Change Brought By Non Profit Organization in India With Donation

Societal changes have always started with good intentions and selfless acts, such as those of non profit organizations in India. They are the backbone of revolution, the change that has been brought in India over the years. As much as the government takes action to uplift the economy, the nonprofit organization contributes half of it. It’s a place where groups of people come together to tackle societal problems or societal norms through information and resources. And after working effortlessly for name and fame over the decade, the government has finally recognised their efforts. Now, many policies and rules are introduced to help them keep their work like this.

Policies, such as the 80G tax exemption, encourage people to obtain benefits by donating to non profit organizations in India. This policy allows you to claim the tax return on the donation you made by filing the tax return. All you need to do is choose an NGO that is registered under 80G. In this blog post, we will explore different donations that help NGOs run and support marginalized communities, with contributions from people who want to give but don’t have time.

Various Forms of Donations, Contributing to Phenomenal Change In Society

Donations are contributions made by people outside an NGO. It can take any form, such as money, clothing, supplies, or food. Most often, people contribute in cash, as that’s the easiest way, rather than collecting supplies and delivering them to the organization’s address. Over time, as technology has evolved, it has made it easy for NGO to operate as international charity organizations in India.

Which means any NGO based in India accepts donations from foreign countries and does this with government support. The International charities are a great support system for NGOs based in India. It happens as net banking has made donating easier with a mobile phone and a few clicks. Other types of donations are listed below.

1. Corpus Fund Donation

Let’s start by understanding what a corpus fund is. The corpus fund is like a savings account or capital for an NGO. This is for a donation made in the name of a corpus fund. The money received as donation to corpus fund is not directly spent on the NGO’s expenses to obtain the equipment or other items. Instead, it is kept safe and invested in a bank more often as a fixed deposit. This allows the NGO to earn interest on the amount kept in a fixed deposit. Also ensures that the principal amount remains untouched and saved for the future.

Every year, the interest generated from the principal is spent on the NGO’s projects, such as education, healthcare, or community programs. This approach provides the NGO with a steady income each year without relying on just 1 or 2 donations. It helps the NGO’s long-term survival in times of low funding.

2. In-Kind Donation

Under in-kind donations in India, instead of giving money to the NGO, donors give goods or services. For example, rice bags, books, clothes, medicine, toolkits, or even pay the vendor directly for the bill generated by the NGO in buying supplies. It’s more like donating and contributing in a more defined way.

This donation doesn’t qualify for Section 80G tax exemption, as it’s reserved for cash contributions only. Therefore, the donors don’t get the benefit of an 80G tax exemption. However, the NGO is eligible to claim the benefit of tax exemption under sections 11 & 12 from this if it is registered under Section 12AA. Only if the items are spent or used for a charitable purpose do they need to record the donation properly in their books by assigning them a fair market value.

3. Volunteer

Volunteering is also considered a way of contribution. However, it’s not a direct donation through volunteering that any individual can make in many forms. Instead, it is the gift of time, skills, and compassion that helps strengthen communities and support non profit organizations in India. Whether you contribute through teaching, healthcare support, environmental action, or simply lending a helping hand, every effort counts and creates lasting change. It bridges the gap between resources and people and demonstrates that generosity is not limited to monetary forms.

Final Words!

To sum it up, it’s best to see non profit organizations in India as a backbone for the upliftment of marginalized communities. And realize that donations keep them going, help people in need, end societal norms in part, and grow communities and people together. Donations and charities have become easier with many new policies and methods. You can make a contribution for growth and hope, however you like, from anywhere in the world. This can help children study better, empower women, provide food to people, and many other aspects can be improved with one contribution in any form.

If you decide to donate and make an impact with one donation, and are searching for an organization, Pard India ticks the boxes. It’s registered under 80G and accepts all forms of donations. All the details are also listed on their website, which made it easy to navigate and perform such a donation. Go and make an impact without delay.