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Introduction
India is home to thriving 3 million non-profit organizations. And, these non-profit organizations in India play a vital role in driving social development changes. These organizations use their earned profit to support various social causes, including healthcare, education, environmental protection, arts, science, charitable giving, rural development, and more, rather than distributing profit to the shareholders. In this context, Section 8 companies in India operate as non-profit organizations focusing on mission-driven initiatives and charitable activities.
In this blog, let us explore the top 10 Section 8 companies in India and their commitment to charitable activities.
What is Section 8 Company?
A Section 8 company in India is regulated by the Ministry of Corporate Affairs (MCA) and registered under the Companies Act 2013. It is also known as non-profit organizations in India, focusing on charitable activities in the fields of research, environmental protection, science, art, education, among others.
Unlike other organizations, non-profit organizations in India can not distribute profits among the shareholders. Instead, they must reinvest the profits earned to progress the organization’s mission.
Section 8 companies in India operate with high transparency and compliance, further making them credible and trustworthy than other NGOs in the country.
Top 10 Section 8 companies in India
1. Infosys Foundation
Infosys Foundation manages several large-scale social activities across the country. However, it prioritizes overall growth of the country by supporting rural development, art, healthcare, and education.
Key areas
- Upgrading school infrastructure
- Providing scholarships to deserving students
- Organizes healthcare programs and provides essential medical equipment’s to support the healthcare system
- Encourages development of art, environmental protection, and culture, considering holistic growth of the nation.
Infosys has partnerships with hospitals, NGOs, and schools and has contributed to the better lives of millions of people.
2. Tata Trusts
Tata Trusts is one of the oldest philanthropic organizations in India. This trust takes ahead Tata Group’s legacy by focusing on improving lives through innovation, livelihood, healthcare, and education.
Tata Trusts supports inclusive development and drives sustainable growth through empowering communities, providing equitable access to opportunities, and supporting innovation.
Key areas
- Focus on improving public health systems through community-led initiatives.
- Promotes digital literacy,
- Women empowerment
- Strengthens the livelihood of the rural population through various programs, like skill training, water conservation, and agriculture.
Tata trusts are known for their exceptional history and credibility. And, they partner with global institutions, NGOs, and government bodies to accomplish long-term transformation.
3. Azim Premji Foundation The
Azim Premji Foundation focuses on changing the Indian education system and works with communities, education, and the government to enhance teaching quality and learning outcomes.
The foundation aims to build a humane and equitable society by ensuring to provide quality education, particularly for underprivileged regions.
Key areas
- Supports health initiatives and livelihoods in the rural communities.
- Strengthens the education system
- Focus on improving government school systems by providing training to teachers
Azim Premji Foundation’s long-term presence, especially in the rural districts, drives systematic changes. They build partnerships with the state government and educational institutions. A blend of policy engagement, research, and training makes them a pioneer in the education sector.
4. Goonj
Goonj was established in 1999 and is headquartered in New Delhi. It focuses on turning urban surplus materials to address basic but neglected aspects of the rural population. They use urban materials for rural development, social empowerment, and disaster relief.
Key areas
- Focus on imparting rural education and menstrual hygiene awareness.
- Provide disaster relief materials.
- The concept of the “cloth for work” initiative, wherein the villagers receive clothes in return for their community work/participation.
The Goonj model provides material contributions for the rural community and not as a charity.
5. Smile Foundation
Smile Foundation was established in 2002, New Delhi. The foundation helps people to become self-reliant through quality and accessible education and healthcare services.
Key areas
- Provide mobile healthcare services
- Digital literacy and skill training
- Promotes socio-emotional well-being
- Merit-based scholarships for girl children
- Training for teachers
- Primary and secondary education
Smile Foundation operates in more than 27 states with 735 mission education centers, impacting millions of people every year. It creates a holistic empowerment through education, livelihood, and health.
6. Akshaya Patra Foundation
Akshaya Patra Foundation, established in the year 2000, is headquartered in Bengaluru. It works in partnership with the Government of India through PM POSHAN Abhiyaan. The Foundation aims to eliminate hunger by serving wholesome mid-day meals to government school children.
