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For CRY, which depends largely on support from individuals - over 60 per cent of our resources are contributed by individuals - March is a particularly critical month each year. Many individuals choose this time of the year to combine the benefits of support to their preferred cause with a tax write-off. There are literally thousands of charitable organisations representing worthwhile causes and helping alleviate the many problems our society faces. Your choice of cause is a personal one, determined by your own life experience, priorities and beliefs. For many of us, children, especially their education, seems to be the one fundamental route to addressing many of India's problems. Having picked a cause, you would need to choose a particular organisation to extend your support to. This can be more difficult than it might seem. Most CRY donors tell us that the two criteria most important to them are effectiveness and accountability. They need to clearly see both, that their contributions are making a significant, tangible difference and that this is being achieved honestly and transparently. Do visit or ask to meet representatives of candidate NGOs. Or, if that's not a possibility, visit the organisation's website, ask to see its annual report or check with friends or colleagues who support them.
Section 80GGA of the Income Tax Act allows a deduction for donations for scientific research or rural development. This includes "an approved association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development or which has as its object the training of persons for implementing programmes of rural development." All money donated to CRY, for example, is tax-deductible. Under section 80G of the Income Tax Act, you can get a 50 per cent deduction on your donation. And under section 80GGA and 35AC you can get a deduction for the entire amount you donate. The deductions are available for sums up to 10 per cent of your taxable income (that is, your gross total income, minus deductions, capital gains, income exempt from tax and Section 10 deductions). Certain funds are exempt from this limit - consult your tax advisor for the complete list. I'm often asked what the appropriate amount to donate is. CRY's late founder, Rippan Kapur said it best: "What I can do, I must do." While there is no right or wrong amount to give, here are some things to keep in mind: Any amount of money you give will be appreciated. It is a cliché, but every rupee does count so don't shy away because you believe your contribution is too small to matter. Remember CRY was founded with just Rs 50 contributed by Rippan and six friends. There are several ways you can structure your donation. You can make your contribution one-time, annual or monthly depending on your preference. Most charities will make a request once a year but you can always donate on your own schedule. Some interesting new forms of giving that are growing in popularity are:
Another critical factor for most donors is how much of your donation actually goes to the cause. Organisations that do not have to raise all their resources themselves can give 100 per cent of the donation to those in need, others retain a percentage to cover operating costs. Charities should be up front about this so make sure to do your research so that you end up with an arrangement that makes you comfortable. For example every Rs 100 CRY raises in donations costs Rs 33 to raise. This includes the costs of producing and mailing fundraising material, personnel costs linked to fundraising, and the costs of financial accounting and reporting. Here are some tips for first time donors to charity: Ask for written information. A legitimate charity will give you information outlining its mission, how your donation will be distributed, and proof that your contribution is tax deductible. Information about CRY, how it works, what it does with your money is available on our website: www.cry.org. Don't send cash. For security and tax record purposes, always pay by cheque, demand draft or through your credit card. Watch out for similar sounding names. Some dubious charities use names that sound or look like those of respected, legitimate organisations. Make sure you look closely at the name of the charity and the people behind it. Refuse high-pressure appeals. Legitimate charities won't push you to give on the spot. Get a receipt and a tax-certificate. If you want to claim a tax deduction you will need a 58A form issued by the charity. And the last thing to remember: timing is everything. In order to qualify for a deduction in a given tax year, you must make your gift by March 31 of that year. By Ingrid Srinath
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Over the 24 years CRY has existed we have constantly been overwhelmed by the lengths people will go to support a cause they truly believe in - none more than the cause of underprivileged children.
