If you often think about making a donation, but feel clues about it, here is some guidance for you. There are many responsible citizens of the country who do not know how to work on their intentions and turn them into actions. While most people don’t know the best way to make a donation, others may be perplexed by the daunting process of donation. On the other hand, some people feel hesitant to donate large sums and are doubtful about the way their money will be used by the organisation.
However, the process of choosing the right organisation and making a donation is not that difficult. Even if you have a modest salary or a tight monthly budget, making a donation is a very kind action that is bound to make you feel satisfied and happy. However, you must identify the recipient of your kindness prudently. Organisations like Save the Children are known for generating value from the smallest of donations through a scientifically designed program of social change and holistic development.
These simple questions and answers on the topic will help you understand the process better.
1. How do I find an NGO’s credibility?
Popular NGOs usually showcase their huge team of volunteers, as well as their work on their website and social media profiles. They are also often in the news for responding to major disasters with aid. Word-of-mouth credibility can be seen in the number of donors (individuals, foundations and corporations) they have on board. On the other hand, NGOs with pronounced political affiliations are easy to avoid. Instead, look for organisations with bigger, humanitarian projects and vision. NGOs like Save the Children have programs across the world, and are globally respected for establishing best practices in the field.
2. Is it safe to donate online?
Donating online might seem like a tall task, but its’s much simpler, safer and hassle-free than you think. First, online donations are in line with the government’s objective of going cashless and promoting online transactions. Also, online transactions are secure and enable one to check his or her financial history via online records and debit/credit card receipts. A credit card transaction can be disputed in the case of discrepancies. All these proofs are mandatory when you are dealing with tax officials while filing for donation tax rebate. Not just that, online transactions are also instant, swift and timely. There are no time or location restrictions and you can donate from anywhere in the world.
3. How do I obtain tax rebate for my donations?
The Income Tax Act allows donors to claim tax rebates for donations to charitable organisations with formal registration (Societies Registration Act 1860, or Section 25 of the Companies Act 1956). This deduction can be availed by Indian residents, Non-Resident Indians, Hindu Undivided Family or firms.
The documents that are needed while filing income tax returns (ITR) to claim tax rebate are as follows:
i. The receipt must mention the name, address and PAN of the trust/organisation
ii.Form 58: Applicable for donations which provide 100% deduction.
iii. The organisation’s Registration number with validity dates
iv. An 80-G Certificate
Apart from sponsoring an NGO, you can also contribute your time, skills and passion. It could be manufacturing or marketing, experience from any sector counts. You can always join in fundraising campaigns in door-to-door donation drives, or events. Many long-term donors, who have witnessed the NGO’s ability to generate lasting change across cities, slums and villages, become regular volunteers and contributors for the NGO’s programs. Your donation will go towards regular scheduled programs and help the underprivileged children to have a better future.