Required Steps to set up a non-profit school

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ramsarya

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This thread is in response to Mr. Ram Phal Deswal's request to share my experiences of setting up the Kalirawan School. Please feel free to ask questions, comment on the steps needed, criticise, add your own experience etc to this thead.

1. Mental Preparations: This step is the single most important step in my view. You need to ask yourself, "Would you be able to convince skeptics of your good intentions? Do you have the patience, the inner strength and the resolve to forget and not be bothered by lot of snide and many times very hurtful remarks by people who obviously do not know you? Can you really keep your eyes on the main objective, over and above the routine distractions? Are you going to throw your proverbial towel because of some disappointments with your family, friends, relatives?" You need to have a thick skin to overcome some of these difficulties and it can be achieved if you are very clear and convinced about your objectives.

2. Set up an NGO: Setting up of a Non-Govermental Organization can be done two ways - one as a Trust by filing a Trust Deed with the Tehsildar or - two as a Society by registering with the Registrar of Societies. Either one need to have your main objectives clearly spelled out along with the ByLaws or Rules and Regulations of its governance. Each one has little different requirements about signatories etc. Legal help is recommended, specially if you have no experience with this type of work.

3. Apply for tax-exempt status (80G? I think) if you (NGO) are going to collect funds in India from Indians, so that donors may get tax benifits.

4. Apply for FCRA approval: If you (NGO) are going to get funds from outside of India. Foreign Currency Regulation Act is a misunderstood act but can stop you right in your tracks if you run afoul and do not follow it. It is a very powerful act and the procedure to get the approval is laborious and I think one of the steps where you really might think of aborting the project. This act seems so silly and inconsequential but those bureaucrats and clerks in Delhi are so hard to convince of your intentions.
First time it took me six months and two rounds of Delhi clerks, without needing anybody elses help though, to get the approval. After about three years when I needed an extension for additional money transfer, it took me 9 months, 4 rounds of Delhi Bureaucrats and Babus. I sought the help of Bureaucrat friends and relatives, some bribes by my associates, help of politicians (including our Jatlander MP and did not get an appointment). The most frustrating part is the unresponsiveness and non-seriousness of the people you have to see and talk to. You feel like you are wasting such precious time and effort on such a mundane requirement, you really feel demeaned by these Babus. This is where you need that thick skin or let somebody else handle it for you and you are better off not knowing how they got it done.

Let us continue the rest at some other time.
 
Thanks a lot Arya Sir for this valuable information!

We see the magnitude of victory, the final upshot but tend to neglect the core behind that success. It was a tough task, absolutely! Involves a lot of tolerance and determination.

Please do keep writing and motivating us!...:)

P.S. One suggestion: This thread should be made sticky!
 
A highly motivative and useful thread indeed!!

Keep on providing more such guidance/experiences Arya Sir!


Regards
 
Required teps ---continued

Friends: Here are some additional steps.

5. Purpose of Opening the School: You need to think it thru as to why are you taking this trouble of opening up a new school. If you want to see your school flourish and serve the purpose of helping rural kids get a good education that they are not presently getting, then just erecting a building is definitely not sufficient. Your responsibility does not end there. You should be prepared to spend lot of time looking after the progress of the school and will need the help of some really dedicated people as well. You can get dedicated people to help you only if they see your dedication and pure intentions to help the rural education without any ulterior motive. Unless you have some dedicated souls in your family or relations, you need to prove to others of your purpose, that means winning over the skeptics. Or need to be lucky to come across some great people. You can’t be blaming the general public for being skeptic of your intentions without something to show for it as lots of people have taken the public for a ride and trust is a hard commodity to come by. You need to earn the trust.
6. Land Acquisition: Need 2.5 acres up to Middle school and should be at least 5 acres for High or Higher Secondary school. More the merrier. Requirement by Haryana Bd is 3 acres for 10+2. Location should be easily accessible and hopefully with some expansion possibilities.
7. Construction Financials: This is the part you have been waiting for! You need 30 to 45 square feet of covered area for each student. Higher classes need the higher area due to labs, non-teaching staff, library etc. Construction costs at present are from Rupees 300 to 500 per square feet depending on the quality of the building. In addition, you need R 50-100 per SF for furnishings including furniture, teaching aids, labs, library, sports equipment etc. Add for other infrastructure like roads, landscaping, water, playgrounds and boundary wall. If hostel or teacher’s quarters are needed, then add that at about 450 per SF.
Do not get discouraged; compare these costs to US costs of school buildings at $150 to $225 per SF and per student needs of 150 SF of covered area. That compares at about 50 to 70 times cheaper in India.
8. Tuition Fee Structure: This is a very sensitive issue with the village folks. Ideally you would like to provide a free education to everyone but let us be practical. Even if you have unlimited resources, anything free is not appreciated (anything free is worth nothing?) and therefore should be ruled out. Consider the fact that there will be a Rs 1000-1500 per student per year added expense on top of a teacher’s salary. Now, if you can afford to pay Government scale (Rs 8000-10000 per month); divide that by number of students per class. A class of 25-35 students is the norm, say 30. Then tuition should be 350 per month and this is only for the running expenses, when you have already provided the infrastructure. In addition, there will be books, uniforms and other school expenses of the kids. Now, think from the prospective of the village folks, how many of them can support that kind of expense? See, the math does not work out.

