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Non-profit Organisation: Income Tax Exemption Benefits

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By Author: Akshaya Patra
Total Articles: 70
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Many a times we are caught unaware of the ways we can involve with social causes and the benefit it brings to the society at large and us in personal. So, here we will discuss about tax exemption donation that results in a win-win situation for both the charity and the donor.

Significant role of NPOs

Non-profit organisation (NPO) regardless of its cause plays a significant role in the progress of a society and the world at large. The effectiveness of NPOs is very well evident in the way various causes are being addressed across the globe. The operational structure of NPOs allows them to work from the grass root level thereby bringing change in a more sustainable manner. The plethora of issues these organisations deal addresses concerns at various levels thereby enabling an inclusive change in the society. One can choose to support a non-profit organisation depending on the cause they relate to the most. For example: If you are an avid believer that education can address most of the socio-economic issues, then you can opt to support those NPOs that are working in the education sector.

Does your support to NPO bring you any benefit?

Acknowledging the remarkable impact of non-profit organisations, the Government of India has made the provision of tax exemption donation for all those who contribute monetary help to non-profit organisations. As per Section 80G of the Indian Income Tax Act, contributing donations to a registered NPO or a charitable trust can avail the donor 100% or 50% exemption on the donated amount based upon the type of charitable trust and the clauses of the Income Tax Act.

Funds play a crucial role in the management and operations of a non-profit organisation. Reason being this, these organisations value each penny of the donation received and maximise its potential towards achieving the goals of their respective causes. Over the years, it has been observed that there is upward trend in the number of individuals who donate towards charity. According to the World Giving Index 2018, giving to charities has increased in developing nations. Additionally, the government is also taking strict measures to ensure financial transparency and accountability with regards to the funds received by the NPOs. This has to a great extent boosted confidence among donors.

Well, we see here that supporting a cause not only benefits the charitable organisation but makes the donor eligible for tax exemption benefits.

Feed a child – a noble way to save tax!

Childhood is a wonderful stage and it needs our utmost care. But unfortunately, there are millions of children across the world who are deprived of ‘living their childhood’ mainly because of their low socio-economic backgrounds. To uphold the childhood of these children several NPOs dedicate their work for the single cause called – children. One such organisation is The Akshaya Patra Foundation. Akshaya Patra is a non-profit organisation in India working for children for the past 18+ years. It supports health and education of children in government schools and government-aided schools by implementing the Mid-Day Meal Programme. Presently, this organisation provides the much-needed daily school meals to 1,765,597 children in 15,668 schools across 45 locations in 12 states of India.

Your choice to feed a child through this organisation will transform the life of a child making them healthy, educated, and resourceful citizens of the country. It will also make you eligible for tax exemption donation. In conclusion, your financial support to a non-profit organisation has the power to change the society and the world into a better place. Choose to act!

Author Profile:

The Akshaya Patra Foundation is an Indian NGO implementing the Mid-Day Meal Programme along with several child-centric initiatives. Your support to Akshaya Patra can potentially improve lives of millions of children across India and also avail your tax exemption.

More About the Author

I'm a social volunteer, lives in Bengaluru. I do work for NGOs to make society better. Currently I'm working for The Akshaya Patra Foundation. It's an NGO in India which provides wholesome nutritious mid-day meals to government school children to end classroom hunger. https://www.akshayapatra.org/

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