In the realm of social change, NGOs play a pivotal role, working tirelessly towards uplifting communities and fostering positive transformation. To empower these organizations and facilitate their noble endeavors, the 12A and 80G registrations stand as essential tools. Here’s an exploration of the significance and benefits of obtaining 12A & 80G registration for NGOs:

1. 12A Registration:

Unlocking Tax Exemption:

• 12A registration is a gateway to tax exemptions for NGOs. Once registered under Section 12A of the Income Tax Act, these organizations become eligible for tax benefits on their income, enabling them to channel more resources into their social initiatives.

Enhanced Credibility:

• Donors, philanthropists, and funding agencies often seek assurance of an NGO’s credibility. 12A registration lends an official stamp of approval, instilling confidence in stakeholders and encouraging increased support for the organization’s mission.

Smooth Functioning:

• NGOs engaged in charitable activities need a robust financial foundation. With 12A registration, they can operate more efficiently, focusing on their core objectives without the burden of excessive tax liabilities.

2. 80G Registration:

Boosting Donor Confidence:

• 80G registration elevates an NGO’s appeal to potential donors. Individuals and businesses contributing to 80G-registered NGOs are eligible for tax deductions, making donations more attractive and encouraging greater financial support.

Expanding Donor Base:

• The availability of tax benefits under Section 80G widens the scope for fundraising. NGOs can attract a broader donor base, fostering sustainable financial support for their initiatives and enabling them to scale their impact.

Promoting Transparency:

• To obtain and retain 80G registration, NGOs must adhere to transparency and accountability standards. This not only ensures compliance with regulatory requirements but also builds trust among donors who seek transparency in fund utilization.