Introduction to NGO Annual Package
Managing an NGO in India involves continuous legal, tax, accounting, and regulatory compliance throughout the year. An NGO Annual Package is a structured, bundled compliance solution that ensures end-to-end yearly compliance, reduces risks, and allows NGOs to focus on their social mission.
This Saving Mantra guide explains the step-by-step process and scope of an NGO Annual Package in India, covering accounting, audit, income tax, registrations, reporting, and risk management under applicable laws.
What Is an NGO Annual Package?
An NGO Annual Package is a comprehensive yearly compliance and advisory plan designed for:
- Charitable Trusts
- Registered Societies
- Section 8 Companies
It integrates accounting, audit, income tax, registrations, filings, and advisory into one structured solution.
Key Laws Covered Under NGO Annual Package
An annual package typically ensures compliance with:
- Income Tax Act, 1961
- Companies Act, 2013 (for Section 8 Companies)
- CSR Rules & MCA filings (where applicable)
- Trust / Society state laws
- Donor, CSR, and funding regulations
Why NGOs Need an Annual Compliance Package
- Avoid penalties and cancellation of registrations
- Maintain 12AB and 80G validity
- Ensure audit and filing readiness
- Build donor and CSR credibility
- Reduce compliance cost and effort
- Get year-round professional support
Step-by-Step Process of NGO Annual Package in India
Step 1: NGO Compliance Health Check
The process starts with:
- Review of NGO structure and registrations
- Status of 12AB, 80G, CSR-1, DARPAN, FCRA (if applicable)
- Review of past filings and notices
- Identification of compliance gaps
Step 2: Annual Accounting & Bookkeeping
Ongoing accounting support includes:
- Monthly or quarterly bookkeeping
- Project-wise and fund-wise accounting
- Segregation of restricted and unrestricted funds
- Bank reconciliation and voucher management
Step 3: Audit & Financial Statements
Annual package covers:
- Preparation of Receipts & Payments Account
- Income & Expenditure Account
- Balance Sheet
- Coordination for statutory and tax audit
Step 4: Income Tax Return Filing
Timely compliance includes:
- Preparation and filing of NGO ITR
- Disclosure of income application and accumulation
- Filing of audit report (if applicable)
This ensures continued tax exemption.
Step 5: 12AB & 80G Compliance Management
Annual monitoring of:
- Validity of 12AB and 80G registrations
- Renewal timelines
- Compliance with Sections 11–13
- Documentation and reporting requirements
Step 6: Donation & Reporting Compliance
Includes:
- Filing Form 10BD (donation statement)
- Issuance of Form 10BE to donors
- Donor-wise and project-wise reporting
Step 7: CSR & Funding Compliance (If Applicable)
For CSR-linked NGOs:
- CSR-1 compliance monitoring
- Utilization certificates
- Project reports and impact documentation
- Corporate reporting support
Step 8: Notice Handling & Advisory
Annual package includes:
- Handling income tax notices and defect memos
- Drafting replies and clarifications
- Advisory on compliance risks and governance
Step 9: Compliance Calendar & Reviews
- Annual compliance calendar setup
- Periodic compliance reviews
- Pre-audit and pre-filing checks
- Risk mitigation planning
What Is Included in a Typical NGO Annual Package?
- Accounting & bookkeeping
- Audit coordination
- Income tax return filing
- 12AB & 80G compliance
- Donation reporting (10BD/10BE)
- CSR & donor reporting
- Advisory & notice handling
Common Risks Without an Annual Package
- Missed deadlines
- Lapse of tax exemptions
- Poor accounting and audit issues
- Penalties and notices
- Loss of donor and CSR trust
How Saving Mantra Delivers NGO Annual Packages
Saving Mantra provides customized NGO Annual Packages, including:
- Dedicated compliance manager
- Tech-enabled accounting & dashboards
- Compliance calendar and reminders
- End-to-end filing and advisory
- Integration with CSR, FCRA, and donor needs
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or professional advice. Compliance requirements may vary based on NGO structure, size, and applicable laws. Readers are advised to consult qualified professionals before opting for any compliance package. Saving Mantra shall not be responsible for decisions taken based on this content.