Charitable organisations give a platform for you to engage in humanitarian services as well as appreciates your noble work by making you eligible for tax exemption too.
Non-profit and charitable organisations work at the ground level to serve underprivileged communities in a sustainable way. This makes the service of NPOs, NGOs, and charitable organisations impactful and tangible, paving way for lasting change. The work of charitable organisations includes socio-environmental issues such as empowerment, equality, healthcare, education, poverty, hunger, climate change, water conservation, animal welfare, etc. These organisations greatly depend on the support of donors and sponsors for monetary aid to carry out their operations and expand their reach. To encourage individuals and for-profit organisations to support the efforts of NGOs, the government has made the provision of tax exemption donation.
No matter which country you are a citizen of, you have to pay tax to the government if you are salaried or self-employed individual or run a business. The tax collected by the government is utilised for healthcare, public utility services, management of defence forces, and various welfare projects for the citizens. As per the tax policies in India, you can receive exemption from paying taxes based on certain investment criterions such as housing loan, life insurance, medical insurance, etc. In addition, upon donating to charitable organisations, you can also become eligible to receive tax exemption as per the Section 80G of the Income Tax Act of India. While this provision clearly reinstates the importance of ‘giving back to the society’ and supports philanthropic contributions, it is important that as a donor you must ensure that the NGO you are donating to is a registered organisation and is eligible to provide you tax exemption. You must also note that depending on the cause and work of the charitable organisations, you may either receive 100% exemption or 50% exemption on your donated amount. When you donate, it helps the beneficiary NGO in its operations and makes a positive impact in the lives of the beneficiaries of the NGO or on the mission of the NGO.
But did you know that Section 80G has multiple benefits for you too!
- First, it makes you eligible to receive tax exemption.
- Second, it upholds the values of compassion and generosity,
- Third, it facilitates the action of ‘giving back to the society’.
- Fourth, it makes you a part of the solution.
- Fifth, as you participate in the upliftment and welfare initiatives, it makes you the ‘agent of change’.
As is said, ‘every drop makes the ocean’, similarly, every bit of your support adds to the larger good of the society along with qualifying your contribution for tax exemption donation. Among many NGOs, The Akshaya Patra Foundation is one charity that is known for its 21 years of relentless service, financial transparency, and credibility. This is one of the most reputed mid-day meal NGOs in India nourishing 18,00,907 children studying in 19,039 government and government-aided schools across 58 locations in 13 States and 1 Union Territory.
Your contribution to this non-profit organisation makes the much-needed mid-day meals available to children on each school day. This greatly contributes to their nutrition requirement, health, and education. The meals promote better concentration, improves attendance and reduces drop-out rate. Regular schooling enables children to step towards their aspirations with added enthusiasm, determination, and confidence. As Akshaya Patra is a registered charity, your contribution of ₹500 and above qualifies for tax exemption donation too.
In conclusion, when you spare a moment to donate to NGO, you make a huge difference in the society. So, nurture your philanthropic self and get rewarded for your good deed in the form of tax exemption!
The Akshaya Patra Foundation 