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4 things to Verify before Donating to an NGO in India

Online Legal India LogoBy Online Legal India Published On 15 Mar 2021 Updated On 06 Jan 2023 Category NGO

“Nothing else in all life is such a maker of joy and cheer as the privilege of doing well” - James Russell Miller

It always shows a great humane gesture to give or donate to the people in need. This is a way how you can express generosity and kindness towards the less privileged socio-economic sections in our surroundings to fulfill our societal conscience.

Donating for a noble cause is a great feeling but many times we rush into the process without checking some significant details about the NGO/ nonprofit and that leads to certain financial and legal complications instead of donating money or properties to them.

So if you’re here reading this article, pause for a bit before participating in this way with your hard-earned money. We want before you donate there are certain things that need to be kept in mind in India.

Things to verify before donating to an NGO/Section-8 Company

Before making your contribution to any NGO or Section-8 Company, here are the things you need to check for:

  • Status of the NGO

The first thing you need to verify is the proper registration and the legal status of the NGO. You have to check if the NGOs registered under the FCRA (Foreign Contribution Registration Act), for being eligible to take donations from foreigners.

  • Financial Position of the NGO  

The process which they follow to make a Donation for NGO is very important. As a donor, you would like to see that the maximum part of your contribution reaches the NGO. When donating, it is safe to apply the no-cash methods such as cheques, or other online moods.

  • The authenticity of the NGO

In present times, a couple of NGOs have been caught in scams. They use the donor funds illegally and don’t use the funds for the right social causes. So, before getting financially involved, you need to check the NGO’s website, social media presence, ongoing campaigns, contact information, on-ground work, financial details, taxation status, and other relevant features carefully.

  • Eligibility for Tax Deduction

Be aware of the fact, when you making donations that certain NGOs are exempted from taxes under section 80G of the Income Tax Act, 1961. If your philanthropic organization provides you Tax-free donations then it’s a cherry on the cake. You are advised to go through the Tax Planning rules before deciding because not all donations are eligible for a Tax deduction.

If you want to support any organization, do the above research and make the best decisions. If required, you may get assistance at your fingertips from the NGO / Section-8 company expert panel at Online Legal India.   

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