AUDIT REPORT OF NGO FOR FUNDRAISING

Audit Report for Fundraising

REQUIREMENT OF AUDIT REPORT I

MONETARY LIMIT

01 As per the Taxation Laws Amendment Act, 2006, wef. 1st April 2006, it is mandatory for every NGO to get its account audited where its income exceeds the minimum exemption limit. (As per the Finance Act 2008, presently the minimum exemption limit is Rs.1,50,000)

02 The implication of section 13(3) is extensive and therefore it may not be possible on the part of the Auditor to make independent inquiries. Therefore the Auditor before certifying the annexure to Form 10B should ensure and also clearly state the scope of his work and the responsibilities owned. It is important that the Auditor should mention in its report that the details of the persons covered under section 13(3) were provided by the Trustees of the Trust or the functionaries of the organisations.

Income Tax Exemption under 12A

03 Section 12A states two conditions for availing the exemption available under the Act, the first condition is regarding application for registration and the second condition is regarding audit by an accountant as defined in the Explanation below sub-section (2) of section 288. All NGOs are required to apply for registration within one year from the date of their creation. If there is delay in applying for registration then the organisation should submit Audit Reports for the past three years or as may be available.

FILING OF RETURN

04 All NGOs having income exceeding Rs. 50,000 during the previous year are required to file their return of income. The income for the purposes of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act. Such returns are to be filed with the Income-Tax Officer or the Assessing Officer under whose local jurisdiction they fall. The return is to be filed as per the provisions of section 139(4A) and (4C) in the manner provided in section 139 of the Act.

FILING OF RETURN MADE MANDATORY

05 The Finance Act, 2002 has inserted sub-section (4C) to section 139 making it mandatory for the organizations registered under section 10(21), 10(22B), 10(23A), 10(23B), 10(23C) etc. to file Annual Returns under section 139(1). Earlier no clear provision for filing of return by these organisations was available.

FORMS AND DUE DATES

06 All NGOs are required to file the return by the 30th September of the assessment year. The return must be accompanied by an Audit Report in Form 10B prescribed under Rule 17B of the Income-Tax Rule, 1962.

DELAYED SUBMISSION OF RETURN OF INCOME

07 An NGO which fails to furnish its return of income within the due date can still submit its return of income any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier. For instance, a return of income for the financial year 2001-2002 can be submitted upto 31st March, 2004.

08 Under section 272A(2)(e), any NGOs which fails to furnish the return of income which it is required to furnish under sub-sections (4A) and (4C) of section 139 or fails to furnish it within the time allowed and in the manner required under that sub-section, it shall pay by way of penalty a sum of Rs. 100 for everyday during which the failure continues. Before imposing such penalty, an opportunity of being heard shall be given to the organisation.

DOCUMENTS TO BE ATTACHED WITH THE RETURN

09 One set of the following documents are required to be attached with the return:

(i) Audit Report in Form 10B.

(ii) Balance Sheet.

(iii) Income and Expenditure Account.

(iv) Receipt and Payment Account.

(v) Copy of the Registration Certificate.

(vi) In case the organisation has accumulated income, resolution for accumulation.

(vii) Form 10 in which application for accumulation is made.

REQUIREMENT OF AUDIT REPORT II

FUNDRAISING

01 Audit report is the one of most important documents, which is required for fundraising. It states the financial health of your NGO, which is taken seriously by any donors, grant making dept and agencies.

02 Most of times NGO get their Audit report done by local inexperienced CAs, which carry lot of negative points during fundraising process. And, as result of that NGO fails to secure any funding in most of times.

OZG SOLUTION FOR AUDIT REPORT

03 Ozg understand the exact requirement of audit report for fundraising process. So, it offers a customized solution to NGOs for preparing audit report in association with most experienced CAs in non-profit sector.

04 Ozg understand the cost involves in preparing audit report as well as affordability factors of NGOs. So it offers them a cost effective solution.

SEP 15 2011
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BUILDING A RELATIONSHIP BETWEEN DONOR & NGO

The proposals made to donor / grantmaking organization is to create a long lasting relationship between two different organizations seeking mutual goal. Donors want to reap the maximum social advantage out of their money by giving it to grantseeking organizations, who can be partner to achieve their goal. Ozg proposal writers and liaison agents represent a grantseeking organization, who can be partner to achieve donors goal as well as their own mission. Ozg Donor Consulting offers various services to donor organizations to achieve their goals in an effective manner. Proposal Repository team play here a role like a connecting-up bridge for grantmaking and grantseeking organizations, and it convinced to both to get them success, by matching and analyzing the characteristics, common interests, and goals of both parties that make this a good match.

