Things to consider before donating to an NGO (charitable organization)

A non-profit organisation helps to address societal inadequacy. It serves the needy in the community through a distinct mission and vision. NGOs may work in a variety of disciplines, taking into account demographic and geographic variables.
Supporting charitable institutions is an act of goodwill. Contribution to the community bridges the gap created through social challenges.
Most of the time, people become confused about where to donate, leaving them perplexed.

Let’s understand the things to consider before donating to an NGO

1. Registration of the NGO
   NGOs in India need to be registered as per choice:
   a. Indian Trust Act, 1885
   b. Society Registration Act, 1860
   c. Under Section 8 of company registrations of Companies Act, 2013
2. Donation: Tax-deductible or not
   Donors should consider NGOs registered in India under 80G of the Income Tax Act to get the benefit of tax deductibility. This stamps the transparency of the NGO. 12A and 80G certificates from the Income Tax Department will provide a tax-free donation and accountability. Along with benefiting the society you must see the donation is going to the right hands.
   NGOs must be registered under FCRA (Foreign Contribution Regulation Act) if collecting funds from foreign nationals.
3. Payment Methods
   While donating to an NGO you must have legal proofs. Cash mode methods don’t provide a legal proof. Donations through cheque, online methods are the best way to make the payment.