Non-Governmental Organizations or NGOs focus on managing diverse activities or taking on initiatives that aim at benefiting society, particularly the underprivileged people. Even today, uncontrolled economic inequality is witnessed across India. Numerous people struggle to avail even the basic necessities of life, including food, education, and shelter. This is why NGO services in India are extremely imperative. They work towards elevating and improving the lives of marginalized communities. Donating to causes not only benefits the initiatives of the specific charities but can be extremely rewarding for the donors themselves. One can enjoy both personal and financial benefits by making such donations.
Tax Benefits on Charitable Donations
The notion of making contributions, either through monetary means or by volunteering, to improve the lives of the needy and impoverished, has existed for years. Right from individuals to corporate organizations, people belonging to all walks of life often make donations to NGOs and charitable trusts for the betterment of the society they live in. In order to encourage people to make donations for good causes, the Income Tax Department of India allows for tax exemption under Section 80G on the sum of money donated to NGOs and charities. Tax exemption basically is a financial exclusion that lowers the taxable income.
While many people may have the inclination to do something for the society they live in and support a worthwhile cause, they may not have the resource to set up their own foundation. As a result, they donate money to NGOs whose initiatives and vision align with their own. Even though such donations can be eligible for tax benefits, unfortunately not all people are aware of the fact. The lack of knowledge and awareness is the most commonly cited reason for not claiming tax benefits on donations. As the Form 16 provided to salaried individuals do not mention any kind of deductions on donations made under Section 80G, such people often stay in the dark about tax exemptions associated with NGO contributions. It is important to be aware of the rules linked with tax exemption on charitable donations to avail of the rightful benefits a person deserves. As salaried individuals are defined tax benefits at the TDS stage, they ideally have to furnish details of the donations made by them while filing their tax returns and claim a refund.
Donations made to NGOs under Section 80G of the Income Tax Act provide deduction to the donors on their total income. The relevant charity or NGO provides a receipt of donation to the donor on the basis of which they are able to avail the entitled deduction. However, this deduction is only applicable if the NGO or charitable trust in question is approved under Section 80G.
Personal Benefits of Making Donations to NGOs
In addition to availing of tax benefits, making charitable donations can also be an extremely rewarding experience. It provides people with a chance to be a part of incredible initiatives that makes a real difference in your community and improve the lives of the most marginalised.
In many ways, donating to charities can be a great mood booster. The knowledge that one is actually being able to help others is extremely empowering. Hence, it can make people feel a lot happier and more fulfilled. Humans are social beings. They are inclined to take care of one another and feel good if someone extends their assistance in their times of need. Similarly, when a person finds a cause or initiative they truly care about, they feel organically interested in supporting it. In fact, the experience of giving is usually more satisfying than receiving and provides a person with a sense of fulfilment. Donating to NGOs is truly a great activity that can even make people appreciate the little joys of life and enhance their emotional well-being.
The charitable donations of a person can also inspire their near and dear ones to give to causes that are important to them. Sharing the experience of volunteering and making donations to charitable organisations with kids in the family would show them that it is possible to make positive changes in the planet from a young age itself. Most children love to help others naturally. Nurturing their innate generosity can allow them to grow up with a superior appreciation of what they have. Many kids carry on supporting causes through their adulthood as well. Starting a tradition of donating to charities by also including the contribution of children is easy. One can simply create a family donation box where kids can put in their own money. Kids can even be given the chance to select a cause important to them.
Narayan Seva Sansthan is an NGO in India based in Udaipur (Rajasthan). Established in 1985, we have worked extensively for more than three 3 decades to reach out and rehabilitate differently able people from the underprivileged segment. Narayan Seva Sansthan works with 480 branches in India and 49 branches abroad while focusing on alleviating disabilities and providing proper Physical, Social, and Economic Rehabilitation to the needy. We do this through well-planned and comprehensive programs in health, education, rehabilitation, corrective surgeries, and helping aid distribution making us the best charity organization in India.
We are an organization that helps the differently able individuals realize their hopes, dreams, and ambitions and help those who need just a little extra support. So far, Narayan Seva Sansthan and its tireless team with the noble reverences have helped over 427350 individuals free of cost corrective surgeries and we don’t intend to stop. Apart from corrective surgeries, we also provide free of cost education to children from tribal belts and vocational training programs in employable skills for differently-abled & needy adults. Our other initiatives involve free of cost mass weddings & Divyang Talent shows that focus upon the social rehabilitation of people in need.
Our aim is to create an inclusive society, where people with disabilities are accepted into the mainstream economy and social life.
There are numerous charitable trusts and NGOs present across India to whom people can donate their money. Detailed information about such organisations can easily be found on the web.