Why 12A and 80G Certifications Matter

Running an NGO is tough. Besides the social mission, there’s a constant need for funding, operational sustainability, and public trust. Here’s where 12A and 80G come in.

For NGOs:

  • 12A makes sure your entire income is tax-free, as long as it’s used for charitable purposes.
  • With 80G, you can attract more donors, especially corporate and HNI donors who look for tax-deductible contributions.
  • These registrations make you eligible for CSR funds, government schemes, and grants.

For Donors:

  • Contributions to 80G certified NGOs are eligible for tax deductions up to 50% or even 100% under Section 80G of the Income Tax Act.
  • This benefit incentivizes individuals and companies to give more generously.

Simply put, if you want your NGO to survive and scale, these certifications are not optional—they’re essential.


Understanding 12A and 80G

Before you dive into the application process, it’s important to understand what these certifications do.

What is 12A Registration?

12A is a registration under the Income Tax Act, 1961 that allows NGOs, Trusts, and Societies to be exempt from paying income tax on the surplus income they generate, provided that the income is used for charitable purposes.

Without 12A:

  • Your NGO will be taxed like a business
  • All grants, donations, or interest income could be taxed
  • You will lose out on many funding opportunities

What is 80G Certification?

80G certification allows donors to claim a tax deduction on the donations they make to your NGO. This certification is issued by the Income Tax Department and is used to encourage philanthropic giving.

There are two types of deductions under 80G:

  • 50% deduction (most common)
  • 100% deduction (limited to a few specific government-approved NGOs)

To issue tax-deductible receipts to donors, your NGO must be 80G certified.

Difference Between the Two

Feature12A80GPurpose exemption for NGO incomeTax benefit for donorsWho BenefitsNGODonorsApplication Income Tax DepartmentIncome Tax DepartmentValidity (Post-2021): 5 years (renewable). 5 years (renewable). Legal RequirementMandatory for tax-free incomeMandatory to issue 80G receipts


While you can apply for them separately, it’s best to apply for both at the same time.


Eligibility Criteria for 12A and 80G

Who Can Apply?

Any non-profit organization in India that is engaged in charitable activities can apply, including:

  • Public Charitable Trusts
  • Registered Societies
  • Section 8 Companies
  • Educational or Religious Organizations (non-profit)

However, your organization must meet some basic conditions:

Key Conditions and Compliance Requirements

  • Must be registered under a relevant law (Trust Act, Society Act, Companies Act)
  • Should have a clear objective of public welfare (education, health, women's empowerment, etc.)
  • Income and assets must be used only for charitable purposes
  • Should maintain proper books of accounts and audit reports
  • Must have a valid PAN and Darpan ID (as of 2025)
  • Must file regular annual income tax returns

New rules (post-April 2021) require even existing 12A/80G holders to revalidate their registration every 5 years.


Documents Required for 12A and 80G

Before you start your application, make sure you have the following documents ready:

Trust Deed/Memorandum and Registration Certificate

  • For Trusts: Registered Trust Deed
  • For Societies: MoA + Rules & Regulations
  • For Section 8: Certificate of Incorporation + MoA + AoA

PAN Card of the NGO

Mandatory for all applications. Must be in the name of the NGO, not the founder.

Details of Trustees / Members / Directors

  • Name, PAN, Aadhaar
  • Designation and tenure
  • Contact and address

Financials and Bank Details

  • Audited financial statements of the last 1–3 years (if applicable)
  • Bank account statement
  • Details of donations/grants received

Activity Report

Showcase the NGO’s past activities with photos, newspaper mentions, or internal reports.

NGO Darpan ID

As of 2025, this is mandatory for all central registrations and government schemes.


For more info: https://www.psrcompliance.com/blog/12a-and-80a-certification-a-step-by-step-guide