Let us hear the thinking or experiences of some other Jatlanders before we proceed further. Let us hear your experiences, with Indian bureaucracy, babus or politicians, in an effort to provide something for community's benefit. What about your experiences with regards to rural educational effort?
 
Thanks!!

Thanks a lot, Arya Sahab! You have been kind enough to share your experience in details. The scale of pains you took for getting this project take off successfully speaks a lot about your missionary spirit. The most admirable part is that you donot seem to have much relied on professional help. JINKE NISCHAYA MEIN CHHED NAHI VO KYA NAHIN KAR SAKTE!!!

Arya Sahab, out of the external factors registration under the Foreign Contribution Regulation Act may have been the most disgusting and frustrating. But it was the most essential too for you, I understand.

I have a few more questions, Arya Sahab and hope you would not mind replying them to.

a) What is the procedure for selecting the new entrants (students)? Everybody with less than one hundred Rupees a month to spare can not be admitted for obvious reasons. And (since a village is a closely knit community) what has been the reaction of those whose wards are denied admission?
b) Are the teachers really good? I mean are they skilled and result oriented? And do you have some mechanism devised to assess their performance independent of what the Principal/Director say about them? (In my experience it is big challenge to catch hold of good quality teachers for rural schools, even if you offer them reasonably good pay. Hence this question).
c) Have you any plans to run classes for some professional courses/ competitive examinations /entrance examinations during the after school hours some time in near future? (This is with a view to take best advantage of the costly infrastructure).


I hope an effective use of audio/video teaching aids and additional lesson plans (on the lines of DPS system) are included in the scheme of things. Library from the primary level and laboratory from the secondary have their invaluable roles to play. In my humble opinion, there is no substitute for reading habit for a growing child.

I take this opportunity to wish an astounding success for the project !!!

Regards!


RPD


PS: Will it also be possible for you to forward me (deswalrp@yahoo.com) a copy of the Trust Deed you filed with the Registrar of Societies or the Tehsildar,as the case may be? I need a sample to have an idea of its essential elements.
 
Dear Arya ji,

VMT, really a worthwhile information and a positive thread.


regards,
 
Making Hospital, Dharamshala etc. for your village folk are noble works but making and running school for them is the noblest one that anybody can do.

Truly inspiring information!
 
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sktewatia said:
the only man made object visible from Moon
Click to expand...

The Great Wall of China, frequently billed as the only man-made object visible from space, generally isn't, at least to the unaided eye in low Earth orbit. It certainly isn't visible from the Moon. The first confirmed photo of the wall was taken with a 180mm lens and a digital camera. There was even talk about rewriting textbooks that espouse the theory, a formidable task in the Earth’s most populous nation.
I would say it is the last seen object by naked eyes while going in space, from a max height of 320 kilometres


Lekin Arya saab ne jo kaam kiya he usko kissi lens ki zaroorat nahin he...
 
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Thanks Mr. Arya for providing a detailed perspective on some of the most complicated and important issues related to charitable work. There is no better person than you to take advice from on such matters. We jatlanders are lucky to have you amongst us!!!

The following news article is not to discourage anyone from starting a big social project but to make aware that unnecessary and obnoxious systemic hurdles still exist and things like this happen (please read the news article below). Mr. Arya’s perseverance and dedication become all the more praiseworthy after reading the below story.

