SO, you’re a young professional navigating the complexities of “adulting” and have this lingering feeling that you should contribute to a cause as part of your monthly budget. But doubts creep in. Where should you donate? How can you be sure it’s legitimate? And will your contributions truly make an impact? These may feel like daunting questions before giving, but in reality, your efforts are a small step towards creating remarkable results.
Here’s a simple checklist to ensure you’re on the right path to start giving back:
- Steady income: You have a reliable source of income.
- Financial planning: You allocate funds for bills and long-term savings separately.
- Room to spare: After paying your bills and saving, you still have money left over each month.
If you’ve ticked all these criteria, congratulations! You’re part of a growing group of Indians committed to philanthropy. The number of givers in India has surged by over 100 million since 2009, and the trend continues.
Donating to a cause might seem complicated to the uninitiated, but it’s simpler than you think. It can be as straightforward as redirecting the funds spent on a single night’s regrettable binge towards a cause you believe in.
Start With Research: The next step in planning your charity budget is identifying the causes that resonate with you. Whether it’s the environment, education, disaster relief, or rural development, your job is to discover legitimate organizations that align with your passions.
Ensure that:
a) The organization is officially registered under the Societies Registration/Trust Act or as a Section 25 company.
b) You can find clear evidence of their impact through videos, photos, testimonials, press coverage, and more.
c) They maintain transparency in their operations, readily sharing legal documents and annual financial reports.
Leverage Technology: Determining how often you’d like to contribute is another crucial factor in effective charity budgeting. If you prefer automated monthly donations, your bank can assist you in setting up this arrangement online with a few one-time instructions.
Alternatively, you can set aside a portion in a recurring deposit (RD) and make lump-sum contributions when you’ve saved a substantial amount. Most organizations conduct fundraising drives at specific times during the year, and an RD ensures you’re prepared. This approach also simplifies matters when it’s time to declare your annual investments and contributions for tax purposes.
Track Your Impact: Modern philanthropy allows you to be actively involved in the process. Many organizations offer tools to monitor the progress of your contributions or even participate in on-ground activities. If you can’t find such organizations, we’ve got some recommendations for you:
Go to Give.do and choose a cause of your choice and the NGOs to where you would like to donate. It can be a one-time donation or even a monthly donation for various causes on its page. Give through its network of NGOs sends regular reports
In India, tax exemptions for charitable donations are governed by Section 80G of the Income Tax Act, 1961. This provision allows individuals and businesses to claim deductions of 50% or 100% of the donated amount, depending on the recipient organization’s registration. Donations made in the form of cash, cheque, or electronically to registered trusts, funds, or institutions qualify for deductions. Donors should ensure the charity is registered under Section 80G, retain donation receipts, and report their contributions in tax filings to avail of these benefits. While there are limits on individual deductions, businesses don’t face such restrictions. Tax laws can change, so it’s advisable to consult a tax advisor for the latest information on charitable donation tax exemptions.
Ultimately, the most satisfying contributions are those you can look back on as wise investments. Investments in organizations consistently make a difference and generate a broader societal impact over time.
Kumara was a professional journalist for over 15 years, with stints in The Telegraph and Reader’s Digest. He grew up hating maths and physics. He is a post-graduate in history. Kumara believes that cricket and Seinfeld have answers to most questions that life throws at you.
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