What the Budget of 2017 means for crowdfunding in India

The budget 2017 has brought both challenges and opportunities to the nonprofit sector in India. The two main announcements that impact the development sector are expected to completely change the landscape of how people do charity and how nonprofits accept it. The first is the cut down on the limit of cash donations one can make, second is the alterations in the tax exemption clause.

 

The recent demonetization move in India revealed what digital India will look like in the years to come. That said, social problems won’t be going away anytime soon, so the need to fundraise is indispensable.

Let’s discuss what the Union budget announcements of 2017 will mean, and how they will impact the world of crowdfunding.

 

Reduction in amount of cash donation

 

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The amount of cash that one can donate anonymously to an organization has been reduced from Rs 10,000 to Rs 2,000. This is a major crackdown on political funding. It is a bold step towards curbing illegal activities and money laundering that nonprofits may be involved in. In any case, it will always be more beneficial for a genuine donor to give donations with proper documentation and through registered banks because it will add credibility and accountability to the organization’s utilization of the funds.

 

So what does this mean for crowdfunding in India? It means that nonprofits need to start embracing technology and digital tools to raise money for their cause. No longer can they sustain themselves in this competitive ambiance, by using traditional methods of fundraising. They will have to invest their efforts in online fundraising platforms such as Impact Guru.

 

Removal of clause 35AC

 

SOLAR ENERGY (3)

 

Clause 80G allowed a tax rebate of almost 50% and 35AC of almost 100%. The union budget 2017 announced the removal of clause 35AC, which has been a cause of worry for the development sector. It allowed 100% tax exemption to individuals and companies that donated to certain specific charities that are required to be verified by the central government. Experts believe that removal of this provision will also remove the most valuable incentive that motivates people and organizations to donate.
With regards to crowdfunding, it means that nonprofits will have to use newer and more creative techniques that incentivise people to donate. Online crowdfunding platforms use digital and social media tools, as opportunities to draw in funds. 

Therefore the time has come for more people to shift to such platforms and create new processes to sustain that conducive environment for giving in such times of unpredictable dynamism. 

More and more charities have begun to see the need for digitization in achieving their social mission, and the announcements in the Union Budget of India 2017 seem to be a positive catalyst for it. It remains to be seen how nonprofit organizations react to the changes that are coming their way.

For any queries regarding online donations, you may visit Impact Guru and speak to our fundraising consultants for more clarity on recent developments.

5 Reasons why your nonprofit should collaborate with a Startup

Startups and for-profit organizations have recognized for long the value of collaboration and teamwork. Strategic alliances have benefits that go way beyond their monetary value. These include strategic communications, larger audiences, credibility, and brand image. That is just one aspect. Startups and young entrepreneurs today are driven by their age and their knowledge of the millennial generation, i.e the influencers. Their enthusiasm and awareness can greatly benefit any nonprofit initiative, and further a good cause.

So here are 5 reasons why collaboration with a startup might just give your nonprofit that extra edge in doing things better.

  1. Entrepreneurs are potential donors

 

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Startups are a solid partnership for a nonprofit because of the funds available to them. There is a whole market of people out there who can dedicate time and energy in analyzing startup strategies, and invest heavy amounts in them if the idea sounds brilliant. That said, entrepreneurs make for great potential donors for your NPO. There are funds available for branding activities such as advertising, public relations, social media, and other platforms for communication. Such resources can be shared by teaming up with them. Thus Non-profit collaboration with start-ups is a win -win deal for both of them.

2. New innovative ideas

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Startups bring fresh ideas to the table. Since a majority of the startups in our country are youth based, the ideas that are generated come from the influences of the larger population. Besides that, entrepreneurs are people who embrace risks fearlessly and such an approach can always prove beneficial in inspiring your team to become go-getters without limits. So if you’re a non-profit, desiring that ground-breaking impact, then collaboration with a start-up is a must!!

