The Social benefits of Tax Exemption in India

There is a compassionate part hidden among all of us. And, the thought of getting out there and doing something for the society also must have crossed our minds many times. But, how often have we actually gone ahead and done it? We get so caught up in our daily humdrum that our benevolence takes a backseat. But, as they say, ‘where there is a will, there is a way.’ So, one of the many ways that can provide you a platform to actively participate in social causes is to engage with an NGO. Every NGO works towards benefitting, uplifting, and sustaining the society by encompassing factors related to social, legal, environment, ecology, health, economy, education, welfare, and the like. The cause of each NGO directly or indirectly reflects the broader perspectives of global organisations such as the UN, UNESCO, WHO, ILO etc. Since NGOs work at the ground zero level of the society; their involvement with a cause brings about a more sustainable outcome. Hence, when you get involved with an NGO it provides you an avenue to constructively participate in a cause.

In view of the significant role of NGOs and to encourage participation of individuals and businesses in various causes, the Government of India has made the provision of tax exemption in India for all charitable donations. Yes, as per Section 80G of the Income Tax Act, contributing donations to a registered NGO or a charitable trust can avail the donor 100% or 50% exemption on the donated amount based upon the type of charitable trust and the clauses of the Income Tax Act. The exemption is applicable for both online donation and offline donation. However, due to ease and convenience, many donors have started taking the online mode of contributing charity. And, since NGOs understand the worth of each penny, the donor can be rest assured that their money is being utilised in the right way. Hence, considering this form of tax exemption is quite a noble way to contribute towards the society.

Let’s take a couple of instances, if a donor identifies with an environmental cause such as afforestation and contributes towards Save Green, then his taxable income will be utilised towards increasing green cover and initiating several environment-friendly programmes. Similarly, if a donor identifies with child education and nutrition, then donating towards The Akshaya Patra Foundation, an NGO in India will ensure nutritious school meals to government school children on every school day. And, since the NGO is aiming at feeding 5 million children by 2020, every penny of all donations will be directed towards the operational expansion of the NGOs Mid-Day Meal Programme. This means, as a donor, you are providing wholesome meals to children and helping them learn and participate better in school, and you are also contributing towards their healthy growth. So, essentially you are contributing towards a healthier and educated society. And, you are also being a catalyst in nation-building.

Well, as you can decipher from the above-mentioned instances, your taxable income has the potential to transform the society in many different ways. Hence, don’t you think making an online donations or offline donations to NGOs can make the most of the tax exemption in India to upkeep your benevolence, save your hard-earned money while also partaking to uplift the society?

How can an NGO bring positive change in society?

‘Giving back to society’ is not an unheard phrase; in fact, it is quite clichéd. Right from top legislators to the common man, everybody has spoken about and heard of this phrase time and again. So, what does it actually mean? To put it simply, ‘giving back to society’ means helping the needy. We all live in a society and the society provides for us. We are dependent on our community and environment for all our need. So, in turn, it becomes our responsibility to take care of our fellow human beings and our life-sustaining environment. It is no surprise that inequality and difference exists all around us: some are extravagantly wealthy whereas some are struck by poverty, some have the luxury to a lavish spread of fine gourmet whereas some sleep and wake up to extreme hunger, some breathe in fresh air whereas some are struggling under the blanket of soot, some are travelling far and wide to get education in the finest of institutions whereas some do not even have the opportunity to attend primary schooling. These are just a few dots on the huge map of the haves and have-nots. And, the phrase ‘giving back to society’ addresses this very imbalance so that the ‘haves’ step up to provide for the ‘have-nots’ through charity donation, time, skill, and specific resources.

One of the practical ways to channel charitable activities constructively is to get engaged with an NGO. NGOs are legally formed groups independent of government ownership or representation. Their scale of ranges from local to global level and encompasses concerns related to human development, conservation of the environment, animal welfare, and more. The operational structure of NGOs allows them to get involved more closely with a particular issue resulting in a more focussed way of dealing with an issue. And, this is also the reason why NGOs are more effective in bringing about a lasting change in the society. So when you donate charity or invest your time and resources in such organisations, it gives a whole new meaning to your contribution. Heeding to this impact and to increase the involvement of more people with different causes, the Government of India allows tax exemption in India for all donations made towards registered NGOs and charitable trusts under Section 80G of the Income Tax Act. This means your donation will have a double advantage: first, it will help the NGO to make progress in their respective causes; and second, it will make you eligible to claim 100% or 50% exemption on the donated amount based on the defined criterions of the Income Tax Act.