There is no doubt that starting a not-for-profit project will suck a lot of your mental energy but I think the satisfaction and inner peace you get by doing such work is worth the trouble. I think the best strategy to prevail is to prepare yourself mentally in advance for a long-drawn-out battle of wits with the babus. Also, being a little flexible in your approach with them will help you keep your eyes on the ball. Focus on the bigger picture…..because worrying about the small stuff and trying to change the whole system single handedly will leave you drained and defeated.

If you are determined enough to achieve something…..nothing can stop you from achieving it.

NRI gifts technical college to Panjab University
Friday February 3 2006 01:27 IST
IANS

CHANDIGARH: A former constable of the Punjab Police, who went on to become a millionaire in the US, has gifted a technical college, complete with building and full infrastructure, to Panjab University.

Lajpat Rai Munger, 89, who hails from Bajwara village in Hoshiarpur district, gave away the Rs 20 crore ($4.5 million) campus spread over 11 acres to the university on Wednesday.

The college, at which the university will offer several engineering courses, was built about five years ago as a goodwill gesture towards Munger's home state.

The millionaire farmer from California - whose family owns one of California's largest blueberry and pistachio farms - has a turnover of $30 million a year.

He migrated to the US in 1966 after serving as a constable in Punjab Police.

For five years, Munger struggled with the bureaucracy in Punjab for running the college. He alleged that officials of the technical education department had demanded bribes to sanction the engineering courses.

Pleas that he was opening the college for the benefit of Punjabi youth fell on deaf years.

Finally, Munger approached university vice chancellor K.N. Pathak and decided last month to gift the college - Swami Sarvanand Giri Institute of Engineering And Technology - to Panjab University, under whose academic jurisdiction the area falls.

The new engineering courses, including computer sciences, will start from the next academic session in July, university officials said.

Munger had tied up with the California State University to co-affiliate the engineering courses he proposed for his college.

He had decided to gift the college to the university on the day when the central government was celebrating Pravasi Bharatiya Divas, the Indian diaspora day, in Hyderabad last month, to laud the success of non-resident Indians (NRIs) and to ask them to invest and give back to their country of origin.

The octogenarian Munger is well known in villages near Hoshiarpur town for his social work.

Many years ago, he set up a dispensary at Mal Majara village where people are treated for a nominal charge of only one rupee.

Though he spends most of his time in his village, his sons and other family members from the US keep visiting him.
 
Steps Continued:

Friends, here are some more points to consider, if you haven't already given up:
9. Let us not get discouraged by all the numbers thrown out in the above steps. First, if the finances are limited, then scale back on the project. However, please do not just think of erecting a building and then handing it over to Govt. What is the use then, it will be like any other Govt School and after a few years you might feel like throwing up by looking at the condition of your hard earned money creation. If you really want the community to benefit by whatever you plan to do, then have to think it thru including the worst case scenario. This scenario should include but not limited to: your future time and effort; future financial needs and your capability to fulfill those; have the stomach to take undeserved criticism; would the mistakes, frustrations and disappointments make your resolve stronger or will it make you quit etc. You go ahead and do it if you can survive this scenario.

There are lots of people who have enough to spare to benefit the community at large without making a dent in their life style. A school can be built and run in a village in India for the price of a medium house in USA. If you put your mind to it, it definitely is doable and I know closely at least two families who are doing it and are the source of my inspiration.
10. Make the numbers work: As I said earlier, tuition fees are a sensitive subject in the villages. Most of the folks can’t afford or do not understand the value of good schooling. Once they come to know the comparative value, then there should not be such a big deal. However, again you have to win over the skeptics by providing proof of what you are trying to say. There still will be opposition, no matter what. At Kalirawan School, the fee was Rs. 60 per month till last year, was increased to 80 per month this year and the whole increase was passed onto the teachers as increased salary. Just this small increase affected the life of five girl students when the parents refused to admit them with the reasoning that they do not want to spend that much on girls’ education. We try to admit al least 40% girls and are having difficulties. May be we might have to start some incentives for female students.