 

 3. Loyal user/customer base

 

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It is well known that most startups have an initial network of friends and family that constitute a really loyal support base to bank upon. A nonprofit, therefore,  can always collaborate with a start-up, to leverage that network and convert it into a stable donor base, using effective and targeted communication. Most startups today take advantage of a community that is narrowing down every day due to social media. This means that entrepreneurs embrace collaborations with other startups, in order to maximize profits, as well as increase customers. For instance, there are large Facebook groups dedicated to communicating the innovations of startups. So collaboration with a startup gives a non-profit, exclusive access to a community that is driving path breaking change, across economy and society.

 

4. A chance to grow with them

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While a startup may be small in the beginning, everyone aims to expand their business. They usually chalk out detailed growth plans that can take their organization from a regional, to national, to international standards. When you are in the shadow of a company with aggressive expansion plans, you have a great opportunity to grow with them! This is why non-profit collaboration with start-ups could be the way to fast-forwarding social change and progress.

 

5.  Credibility

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Collaboration between nonprofits and start-ups is a symbiotic relationship that benefits both. While start-ups enhance their overall goodwill by firmly implanting their CSR imprint on firmer shores, nonprofits gain a lot by embracing their overall dynamism and leveraging their fast-expanding social and geographical reach. By attaching itself with a credible start-up, a non-profit can always gain that extra boost of corporate legitimacy- thus becoming more attractive to large donors.

For a non-profit collaboration with a start-up may seem as a risky proposition in the beginning, as they do not have an established name in the market. However, one cannot ignore the fact that these young startups with fresh ideas are the most driven, and have a better understanding of the youth’s relationship with philanthropy.

 

So don’t be afraid to step out of your comfort zone! Strike a partnership today.

5 reasons why no NGO can afford to miss Impact Guru’s Tax Saving Challenge 2017

 

All of us would agree to the fact that giving should preferably be selfless, but it is always a bonus to have an incentive attached with it. And in this season of tax file ups, what better incentive than a tax exemption in lieu of every good and meaningful deed done!

Attention! Exemptions upto 100% under section 80 (G).

Impact Guru- India’s largest crowdfunding platform – has launched a 3-month bumper tax-saving challenge to give nonprofits that are fundraising for a cause, an absolutely priceless opportunity to tap into as many donors as possible.

And here are 5 reasons why you can’t miss out on this once-in-a-lifetime opportunity-  

 1. Be recognized for your efforts

 

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Recognition is always important for an organization that is working hard to serve the society. But only an organization which tends to all the legal terms and conditions can take advantage of tax benefits and exemptions under Section 80 (G) – which means donors will have to responsibly choose the cause and the NGO they wish to donate to. Come onboard with us – and become an instant hit with a large base of donors across the nation when crowdfunding.

 

2. Leverage existing social media outreach:

 

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Participate in our tax-saving challenge and reach out to maximum no. of potential donors by leveraging our already existing pan-national social media reach on all leading mediums from Facebook to Linkedin. So, it’s time to use this to your advantage while fundraising for a cause.

 

  1. Win rewards while doing ‘good’

 

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The format of our challenge with attractive rewards weaved in, gives you, as a non-profit that perfect ‘boost’ to work harder and put in that ‘extra’ effort to go out and put your endeavor in the ‘public’ spotlight. Isn’t it the best way to motivate your hard-working team?

4. Create that stable source of funds:

 

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Once you come on board with us through the Impact Guru’s NGO tax saving challenge, with our guidance you will have access to the best tips and tools that can help you promote your initiative and reach out to potential donors. This exercise will not only help you in understanding the thought process of your donors while crowdfunding for your nonprofit but, also give you a chance to transform them into your loyal donors.

 

 5. A loyal friend by your side:

 

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This tax-saving challenge also gives you the golden chance to gain an unbiased ally and partner in the form of Impact Guru – a crowdfunding partner who can be your best friend, guide and a pillar of strength to always fall back upon for advice and support that really works.

 

So what are you waiting for?

 

Join our challenge today at https://ngotaxchallenge.impactguru.com/ and become a part of something truly unique and historic.