Important Things to Consider When You Choose the Best NGOs to Donate to on any Platform?
For NGOs, most of the time, donations are their central source of funding. Here, contributions range in size from modest to large & come from a variety of sources. The source can be a foreign national, people, company, or Indian citizen. At the beginning, when an NGO is first starting out, it has unique challenges in raising money, and after it establishes a solid foundation in the community, raising money becomes quite easier. Therefore, while choosing the best NGOs to donate to, you need to consider some criteria in order to assess their reliability.
Let’s find out what should be considered for an NGO donation:
Verify the Registration Status of an NGO
Prior to making a donation for NGO organization, it is imperative that you investigate the legitimacy of the organization as well as ascertain that your funds are being handled securely. Therefore, the first need is to determine whether the NGO is officially registered or not. In case you wish to verify the legitimacy, this must be a recognized NGO since they will also be able to apply for help from government agencies.
Go for checking acts like:
· The "Indian Trust Act, 1885" is needed in order for an NGO to register as a trust.
· In order to register an NGO as a Society inside the market, one must comply with the "Society Registration Act, of the year 1860."
· Despite being a non-profit organization, an NGO still needs to be registered as an organization. Therefore, this also needs to register as a company under "Companies Act, of the year 2013" Section 8 of Company registrations.
· Also, the Foreign Contribution Regulation Act or simply FCRA registration is also needed.
Determine Different Payment Options Available with a Particular NGO
It would be complicated to trust an organization in case all they ask for is cash payments because cash transactions are typically undetected. As a result, you should not put your trust in any organization that requests just cash payments as Donation for NGO organization. Therefore it is a good idea to review different payment alternatives, including checks as well as other online payment methods.
Check Whether an NGO have Transparency or Not!!
Today, not all of the NGOs that are popping up in our country need to be reliable. This becomes so important to look up an NGO's reputation through its past before contributing any donation. You must check how it has performed in earlier times, whether the raised funds have been utilized for the said purpose or not. You can check some financial details, social media accounts, tax structure, & other such information about an NGO before actually going ahead with the best NGOs to donate to. Such NGOs, which tend to have more political ties & put in less effort toward their objectives, should be avoided.
Check, is there any Tax Deduction for Donations Made to a Specific NGO?
This is a good idea to think about whether your donation to a specific NGO qualifies for tax deduction under Income Tax laws. Giving to the welfare of society as well as receiving tax benefits is absolutely great for you and as a result, you can gain from both philanthropy and tax-free gifts.
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