Mandates to set up donation form for 80G approved NGO

Citizen Digital Foundation just received a provisional 80G. We set up a Razorpay donate ‘button’ on our website with a form collecting all info mandated for 80G, and are linking all donation comms to it alongside a QR code for social sharing. Is it necessary to have a donation page with a description? Anything else we need to know in this regard would be helpful.

#Donations #80G

Hi Nidhi @citizen_digital for the donation page

  • I would suggest a landing page design which has simple, clean layout with a clear headline and a strong call-to-action (CTA).

The page should also include a brief but compelling description of the organization’s mission and impact, as well as a prominent image or video that helps to visually convey the message.

  • In terms of layout, it’s effective to have a clear, easy-to-read hierarchy of information, with the most important information (e.g. the CTA) placed “above the fold” so that users don’t have to scroll down to see it.
  • Also, it’s good to use Testimonies, impact statistics and infographics to make the point. Using a color scheme that aligns with the organization’s branding can also help to create a cohesive and professional look.
  • It’s also important to make sure the page is mobile-responsive, so that it looks good and is easy to use on all devices.
  • It’s a good idea to use a clear and simple typography. Additionally, It’s important to ensure that the page loads quickly, so that users don’t get frustrated and leave before the page finishes loading.

Also I would suggest you also speak to your CA for further clarifications but

  • post the amendments to the Income Tax Act 1961 for charitable organisations notified on 26th March 2021 - The compliance for any donor who intends to claim a tax exemption under tax deduction u/s 80G is now on the NGO

  • Apart from the re-validation of 12A and 80G - a charitable organisation having an 80G approval needs to file a statement of donations in Form 10BD by 31st May in the immediately following financial year. The new Rule 18AB of Income Tax Rules is applicable to all entities that have approval u/s 80G and u/s 35(1) of the Income Tax Act, 1961 which allows tax deductions for donors. ( Read more here - CAP’s FAQ on Income tax Form 10BD & 10BE - Centre For Advancement of Philanthropy)

* Post-amendment, i.e. from 1st April 2021 (AY 2022-23), NGOS have to report all the donations received by them (which are eligible for 80G deduction) to the Income TaxDepartment in the notified Form 10BD. This form requires the following information: -

  1. Donor Name ( As per the Unique ID - preferably the PAN)
  2. Donor Address
  3. Donor Unique ID Number (PAN, Aadhaar, Tax Info Number, Passport, etc.)
  4. Donation Type (whether corpus, specific grant, others)
  5. Payment [mode whether cash, kind, electronic modes (including cheque), others]
  6. Amount (in INR)

It would be also important to collect the Phone/ Email to issue receipts, connect for clarification etc

Hence its important to have these fields in the donation page ( along with the remarks comments on why this is being collected)