Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Donor deduction (50% / 100%)
Most approved trusts give a 50% deduction; specified government funds give 100%.
Why it matters for fundraising
Donors give more readily when they get a tax deduction, so 80G is a fundraising asset.
The deduction limits donors should know
The donor’s deduction isn’t always a flat half of the gift, so it’s worth understanding the bands. Donations to most approved charitable trusts give the donor a 50% deduction; certain government funds (such as the PM’s National Relief Fund or the National Defence Fund) give 100%. Beyond the percentage, many 80G donations are also subject to a qualifying-limit of 10% of the donor’s adjusted gross total income — so a very large gift to an ordinary trust may have its deductible amount capped, while donations to the specified 100%-without-limit funds aren’t capped. Two practical conditions for the donor: a cash donation above ₹2,000 doesn’t qualify, so larger gifts should go by cheque, bank transfer or digital mode; and from recent years the deduction is allowed only if the donation appears in the trust’s Form 10BD statement and the donor holds the Form 10BE certificate. Under the new tax regime, the 80G deduction (like most deductions) is generally not available, so it mainly helps donors on the old regime. For the trust, explaining these limits to donors — and issuing 10BE promptly — makes the 80G benefit real rather than theoretical. Confirm the current limits and the qualifying-limit rules.