When you engage in any charitable act, it reflects the compassionate, humane, and responsible side of you.
Often, we get caught up in the regular humdrum of life; we get so busy that we tend to overlook those who are in need of our support. While attending to our regular responsibilities and fulfilling the required duties, we miss to nurture the benevolent and compassionate traits in us. This is where NGOs come into play. NGOs are organisations that work at the ground level to bring about a tangible and sustainable change in the society. The work of these organisations encompasses issues related to empowerment, social development, environment protection, health, education, poverty, hunger and similar issues. Hence, by engaging with NGOs, be it in the capacity of a volunteer, donor, knowledge partner or a goodwill ambassador, you can create a huge impact.
In view of the significant role that NGOs play, even the government encourages individuals and businesses to engage with and contribute to charitable organisations!
The Income Tax Policy of Government of India clearly supports philanthropic contributions made towards charitable organisations and NGOs. As per Section 80G of the Income Tax Act, monetary contributions made towards a registered NGO or a charitable organisation qualifies to receive tax exemption on the donated amount. Whether the donor receives 100% exemption or 50% exemption on the donated amount depends on the cause and work of the charitable organisation.
Tax deductible donations have five benefits:
1. Aids the beneficiary NGO in its operations and helps the organisation to sustain and expand its service.
2. Positively impacts lives of beneficiaries of the NGO.
3. Upholds the values of compassion and generosity, as well as instils a sense of ‘giving back to the society’.
4. Uplifts the community by making people aware, responsible, and a part of the solution for various issues.
5. Makes the donor eligible to receive tax exemption.
NGOs understand the worth of each penny and ensures that the donation funds are utilised in the right way.
No matter what issue the NGO is working for, every bit of your support will be valued and looked forward to. So, you can choose to support an NGO depending on the cause you identify with most. For instance, if you want to support education and health of children hailing from socio-economically challenging backgrounds, then you can support NGOs like The Akshaya Patra Foundation that accept tax deductible donations. Akshaya Patra is one of the pioneer NGOs in India to start implementing the Midday Meal Programme. It has been providing nutritious school lunch to children in government schools and government-aided schools for the past 21 years.
Currently, Akshaya Patra provides regular midday meals to 18,00,907 children studying in 19,039 schools across 58 locations of 13 States and 1 Union Territory. When you donate to this NGO:
1. You make nutritious food accessible to children, support their education, and help them to progress towards their dreams and goals.
2. The midday meals contribute to the overall development of children by enhancing their concentration and improving their performance in academics and co-curricular activities.
3. These meals improve attendance and reduces drop-out rate, thereby ensuring continuity in education.
4. You create a lasting impact in the lives of young, determined, and aspirational children.
5. You become eligible to receive tax exemption on your donated amount (applicable for donation of ₹500 and above).
Considering the cause and the diligence in financial transparency, Akshaya Patra is considered among the best NGO in India to donate to.
In conclusion, your one moment of compassion and contribution can create a phenomenal difference in the society. So, while you go about fulfilling the necessary responsibilities, do attend to your benevolent side too! Get double the benefit for making tax deductible donations – to support children by doing good while you save tax.
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