-Contributed by Charu Dhasmana

Every year when income tax season rolls around, many taxpayers focus on deductions. But one tax-saving opportunity often overlooked is donating to a registered NGO. Not only do you help those in need, but you can also reduce your tax burden in the same year. 

In India, the main provision that makes this possible is Section 80G of the Income Tax Act, 1961. This article walks you through this provision and helps you understand how you can save tax by donating to an NGO with the help of examples and calculations. 

Section 80G of the IT Act: Key Points

Section 80G of the Indian Income Tax Act, 1961 allows individuals/organizations to claim tax deductions if they donate to a charitable cause. It’s a win-win as you support a cause and reduce your tax burden at the same time. 

Here are some points to note before making 80G donation to NGO in India: 

• Any individual, partnership firm, HUF, company and any other type of taxpayer can claim deduction under Section 80G

• Taxpayers can claim up to 50% or 100% of the donated amount, depending on the organization they are donating to

• Only donations made to registered NGOs and charitable institutions qualify for deductions

• To claim tax benefits, the donor should have a receipt of the donation made and NGO’s registration details

• The donor must have a PAN card

• The donation must be made via bank transfer, cheque, or digital payment

• The donations made must be monetary. In-kind donations do not qualify for tax exemptions. It is important to note that cash donation above Rs. 2000 do not qualify for tax deductions

• Make sure to donate before 31st March to claim deduction in the same financial year

Donation to NGO Tax Exemption India

Depending on the NGO you donate to, you either get a 50% or an 100% deduction: 

• If the organization you donate to provides 100% deduction, you can claim the full amount you donate. This is often for national relief funds or government-linked charitable funds

• 50% deduction: Most NGOs fall in this category — including many child welfare and healthcare organizations

How To Save Tax by Donating to NGO?

Let us see how to save tax by donating to an NGO with examples:

Suppose your taxable income is ₹10,00,000.

You donate ₹50,000 to a registered NGO eligible for 50% deduction.

• Eligible deduction = 50% of ₹50,000 = ₹25,000

• New taxable income = ₹10,00,000 − ₹25,000

• Revised taxable income = ₹9,75,000

You reduce your taxable income simply by donating.

Now assume your taxable income to be ₹25,00,000

You donate ₹2,00,000 to a registered NGO eligible under 80G (50% category).

• Eligible deduction = ₹1,00,000

• New taxable income = ₹25,00,000 − ₹1,00,000

• Revised taxable income = ₹24,00,000

That’s a significant reduction — while supporting a meaningful cause. 

Real NGO Example: Genesis Foundation

One NGO that combines meaningful social impact with tax benefit under Section 80G is Genesis Foundation. They are an NGO in Haryana that support child heart treatment of underprivileged children who are diagnosed with congenital heart defects (CHDs). They facilitate life-saving heart treatments for children aged 0-18 years and are from families that do not earn more than ₹20,000 a month.

Why Donate to Genesis Foundation?

• They are registered under Sections 12A and 80G. This means donations are eligible for 50% tax deduction under Section 80G

• 100% of donations from individual donors are used towards the treatment of children with no allocation towards administrative costs

• The Foundation issues 80G donation receipts so donors can confidently claim deductions when filing returns.

• They also run events like the annual Kasauli Rhythm & Blues Festival to build support and awareness.

Donate to Genesis Foundation

To know more about how to save tax by donating to an NGO, click here: https://www.genesis-foundation.net/blog/how-can-ngos-help-individuals-or-businesses-in-claiming-tax-deductions-or-exemptions/. 

Call at +91 96506 03438 or drop an e-mail at [email protected] to get more information on the working and functions of Genesis Foundation. 

To donate to support their mission- Save Little Hearts, click here: https://www.genesis-foundation.net/donate.

Join their Annual Fundraising Event!

Every year, Genesis Foundation organizes their flagship music fundraiser- the Kasauli Rhythm & Blues Festival. The money raised at the Genesis music festival is used towards the treatment of critically ill children.  

This year, the Kasauli Rhythm & Blues Festival 2026 is scheduled for Easter weekend, April 3rd and 4th, 2026. You can be a part of their festival and give children with congenital heart defects (CHDs) a healthier and happy future. Click the link to book your tickets to the music festival with charity cause now: https://in.bookmyshow.com/events/kasauli-rhythm-blues-festival/ET00483296.