With the unemployment being what it is in rural areas, no school pays the Govt scale (not talking about high priced schools). To motivate lesser salaried teachers, you need to spend time with them and once they are convinced of your sincere efforts to benefit the community, they will take it upon themselves to do the needful. Still, there will be deficit. Any increase in fees (stretched to the limit) will be used to increase the teacher’s salaries. At present, Santosh and I can afford to take care of the deficit. We probably need to leave a big enough endowment to take care of the deficit perpetually or start some other institution whose profit may be siphoned off to this school.
11. Admission Criteria: We admit only 4 and 5 year olds. We get almost 200 kids names registered for admission every year, whereas we admit only 60.What criteria can be used? Can’t take their written or verbal test. Govt has made it illegal to interview (my understanding) parents or students! Also, once the people know the age criteria, parents find a way to get date of birth certificate to fit. We rely on kid’s behavior, manner of conducting themselves, parents or family history of use of liquor or drugs, their views about education in general and then try to admit al least one child from every household. Of course, people (not all) whose wards are not admitted start bad mouthing the school or teachers or even our family members because they did not do sifarish of their kids. Some do understand and prepare the kids for admission next year.

Deswal ji, to answer some of your other questions: No at present we do not have a criteria/mechanism to assess teacher's performance. I am waiting for Col. Malik to take charge and set up all these systems. Getting good teachers is always a challange and Col. Malik and I understand it perfectly. We will do whatever we have to. No, we do not have any plans at present to run any professional courses. Scheme of things have lots of ideas and that is why, I had mentioned that future needs should be kept in mind while budgeting.

I will forward you any info you need and the one that I have. Please send me your mailing address. At present I am in Florida till 17th. I will send you the material once I am in NJ.

I take this space to thank jatlanders for their continued good wishes.
 
Aryaji, these details were very informative. We can imagine that projects like this take lot of dedication, desire to contribute and strength (mental and financial).

I had few specific questions
-If someone's finances are partially viable to start a project, is there any program in govt. that can give partial financial support for such effort carried by individuals?

-How much of fund-raising can be done within India for such projects?

I should have started a separate thread for rest of my thoughts becuz they are not related to starting a project which requires financial strength. but here is a bit of that.. how to make use of voluntary strength if there are willing but pennyless individuals?...
I remember asking Ghasiramji that how cud we contribute, he said "Just study and when you earn money you can save and start some project"... It was good answer but little old-fashioned becuase the model lots of other non-profit orgn follow is not as much "donar based" but "volunteer based"... beside having "small no. big parties" they also have "big no. of small parties" i.e. vols who contribute in fund raising and maintain the organization... Anyway, lets not divert from original topic, this can discussed sometime late...

Following on the similar lines, I would request Kapoor to share his experience (e.g. Maujiram Trust) about "starting up a trust"... few legal steps could be explained... Even though I haven't discussed with anyone except my family and a lawyer friend but sometime in future I would like to start some small trust which cud be operational in a village in small scale... so far nothing except the name has been decided:-)) (which would be Gangaram, my great-grandpa, surpanch of 40 sangwan villages long time back) Ok enuf boasting:)... I guess one has to get non-profit certificate from court or do registeration...

Registeration process of non-profit may also help Jan Jagriti people if they are following on the thread...

-Vinod
 
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Dear Vinod:
I am sure there are programs by Govt to help education like Govt-aided private schools and colleges but I am not familiar with these programs. However, I am afraid that once the meddling starts, be it by bureaucrats or politicians, may God save the project!

Fund-raising is India is very viable but the fund-raiser needs to be a very dedicated and well-known person to be successful. In fund-raising, who you know works better than who you are.

Volunteerism in India is not very prevalent as in US, Jan Jagriti people are a bright spot and good efforts are underway. May be it is that our scriptures and religious leaders point at every chance they get, "Daan is Mahaan". People literally take it to be a financial daan intead of Sharam daan. You definitely need volunteers to run any charitable organization of substance.

Jan Jagriti people, I think, are on their way to getting it formalized as an NGO as per some talks on jatland. We will go over other logistics and details about starting your charitable Trust in India when we see you in NJ in summer.
 
Feel Obliged!

Thanks, Arya Sahab, for sharing your experience! I am sure your pains in composing these three/four of your voluminous but qualitative write ups (without prejudice to other posts, off course!) will not go waste. I personally feel obliged because you shared more than what I had expected.

My mailing address is :

7529 McWhorter Pl #201
Annandale, VA 22003
 
Arya ji, i not only admire your spirits with which you live on but the way you have overcome the negative attitudes is a bigger achievement.You are a real torch bearer for the community and you really know the meaning of selflessness.I too have an aim of doing something unique for the community if God has that planned for me and i must say in all possible humility that the inputs provided here in will go a long way in providing moral and practical support in times to come.Thank you so much!
 
