Introducing Simplified Online Donations & 80G Receipts for NGOs

Razorpay empowers NGOs to accept donations online with unmatched security, automation, and ease—so you can focus on your mission, not your paperwork.

For NGOs and charitable organisations seeking to simplify NGO online donations and automate 80G receipts, this article shares how Responsenet launched multiple campaigns during the COVID-19 lockdown, including a Million Meals Campaign with KFC to provide meals and hygiene kits for affected migrant workers.

Responsenet chose Razorpay Payment Pages to create custom landing pages co-branded with KFC. But the real challenge was manual effort: they were sending around 2,500 80G receipts every month. When their team received early access to Razorpay’s Automated 80G feature, they signed up immediately.

Since then, Razorpay became their default choice for everything payments. Kuldip Nar, Founder Responsenet says, “In our 20 years of experience, we have not found a better solution than Razorpay Payment Pages. Automated 80G receipts, among many other features, has helped us efficiently fundraise and report to internal and external stakeholders.”

What is an 80G Receipt?

An 80G receipt is a critical tax compliance document issued by registered nonprofit organisations and charitable institutions in India that enables donors to claim substantial tax deductions on their charitable contributions under Section 80G of the Income Tax Act, 1961.

When you make a donation to an eligible organisation, you receive this receipt as proof of your contribution. The receipt serves two primary purposes: it confirms your donation to the organisation and provides the necessary documentation for claiming tax deductions when filing your income tax returns.

The “80G” designation refers to the specific section of the Income Tax Act that governs charitable deductions. Only organisations registered under Section 80G with the Income Tax Department can issue these receipts. This registration ensures that the organisation meets strict compliance requirements and uses donations for approved charitable purposes.

Eligibility Criteria for 80G Receipts

Not every charitable organisation can issue 80G receipts. You need to understand which organisations qualify and what types of donations are eligible for tax deductions.

To issue 80G receipts, organisations must:

• Be registered as a trust, society, or Section 8 company under Indian law
• Obtain 80G registration from the Income Tax Department
• Maintain proper books of accounts and file annual returns
• Use donations exclusively for charitable purposes
• Not distribute profits to members or trustees

As of 2024, more than 1.3 lakh NGOs in India are registered under both 12AB and 80G combined, representing organisations that have successfully navigated the stringent eligibility requirements and continue to maintain compliance with regulatory obligations.

For donors, eligible donations include monetary contributions made through approved payment methods to registered organisations. In-kind donations, volunteer time, and contributions to political parties are generally not eligible for 80G deductions.

Tax Benefits and Limits Under Section 80G

Understanding the deduction percentages and limits helps you maximise your tax savings while supporting causes you care about.

Section 80G offers two types of deduction rates:

• 100% deduction: Available for donations to specific government funds and approved institutions
• 50% deduction: Applicable to most registered charitable organisations

The maximum deduction is subject to certain limits:

• Deductions cannot exceed 10% of your adjusted gross total income
• Some organisations have specific monetary caps on deductible amounts
• Cash donations above ₹2,000 are not eligible for deduction

For example, if your adjusted gross total income is ₹10 lakh and you donate ₹50,000 to an eligible organisation offering 50% deduction, you can claim ₹25,000 as a deduction, provided it doesn’t exceed the 10% limit (₹1 lakh in this case).

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How to Claim Tax Deduction Using an 80G Receipt

Once you receive your 80G receipt, you need to follow specific steps to claim the deduction when filing your income tax returns.

Here’s your step-by-step process:

1. Verify the receipt: Ensure it contains all mandatory details including your PAN, the organisation’s registration number, and donation amount
2. Obtain Form 10BE: The organisation must provide this certificate along with the receipt
3. File your ITR: Include the donation details in the appropriate section of your income tax return
4. Maintain records: Keep both the receipt and Form 10BE for at least six years

Without the Form 10BE certificate, donors cannot claim deductions under Section 80G, regardless of whether they possess the original donation receipt issued by the organisation, fundamentally changing the evidence requirements for tax deduction claims.

When filing online, enter the donation amount in the “Deductions” section under “80G”. The system will automatically calculate your eligible deduction based on the organisation’s deduction percentage and your income limits.

80G Receipt Format and Mandatory Details

A valid 80G receipt must contain specific information to be acceptable for tax deduction claims. Understanding these requirements helps you verify receipt authenticity and ensures compliance.

At minimum, an 80G donation receipt must contain the full name and complete registered address of the Trust or NGO issuing the receipt, enabling donors to verify the organisation’s identity and location.

Essential details that must appear on every 80G receipt:

• Organisation’s full name and registered address
• 80G registration number and validity period
• Donor’s full name and PAN number
• Donation amount in figures and words
• Date of donation and receipt issuance
• Mode of payment (cheque number, online transaction ID, etc.)
• Authorised signatory’s name and signature
• Organisation’s seal or stamp

The receipt should clearly state the deduction percentage applicable (50% or 100%) and include a declaration that the donation will be used for charitable purposes only. Any receipt missing these mandatory details may be rejected by income tax authorities during assessment.

Modes of Payment Eligible Under Section 80G

The Income Tax Act specifies which payment methods qualify for 80G deductions, with restrictions designed to ensure transparency and prevent tax evasion.

Section 80G explicitly prohibits receipt issuance for cash donations exceeding Rs 2,000, a provision implemented to curb unaccounted cash transactions and promote financial transparency.

Eligible payment modes include:

• Cash: Up to ₹2,000 only
• Cheque: No limit, must be drawn on donor’s account
• Demand Draft: Acceptable with proper documentation
• Online transfers: NEFT, RTGS, UPI, and digital wallets
• Credit/Debit cards: All major cards accepted

In-kind donations (goods, services, or assets) are generally not eligible for 80G deductions. The donation must be monetary and traceable through banking channels for amounts above ₹2,000.