Email for Proposal Submission

submission@proposalrepository.com General Office Email office@proposalrepository.com

What exactly donors want Most donors want a range of things. These include: 1. To make a difference. Donors want their money to count and the work they fund to be successful. More importantly, donors want to be seen to be / as successful. 2. To acquire knowledge, understanding and information. This has some ethical problems, if interventions are directly geared toward the generation of knowledge without clear and tangible outcomes to be attained by those receiving the development assistance. 3. To share knowledge, understanding, information, and, in so doing, add value to their chosen interventions. 4. To increase their influence in addressing what they consider to be the problems of the world, the region, the country, or a particular area.
What an NGO needs to find out about a donor in order to prepare for a funding proposal is given below:

1. Name, address, telephone and fax numbers, e-mail address, name and title of the person the NGO should make contact with. This is the preliminary information which the NGO can get from the switchboard, from the donors web page, from a directory, or from colleagues in civil society organizations.

2. The goals, mission and concern of the donor, including its areas of interest, whether it funds in particular geographical areas only, what its general funding criteria are, what else it funds. The NGO can get this kind of information from a web page or from a brochure or annual report, as well as from colleagues in civil society organizations.

3. What size of grant the donor usually gives.

4. What the donors decision-making process is and how long it is likely to take for a decision to be made once the NGO submits a written proposal.

5. The dates when proposals are considered and the dates/deadlines for submission of proposals for consideration.

6. Whether the donor has a special proposal format the NGO should use, or guidelines the NGO should follow, or whether the NGO can use its own. Some donors may want a short preliminary proposal before asking the NGO to complete a full proposal. This enables them to make an initial judgment about whether or not they want to get involved in more detailed negotiations with the NGO.

When an NGO begins preparing a funding proposal, the NGO already needs to know, and have written down:

1. Who the NGO and it identity are.

2. What the NGO strengths and weaknesses are, and what opportunities and threats confront the NGO.

3. The NGO track record (what the NGO has achieved and what the NGO can show from past work that will give a donor confidence that the NGO is a good risk.

Organizational identity

To present the NGO organizational identity, the NGO needs:

1. An overall mission and goal for the organization why it exists, who it is intended to benefit, how it is linked to the intended beneficiary community and what it is committed to achieving through its work.

2. A board that provides the organization with a credible governance structure. This means that the NGO needs a short biography of each person, reflecting, for example, such factors as experience, community links, and gender.

3. Some organizations also have patrons. These are usually highly respected and well-known people who, although they do not have the time to be involved in the regular governance of the organization, are willing to lend their support and name to the cause and the organization.

4. Key staff or volunteers who are in place to make the organization and, therefore, the project, work. Here too the NGO wants to present brief biographies of the people who will be central in the project, showing why they are appropriate.

The initial step when the NGO plans a project is to make a strong link between the NGOs organizational mission and strategy and the specific project. It is a serious mistake to take as the NGOs starting point: What can we get money for?

An organization is a response to a problem or an opportunity in the environment. It is from this that the mission and strategy of the organisation flow. It is this that a strategic planning process should address. The projects the NGO plan and request funding for should be part of the NGO strategy, not just a way to raise money.

The NGO plan must reflect:

1. The NGOs understanding of the context and how this is reflected in the organizations mission and strategy;

2. The specific circumstances in the context that create the problem the project is meant to address and what that problem is;

3. The objectives of the project;

4. The process intended to achieve the objectives.

DOS & DONTS

Some of the dos and donts of how an NGO should write the funding proposal follow.

Do

1. Address the proposal to concerning dept. in donor organization.

2. Plan ahead so that the NGO proposal isnt rushed or crisis-related.

3. Show that the NGO knows who else is working in the field and what they are doing.

4. Involve others in editing the proposal.

5. Explain acronyms.

6. Keep it short not more than 10 pages for the body of the proposal and less if possible.

7. Show that the NGO cares about the work show some passion.

8. Pitch the tone correctly be human rather than academic, let the human story come through, but dont go overboard on emotion.

Dont

1. Take a one proposal fits all approach

2. Pad the NGO budget to include things that are not relevant to the project.

3. Hide information the donor is entitled to.

4. Send so much documentation that the reader gives up before he or she begins.

5. Assume that the donor knows all about the NGO so the NGO does not need to bother to present itself well.

6. Use unnecessary jargon.

7. Make the project fit the donor criteria at the expense of what the NGO think needs to be done.