UK Posts: 6	Starting a charity Hi all, Has anyone attempted to set up a charity based in their home country to support a cause in India? I have a couple of ideas: Having been inspired by the story of a girl who after teaching in Uganda, went home and raised enough money to set up new schools there. i would like to try and do a similar thing for India, namely a school for girls. Women's literacy needs a lot of help, my main concern would be getting an Indian connection who could assist in some of the practicalities. My other idea is paying needy families directly, travelling to poor areas, asking what people need (a bicycle, a cow etc) and trying to raise money back home for them. Any experiences, help or advice?

Oct 16th, 2006, 01:38	#4
Sama a pain in the asana Join Date: Mar 2005 Location: the India inside my heart Posts: 5,046	I sure hope it's easier for you in the UK than it is in the US. I know people who have spent thousands of dollars trying to start non-profits in the US and it's a huge pain in the butt, with no guarantee of being "approved". __________________ *My India, 2005-2008*

Oct 16th, 2006, 02:14	#6
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 24,471	Have to second GreenChutney on that one. Quite apart from the fact that doing almost anything in India is a beaurocratic nightmare --- you will immediately hit problems with visas, for a start: no, the fact that you want to do something good here is not an acceptable reason to be granted anything other than a tourist visa. See IMer Shanthi's posts on some of the troubles she faces. The other thing is that, unless you know India -- or at least the part of it that you intend to focus on, how will you know what is really needed? You might, for instance, be surprised at how many people speak English already. You may know all this already, you may be way ahead of it. If so, don't mind us posting it, it may be useful to somebody else. __________________ . Just one member of the IndiaMike Mod Team

Jan 9th, 2008, 16:34	#9
mama4us Heaven's Seat Join Date: Jan 2008 Location: Reis Magos - Goa Posts: 32	Yes, actually! We're moving to Reis Magos pretty soon (yes, we found our heaven!) and through the persuasion of friends who have visited Goa over the past decade or so, is what we're probably going to do - amongst other things anyway. I have seen loads of charities as we have travelled through India this time, and also in times past and met some of their undesirable 'leaders' We have a lot of funders from the UK who have already put funds into an account over the past year and three very good Indian friends, one of whom is an accountant! SO, I don't know where you are in Goa poipleshadow, but we'll be setting up pretty soon - for abused, neglected and children like that. Got loads of volunteers lined up for next year too - SO it'll hopefully come about in the next 6 months or so. __________________ As I grow older I don't listen much to what people say anymore, I look at what they do... Andrew Carnegie

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Oct 16th, 2006, 01:29	#3
manreet_16 On the Move Join Date: Sep 2005 Location: Canada\India Posts: 360	gr8 idea carolina..i know Shanti..I want to be a volunteer there but there is no vacancy now..why dont u start with it..they need no. of things..she is the only person i know..not personally..Sahnti the street kids Links r as follws www.shanthistreekids.org I hope u love it.. regards manreet_16

Oct 16th, 2006, 01:49	#5
greenchutney Account Closed Join Date: Apr 2005 Location: planet earth Posts: 1,579	carolina, good ideas and good intentions. you might want to share more about what your experience is with india. have you travelled here a lot? have you lived here somewhere? are you already associated with any other groups back home? or here in India? i am afraid if you dont have much experience, then i would suggest that first you get experience with some groups on the ground here in India. there are a lot of beaurocratic hurdles to set up a tax free aid group.. these days of charity money ending in the wrong places, governments are putting in new rules for auditing what not... not only that, how are you going find a genuine Indian connection that you can trust or have that relationship with to provide the service to your standards? i have some friends supporting groups in Cambodia, Thailand/Burma mainly dealing with exploitation against kids/women.....and after a while, they decided to form their own group. things went dandy for six months but now i see the stress, constant fund raising, dealing from long distance...they still love doing it, dont get me wrong, but now they feel the weight, the weight of ownership for 20 or so lives that they are trying to change.....i think its a long term commitment if you get in it, sometimes full-time...and i am just saying that you be better prepared for it. i would recommend CRY and RoomToRead...both who are associated with children and education in the subcontinent. search at IM threads from before for more links to Indian specific/local charity/aid group websites good luck..

Oct 17th, 2006, 09:14	#7
poipleshadow Help Where You Can... Join Date: Dec 2004 Location: Goa Posts: 127	Setting up a charity in India... Blimey... If I'd known then what I know now... (Would I have started??? - Not too sure!)! - Myself and a friend first volunteered for a charity in Goa but left as we really didnt like how they did things (still not happy), so we thought (and were talked into by friends and family) to start our own... Neither of us had done anything like it before but how hard could t be?! - The UK side is pretty damn easy actually. The only thing you really need is a friend (unless you can afford to pay) who is an accountant (as you need to provide your accounts to the Charity Commision. The Charity commision makes it quite easy and there is help all the way, there's even basic deeds that you can use (easiest way). Then... India... Hmmm... Not so straight forward. I have to say there's LOTS of NGO's in India that aren't registered (which really gets my back up!) as we have spent so much effort trying to get ours done 'the right way' hitting obsticle after obsticle when the ones that aren't registered just keep going without a care in the world... we actually started in Goa (which is probably the hardest place to start as there are the tightest controls and lots more issues... The reason we choose Goa was that we already knew the place and although it's far from the worst place in India, there was still lots of children that needed help and the lots of visitors also helped with volunteers and funding. You REALLY need to know at least 1 (preferably 3) good, trustworthy Indians... I have been in India 3 years and have been 'done over' several times and find it very difficult (compared to the UK) to find people I can trust. Many times I've known people for 8 to 12 months and then, they do you over.. So be very careful. I am lucky to know a good handful that I trust completely know, but have definately found out the hard way. For India you need to do lots of things like register as a Trust/Society (At least one Indian Trustee (preferably all Indian)), You would also need to register with the local Women and Child office. There are then other concerns about where funding is coming from. If you're expecting to get all funding from outside India then you will need to apply for the FCRA (Foreign contributions Regulations Act) - They're making this easier but at the moment they're expecting to be set up for 3 years in India before having money sent from abroad. We've been very lucky and have lots of locals supporting us. you can also apply for one of acceptance of funds (PRIOR) to receiving it.. Then there's Income Tax (80G)? - To get tax benefits.. And then finding someone to do your accounts/legal etc in India... It is LOTS of hard work. If you have any specific questions then please get in touch (via the website) www.ChildrenWalkingTall.com We're a reistereed trust, have a fantastic house "The Mango house" ready, had our inspection but have been waiting for our licence for nearly a year now...! - So the wheels can turn very slowly... Good luck

