Questions To Ask To Claim Tax Benefits While Donating To An NGO

Doing good and giving back to society is an integral part of human nature. Today, you can truly make a mark on the lives of people who are less fortunate, by supporting charitable organisations that are truly proving to be the backbone of socio-economic development within our nation.



Making an NGO donation will provide you with a great sense of satisfaction, but can also help you save on your taxes!

To promote charitable giving, the Government of India has provided citizens to claim tax exemptions under Section 80G once a donation is made to a certified organisation. 

Who can claim benefits?

Section 80G allows anyone who has a taxable income in India to claim a deduction, once a donation is made. Individual donors, Hindu Undivided Families, Companies, Partnership Firms and Non-Residential Indians who have Indian taxable income are allowed this tax saving option. 

What should you look for in an NGO before making a donation?

It is imperative to ensure that the charitable organization you are making a donation to is registered, and has a legal identity. Verify whether the NGO is formally registered under the Societies Registration Act, Companies Act or the Indian Trust Act. The organisation must also be registered with the Income Tax Department of India, to qualify donors to avail tax deductions under Section 80G.

What mode of payment should you use?

Tax benefits can only be claimed when the contribution is made to specified funds and institutions via cheque, draft, cash or online transfers. Deductions can be claimed if cash donations up to ₹ 2000 are made. Any amount exceeding ₹ 2000 must be made through bank transfers or digital payment methods. 

It is important to note that even though in-kind donations such as books, clothing, food items etc., are highly appreciated by NGOs, the value of items cannot be claimed as a deduction under Section 80G. 


What documents do you need to claim a deduction?

To avail a tax deduction, the donor must submit a standard receipt issued and a certificate received by the NGO or charitable organisation as proof of donation. Documentation must contain details including:

  1. Full name and address of the donor

  2. Full name, address and PAN number of the charitable organisation

  3. The amount donated in both words and numerical figures

  4. Other details of donation including date and mode of payment

  5. Registration number of the charitable organisation, as provided by the Income Tax Department of India 

Make a contribution to truly shape the lives of millions while saving on your taxes. Giving can be a great way to save! 

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