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iCharity related FAQ's

What is iCharity?

iCharity is non-profit organization established to promote charity in India. Many NGOs in India are doing exemplary work but lack of effective channels through which they can communicate their cause and raise funds. At the same time, many individuals prefer contribute to NGOs where the funds are spent efficiently, effectively, and for their intended purpose. iCharity aspires to bridge the two by screening the NGOs for their authenticity and provide a platform to showcase their work while providing an easy payment option for those who want to donate.

How does iCharity enlist NGOs?

iCharity conducts thorough screening of NGOs that are listed. Few basic criteria are as follows;

  • NGO must be registered as a non-profit organization
  • Organization must be working in the identified sectors.
  • Organization must be ready to provide prompt feedback.

Apart from the above the NGOs are evaluated for their project implementation, financials, performance and governance as per the iCharity NGO assessment methodology.

Why iCharity donation?

iCharity uses the services of CCAvenue, the payment gateway service provider to facilitate online donations. Currently, the service provider charges anywhere between 1.5% - 4.0% of total donation amount as transaction charges for credit cards and debit cards, netbanking etc. In order to ensure that no additional burden is on the NGOs, you are requested to provide additonal donation to cover these charges so that the NGO’s get the full Gross amount of donations.

The remaining amount is used to reinvest in resources, technology, administration and marketing initiatives for the benefit of you and the NGOs. iCharity shall always strive to bring greater efficiency in the entire chain of operations and progressively reduce the cost of funds.

What are tax benefits for the donations I made through iCharity?

All the NGOs listed in iCharity are registered under section 80G of Indian Income-tax act. Hence all your donations are eligible for

  • 50% deduction under section 80G of IT Act
  • 100% deduction under section 35AC of IT Act (only for specific projects e.g. prime ministers National Relief fund)

You should also note that donation in cash is only eligible for tax deductions. Any donations made in kind such as clothes, food etc is not eligible for tax deduction.

Why iCharity as there are other organizations doing similar activity for NGOs?

Even though there are multiple organizations involved in online/offline fundraising activities, we at iCharity believe that there is a huge untapped segment of Individuals, Corporates etc, who are willing to donate their time and money to social causes, if they are provided with the opportunity to do so. And also there are many voluntary organizations are unable to showcase their work in the social sector and reach out to donors due to lack of a credible channels. iCharity will work in collaboration with various NGOs to leverage a variety of aspects of charity to bring in something new in fund raising.

Why shouldn’t I donate directly to an NGO?

 Few reasons why donating through iCharity is beneficial for you;

  • Most NGOs who are doing good work in social sector does not have the means to reach a large number of people.
  • iCharity has enlisted number of NGOs working in different sectors; you can go through a large set of causes and donate to your favorite cause.
  • iCharity enlists only NGOs who are doing good work and are efficient. Hence you can be assured that your money is put to good use.
  • iCharity will ensure that the NGO will provide a feedback report within a reasonable period freeing you from any apprehensions about your donation.

Is my donation eligible for TDS?

No, clause 5.4(19) G of CBDT circular 1/2010 dated 11/01/2010 states that while deducting TDS from the salary , the employer need not consider 80G payment of the employee. However, the employee can claim the tax benefit of the donation in his income tax returns separately.

What are the documents required for claiming tax benefits?

The document required to be submitted for claiming tax benefits are,

  1. Stamped receipt issued by the recipient organization(NGO) with the mention of registration number under 80G provided by income tax
  2. Photo copy of the valid 80G certificate of the organization.
  3. For the individuals who donated through payroll, the certificate will be issued in the name of the employer and the tax benefit can be claimed after producing the certificate (provided by the employer) which states that the donation is actually made from employees salary account  

 Please note that the donations should have been made in the same year in which the deduction is sought.

Is there any limit for tax exemption on my donations?

If the aggregate of sums donated is more than 10% of the adjusted gross income, the excess amount ceases to be entitled for tax benefit.

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