Five benefits of donating

                     When you engage in any charitable act, it reflects the

compassionate, humane, and responsible side of you.

Often, we get caught up in the regular humdrum of life; we get so busy that we tend to overlook those who are in need of our support. While attending to our regular responsibilities and fulfilling the required duties, we miss to nurture the benevolent and compassionate traits in us. This is where NGOs come into play. NGOs are organisations that work at the ground level to bring about a tangible and sustainable change in the society. The work of these organisations encompasses issues related to empowerment, social development, environment protection, health, education, poverty, hunger and similar issues. Hence, by engaging with NGOs, be it in the capacity of a volunteer, donor, knowledge partner or a goodwill ambassador, you can create a huge impact.

In view of the significant role that NGOs play, even the government encourages individuals and businesses to engage with and
contribute to charitable organisations!

The Income Tax Policy of Government of India clearly supports philanthropic contributions made towards charitable organisations and NGOs. As per Section 80G of the Income Tax Act, monetary contributions made towards a registered NGO or a charitable organisation qualifies to receive tax exemption on the donated amount. Whether the donor receives 100% exemption or 50% exemption on the donated amount depends on the cause and work of the charitable organisation.

Tax deductible donations have five benefits:

1.    Aids the beneficiary NGO in its operations and helps the organisation to sustain and expand its service.

2.    Positively impacts lives of beneficiaries of the NGO.

3.    Upholds the values of compassion and generosity, as well as instils a sense of ‘giving back to the society’.  

4.    Uplifts the community by making people aware, responsible, and a part of the solution for various issues.

5.    Makes the donor eligible to receive tax exemption.

NGOs understand the worth of each penny and
ensures that the donation funds are utilised in the right way.

No matter what issue the NGO is working for, every bit of your support will be valued and looked forward to. So, you can choose to support an NGO depending on the cause you identify with most. For instance, if you want to support education and health of children hailing from socio-economically challenging backgrounds, then you can support NGOs like The Akshaya Patra Foundation that accept tax deductible donations. Akshaya Patra is one of the pioneer NGOs in India to start implementing the Midday Meal Programme. It has been providing nutritious school lunch to children in government schools and government-aided schools for the past 21 years. 

Currently, Akshaya Patra provides regular midday meals to 18,00,907 children studying in 19,039 schools across 58 locations of 13 States and 1 Union Territory. When you donate to this NGO:

1.      You make nutritious food accessible to children, support their education, and help them to progress towards their dreams and goals.

2.      The midday meals contribute to the overall development of children by enhancing their concentration and improving their performance in academics and co-curricular activities.

3.      These meals improve attendance and reduces drop-out rate, thereby ensuring continuity in education.

4.      You create a lasting impact in the lives of young, determined, and aspirational children.

5.      You become eligible to receive tax exemption on your donated amount (applicable for donation of ₹500 and above).

Considering the cause and the diligence in financial transparency, Akshaya Patra is considered among the best NGO in India to donate to.

In conclusion, your one moment of compassion and contribution can create a phenomenal difference in the society. So, while you go about fulfilling the necessary responsibilities, do attend to your benevolent side too! Get double the benefit for making tax deductible donations – to support children by doing good while you save tax.

Want to donate to a charity? You might benefit from it

 

The concept of giving has existed since time immemorial. It is deeply engraved in our systems that we should help one another and especially those who need support. People from all walks of life have been giving charities, be it a king, a philosopher or even common man; everyone makes contributions in some way or the other.

 According to a report by McKinsey & Co, till the 19^th century, India practised religious giving that was motivated by the search for salvation. Slowly at the beginning of the 20^th century, philanthropy was directed towards social causes.

 This slowly brought in the culture of the establishment of NGOs and foundations that worked to alleviate the suffering of people. Gradually, the number of people who donate to NGOs started increasing. People who were blessed with everything in life either chose to make in-kind donations or extend monetary support.

Not only did individuals start giving, established companies and organisations also started making corporate donations to NGOs to ensure that their money is utilised most effectively. Organisations work towards various causes like women empowerment, child education, healthcare of elderly, etc. Based on these causes, huge corporates set up charity wings or have Corporate giving as a part of their monetary funds.

 Not everyone is equipped with resources to begin their foundation. This is why most of them donate to NGOs. To encourage people to come forward and help people in need, India’s laws allow certain contributions to be eligible for deduction under the Income Tax Act. Though many people contribute, they don’t realise that they have made tax deductible donations. Many people donate because it was taught to them by their parents or so that they can change the lives of people in need. But, they don’t look at the tax benefit side of it. People who donate towards philanthropy can have the satisfaction of contributing to the society and simultaneously claim the benefit of these tax deductible donations.

 Benefits of making donations to a charity

By giving to a non-government organisation, you get the following benefits:

·         Satisfaction of doing a good deed

·         Happiness of changing lives of people

·         Tax benefits of donating to a registered NGO, benefitting from 80G deductions.

 Satisfaction of performing a good deed

Like someone said, true happiness stems from the joy of helping someone in need or by sharing what we have. When you help someone and see their face brighten up with a smile, it makes you happy because you are the reason they are so happy.

 Happiness of changing lives of people

Every single person fights hard to survive in this world. When you give to an NGO working towards a particular cause that you connect with, you bring a positive impact on the beneficiary. For example, by providing mid-day meals to children, you ensure that they get the right nutrition for their development.

 Tax benefits when you donate to NGOs

Apart from gaining satisfaction from helping someone, when you donate to a non-profit organisation, you benefit with 80g deduction under theIncome Tax Act, 1961. A few organisations provide 50% tax exemption and a few offer 100% tax exemption.

 One major benefit from donating to non-profit organisations is that it becomes easy to evaluate and monitor contributions. You can be assured of one thing, that even though you have done tax deductible donations, your donations will reach the person in need at the right time.

 The Akshaya Patra Foundation is an NGO that is registered under Section 12A (a) of the Income Tax Act, 1961. Every donation (above ₹500) is eligible for tax exemption under section 80G. The Foundation is recognised as the world’s largest NGO-run school meal programme that serves freshly cooked nutritious mid-day meals to millions of children across the country.

 Every small contribution made towards the organisation can provide nutritious mid-day meals to school children studying in Government and Government-aided schools. These meals help them tackle classroom hunger while making them healthier and sharper at performing in their academics.