November 30, 2024 Legal Compliance 0

I. 12A/80G Registration Guidance & Support:

Eligibility Assessment:
- Determine if the NGO is eligible for 12A/80G registration based on its charitable activities and legal structure (trust, society, Section 8 company).
- Review the NGO’s governing documents (trust deed, MOA, etc.) to ensure alignment with 80G requirements.
Application Preparation:
- Assist NGOs in accurately completing the application form (Form 10A) with required information (registration details, PAN, activities, financial details, etc.).
- Guide NGOs in gathering necessary supporting documents (registration certificate, PAN, audit reports, annual returns, etc.).
Submission & Follow-up:
- File the application electronically through the Income Tax Department’s e-filing portal.
- Track the application status and communicate with the Income Tax Department to address any queries or requests for additional information.
- Ensure the timely issuance of the 80G registration certificate but it cannot be assured or guaranteed as it all depends on convincing the authorities with evidence and proof of proper financial records, bills/ vouchers and the impact to the societies.

II. Donation & Tax Receipting Compliance:

Donation Receipting System:
- Help NGOs set up a system for issuing compliant donation receipts (under Section 80G) to donors.
- Provide templates or software solutions for generating receipts that include all required information (NGO details, PAN, donation amount, 80G registration number, etc.).
Donor Database Management:
- Advise NGOs on maintaining a well-organized donor database for tracking donations, generating tax receipts, and communicating with donors effectively.

III. Tax & Financial Compliance for NGOs:

12A Registration:
- Guide NGOs through the process of obtaining 12A registration for income tax exemption, as it’s a prerequisite for 80G.
Income Tax Return Filing:
- Prepare and file annual income tax returns (Form 9A for societies, Form 10B for trusts) for NGOs, ensuring accuracy and compliance with regulations.
FCRA Compliance (If Applicable):
- If the NGO receives foreign funding, ensure compliance with the Foreign Contribution (Regulation) Act, including proper accounting and reporting of foreign contributions.
Financial Statement Preparation:
- Assist NGOs in preparing their financial statements (Income & Expenditure, Receipts & Payments, Balance Sheet) according to the relevant accounting standards.

IV. Value-Added Services:

Tax Advisory for Donors:
- Educate donors about the tax benefits of donating to 80G registered NGOs.
- Provide information on how to claim deductions on their income tax returns.
CSR Project Collaboration:
- Connect NGOs with companies looking to fulfill their Corporate Social Responsibility (CSR) obligations, highlighting the tax benefits of partnering with 80G-registered organizations.
Fundraising Strategy:
- Advise NGOs on developing effective fundraising strategies that leverage their 80G status to attract more donors.

FAQs: Securing Tax Benefits for Your NGO – 12A & 80G Registration

1. What are 12A and 80G registrations, and why are they crucial for my NGO?

12A Registration: Provides income tax exemption for the NGO itself. This means your NGO won’t have to pay income tax on the income it earns from its charitable activities.
80G Registration: Offers tax benefits to your donors. Donors can claim a deduction from their taxable income for donations made to your NGO.

Having both 12A and 80G registrations is essential for:

Financial Sustainability: Tax exemption helps your NGO retain more funds for its programs.
Attracting Donors: The 80G benefit incentivizes people to donate to your organization.
Increased Credibility: These registrations demonstrate your NGO’s legitimacy and transparency to funders and the public.

2. Is my NGO eligible for 12A and 80G registration?

Eligibility criteria include:

Charitable Purpose: Your NGO’s objectives must be genuinely charitable.
Legal Structure: You must be registered as a Trust, Society, or Section 8 Company.
Non-Profit Nature: Your income should be applied primarily for charitable purposes, not for profit distribution.

We can assess your NGO’s eligibility during a free consultation.

3. What is the process for obtaining 12A and 80G registration?

12A Registration (Prerequisite for 80G):
- Apply using Form 10A to the Income Tax Department.
- Include supporting documents (registration certificate, trust deed/MOA, activities, financial statements).
- The Income Tax Department will review your application and activities.
80G Registration:
- Apply using Form 10A (the same form as 12A).
- Provide additional documentation related to your fundraising activities and donor base.
Our team will guide you through the entire process, ensuring accurate documentation and timely submission.

4. Can The CauseConnect Team guarantee approval of my 12A and 80G applications?

While we cannot guarantee approval, as the decision rests with the Income Tax Department, we can significantly increase your chances of success by:

Thorough Eligibility Assessment: We’ll ensure you meet all criteria before applying.
Accurate Documentation: We’ll help you gather and organize all required documents.
Compelling Application: We’ll help you present a strong case for your NGO.
Professional Follow-up: We’ll handle communication with the Income Tax Department and address any queries promptly.

5. How do I maintain compliance after obtaining 12A and 80G registration?

Maintain Accurate Records: Keep detailed records of all income, expenses, and donations.
File Income Tax Returns on Time: File your annual returns (Form 9A or Form 10B) accurately and within the deadlines.
Renew Your Registrations: Both 12A and 80G registrations need to be renewed periodically.
Follow FCRA Guidelines (If Applicable): If you receive foreign funding, ensure compliance with the FCRA.

6. How can I ensure my donation receipts are compliant with Section 80G?

We can help you set up a system to generate compliant receipts:

Required Information: Receipts must include your NGO’s name, PAN, 80G registration number, donation amount, donor details, and date of donation.
Templates & Software: We can provide you with templates or software solutions for generating compliant receipts.

7. What other services do you offer to support NGOs?

Donor Database Management: We’ll help you organize and manage your donor data for efficient communication and reporting.
Tax Advisory for Donors: We can provide your donors with information on how to claim tax deductions for their contributions.
CSR Project Collaboration: We can connect your NGO with companies seeking to fulfill their CSR obligations.
Fundraising Strategy Development: We’ll help you develop effective strategies to attract more donors, leveraging your 80G status.

8. How can I get started with The CauseConnect Team?

The CauseConnect Team: Your Partner for Seamless Import/Export Compliance & Success.

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