3 Things To Watch Out For While Donating To NGOs

Donating towards a good cause can be the most rewarding feeling, isn’t it? But sometimes we tend to get carried away by the idea of doing charity, and rush into the process without checking some crucial details about the organization/ NGO/ nonprofit we’re donating to. For instance, if the NGO is not genuine, then your hard-earned money that you parted with for a good cause, may not actually reach the beneficiaries they were meant to.

In order to be sure that your funds will be directed towards the growth and upliftment of society, here are three things you could check for, before transferring money to an NGO:


Is the NGO registered?

Since NGOs are private institutions, it is not necessary for them to register themselves to conduct charitable work. However, there are certain benefits of registering under the country’s specific acts and laws. For instance, registered NGOs are eligible to obtain a legal status, seek assistance from government agencies, contract funds and support from the relevant departments, tax exemption from certain incomes, training opportunities, technical assistance, and concessions when obtaining vehicles, equipment and commodities. Moreover, NGOs in India that register under the FCRA (Foreign Contribution Registration Act), are even eligible to get donations from a foreign source, which is a huge step for the financial stability of any nonprofit. Keeping in mind the benefits of foreign funding to Indian NGOs, crowdfunding platforms like Impact Guru, that are affiliated with notable international donors like Global Giving, are able to help registered NGOs raise larger sums through NRI donations.


Will you be eligible for a tax benefit?

Did you know that Government of India provides tax saving benefits to donors, to encourage more people to contribute towards good causes that benefit society? The Income Tax Department allows an individual donor to claim up to 100% tax exemption under Section 80G, on the amount donated to verified charities and NGOs. It’s a great opportunity for you to plan your annual giving strategy in a way that will not only benefit others but also yourself! In fact, even NRIs who donate towards Indian NGOs are eligible to get tax benefits from their own country, if they donate via crowdfunding platforms like Impact Guru.


Is your method of payment safe?

In the past, a lot of NGOs have been caught in money laundering scams, where donor funds were not being used for the right social cause. Every donor should check for the nonprofit’s accountability and transparency, as well as their past accomplishments and financial stability over the years. It is always safer to avoid donating in cash, and instead opting for written cheques, or even better, online payments. In fact, a lot of donors now prefer supporting causes through crowdfunding websites like Impact Guru, where they conduct a due diligence and verification process for anyone raising funds through them. Moreover, they offer safe and reliable payment methods to the donors, who can be sure that the funds will reach the right cause.


In conclusion, it is great to support causes that are close to your heart, but if your money doesn’t reach the right people, your contribution and deeds of kindness might be futile. Checking an NGO’s authenticity by logging onto their website or social media pages will only take a few minutes to ensure that your funds are put to good use. If you see the progress an NGO has made, you can even consider being an annual donor for them. Moreover, getting involved in social work needn’t mean just giving money; time, skills, and volunteering holds as much value as donations!

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