Maximising Goodness with Charitable Donations

Charitable donations are a powerful way for individuals to make a positive impact on society while enjoying potential tax benefits. When you contribute to a cause you believe in, not only are you supporting a noble endeavour, but you may also get income taxdeduction under section 80G of the Income Tax (IT) Act. Understanding the ins and outs of tax exemption donations can empower you to make a difference while optimising your financial position.

Ways to Reduce Income Tax

Choose the Best NGO in India

The first step in maximising tax benefits for your donations is to ensure you contribute to a qualified charitable organisation. These organisations are typically registered as nonprofits and can provide you with the necessary documentation for tax purposes. Check the official list of approved NGOs in India to make sure your chosen cause is eligible.

Itemise Your Deductions

To avail of tax benefits, you need to itemise your deductions when filing your income tax return. Instead of taking the standard deduction, which is a fixed amount set by the Indian Revenue Service (IRS), listing your eligible expenses individually can potentially lead to a larger deduction. Keep detailed records of your charitable contributions, including receipts and acknowledgement letters from the organisations you support.

Understand the Limitations

While charitable contributions can help you get tax exemption, there are limitations to the 80G deductions. Generally, the IRS allows you to deduct up to 60% of your adjusted gross income (AGI) for cash donations to public charities. For non-cash donations or contributions to private foundations, different rules may apply. Be sure to consult the latest tax guidelines or seek advice from a tax professional.

Tips on Maximising Donations

Give Wisely and Strategically

Consider making larger donations in specific years to maximise your tax benefits. If you anticipate a higher income in a particular year, increasing your charitable contributions can help offset your tax liability. Planning your donations strategically can make a significant difference in optimising your overall financial picture.

Go online for donations

Don't limit your contributions to cash alone. Non-cash donations, such as online donations, can also qualify for tax deductions. Keep records of the online certificates and tax exemption certificates. 

Take Advantage of Employer Matching Programmes

Many employers offer matching gift programmes, where they match their employees' charitable contributions. Check if your employer participates in such programmes. This not only increases the impact of your donation but benefits of tax exemption too.

Bringing It All Together - Akshaya Patra

As you embark on your journey of philanthropy, it's worth considering organisations like Akshaya Patra, which focuses on eradicating hunger and promoting education. Akshaya Patra is known for its impactful initiatives, particularly for providing mid-day meals to school children across India.

Donors supporting Akshaya Patra can experience the joy of contributing to a cause that makes a substantial difference in the lives of children. From a tax perspective, donors also stand to benefit under section 80G. Akshaya Patra is a registered nonprofit organisation, ensuring that your contributions are eligible for tax deductions.

By contributing to AkshayaPatra, you align yourself with a cause that not only resonates with your values but also allows you to optimise your financial position through tax benefits. 

In the realm of charitable donations, the synergy between doing good and receiving tax benefits is a win-win situation. As a common man navigating the complexities of income tax, understanding the nuances of charitable contributions can be empowering. By strategically choosing the right causes, maximising contributions and exploring all available avenues, you not only make a positive impact on society but also optimise your financial well-being.

Choosing to support organisations like Akshaya Patra adds an extra layer of fulfilment to your philanthropic journey. By contributing to a cause that addresses crucial issues like hunger and education, you not only benefit from potential tax deductions but also become an integral part of transformative change in the lives of those less fortunate. So, as you embark on your journey of giving, remember that your contributions have the power to make the world a better place for everyone.

Beating Hunger with Mid-Day Meals

"An empty stomach is not a good political advisor." 

These timeless words of Albert Einstein encapsulate the profound connection between hunger and the well-being of nations. 

Hunger remains a burning issue globally, with millions of people in developing and underdeveloped countries struggling to secure their daily sustenance. One among the developing nations, India is making significant strides in combating this challenge, where government initiatives like the PM POSHAN Abhiyaan (earlier called the Mid-Day Meal or MDM Programme) have garnered much acclaim. 

Today, India is the most populous country in the world, and yet has shown remarkable progress on both the political and economic front. But it also understands the threat of chronic hunger and the need to support its socioeconomically challenged communities in ending the vicious cycle of poverty and the resulting malnourishment.

Providing nutritious school meals is a successful intervention by the Indian government in this domain. It not only guarantees the well-being of government school children from low-income families but also addresses the underlying issues in economic growth, education, sustainable progress and inclusive development. 

By collaborating with government bodies, local authorities and self-help groups, PM POSHAN Abhiyaan also helps empower underprivileged communities by employing them or using raw materials and other resources they produce.

Battling Hunger with Mid-Day Meals

The Government of India started the Mid-Day Meal or MDM Programme (now called the PM POSHAN Abhiyaan) in 2001 to support children's growth requirements with free nutritious meals in government and government-aided primary schools.

