Published on: April 2026
IMPACT OF 12A AND 80G REGISTRATION ON FINANCIAL SUSTAINABILITY OF NGOS IN INDIA
Sakshi Indrajeet Darwatkar
Dr. Vinod Sayankar Director
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Abstract
This paper examines how registration under Sections 12A and 80G of the Income Tax Act influences the financial sustainability of non-governmental organizations (NGOs) in India. Section 12A grants income tax exemption on surplus income used for charitable purposes, while Section 80G allows donors to claim tax deductions on eligible donations. Together, these registrations improve donor confidence, expand access to grants, and reduce the tax burden on NGOs. The paper argues that these provisions strengthen long-term organizational sustainability by increasing predictable revenue and improving institutional legitimacy. However, compliance costs and periodic renewal requirements can create administrative pressure for smaller organizations.
How to Cite this Paper
Darwatkar, S. I. (2026). Impact of 12a and 80g Registration on Financial Sustainability of NGOS in India. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(04). https://doi.org/10.55041/ijcope.v2i4.931
Darwatkar, Sakshi. "Impact of 12a and 80g Registration on Financial Sustainability of NGOS in India." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 04, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i4.931.
Darwatkar, Sakshi. "Impact of 12a and 80g Registration on Financial Sustainability of NGOS in India." International Journal of Creative and Open Research in Engineering and Management 02, no. 04 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i4.931.
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References
- Income Tax Act, 1961 (India).
- Salamon, L. M. (2010). Putting the civil society sector on the economic map of the world. Johns Hopkins University Press.
- Ministry of Finance, Government of India. Guidelines on charitable institution tax exemptions.
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- Anheier, H. K. (2014). Nonprofit organizations: Theory, management, policy. Routledge.
- Joshi, P., & Tiwari, R. (2019). Financial management practices in Indian NGOs.
- Shah, A. (2020). Role of tax incentives in promoting charitable donations in India. Journal of Public Finance, 12(3), 45–60.
- NITI Aayog. (2021). NGO-DARPAN registration handbook. Government of India.
- Bhandari, L., & Dutta, S. (2021). NGO funding patterns and sustainability in India. Asian Development Review, 38(2), 112–130.
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- •Published on: Apr 30 2026
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