Social-entrepreneurship, non-profit organisations and charity based foundations require lots of investments, where getting funds is really challenging as it has lots of legal and documentation which further require investment. Still, there is always scope to save money that you pay for the consultant and to get the right information which we have discussed in this article.
Now the question is do want to accept donations online in India? Here in this article, we will guide you smoothly on how you can accept donations online and what are the documents that you will need and from where and how you can get the required documents for accepting donations.
Here are the documents that you will need to accept donations offline and online in India:
- Trust Deed Registration Certificate
- 12A Form
- 80G Tax deduction certification
- PAN Card on the name of the trust
- Current Bank account in any national bank
- A Cancelled Cheque
- PAN Card of the owner of the trust
- Identity proof of the owner of the trust
1. How to get “Trust Deed registration certificate.”
Trust Deed Registration or NGO certification and registration is the legal documentation and approval from the Govt. of India mandatory for running a non-profit organisation.
You will need at least two directors to get your NGO registered with the Govt. followed by the documents of each director, which include:
- PAN Card of each director
- Identity proof of each director (like Voter ID card, driving license, Passport, Aadhar card etc.)
- Office Address proof (like Water Bill, electricity bill, telephone bill, lease or agreement affidavit)
Once you are ready with required documents, you could either hire a lawyer or any registrar firm to guide you further in getting your Trust registered. You can see the official website of Govt. of India for more details ngo.india.gov.in
2. How to get “12-A Form.”
12A registration for the NGO or Trust is mandatory to collect donations and offer tax exemption under Section 11 and Section 12 of the Income Tax Act.
Following documents are required by 12A Form:
- 12A Registration application in form 10A
- Name list with addresses of each Trustees
- Registration Certificate
- Trust Deed Copy
- Scanned copy of PAN Card of the Trust
- Scanned copy of PAN Card of trustees
- 80G Certificate
80G grants, tax exemption and rebate to the donor on the amount of he or she donate to a Trust provisioned under section 80G.
Under the section, 80G tax exemption is given to the donors up to 50% where the 80G Certificate in India has validity 1 to 3 years which could be renewed before the expiration.
4. Trust or NGO PAN Card
PAN Card is also known as Permanent Account Number is required for many purposes, mainly for tax purpose. You can apply for the PAN Card from the official website of Income-tax PAN Services Unit.
You have to submit the required documents such as Trust Deed copy and trustees’ documents to get PAN for your Trust or NGO.
5. Bank account on the name of NGO or Trust
You can only get the current account on the name of your Trust or the NGO only after getting your NGO or the trust registered and approved by the Govt. of India.
Once you are ready with Trust Deed, PAN you can seek any nationalised bank to get an account for your NGO. While applying for the bank account for your Trust/ NGO, makes sure to opt for the eBanking, also known as internet banking since you will need further in maintaining a bank account online easily.
Once you are ready with everything, the next step is accepting donations online on your website. Well, for your convenience, we have already published “How To Accept Donations Online On Your WordPress Website In India?” on integrating payment gateway on your website.