This document provides guidance for donors on important things to consider before making donations to non-governmental organizations (NGOs). It recommends donors ensure the NGO is properly registered, as registration provides legal status and eligibility for tax exemptions. Donors should also use secure payment methods and request receipts to ensure donations are used as intended. Additionally, donors should research the NGO's projects, reputation, finances, and social media presence to evaluate its legitimacy and impact before contributing.

1. HelpAge India
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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

2. HelpAge India
https://www.helpageindia.org HelpAge India
Toll Free No Elder Help Line C-14, Qutab Institutional
Area 1800-180-1253 New Delhi - 110016
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.

3. HelpAge India
https://www.helpageindia.org HelpAge India
Toll Free No Elder Help Line C-14, Qutab Institutional
Area 1800-180-1253 New Delhi - 110016
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.