How to Prepare Your NGO for 80G Registration

Preparing your NGO to 80G Registration

The 80g registration is one of the vital processes that are important to prepare your ngo to offer the benefits of tax exemption to your donors and to improve the credibility of your organization. First, as a ngo, it is necessary to make sure that it is registered as a charity organization by the right law  Societies Registration Act, the Indian Trust Act or companies Act. The organization should be in the managerial state of persisting to run genuinely and in the interest of the charity such as education, poor relief, medical aid or environmental good causes. It is important to draw up a properly-made and legible trust deed or memorandum of association which will depict the goals and working structure of the ngo. In this legal document, there must be an emphasis that the ngo uses its income and its assets to be used in charities with no intention to make profits and with no benefit to the trustees or the members of such an ngo.

Proper record-keeping is also very essential. Your ngo is supposed to have clean books of accounts, donation records, audit reports and annual returns of last three years (if any). An ngo should also possess a valid pan card and preferably should get itself registered under section 12a of the Income Tax Act which is considered to be a prior condition of getting 80g approval. In addition the organization has no religious or political activity that can blacklist it against its acquisition of 80g registration. It is essential that there should be transparency in government and financial dealings and it is highly advisable to bring in regular audits and acceptance of the statutory conditions.

Before applying, make sure you have an active bank account in the name of the organization and also an office address registered. Certificates of trust deeds, registration, identity proofs of the trustees and financial statements should be ready and up to date. The last thing is to apply online in the portal Income Tax with form 10a/10ab (as the case may be) and then verify dsc or e-verified. In sum, legal structure, financial transparency, documentation and an expenditure on compliance norm rigorously should be taken care of to prepare your ngo in terms of 80g online. When you do this, you not only qualify your ngo to pay taxes but your donors will also trust you more, something that essentially determines whether you can be able to raise funds and create change over time.