One such organisation that has also been recognised as the top NGO by The Global Journal is The Akshaya Patra Foundation. In 2013, the Foundation was ranked 23rd among the top 100 NGOs featured in the 2013 edition of The Global Journal. Akshaya Patra is an Indian NGO running the world’s largest NGO-run school lunch programme. Headquartered in Bengaluru, Karnataka, the Foundation provides freshly cooked nutritious meals to more than 1.6 million children across 34 locations in 12 states. Over the 17 years of its service, Akshaya Patra has observed significant changes in the schooling pattern of children from the economically disadvantaged background. There has been a rise in enrolment, improved attendance rate, improved health, better concentration, and more active participation of children in school activities. However, this would not have been possible without the support of government and philanthropic donors. With the aim to expand its reach and feed more children, the NGO directs all the received funds towards bettering processes and operations and providing wholesome meals to children.

The one meal that children receive on every school day allows them to hope for a better future. It allows them to continue schooling which makes them more confident to achieve their aims. This makes your charity donation a meaningful intervention in the healthy growth and development of young children, making them resourceful citizens of the country. And, the same donation exempts you from taxes too! Well then, wouldn’t it be a good choice to save tax by ‘giving back to society’?

Spend Free Time Fruitfully With Different Fundraising Ideas

You may or may not have a hobby but you sure do get some free time once in a while. Since free time doesn’t come by so easily, it becomes crucial how you make that time worthwhile. One of the ways to make it count is to indulge in exploring different fundraising ideas towards causes such as education, food, nutrition, hygiene, environment or the likes. We give you some fun fundraising ideas that you may want to indulge into during your free time. 

Food truck 

If you feel strongly for eradicating hunger, you may arrange an old vehicle and sell home-made food in your vicinity. The truck must carry the message of saving food for the hungry and the proceeds gathered should go as a charity donation towards feeding the hungry. You may choose this non-profit fundraising idea for organisations such as The Akshaya Patra Foundation an NGO in India that feeds wholesome lunch to school children. 

Host a marathon

People are usually interested in events that combine charity donation with fitness. Today, it’s easy to organise a marathon through social media channels in a small city or town. Marathon has become one of the best non-profit fundraising ideas that communities have utilised towards charity donation. You can raise funds by keeping a minimal entry fees that would be used towards awarding the winners while the remaining would go to a charity. 

Host a cycling expedition 

This is another low investment and non-profit fundraising idea that can be executed easily. Create a Facebook group of cycling enthusiasts in your city. When you reach a 100-member mark, ask the members to pick a day for cycling expedition. Spell out the purpose of the expedition as an attempt for charity donation for causes such as education, hunger, environment, etc. Raise funds through entry fee so proceeds could go as donation to a charity. You may also urge the members to contribute directly to the charity by informing them about tax exemption in India in case of charity donations. 

Viral challenge

Of course, nothing can be as successful as the ALS Ice Bucket Challenge but it proved that social media challenges can be made viral. Organise a fun activity such as taking three floors by stairs or balancing a vessel on the head. Make a video and post it with the right hashtags such as #ChallengeForCharityDonation or #TakeTheCharityChallenge. One of the conditions of participating is that the person taking the challenge should donate a minimum amount to charity donation through online donation or create an online fundraising campaign towards education. The participants need to attach a screenshot of the receipt or proof of such charity donation or fundraising in the comments section. This non-profit fundraising idea inspires a local community towards the importance of fundraising for non-profit organisations and causes.

Organise a carnival 

If you live in a city that’s known for things like food, snacks, sareers, handicrafts or any fun cultural reasons, you can organise a local carnival. Carnivals especially organised for non-profit fundraising are sure to attract a lot of people, especially children. You may ask housewives or children to organise stalls and sell their products. Be transparent about where the proceeds would go to so everyone takes it in good spirit. 

The Akshaya Patra Foundation encourages all those people who cannot contribute regularly by money to indulge in online fundraising campaigns. The charity donations with the foundation enjoy tax exemption as per laws in India, thus, people can freely raise funds through encouraging others to donate. Fundraise today.

