Introduction

Ngo are crucial in uplifting the society by offering education, healthcare, social welfare and community development. But to continue with their mission, they require donor and corporate support in terms of money. It is in this aspect that the two 80g and 12a registration come in handy, as ngo and trusts do not just attract funding but also credibility and legal standing.

What is 12A Registration

Registration 12a exempt non-profit organizations like trusts, societies and Section 8 companies of taxation. Upon registration under 12a the ngo does not have to pay income tax on its excess income thereby making sure that greater amounts of money are used in charitable activities but not on paying taxes.

What is 80G Registration

Registration 80g is an incentive that will help to attract individuals and businesses to donate to the ngo, with tax incentives being provided to donors. Depending on the nature of the ngo and the activities it does the donors are entitled to 50% to 100% deduction of the donated amount. This will make donations more appealing and maximise likelihood of acquiring regular financial provision.

Key Benefits of 12A Registration

• Tax Exemption of Income: The ngo receives all the income tax free.
• Improved Usage of Funds: The funds that are saved in the form of taxes can be reinvested in projects and activities.
• Credibility Enhancement: A registered ngo gains credibility among stakeholders, partners and government.
• Long-term Validity: A registration period is of 5 years with renewals thereafter.

Key Benefits of 80G Registration

• Tax Benefits to Donors:Incentive to have more people and companies contribute.
• Higher Donations: Donors would want the 80G certified NGOs due to the reduction in taxes.
• Corporate Social Responsibility (CSR) Funding Eligibility: Corporations which are eligible to make contributions under Corporate Social Responsibility (CSR) have the added advantage.
• Greater Access: Support in developing long-term relationships with donors, domestic and abroad.

The 12a 80g registration mean a win-win scenario of both the ngo and the donors. The ngo can have tax free income with increased credibility but the donors are encouraged to contribute more because of tax deductions. This synergy has a direct effect of creating greater financial sustainability which enables organizations to strategize and implement bigger ventures in social development.

Conclusion

In the current competitive social sector the registration of 80g and 12a is not only a legally required procedure but also a strategic requirement. It boosts the credibility of the ngo, brings more donors and makes the resources to be used to the full to benefit the people. Any ngo that seeks any long term growth and sustainable impact needs to obtain these registrations to make its foundation stronger and increase reach.