Every person in society who has a sense of responsibility acknowledges the importance of giving back to the community. For years, many have distributed resources and volunteered for causes close to their heart without expecting anything in return. The rewards come in the form of community-wide improvement. Today, there are multiple organisations that address issues like poverty, food insecurity and shortages, inadequate healthcare, and basic rights and fight against other socioeconomic affairs.
An NGO is a non-profit organisation that operates independently and without governmental influence. Even though NGOs work entirely through volunteering, they are still subject to the laws of the country in which they operate.
Essentially, an NGO has four primary functions:
- Provide direct aid to the underprivileged. This could include providing shelter, food, and financial and economic assistance.
- Improve living conditions of the poor by initiating educational awareness, encouraging social contribution and empowering underprivileged community groups.
- Discouraging social class disparagement and fights for civil rights.
- Advocating against corruption and wrong governmental influence and decision-making.
NGOs seek to promote sustainable community development. They act as a link between different communities and the governing system.
To do all that and more, NGOs require funding or donations made by individuals, governments and institutions. They engage in fundraising activities that help promote awareness about the imbalance between communities and how everyone is capable of bridging the gap between them.
Listed below are reasons why people should donate to NGOs and how it benefits everyone.
Donating For the “Feel-Good” Feeling
There are numerous societal causes that may motivate people to contribute towards them. It is frequently the driving force behind many donations. Donating to causes close to your heart not only gives you a sense of accomplishment but also gives your life more meaning. There are many NGOs in India that work for the betterment of society, and even a small contribution can make a difference.
Promotes Generosity
Your willingness to give back to the community and contribution towards a cause close to your heart can positively influence others in society. Since every donation makes a difference, it not only benefits the recipients but may even inspire others to follow your example.
Wider Reach
There are many regions that are difficult for basic governmental resources and influence to reach. NGOs often have a wider influence and more impact than any governmental body. Non-governmental groups devote resources specifically to assisting people in receiving the treatment they need in locations where resources are scarce and governmental assistance cannot reach.
Tax Relief
Another benefit of donating that Indians receive is in the form of tax deductions. Individuals donating to registered non-profit and non-governmental organisations receive tax exemption on charity under Section 80G of the Income Tax Act.
In India, NGOs have developed and strengthened the feeling of giving back to the community. There are multiple subgroups that you can contribute to. There are many influential and good NGOs in India that cater to the benefit of society and the underprivileged of the country.
As a donor, besides the benefits mentioned above, you not only become a driving change that influences a series of improvements in society but brings much-needed happiness to people who need it.
The acronym EET stands for exempt-exempt-taxable, which means an investor can get two exemptions on their assets.
The first exemption indicates that a certain investment is exempt.
The second indicates that dividends and interest earned throughout the holding term are tax free as well.
taxable , on the other hand, means that the lump sum received at maturity or withdrawal is taxable.
An example of EET is an equity-linked savings plan (ELSS).
An ELSS has a three-year statutory lock-in period and is eligible for a tax exemption under the IT act, which allows for a tax exemption up to $1.5 lakh.
