A charitable institution or NGO is established for the benefit of society. It may make a profit, but this profit should be utilized for expansion of that institute. The members, trustees or other particular persons who regulate or influence the organization may not use the profit of the Non profit institute for their personal benefits.

Why should one make Non Profit Organizations

Some of the benefits of establishing and registering a charitable institute / Non-Profit Organization under Pakistani law are as under:

(a) Tax Exemption for all activities under Income Tax Ordinance 2001 and Income Tax Rules 2002.

(b) Tax Relaxation for the donors against donations made to such an institute/NPO.

(c) Some of the various laws that deal with the issue confer the status of artificial legal person to the organization and hence the assets owned by such an organization shall be held in perpetuity and recognition as a bona fide foundation. Read More