Jan 1st, 2008, 21:28	#8
poipleshadow Help Where You Can... Join Date: Dec 2004 Location: Goa Posts: 127	So has there been anyone recently thinking of starting a charity in India... Just curious....

Jan 9th, 2008, 19:14	#10
The_Londoner Senior Member Join Date: Dec 2007 Location: London, UK Posts: 276	Carolina Hi from a fellow Londoner.. To be honest, the charity will have to have people on ground so that money goes direct to people and the Charity is managed by you in India. Setting up a charity may be the easiest step. Getting money to those who needs it will be the hardest. Saying that, I came across a charity set up in the UK, run by Asian elders that is running a great project. They bought land in Gujarat, India, and people in the UK were sponsoring each home built on that land. Cost of building one house for a homeless family from what I understood is around £1,000. They are also employed to work on the site.

Jan 9th, 2008, 19:30	#11
bhattacharya.ratul Member Join Date: Nov 2007 Location: West Bengal Posts: 5	Hey guys, how much did this work out?? Even I have lot of plans on this...let me know as to how concrete is the plan..i have ideas on microcredit microfinance and microinsurance..and some innovative ideas too which actually suits indias political and social perspective..am free to share them.. Lets do something good in life.. god bless ratul

Jan 10th, 2008, 13:24	#12
poipleshadow Help Where You Can... Join Date: Dec 2004 Location: Goa Posts: 127	mama4us Hi... Good Luck with the project, a few things to look into while you have a spare moment (beleive me nce you start you won't have a spare moment ) FCRA (Foreign Contributions Regulation Act) You can NOT have any foreign donations (or donations from foreign citizens even in Rupees) without getting permission from Delhi... Set Up A Trust/Society To do work you need to be a legal entity, for example a Trust / Society, these are pretty easy to set up, but it's good to have an example trust deed from another charity so the lawyer has something to work off. Goa Children's Act Just had a look where Reis Magos was (North Goa). As you're thinking of starting in Goa then you MUST read the Goa Children's Act first. There are lots of rules/regulations when looking after children, 'foreigners' will also be treated roughly when trying to register anything in Goa.. (been there - done that!) so be sure to be persistant and determined. Accounts When buying ANYTHING make sure you get a proper bill, some vendors like writing bills on sheets with estimate written on them - DON't ACCEPT! - as you'll be out of pocket when you get them audited. Be warned! Here's a link to the original, although it's been updated twice since (can't find a copy online). http://goagovt.nic.in/documents/goachildact2003.pdf One major difference is that you MUST get permission BEFORE looking after children. You're more than welcome to come and see us there's a map of where we are on our website here Simple Map Of Goa Do come and see us and you can see what we do and I can give you lots of advice, which you can take or not... but it's better to know than not!! The_Londoner - Beleive me setting up the charity is far from easy... (I still have headaches now!) As long as you're in India then you can make sure the money goes to the right place. I guess it's easier when it's small.. When it gets bigger it gets a bit frantic, but it is imporant to make sure all money is spent wisely... Thanks Rob

Jan 12th, 2008, 06:20	#13
mama4us Heaven's Seat Join Date: Jan 2008 Location: Reis Magos - Goa Posts: 32	Thankfully most of it is pre-emptied as we are fortunate enough to have made some good contacts along the way - and it will almost be done for us. No worries tehre thank God as I wouldn't have liked to have had to go through it all myself. Bank accounts, BTW, were set up in India two years back and people simply put money into it as and when they wish to. The manager is aware of what the funds will be used for...again we have contacts...luckily! I took a look at your website Poipleshadow, nice to know we will be neighbours. Best of luck!

Jan 13th, 2008, 21:51	#14
poipleshadow Help Where You Can... Join Date: Dec 2004 Location: Goa Posts: 127	Just a note : I would tripple check your bank account. You can set one up that's no problem, and you can also have money put into it.. But it is a MUST to have it registered with the FCRA. Unfortunately Bank Managers, Lawyers and Auditors aren't used to handling foreign contributions and the huge amounts of spaggetti associated with it so they rarely know... Try here Thanks Rob

Jan 14th, 2008, 13:09	#15
mama4us Heaven's Seat Join Date: Jan 2008 Location: Reis Magos - Goa Posts: 32	All done and checked out very well - thanks!

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