Research Well Prior To Offering Donations To Social Work Organizations
NGO or Non-Governmental Organizations offer voluntary services towards social, charity and relief activities. Often, they require funds for that and they procure the fund through crowdsourcing. There are many persons who voluntarily prefer to contribute to social activities, relief work. In this context, NGO India is associated with different charitable activities. It gets donations from potent donors (monetary). NGO India has its own website where it highlights its services, its activities. Prior making any type of monetary contributions, make sure that you read the website of the NGO India. It provides you with a useful insight of the organization's activities.
There are many social work organizations across India. Many of these organizations work for the poor and the downtrodden. Many fund poor kids to go to school, study and live a decent life. There are monetary donors who donate money for social welfare as well as for charitable purposes. However, understand a thing that many NGOs claim that they offer the best services but it is up to you to find out which one is good after all you won't want to go your money in waste. Observations reveal that there are some frauds NGOs which claim to offer voluntary social welfare services but at the end, they cheat the persons who donated money to their organizations. Beware of such frauds!
If you check online you can find a number of local non-profitable organizations. Do you know that donations made to an NGO come under different sections of the income tax? Some are taxable and some are not. With respect to this it is relevant to say that a donor can donate money to an NGO for a social cause under section 35ac, sometimes donations are made under sections 80g of the income tax. Now, what are these?
Donations under Section 35ac
Donation under section 35ac can donate funds for charity purposes as well as for social welfare projects. This section of the income tax allows the donor to donate money to non-profit organizations for social welfare projects and provides a 100% tax exemption for the donation amount. This section does not impose limitations on the donation amount for social welfare causes. An NGO receives donation under this section then it requires providing a receipt to the donor.This receipt helps the donor to claim for exemption from taxes. The receipt carries a date and a validity period of the 35ac. The receipt also contains the number of the 35ac. This tax exemption is suitable for business as well as professional people. Those who are not professional or businesspeople can claim under, 80g or 80GGA.
Donations under Section 80g
Contributions that are made for the charitable purposes and relief funds can be claimed as deductions under the 80g of the income tax act. All donations do not qualify to be claimed as deductions under the 80g of the income tax. This deduction can be claimed by any company, firm, taxpayer, or individuals.
Another important aspect that good NGOs ensure is elder health care. However, it depends on the monetary donors' perspective the type of donation, the person wants to make.