Charity donation – A Noble Endeavour Paired with Tax Benefits

The financial year-end is around the corner – an event that causes much anxiety to a majority of us. Why not round it off with a noble deed that will benefit you in more ways than one! We’re talking about charity donation. Giving back to society is one of the best ways of expressing your gratefulness for all that you have received and share some of your good fortune with those who are in need of assistance to better their lives. This is the perfect time to make that essential difference to the lives of your young friends who are beneficiaries of The Akshaya Patra Foundation. Its Mid-Day Meal Programme ensures that over 1.6 million children across India stay away from classroom hunger, with a nutritious, wholesome, unlimited school lunch every day. You can avail tax exemption with your valuable contribution to the cause of ‘unlimited food for education’.   

The NGO role in India is one of vital support to the government in helping fight the pressing challenges facing the country. Akshaya Patra too fulfills its role in social betterment, in partnership with State and Central governments in India. A donation made to the organisation brings it a step closer to achieving its important mission of feeding 5 million children by 2020. It also helps you avail tax exemption in India, as Akshaya Patra is registered under section 35AC of the Income Tax Act 1961. Therefore, every donation upwards of Rs 500 is eligible for 100% tax exemption under Section 80GGA.

In a bid to scale up its efforts to feed a larger number of children across the country, Akshaya Patra needs the collective support of all of you urgently. The Foundation has undertaken ambitious efforts to expand its reach across India. In December 2016, we laid the foundation of our first high-tech mega kitchen in Telangana at Khandi. Once operational, this kitchen will feed over 1,00,000 children in the region from the next academic year. In the same month, the Foundation also initiated the process of setting up 11 new kitchens in Uttar Pradesh. These kitchens will be established in the districts of Varanasi, Ghaziabad, Agra, Allahabad, Kanpur, Etawah, Kannauj, Ambedkar Nagar, Azamgarh, Rampur and Ballia. This will take the number of Akshaya Patra’s beneficiary children in the state to 13 lakh, from the current 2,11,680. This will lead to an increase of a whopping 10,88,320 children that will be nourished by the Foundation’s meals!

In order to expand and grow sustainably, Akshaya Patra relies on the large-hearted backing of generous individuals who are as zealous about eliminating classroom hunger as the government and the Foundation are. Not only does ‘food for education’ ensure that India’s children – its future – are nourished well and have their stomachs full, it also positively affects attendance and enrollment. The Mid-Day Meal Programme is an incentive with that comes with triangular benefits for children, on their health, education and nourishment! The impact of supporting this cause on your life will be doubly large – not only would you have the pleasure of having contributed to secure the future of the nation’s children, you would also beget a wonderful advantage in return – that of 100% tax exemption in India!

NGOs Role in Bridging Social Justice - A Universal Right

In his message for World Day of Social Justice, Ban Ki-moon, Secretary-General of UN, said: "With exclusion and inequality on the rise, we must step up efforts to ensure that all people, without discrimination, are able to access opportunities to improve their lives and those of others." After the UN adopted the declaration in 2007, the world has been coming together annually to recognise and celebrate World Day of Social Justice on February 20. The day supports gender equality, rights of indigenous peoples and migrants, and peaceful co-existence. 

We, at Akshaya Patra – an NGO in India, believe social justice is a universal right and every person should be given equal opportunity and a fair chance. Here are three aspects we would like to observe on this important day.

Social Equity

Social injustices negatively impact humanitarian efforts of spreading peace, upholding of rights, equality, and others. In the times of Information Age, where every economy is an active participant of nation building, it becomes an important decision for each one of us to ensure fairness prevails. What does that mean? Remove casteism treatment and support every individual – be it in the field of education or employment, consider their ability and skills and not their background. If not, empower them as they deserve a fair chance.

Gender Equality

Until a few decades ago, women belonged to an isolated community. The concept of gender equality sprang as people began to discuss the oppression faced by women and why women were the victims of basic rights. Today, in most countries, men and women have achieved their dream and continue to empower the disadvantaged class. Akshaya Patra supports gender equality and believes in constructing a society where both the gender groups are given the same rights and opportunities.

Sustainable Prosperity

It means sustainable development of earthy beings – not just humans but environment as well. With basic needs, knowledge and abilities, we are responsible for ensuring our surrounding is protected. And all of this starts with teaching children about sustainability. To safe guard the environment from obstruction, we must take action now and spread awareness.

Mid-Day Meal Programme by Akshaya Patra brings children together – for better health, for education and for equal opportunities. Keeping out discrimination, the programme also promotes socialization as children sit together for lunch. Playing the role of an NGO, thus, helps the economy in nation-building; an inclusive goal India is heading for.

Akshaya Patra accepts charity donations and these donations are tax exempted in India. You can support Food for Education by sponsoring a child’s meals!