What is 12A Registration?

12A registration is granted by the Income Tax Department. It makes your NGO eligible for various tax exemptions, making it easier to operate without worrying about paying taxes. To avail of the tax exemptions under section 12A, the NGO must be a charitable organization and adhere to the prescribed guidelines.

Without 12A registration, an NGO may be taxed like any other business. So, this registration is critical for ensuring that the funds your NGO receives are fully utilized for charitable purposes, without the added burden of tax liabilities.

How 12A Registration Helps NGOs

Having 12A registration ensures that your NGO qualifies for exemptions on the income it generates. This means that donations made to the organization are also exempt from taxes, which can help you receive more funding from donors.

Moreover, 12A registration is often a prerequisite for obtaining other important certifications, such as the 80G certificate NGO. This certificate further boosts the credibility of the NGO by allowing it to provide donors with tax-deductible receipts, making it easier for them to contribute.

The Importance of 80G Certificate NGO

An 80G certificate NGO is another key aspect for nonprofits looking to gain credibility and attract donors. This certificate allows your donors to claim deductions on their income tax returns for donations made to your NGO.

To apply for the 80G certificate, your NGO must first have the 12A registration. Once granted, you can provide your donors with tax exemptions on their donations, which increases their willingness to contribute to your cause.

The 80G certificate is not just a financial tool; it helps strengthen trust with potential donors, as it shows your NGO follows government regulations. It also builds credibility, making it easier for your organization to expand its donor base.

DARPAN Portal Registration

In addition to obtaining 12A and 80G certifications, registering your NGO on the DARPAN portal is a step that can further professionalize your NGO. DARPAN (Development Assistance and Rural Progress and Networking) is a government portal that streamlines the process of NGO registration and offers access to various resources.

DARPAN portal registration ensures that your NGO is officially recognized and listed by the government. This registration is a requirement for many grants and schemes, as it ensures transparency and accountability within the NGO sector. Through this portal, your organization can easily access government funding opportunities, while also maintaining a proper record of its activities.

Conclusion

In summary, the 12A registration is essential for NGOs that wish to benefit from tax exemptions. It not only offers financial advantages but also allows the organization to apply for an 80G certificate NGO, making it easier for donors to contribute. Furthermore, registering on the DARPAN portal helps improve transparency and gives your NGO access to government grants.

If you're considering starting an NGO or need assistance with these registrations, NGO Experts can help you navigate the complex legal processes. With their expertise, you can ensure your NGO is fully compliant and on the path to success.