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NGO Donations:Things to remember before giving your bit

Donation is indeed a generous act of humanity by an individual but are you aware of certain points before giving your precious money as donations? Well, if not, this will help you to realise some important aspects of charitable contributions.

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NGO Donations:Things to remember before giving your bit

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  1. HelpAge India NGO Donations: Things to remember before giving your bit Charity is considered an act of benevolence. But one who donates generously is doing more than that. A donor’s money, when utilised judiciously, can alter the course of an individual’s life who’s deprived of the most trivial amenities. Donations are always important; it’s the foremost reason why popular charitable organisations have taken the onus of providing security and stability to millions of people worldwide. Charity in India is also a major factor that has helped many NGOs to emerge over the years. But all this accounts to donation for/with a cause. But is all easy as it seems? Maybe not always, especially if you’re doing it for the first time. For donors, their first time is always crucial. There are certain things to keep in mind to shrink away from the ‘ifs’ and ‘buts’ of charitable contributions, especially in cash donations but the following points will help you understand what all things you should remember before doing your bit. Ensuring if the Organisation is Registered It’s extremely crucial to find out whether the NGO/NPO or the charitable organisation is registered or not. A registered organisation enjoys a plethora of advantages over the non- registered ones. First of all, it https://www.helpageindia.org Toll Free No Elder Help Line C-14, Qutab Institutional Area 1800-180-1253 HelpAge India New Delhi - 110016

  2. HelpAge India earns legal status in order to hold thorough interactions at the official level which opens a plethora of opportunities for the NGO. It can open a bank account, sign contracts, become entitled to government funding, etc. Giving your money to a registered org. will ensure where your money is going and if it’s being utilised judiciously. Tax Deductions and Exemptions There is a privilege of getting tax deductions and exemptions while donating money to NGOs. You are liable to earn it depending on the type and nature of the organisation. According to the Income Tax Act of 1961, you can earn 100 per cent tax exemption or 50 per cent tax deduction as per donation under 80G. The condition being the donation has to be in the form of cash and should be up to ₹2000. Any donation either in the form of cash or the cash amount itself exceeding ₹2000, won’t be eligible for tax abatement. Earlier the upper limit of the cash amount was ₹10,000 and deductions were also possible under sec 35 AC of the IT ACT but since FY 2016-17, the latter has been discontinued and amount, as mentioned, reduced. Safe Modes of Payment Whether you’re paying in cash or monetary transactions or even in kinds including food, clothing, stationery, books, etc., do ensure that your contribution is being rightfully distributed to the deserving lot. This is especially during monetary donations where you must get the proper receipt of your donation made and see that it’s being purposefully used by the NGO. Nowadays, many people donate online. Therefore, ensure that any payment is processed through a secured gateway, providing you with both security as well as privacy. https://www.helpageindia.org Toll Free No Elder Help Line C-14, Qutab Institutional Area 1800-180-1253 HelpAge India New Delhi - 110016

  3. HelpAge India A quick Backgrounder Although, this should’ve initially been the maiden point to be made, nevertheless, it’s actually the first thing that you should be doing. Before contributing to an NGO, do a research on the same. Go through what projects it has undertaken, how long it has been functioning, what is its market reputation, its financial stability and tax status. Another important aspect to look after is its social media presence. It’s a brilliant indicator of anything these days. Social media involvement surely counts since it attracts tons of users and the feedback is instant. Ergo, now you’re aware of the things to keep in mind while donating to an NGO/NPO or any other charitable organisation. Be aware and keep a constant follow-up on the contributed amount or goods as to how it was used or did it positively impact someone’s life. You can always look for donation tax exemption when giving a cash amount of/below ₹2000. But hey, if you’re a regular contributor, I would love to know your experiences. You must’ve been a part of an inspiring journey. https://www.helpageindia.org Toll Free No Elder Help Line C-14, Qutab Institutional Area 1800-180-1253 HelpAge India New Delhi - 110016

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