Tax Benefits to the Organisation

The 80 G certification not only provides the donors with a tax exemption on the amount donated (depending upon the annual income of the donor), but also gives tax benefits to the non-profitable organisation.

The institution can get an exemption of 10% for the gross income earned through donations and contributions.

The Income Tax Department has the power to approve or reject such approval upon disqualification of the non-profit organisation or dissatisfaction found by the department towards the NGO’s activities.

The primary role of 80G certification is to encourage donors to donate funds to the non-profit organisation. With the certification, donors can save reduce their tax liability by up to 10% for 50% of the amount donated.