Fundraising and Communications: The Central Board of Direct Taxes has issued a notification that specifies the process charitable organisations need to follow for reapproval and revalidation of their existing tax exemption registrations.
According to the notification, charitable organisations that already have a 12A, 12AA, and a 80G certificate must reapply via Form 10A anytime between April 1st and June 30th, 2021. This renewed registration will be valid for a period of five years.
The application must be submitted online along with the required supporting documents. These include the organisation’s registration certificate or Certificate of Incorporation, Trust deed or Memorandum and Articles of Association, the existing registration certificate under 12A/12AA, and audited financial statements for the last three financial years, among others.
Starting April 1st, all nonprofits that have an 80G certificate—which provides a tax exemption to their donors—will have to provide a statement of all donations that they received during the financial year 2021-22. They will also have to provide to the donor, a certificate of donation received during the same financial year. Both the above statements have to be submitted online or before May 31st, 2022.
Read this article to know about the fundraising challenges faced by Indian nonprofits.