1. Introduction and Objective
Samidha FinTech Private Limited ('SAMIDHA') is committed to maintaining a trusted ecosystem of verified, compliant charitable organisations on the Platform. This NGO Verification Policy governs the process by which organisations are evaluated, onboarded, monitored, and if necessary, suspended or de-listed.
The objectives of this Policy are to: ensure only legally registered and compliant organisations receive donations; protect Donors from fraudulent or non-compliant organisations; fulfil SAMIDHA's obligations under the Income Tax Act, 1961, FCRA, IT Act, DPDP Act, and applicable AML regulations; and maintain institutional credibility and Donor trust.
2. NGO Eligibility Criteria
An organisation must be legally incorporated in India under one of the following structures:
2.1 Public Charitable Trust. Registered under the Bombay Public Trusts Act, 1950 or applicable state equivalent, with a valid Trust Registration Certificate and Trust Deed.
2.2 Registered Society. Registered under the Societies Registration Act, 1860 or its state equivalent, with valid Society Registration Certificate and Memorandum of Association.
2.3 Section 8 Company. Incorporated under Section 8, Companies Act, 2013, with a valid Certificate of Incorporation and Memorandum and Articles of Association.
2.4 Additional Requirements:
- Valid PAN issued by the Income Tax Department of India.
- Valid 12A registration certificate (income tax exemption).
- Valid 80G registration certificate (enabling donor tax deductions).
- Good standing with applicable state and central government regulatory authorities.
- No ongoing proceedings for fraud, misappropriation, or regulatory violation.
3. Mandatory Documents for Onboarding
3.1 Legal Registration Documents:
- Registration Certificate (Trust, Society, or Incorporation Certificate as applicable).
- Trust Deed / Memorandum of Association / MoA and Articles of Association.
- List of current trustees, directors, or governing body members with identity proof.
3.2 Tax and Compliance Documents:
- PAN Card of the organisation.
- 12A Registration Certificate with validity date.
- 80G Registration Certificate with validity date and applicable conditions.
- FCRA Registration Certificate or approval letter (required where foreign contributions are accepted).
- NGO Darpan Unique ID (where applicable).
3.3 Financial Documents:
- Audited financial statements for the most recent two (2) financial years.
- Annual Report for the most recent financial year.
3.4 Banking Documents:
- Bank account proof in the name of the organisation.
- Cancelled cheque leaf.
- For FCRA-registered NGOs: separate FCRA designated bank account details.
3.5 Authorisation Documents:
- Board resolution authorising Platform participation.
- Authorised signatory's identity proof (Aadhaar / PAN / Passport).
- Compliance declaration signed by an authorised officer.
4. Verification Process
4.1 Preliminary Review. Upon receipt, the verification team conducts a completeness check. Incomplete applications are returned for resubmission within a defined timeframe.
4.2 Registration Authenticity Verification. Authenticity is verified through available government portals:
- MCA21 Portal for Section 8 companies.
- Relevant state charity commissioner records for trusts and societies.
- Income Tax Department portal for PAN, 12A, and 80G verification.
- FCRA portal (Ministry of Home Affairs) for FCRA registration status.
- NGO Darpan portal for unique ID verification.
4.3 KYC and Background Verification:
- PAN-based identity verification of trustees, directors, and authorised signatories.
- Sanctions screening against applicable Indian and international sanctions lists.
- Review of publicly available information for adverse news, fraud allegations, or regulatory action.
- Beneficial ownership review to identify controlling individuals.
4.4 Bank Account Verification:
- Penny drop verification or equivalent electronic bank account verification.
- Confirmation that the account is in the organisation's name.
- Verification of separate FCRA designated account for FCRA-registered NGOs.
4.5 Verification Outcome. Upon satisfactory verification, SAMIDHA will communicate the outcome within thirty (30) working days, issue onboarding confirmation and Platform access upon approval, and provide reasons for rejection (without prejudice) where an application is declined.
5. Ongoing Compliance Monitoring
5.1 Annual Compliance Review. All registered NGOs must submit annually: updated audited financial statements; renewed 12A and 80G certificates (if renewed during the year); annual compliance declaration; and updated trustee/director list.
5.2 Event-Based Reporting Obligations. NGOs must notify SAMIDHA within thirty (30) days of:
- Expiry, cancellation, or suspension of 12A, 80G, or FCRA registration.
- Change in trustees, directors, or authorised signatories.
- Any government or court proceedings against the organisation.
- Any material change in legal structure or charitable purpose.
- Any fraud, misappropriation, or significant financial irregularity.
5.3 Periodic Re-Verification. SAMIDHA may conduct enhanced due diligence at any time, including random audits, requests for additional documentation, site visits, and third-party verification.
6. FCRA Compliance Requirements
NGOs receiving foreign contributions must comply with the FCRA, 2010 and all rules and directions of the Ministry of Home Affairs. Requirements include:
- Maintenance of a designated FCRA bank account with the State Bank of India, New Delhi Main Branch (or other bank as permitted by law).
- Segregation of domestic and foreign contributions in accounts and records.
- Annual FC-4 returns filed with the Ministry of Home Affairs.
- Compliance with end-use restrictions and reporting requirements.
SAMIDHA will not facilitate foreign contributions to NGOs without valid FCRA registration in good standing.
7. Fraud Detection and AML Measures
- Automated alerts for abnormal donation patterns or unusually large transactions.
- Monitoring for structured or layered transactions indicating potential money laundering.
- Reporting of suspicious transactions to appropriate authorities as required under Indian law.
- Cooperation with income tax authorities, the Enforcement Directorate, and law enforcement.
8. Suspension and De-listing
SAMIDHA may suspend, restrict, or permanently de-list an NGO in the following circumstances:
- Submission of false, fraudulent, or forged documents.
- Expiry or cancellation of 12A, 80G, or FCRA registration without renewal.
- Violation of Platform Terms and Conditions.
- Government or court order directing suspension or winding up.
- Evidence or credible allegation of misappropriation of donations.
- Failure to submit annual compliance documents within the prescribed period.
- Material change in organisational purpose inconsistent with charitable registration.
Prior to permanent de-listing, SAMIDHA will provide written notice and an opportunity to respond, except where immediate suspension is required to protect Donors or comply with a legal order.
9. Transparency Requirements
- Accurate and current organisational profile on the Platform.
- Honest description of programmes, beneficiaries, and use of funds.
- Timely publication of impact updates and fund utilisation reports for Campaigns.
- Disclosure of any conflict of interest in connection with Platform activities.
- Compliance with SAMIDHA's fundraising campaign guidelines.
10. Document Retention Requirements
- Income Tax Act, 1961: minimum seven (7) years.
- FCRA, 2010: as prescribed under the Act and Rules.
- DPDP Act, 2023: in accordance with SAMIDHA's Data Retention Policy.
- Companies Act, 2013: applicable requirements for Section 8 organisation data.
11. Appeals and Representations
An NGO whose application is declined or whose registration is suspended may submit a written representation to: NGO Onboarding and Compliance Team, Samidha FinTech Private Limited.
Email: ngo@samidhadonor.in
Subject: 'NGO Verification Appeal — [Organisation Name]'
Platform: /ngo-onboarding
Response Time: Within fifteen (15) working days of receipt of representation.
12. Amendments
SAMIDHA may update this Policy in response to regulatory changes, industry best practices, or operational requirements. Registered NGOs will be notified of material changes.