The non-profit sector is undergoing a remarkable change powered by tech, young entrepreneurs, committed funders. Attention from corporates in order to meet CSR norms has provided additional heft to non-profit entities. Over the years, Not-for-profit organizations (NPO) in India have functioned in the form of Trusts, Societies, or Section 8 companies under the IT Act. They have passively enjoyed tax exemptions and concessions in various laws for undertaking charitable activities aimed toward the betterment of the society. In the last decade, the tax and regulatory environment impacting NPOs have seen gradual changes. Whether it is the broad powers to authorities to scrutinize the functioning of NPOs, the overhauling of the tax registration process, or the draconian tax on the accreted income of NPOs whose registrations are cancelled. The evolving income-tax landscape requires NPOs to relook at their compliance paradigm. A similar on-going change in legislation and enforcement, on the GST and Foreign contribution and Regulation law side is also evident.
As the thinking around the importance of getting good talent for the social sector begins to change, conversations around the measurement of impact – a contentious issue — may also be heading in a new direction.
At SW, our aim is to help organizations in the Indian charity and not-for-profit sector build capacity and improve their governance framework