Section 80GAll registered charitable Agencies engaged in specified fields of services deemed to have a “public charitable purpose” under section 80G of the Indian Income Tax Act 1961 enables donors to claim tax relief to the tune of 50% of the amount donated from payment of Income Tax. This is the most widely used tax benefit for charitable donation in India. The Director of Income Tax (Exemptions), Government of India, New Delhi has registered World Family Forum under section 12-A of the Income Tax Act 1961 vide Registration # DIT(E)/2007-2008/W-185/04/453 dated 30th August 2007. Through Exemption Order # DIT(E)/2007-08/W-185/04/1225 dated 30th August 2007, donations made to World Family Forum are exempted from Income Tax under Section 80G of the Indian Income Tax Act 1961. To claim exemption from Income Tax, donors may kindly quote their PAN #. World Family Forum shall issue a certificate in the prescribed format to the donor to enable him to claim the tax exemption.
- Obtaining a tax deduction in the country of donation – this may be possible only if the donation is paid in the first instance to a recognized charitable institution in the donor’s own country;
- Getting assurance as to the charitable status and probity of the beneficiary;
- Establishing the capacity of the beneficiary organization to receive funds from a foreign source under the Foreign Contribution Regulation Act;
- The currency exchange and bank transfer costs, involved in remitting the donation to the beneficiary in Rupees.
The FCRA regulates the acceptance of foreign currency or foreign hospitality by certain persons or associations. Its aim is to ensure that parliamentary institutions, political associations, academic bodies, voluntary organizations and individuals working in important areas of national life function in a “manner consistent with a sovereign democratic republic”.
There is considerable concern in India that foreign funds will be used to stir up sectarianism or support independence movements. There is no argument about whether foreign contributions can be usefully applied to development and charitable work.
Any Indian charitable agency wishing to receive foreign assistance, either from a donor organization or an individual in cash or kind will have to register under the FCRA, or obtain a ‘Prior Permission’ to receive funds.
About 15,000 voluntary organizations are registered under the Act to receive foreign contributions. A foreign contribution made to a registered body cannot be remitted for use by another body unless that body also has permission under the Act to receive foreign funds. Interest earned in India on money contributed from foreign sources is not normally considered a foreign contribution.
The Ministry of Home Affairs, Government of India has registered World Family Forum under Foreign Contribution (Regulation) Act 1976 vide registration # 231660762 to receive and accept donations in Foreign Exchange from individuals and International Funding Agencies, United Nations Programs, grants from Governments and Agencies of the European Union and Governments for cultural, Economic, Educational and Social programs. A special FCRA bank account # 52005021959 has been opened with Standard Chartered Bank , Express Building, Bahadur Shah Zafar Marg, New Delhi 110 002, India.
The same rules are applicable to Indian voluntary organizations will apply to foreign donors as well. For example, if a foreign donor agency is registered in India either as a trust, society or company, it would be governed by the respective laws applicable to trusts, societies and companies. In case the foreign donor agency is operating in India on the basis of a Memorandum of Understanding (MOU) with the Government of India, it would be governed a according to the terms of understanding as enshrined in the MOU. All foreign donor agencies wishing to open a bank account in India have to obtain permission from the Reserve Bank of India, Bombay.
Give as You Earn is a unique concept of donor program that focuses on a regular voluntary donation made on a monthly basis by wage earners to causes of their choice. Donations of any size are acceptable and in each case the choice of the cause is left to the donor. Donors will receive an acknowledgement, annual report, newsletters and tax benefits from the World Family Forum, thereby keeping them in regular touch with the cause.
- A World Family Forum Executive makes a presentation before the potential donors at the leisure of their office by prior appointment and permission of their employers.
- Discussion between World Family Forum Executives and donor employees or management takes place for Q & A session.
- Employees fill up choice forms.
- Payroll department deducts the pledged amount from the employee’s salary and remits the same to World Family Forum.
- World Family Forum consolidates the donations from different sources and deploys in its social causes.
- World Family Forum sends a thank note to the donors directly with other relevant information and inputs.
- Donors receive an annual receipt from World Family Forum for tax purposes.
- A regular and sustained long term assurance of funding for social causes.
- Cost efficient form of fund raising.
- Employer assumes responsibility for collection and transmission of donations.
- Opportunity for World Family Forum to engage, educate and contribute to nation building.
Simplest form of making worthwhile small contribution for social betterment. One time decision for a long time impact on the society.Feel good factor as donors, however small they might be, make a positive contribution to social causes. Tax benefits under Section 80 G. Through these vivid initiatives World Family Forum is building permanent bonds with communities and supports the efforts of rebuilding the society.
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