Several NGOs partnered with the government for the effective implementation of the programme and promote its zero hunger goals. The Akshaya Patra Foundation is one of these NGOs that works in a public-private partnership to provide mid-day meals to school children from underserved communities. 

Nutritional Guidelines for Mid-Day Meal Preparation

Guidelines by the Supreme Court of India

• Every child must get a minimum of 300 calories and 8-12 grams of protein per day.

• Adequate nutrition must be provided on all school days for a minimum of 200 days.

Mid-Day Meal Guidelines by the Ministry of Education

• Every meal must contain carbohydrates, proteins and micronutrients, such as iron, folic acid, Vitamin A, etc.

• Primary school children must receive at least 450 calories with 12 grams of protein

• Upper primary and secondary school children must receive 700 calories with 20 grams of protein.

Donate online towards Zero Hunger and avail tax exemption

Hunger erodes the very foundation of progress. Those suffering from malnutrition struggle to tap into their true potential, leaving the nation bereft of future scientists, artists and political leaders. Just as "you cannot make bricks without straw", we must first address hunger to attain a robust and thriving India. 

Thus, let us unite and ensure that no stomach remains empty and no dreams are left unfulfilled. Let us be the architects of change by contributing towards mid-day meals for school children and build a nation where no one knows the pangs of hunger.

When you donate to registered NGOs in India, you also become eligible to avail tax exemption on every contribution you make

Celebrate this Akshaya Tritiya, by feeding meals with Akshaya Patra

 Akshaya Tritiya, also known as Akha Teej, is revered as a sacred day by Hindus and Jains. Akshaya Tritiya takes place on the Shukla Paksha Tritiya in the lunar month of Vaishakh. People use this auspicious day to start new businesses, jobs or charitable endeavours. They also pay respect to their departed parents and ancestors. Since it is considered to be the most auspicious day as per the Hindu calendar, all the activities undertaken on this day bring desired results.

It is considered auspicious to purchase gold and silver on this day. By investing in gold and silver, one is thought to receive the blessings of Goddess Lakshmi, who represents wealth and success. The logic behind this long-standing custom is that buying gold is always profitable and it will always have a good resale value.

Hindu texts state that this day has a lot of significance. On this day, Lord Parashuram, Lord Vishnu's sixth avatar, is said to have manifested. In addition, it is also stated that the Holy Ganga arrived on Earth on Akshaya Tritiya to grant King Bhagiratha's afflicted forefathers’ nirvana.

This day also heralds the start of Treta-yuga, the second of the Yuga Cycle's four yugas. It's also believed that Sudama paid Lord Krishna a visit at Dwarka on Akshaya Tritiya. Adi Sankaracharya wrote the Kanakadhara Stotram and Vyasadeva began work on the Mahabharata on this auspicious day. In addition, Lord Kubera is also said to have received his role as the wealth custodian on Akshaya Tritiya.

Akshaya signifies limitless or never ending in Sanskrit. According to a legend, on this day, the Sun God gave the Pandavas the Akshaya Patra, an endless store of food that they would never run out of. The story has immense significance in the context of our 22-year journey which we started to provide children unlimited food for education. 

Celebrate Akshaya Tritiya this April 22, 2023, with The Akshaya Patra Foundation, which offers children in government schools the "Akshaya Patra" of limitless food for education.

Akshaya Tritiya – An Auspicious Day for Charity

As per Vedic texts, in the past, the kings and wealthy members of society would conduct sacrifices (yajna) and give away their wealth. This engagement in charitable endeavours was either out of compassion for others or for their own spiritual development.

In the Bhagavad Gita, it is advised to perform charity and support a deserving individual at an appropriate moment and place, without expecting anything in return. It is also said that one should never stop engaging in yajna, dana, tapah and karma(prescribed duties of performing sacrifice, charity and austerity).

One of the best ways to do charity is by doing Annadanam which is considered the highest form of giving. The Sanskrit word Annadanam means the act of offering or sharing (danam) of food (annam). This has always been a component of Indian spiritual tradition and culture. 

Feed with Akshaya Patra this Akshaya Tritiya

As Akshaya Tritiya is considered one of the most auspicious days in the Hindu calendar to do an act of charity, a contribution for school meals of children from challenging socio-economic backgrounds can significantly transform their lives. The provision of freshly cooked, hot, healthy and locally palatable school meals by Akshaya Patra is a potential intervention in ensuring the health and education of children. 

How donating to Akshaya Patra makes an impact

• It opens the gates of school for children
• It boosts their health with adequate nutrition
• It supports regular schooling and improves academic performance
• It ensures the completion of education by boosting retention
• It encourages them to pursue their dreams

This Akshaya Tritiya, you can feed the children by contributing to Akshaya Patra's PM POSHAN Programme. Donations to Akshaya Patra are tax exempted under Section 80G of the Indian Income Tax Act. Upon successful transaction of your donation, you will instantly receive the donation receipt and tax exemption certificate for your donated amount in your inbox.