Contrary to what you may believe about kindness, giving directly to India’s underprivileged child beggars is simply making them more committed to begging. It serves as an encouragement for their daily begging – instead, you must seek to invest whatever little charitable offerings you have for a long-term goal of bringing them out of this condition. You can instantly donate to charity organisations like Save the Children which work in various parts of India to fight malnutrition, poverty, illiteracy and child exploitation. You can easily donate online to enable thousands of volunteers, officers and employees working in an NGO and in civil society at large to bring about a change in the lives of India’s deprived children. Donations to a reputed charity of your choice earn you tax exemption, which means you do get some kind of reward for your service to others.
Tax benefits of donation tax return
Under Section 80G of the Income Tax Act, you can achieve tax rebates for making donations to charitable organisations. Only cash or cheque or online donations qualify for tax deduction. Before that, you must understand that the larger societal benefits of donation far outweigh donation tax return.
Organisations registered with the Income Tax Department u/s. 12A & u/s. 80G qualify for tax rebate. This rebate is only applicable for the amount donated, and can be claimed while filing the ITR (Income Tax Return), irrespective of the source of income of the donor. Indian residents, Non-Resident Indians, Hindu Undivided Family, or a company – anyone can claim it.
Which NGOs register under Section 80G?
Formal registration (Societies Registration Act 1860, or a corresponding law), or under section 25 of the Companies Act 1956 is essential for registration.
You must support charities prudently.
When you support charities, you should be aware of how the organisations are audited for tax benefits:
i. No source of income must be exempted, including business income
ii. The NGO’s objectives must not specify spending income or assets unless they support humanitarian causes
iii. No discrimination in spending on a particular religious community or caste.
iv. Transparent accounts of receipts & expenditures must be provided.
After you donate to NGO , here is the list of documentation you will need to file for tax deduction
i. Stamped Receipt, with name, address and PAN of the trust/NGO, as well as your name, and amount donated.
ii . Form 58: For 100% deduction for charitable donations
iii. The organisation’s registration number with validity dates
iii. 80G Certificate
Where your money is spent
When you donate to a trusted child rights organisation like Save the Children, your contribution goes a long way in bringing about a change in the lives of vulnerable children and communities.
i. Economic growth activities
NGOs teach communities about their right to access financial and information services, and also establish and maintain child-centric programmes.
ii. Thought leadership and knowledge
NGOs work to bring about a change in existing policies on children by showcasing case studies of positive results –
iii. Direct grassroot work involves teaching children the basics of academia, health, assisting them in adverse conditions and calamities, and ensuring they stay safe from exploitation, harm and malnutrition.
iv. Humanitarian Response: In times of emergencies and disasters, heavy expenditure is incurred on mobilising relief items to prevent starvation, malnutrition, spread of disease and other risks that children face
Conclusion
A donation to Save the Children helps you directly sponsor a child’s future. You can quickly donate the amount you would put aside for a cup of coffee or a movie ticket. Save the Children is known for transparency in donation spending, and has spent a substantial number of donations on programmes to fight child exploitation across India. The NGO is supported by thousands of donors, who are proud to defend child rights with their contributions. The NGO also has a star-studded list of corporate partners and celebrity supporters, who further its cause in India and across the world.