Avail tax benefit on donation to NGO
Tax benefit on donation to NGO proves to be beneficial to the donor and the beneficiary too. This two way benefit has gone a long way in encouraging community participation for various social causes. The tax benefits donations to charity prove to be a good option for tax payers during filing of income tax returns. This is one constructive way of saving tax while doing social good. Most of the registered NGOs have the provision of tax benefits donations to charity. The amount of benefit i.e. whether the donor can avail 100% benefit or 50% benefit depends on Government allocation to particular NGO. However, tax benefits on donation to NGO do have the potential to rope in more and more community participation. Among many causes that various NGOs are involved in, child development is one of the causes that need considerable attention. It is so because child health and education can change the future face of the society. It will help in the uplift of the needy section of the society at the grass root level. Thus, donating to child for tax benefits can be a progressive step towards a better future.
Donating to child for tax benefits can also be an option for tax payers at the time of filing returns. The Akshaya Patra Foundation too provides tax benefits to donors under section 35AC of the Income Tax Act of the Government of India. This provision allows for 100% tax exemption for every contribution made above Rs.500. The Foundation also provides a break-up of its meal cost for each state for better understanding of how the donations are utilised. Also the Foundation gives a detailed report of its audited financial accounts in its Annual Report 2012-13. This Indian NGO believes in complete financial transparency and hence it allows access to its financial reports to its donors while they consider donating to child for tax benefits.
The Foundation implements the mid-day meal programme under the aegis of the Government of India. A minimum donation of Rs. 2250 can feed mid-day meal to three children for one whole academic year. Along with provision of tax benefits this Indian NGO also gives both online donation and offline donation options to existing and prospective donors. Donors have always been an important stakeholder for NGOs irrespective of the cause they are working towards. The same holds good in case of Akshaya Patra too. Hence this NGO is further working towards easing the process of donation for a hassle free and comfortable tax benefits on donation to NGO experience.
Make use of the two way benefit of tax benefits donations to charity and help in constructing a society that will be more hopeful and prosperous.
About the Author
The Akshaya Patra Foundation is an NGO in India, runs one of the world's largest mid day meal program.
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