Key areas
- Promotes nutrition awareness
- Ensures food security for school children
Akshaya Patra Foundation ensures no child in India is deprived of hunger, malnutrition, instead, they support healthy growth by boosting immunity and lays a robust foundation for a stronger future. They have crossed a milestone of 4 billion meals being served to children across the country.
7. Teach for India
Teach for India, founded in 2009, Mumbai. It is a nationwide movement and a non-profit entity in compliance with Section 8 companies in India. They focus on bridging educational inequality by placing dedicated individuals in under-resourced schools (government and low-income schools).
Key areas
- Build leadership skills to enable systemic changes in the education system.
- Recruit and train graduates/professionals to impart quality education in these schools
“Teach for India” has created a greater network that continues to make changes in educational policies and governance. The alumni have developed impactful initiatives to provide educational access across the country.
8. HelpAge India
HelpAge India was established in 1978 and is headquartered in New Delhi. This is one of the most trusted and oldest non-profit organizations in India that works for elderly people. The mission of this program is to serve senior citizens, promote dignity, and make sure they lead fulfilling and healthy lives.
Key areas
- Provide livelihood support to senior citizens
- Advocate for their social security measures
- Runs mobile healthcare units in rural areas for elderly people
HelpAge India has years of experience in addressing the needs of the ageing population of the country. Their commitment to consistent service has built trust over the generations and has improved the lives of many elderly people.
9. Pratham Education Foundation
Pratham Education Foundation aims to enhance the quality of education in India across various spectrums. They focus on enhancing basic reading and writing abilities, and arithmetic skills amongst government school children.
Key areas
- Vocational skills training
- Foundational Learning
- Life Skills
- Research and Evidence
- Government partnerships
- Second chance education for school dropouts
- Technology and Digital Learning
10. Child Rights and You (CRY)
Child Rights and You (CRY) was established in 1979, Mumbai. It aims to restore basic rights of children, including education, safety and protection, health, and participation, especially for underprivileged children. This foundation works with parents, government, and communities and tackles the root cause of the issue, and aims to provide a happy and empowered childhood.
Key areas
- Make partnerships with local NGOs to strengthen child rights
- Advocate for child protection from child marriage, trafficking, abuse, and child labour
- Promotes quality education
- Improving access to healthcare, like immunization, fighting against malnutrition, and improving maternal and child health
- Creating an environment where children voices are heard
Why Section 8 Companies Stand Out?
1. Tax Benefits
Section 8 companies in India are eligible for tax exemptions that come under Section 12A. Additionally, donors are also eligible for tax deductions under Section 80G for their contributions.
2. Access to Diverse Fundings
The credibility of Section 8 companies makes them qualified for various funding options, such as:
- Government schemes
- Foreign contributions
- CSR funds
3. Social Impact
Many people in India benefited every year through programs in, women empowerment, healthcare, art, education, research, rural development, and more.
4. Operational Benefits
- No need for minimum capital
For incorporating Section 8 companies, there is no minimum capital requirement, which makes it accessible for several social entrepreneurs.
- Name Exemption
Section 8 companies can use words like “Forum”, “Association”, or “Foundation” to showcase their non-profit mission.
- Perpetual Succession
The existence of the organization depends on its members, thereby ensuring long-term continuity.
- Public Trust
Section 8 companies/non-profit organizations in India have built years of credibility by performing ethical operations.
Pitfalls to Avoid while Forming a Section 8 Company in India
While establishing a Section 8 Company in India, avoid these mistakes at the early stages:
- Unclear objectives– Having unclear goals and objectives can make it difficult to track the organization’s progress. So, define your mission clearly and align every business-related activity with it.
- Poor governance– Develop a clear accountability process or else lack of oversight can lead to misuse of funds.
- Weak financial transparency- Maintain accurate records, as incomplete audits can easily discourage CSR partners.
- Limited community engagement– Keep the communities involved at every phase to maintain sustainability.
- Non-compliance– Ignoring statutory filing can result in loss of credibility or penalties.
Conclusion
Section 8 companies in India play a crucial role in fostering social development and economic growth of the country. The mentioned above Section 8 companies list has developed community impact, transparency, and credibility.
As India progresses towards an economically and socially equitable future, Section 8 companies stay at the forefront of the nation’s development.
