How to Choose the Right NGO for 80G Tax Exemption Donations in India
The Government of India encourages its citizens to contribute to welfare by offering tax exemptions. Yes. It is true! Isn’t it amazing how you can benefit via charity? What goes around comes around, after all. A number of NGOs work for the welfare and development of the needful members of society. The choice can be a tough one. However, if you want to benefit via your donations, look for the NGOs that work in alignment with the government and are registered under section 80G of Income Tax Act.
Finding such an organisation may feel like looking for a needle in a haystack. Here is a quick note on how the search should process is what you can discover in the following section of this blog.
Understanding 80G Tax Deduction
According to Section 80G of the Income Tax Act, taxpayers can get an exemption of 50% to 100% on the total amount they donate to a specific charity. However, one must ensure they donate to an organisation registered under the section and have valid proof. If you look forward to getting a donation deduction in income tax, always be vigilant about keeping documented records and receipts of all the transactions you make towards the NGO. Examine the authorisations and registrations of the organisation before donating, and learn on what grounds you can select them.
Choosing the Right NGO, Keeping 80G Tax Exemption in Mind
Check out the key factors you cannot miss out on when choosing an NGO for donation. All these factors are essential to ensure the tax exemption you are looking for.
Check 80G Registration
The best way to confirm your ticket to get an 80G exemption is to examine their certification. You can easily reach out to the NGO for such information, check their official website, or even visit the Income Tax Department's website. The best approach would be to ask for a copy of the NGO's Section 80G certification. Know that a trustworthy NGO would not hide any such information.
Does the Cause Resonate With Your Values?
Decide what cause you want to donate to and look for an NGO that works with a vision that resonates with you and is also registered under 80G. If you are interested in children’s education or nutrition, there is a trustworthy organisation around the corner that has been working hard since 2004- Bal Raksha Bharat (also known as Save the Children India). Their mission is to offer quality education, a lively upbringing, and a safe environment to grow and nurture.
Is the NGO Transparent and Accountable?
Make sure the hands you put your hard-earned money on are being used correctly and that there is no duplicity. Ask around about the NGO's reputation and record in the past years and if they have any history of fraudulent activities or unethical practices. Learn how their cash flow works and who is accountable for the management of the funds.
Measure its Impact and Recognition
While you will receive the donation tax deduction once you contribute to the registered organisation, it is essential to be a part of something that makes a difference. Research and compare various institutions that have created a major impact on the lives of the needy. Check which NGO has won laurels and is regarded and recognised for their work.
Go Through the NGOs’ Social Media Handles
The best way to interact and learn about anyone or any entity lately is through their social media channels. Connect with the organisations on their social media platforms and discover the good deeds they engage in. You may come across something that truly inspires you to become a consistent donor.
Understand the Leadership and Team Spirit of the Team
Knowing a place’s management helps figure out a lot about how things go around there. When you visit the NGO that falls under section 80G of Income Tax Act, speak with the people who work there: the manager, the volunteers, and the people under their children. It will provide you with a vision of how things work.
In a Nutshell
Money comes with hardships and sacrifices; if you choose to share it with others for a good cause, that is a truly generous move. However, why be too benevolent and not grab the opportunity to save some of your fortunes when you can? Donate to the organisations that come under the section 80G exemption and get rewarded for your contribution.
If you are looking for such NGOs, Bal Raksha Bharat can be your first pick. It is an organisation that has been working on child welfare and education for over two decades and is 80G registered. The NGO has a set path for any little ones to explore their true potential and aims to work harder towards the cause. It can be a pretty acceptable choice for your tax-deductible donation.
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