Arya Sir

Truly an inspiring information.

I dont remember who, but the place where i belong to - Chhaprauli,Dist-Baghpat, has a village near it, And a NRI(Jat), Professor in PA has set up a School there for village girls which is running on non profitable basis.

I tried to find about it on net but i couldnt. I am truly impressed by his work and hats off to him, because of him girls from neighbouring villages evena re able to study.
 
Dear Vikas:
His name is Dr. Jagbir Singh Dhaka from Baraut. This Girls High school in Rathora is supported by his whole family including their son and three daughters. It is being looked after by Ch. Laxman Singh, maternal cousin of Dr Jagbir Singh. Dr Jagbir Singh is a Professor of Statistics at Temple University, Philadelphia. You may find some more info abt the school at NAJCharities.com or write to me for more info abt Dr Singh, a great soul and a very ispiring person if you happen to meet him.
 
ramsarya said:
Dear Vikas:
His name is Dr. Jagbir Singh Dhaka from Baraut. This Girls High school in Rathora is supported by his whole family including their son and three daughters. It is being looked after by Ch. Laxman Singh, maternal cousin of Dr Jagbir Singh. Dr Jagbir Singh is a Professor of Statistics at Temple University, Philadelphia. You may find some more info abt the school at NAJCharities.com or write to me for more info abt Dr Singh, a great soul and a very ispiring person if you happen to meet him.
Click to expand...

Unfortunately, so i far i hadnt had a chance to meet him, But if you talk to him next time do pass on my regards and let him know he is an inspiration for all of us:)

And this boy from Chhaprauli is all ready to help him in his mission whenever he needs it.
 
ramsarya said:
With the unemployment being what it is in rural areas, no school pays the Govt scale (not talking about high priced schools). To motivate lesser salaried teachers, you need to spend time with them and once they are convinced of your sincere efforts to benefit the community, they will take it upon themselves to do the needful. Still, there will be deficit. Any increase in fees (stretched to the limit) will be used to increase the teacher’s salaries. At present, Santosh and I can afford to take care of the deficit. We probably need to leave a big enough endowment to take care of the deficit perpetually or start some other institution whose profit may be siphoned off to this school.
Click to expand...

Arya Chacha,

This is something that I had been curious about ever since I learnt about
your extraordinary business success as well as your efforts towards
rural education.

Somehow, I have always felt that any institutions that are run through
an individual's charity and out-of-pocket generosity will find it hard to sustain
in the long term.

When I think about these issues I always wonder if it is much more
desirable to create profit generating enterprises/institutions, and then
to use those profits to sustain social efforts. For instance, a top-notch
school for the urban rich kids being setup to be the cash-cow that
is used to develop and sustain decent rural schools.

I am sure you must have thought along those lines before, and I wonder
if you saw a reason for not following that approach.
 
Dear Raj:
Bhai, bare dina main dikhya. Kit jaa rhya tha?
The approach you suggest (setting up of a cash cow and then the rest) is workable but I think you will need a really really dedicated team approach. I think it is better to set up the non-profit first as it builds the character of the team and you will find out who is standing with you till the end. You can always find people to run a cash cow but it is harder to find the right people for the charitable work. Once the people have faith in what you are trying to accomplish, they will be with you by and large. This way you have set up the agenda the right way and have built the right team. Just the promises are not enough. We Indians, specially back home, will never say no to anything, will promise what you want to hear. I do not think it is a character flaw but lot of awkward situaions can arise, once the promised work is not done and you took them at their word and relied on it.
If you set up the money making institution first, then your team will be used to the good life and the perks and you yourself might be so tired (mentally and physically) that the idea of setting up the charitable institution might take a back seat. Now imagine the people running the first charitable institution, knowing fully well that the "for profit" institution is a must for the survival of the first institution and thus they will have much more at stake and keen to run the 2nd properly.
Hersh Kumar from Houston is doing what you are thinking and has set up a "for profit" school in Gurgaon. Him and his wife have 3-4 Montessory schools in Houston area and are doing very well financially. He has promised me that once his first school in India is up and running and starts making money, he will help other charitable institutions or start some. I certainly hope that it turns out to be true.
So, let us wait 5 to 10 years and watch both types of programs and hope that both are successful and are of benefit to the community.
 
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