Donations—A Way To Do Our Social Responsibility

There are many people who need medical help but have no finances, they need care but have no one to give it, they need love but are far removed from their near and dear ones. We can, however, make a small difference in their lives by donating a part of our earnings to an NGO or relief organisation of our choice. The amount does not matter because for these people every cent counts and every cent given has the potential to make a huge difference in their lives.

In fact making donations are mutually beneficial both for the donor as well as for the receiver. While the receiver can avail of better living conditions, better care, both medical and otherwise, the donor also gets a host of benefits some of which are:

·         Inner satisfaction and pleasure: The moment we make a donation, we start feeling happy. It makes our life worthwhile for we feel we have done something good today. Certain pleasure centres located deep in our brains become activated and make us feel immensely happy when we donate to charity. And this feel good factor is something all of us can benefit from.

·         Helping people in need: We do not live in an ideal world. Thus there is never a dearth of people who desperately need help in some form or the other for their survival. There is also no scarcity of people who have more money than they need. Hence by donating money, clothes, food etc., we can help bridge this gap in our own way.

·         Avail of tax deduction: Any donation under 80g made in India to prescribed funds like any national relief organisations, welfare funds etc., comes with a host of tax benefits for the donor. Irrespective of whether it is a firm, company or individual making the donation, they can claim deductions of either 100% or 50% under the Income Tax Act. This deduction can be claimed at the time of filing tax returns but need the following documents to be attached:

o   Name of the doner,

o   PAN card of the doner,

o   Address of the doner and

o   A receipt of the amount donated.

When we donate to specific projects of NGOs they are known as donation under sec 35ac .In this there is no upper limit for donation and the donor can avail 100% to 125% tax deduction under this section, depending on the type of donation made. Also on making a donation, the receiving NGO issues a ‘Donation Certificate’ or Form 58a which makes it easier for the donor to claim exemption under the Income Tax Act in India.

When we make a donation, we set an example for our next generation. They feel it is a part of our daily life to make a difference in someone else’s life. This makes them become better individuals and better citizens when they grow up. It also motivates our friends and relatives to come forward and help people in need. This, in turn, makes us grow as individuals and also fills our lives with positivity.