80G Registration for NGOs: A Guide to Tax Benefits and Donor Attraction

Are you a non-profit organization working to make a difference in the world? If this is the case, you may be eligible for 80G registration, which can bring significant tax benefits. Donors who register under Section 80G can receive a tax deduction for gifts given to qualifying NGOs. This can be a significant incentive for donors and can assist your NGO in raising additional funds to support your mission.

Your NGO must meet specific conditions in order to be eligible for 80G registration. These conditions include being a registered trust or society, having a clear public benefit aim, and donating at least 85% of its profits. If you believe your NGO qualifies for 80G registration, you can apply to the 80G Registration. To start the Process schedule telephonic appointment with us.

What is 80G Registration?

80G Registration is a provision under the Income Tax Act, 1961, that allows donors to claim deductions on the donations they make to registered NGOs. This registration serves as a powerful incentive for individuals and businesses to contribute to charitable causes. Here’s a breakdown of the key aspects of 80G registration for NGOs:

Eligibility for 80G Registration:

To be eligible for 80G registration, an NGO must meet the following criteria:

Registered NGO: The NGO must be a registered trust or society under the Indian Trusts Act, 1882 or the Societies Registration Act, 1860.
Align with Charitable Purposes: The operations of the NGO should fit within the concept of “charitable purposes” as defined in the Income Tax Act. This often comprises efforts connected to education, healthcare, poverty assistance, religious advancement, and other socially beneficial undertakings.
NGO Spending Cap: The NGO must spend at least 85% of its income on charitable activities. This means that only 15% of the NGO’s income can be used for administrative expenses, such as salaries and rent.
12A Registration: Prior to applying for 80G registration, the NGO must have obtained 12A registration. This registration grants income tax exemption to the organization.

80G Registration Fees

Basic Package

₹6,999/-

Standard Package

₹11,999/-

Premium Package

₹13,999/-

Documents required for 80G Registration

Below is the list of documents required for the 12AB & 80G Registration Online:

Section 8 Company/ Society/ Trust registration documents.
Directors or Trustee’s PAN Card.
Aadhar Card of the directors or trustees.
Trust Deed (in the case of a Trust) or Memorandum of Understanding (MOA), Articles of Association (AOA) of the Company (in the case of a Society/Section 8 Company).
Balance Sheet, Profit and Loss account and Audit Reports of all years since incorporation of the Section 8 NGO/Trust/Society.
A comprehensive list of welfare activities.
PAN Card of Organization
Unique ID of Niti Aayog Registration

Benefits of 80G Registration for NGOs:

Attracting Donors

80G registration acts as a powerful magnet for donors. Individuals and businesses are more inclined to donate when they can avail themselves of tax deductions on their contributions. This widens the donor base and helps NGOs secure the funds they need for their projects and initiatives.

Enhanced Credibility

Having 80G registration adds a layer of credibility and trustworthiness to an NGO’s profile. Donors feel reassured that their donations will be put to good use, as registered NGOs are subject to regulatory oversight and financial transparency.

Sustainability

The tax advantages given by 80G registration enable non-profits to plan for the long term. Exempting gifts from income tax allows non-profits to direct a larger amount of their funds to their objective, assuring sustainability and effect.

Government and Corporate Grants

Registered NGOs are often eligible for grants and funding from government bodies and corporate social responsibility (CSR) initiatives, further supporting their work.

The 80G Registration Process:

The NGO must first ensure that it meets all of the eligibility requirements for 80G registration.

The NGO must then download and fill out Form 10G from the Income Tax website.
The NGO must attach the following documents to Form 10G:
- A copy of the NGO’s registration certificate.
- A copy of the NGO’s memorandum of association (MoA) or trust deed.
- A copy of the NGO’s audited financial statements for the last three years.
- A list of the NGO’s board of trustees.
- A certificate from a chartered accountant stating that the NGO has spent at least 85% of its income on charitable activities in the last three years.
The NGO must submit Form 10G along with the required documents to the Commissioner of Income Tax (Exemption) in the jurisdiction where the NGO is located.
The Income Tax Department will then review the application and, if approved, issue the NGO with an 80G registration certificate.
The 80G registration process can take several months to complete. However, once the NGO has been approved, the registration will be valid for a period of five years.

Mandatory Requirement of Niti Aayog Registration

The organisations applying for registration/ revalidation as per the amended provisions of section 80G, is mandatorily required to give the details of its Registration number of Niti Aayog.
This is also mandatory in the situation where the applicant organisation receives or intends to receive any grantor assistance from either the Central Government or state Government.

Validity of 80G Registration

Earlier registration under 12A was given as one-time registration and once the registration is granted it will hold good till cancellation. From 1st April 2021, all new registration will be given for 5 years only and organisation has to apply for renewal after each 5 years.

Frequently Asked Questions

What is the timeline involved for the new 12A and 80G registration?

For new 12A and 80G registrations, they can be filed immediately upon incorporation.

When can a trust apply for 12A and 80G?

We can apply for 12A and 80G soon after the Trust is registered. If in case the customer is applying after a year or two then their ITR is required.

Do I have to be physically present during the process?

The process is 100% online. So, it doesn’t require your physical presence at any stage. Relax in the comfort of your home while we take care of everything.

Can we apply for 12A and 80G separately?

Yes, you can apply for them separately in which case you have to apply for 12A first. However, doing them together is easier.

What is the validity of the new 80G and 12A registration?

Earlier, 80G and 12A registrations were valid for the lifetime of an organisation. Now, in the case of provisional registration, the validity of 80G and 12A registrations has been kept at 3 years, or for 3 years from the commencement of activities, whichever is earlier and, in case of re-validation, the validity is 5 years.