80G Registration

Trusts:

• Governed by the Indian Trusts Act, 1882.
• Can be public charitable trusts established for the benefit of the public.
• Trustees manage the assets of the trust for charitable purposes.

Section 8 Companies:

• Governed by the Companies Act, 2013.
• Incorporated with the primary goal of promoting charitable objectives such as commerce, art, science, education, religion, or social welfare.
• They function like regular companies but cannot distribute profits to members. All profits must be reinvested to promote the company’s objectives.

Both Trusts and Section 8 Companies are eligible to apply for 80G registration to attract donations and offer tax benefits to donors.

1. Tax Deduction for Donors: Donors can claim a deduction of 50% of the donated amount from their taxable income, reducing their tax liability. In certain cases, the deduction may go up to 100% for donations made to certain relief funds or specific institutions.
2. Increased Donations: Organizations with 80G certification are more likely to attract donations because donors are incentivized by the tax deduction.
3. Credibility: Obtaining 80G certification enhances the credibility and transparency of the organization in the eyes of donors, institutions, and government bodies.
4. Government and Foreign Funding: 80G certification can improve an organization’s eligibility for receiving government grants and foreign funding.

To apply for 80G registration, the organization must submit the following documents:

1. Form 10G: The application form for 80G registration.
2. PAN Card of the trust, NGO, or Section 8 company.
3. Registration Certificate: Certificate of registration of the trust (Trust Deed), society, or Section 8 company (MoA).
4. MoA or Trust Deed: The Memorandum of Association (for Section 8 companies) or the Trust Deed (for trusts).
5. Financial Statements: Copies of financial statements, including the income and expenditure accounts, balance sheets, and profit & loss accounts, for the last three financial years.
6. List of Trustees/Directors: A list of the trustees (for trusts) or directors (for Section 8 companies).
7. Details of Charitable Activities: Details of the activities the organization has undertaken in the past.
8. Donor List: A list of donations received and donors’ details.
9. Bank Account Details: Bank statements of the organization.
10. No Objection Certificate (NOC) from the landlord, if the office premise is rented.