Why Secure Payment Platforms Matter for NGOs

Be it a situation of floods or a pandemic that we are witnessing, NGOs have been bridging the gap between the needy and the donors for years now. What started as door-to-door cash donations has now become entirely contactless. Charitable trusts, big and small, have made their way online. This has helped them discover new geographies and hence, they have been able to invite people from all folds to nurture a cause they care about.

One of the challenges that an NGO faces while accepting online donations is choosing a secure and reliable payments partner. During our conversations with NGOs across India, we realised that there’s a standard checklist that they have when they are in search of a payments partner:

• Secure and verified service provider
• A platform that offers multiple payment options
• A system where they can send 80G receipts to the donors automatically
• Lastly, an ecosystem that can handle end-to-end payments

And unsurprisingly, Razorpay checks every point mentioned! This article aims to throw light on our offerings for NGOs to accept online donations so that you can offer a best-in-class experience to your audience while making your payments process simplified.

Related Read: Payment Gateway for NGO

How to Accept Online Donations and Issue 80G Receipts

What do you think when you hear ‘online donations’ and ‘website’? Often, the answer we hear is a payment gateway. Well, that’s right. But, at Razorpay, we have a wide range of options along with Payment Gateway when it comes to accepting donations. Let’s get started!

Secondary CTA: Learn More About Payment Pages

1. Razorpay Payment Pages

Are you at a phase where you are planning to build a website to raise funds? Well, we would suggest you stop. No, not from caring for that cause but from creating a website because Razorpay can help you do exactly that, within minutes! Plus, your time and effort of integrating a payment gateway come down to zero, since you can do it all with Payment Pages.

Razorpay Payment Pages allows you to create a storefront within minutes. You can add details about your project, keep adding or modifying them and edit them as per your style! Not just that, you can get yourself a shareable link which you can share across platforms.

The best part about using Razorpay Payment Pages for your NGO is that anyone who makes a donation will automatically receive an 80G payment receipt in their inbox. This automation eliminates manual work for your team.

[Read more: Simplifying 80G Receipts for NGOs with Razorpay Payment Pages]

This is not it, you can also choose to select a minimum amount a person can donate and get detailed insights from our powerful dashboard.

Benefit: Payment Pages eliminate the need for website development while providing instant 80G receipt automation, saving time and resources for your organisation.

Here’s what one of our customers have to say about their experience with Razorpay:

Thank you to the entire team at Razorpay for quickly taking up our request for automation of the 80G receipts. Your team is so responsive to our NGO’s requirements. The automation of the 80G donation receipt from Razorpay dashboard has made life easier for our team and gives a great experience for all our donors who get these receipts as soon as they make a donation. We are grateful for your support!

-Beena Malikaveetil (Senior Director, Marketing at VOSD)

2. Razorpay Payment Links

Since all of our conversations have moved to WhatsApp, Facebook, Emails and Instagram, shouldn’t donations too?

Has this thought ever crossed your mind? If yes, you have just found a solution. With Razorpay Payment Links, you can generate a payment link within minutes and send it across via any social media channel.

This means you can start accepting online donations even if you do not have an app or a website ready. Razorpay’s Google Chrome extension makes the entire process even simpler. You can create and send unlimited payment links and get paid within minutes, directly in your desired bank account.

Benefit: Payment Links enable instant donation collection through any communication channel without requiring technical setup or website development.

3. Razorpay Subscription

The subscription-based business model is the current trend. If you have been thinking of ways to maintain an active cashflow for your donations, then Razorpay Subscriptions is your best friend! With Razorpay Subscriptions, you can offer a recurring plan for your donors.

[Read more: Retain, Engage, Scale: Three Reasons to Build a Subscriptions Business]

For example, you can offer a subscription plan for 12 months, billed for ₹499 each month. Your donor can select the date on which the amount should be debited from their account.

The entire registration process can be done 100% online with the liberty to the donor to cancel the subscription at any point in time. Oh, the best part, you can offer the latest UPI AutoPay, the most awaited payment options to your customer!

Benefit: Subscriptions provide predictable recurring revenue streams while offering donors convenient automated giving options with flexible cancellation.

4. Razorpay ePOS app

Do you prefer using mobile for a majority of work and get excited when you find an app that fulfils a purpose? If yes, we would recommend you to download Razorpay ePOS app now!

Razorpay ePOS app is designed to cater to a mobile-first audience. You can choose to create an online store and add details about a cause you care. Send a payment link to your audience anywhere, anytime. Get support from our customer support team 24*7 and get insights from an intuitive dashboard.

The best part about this app is, the entire onboarding process is 100% online. You can get started with accepting online donations even if you do not have a website yet.

Benefit: The ePOS app provides complete mobile-first donation management with 24/7 support and instant onboarding capabilities.

[Read more Razorpay ePOS App – Simplifying Digital Payments for Offline Businesses]

We continue to innovate and support NGOs with solutions that simplify payments and donor management. Share your thoughts or questions below—we value your feedback! Apart from all the above-mentioned products, there are certain features that come with every product built by Razorpay.

• PCI DSS compliance: Razorpay is the most secure payments ecosystem. None of your and your donor’s details are captured at any point.
• 24*7 support system: Our customer support team is available via chat-service, email and call throughout the day to help you if you get stuck anywhere.
• Multi-currency support: With Razorpay, you can offer your customers’ to pay via debit or credit cards, net banking, UPI, wallets and so on.
• International payments: You can accept donations across the world with ease with Razorpay.

Our teams have been working to simplify payments for businesses and individuals from all the folds and NGOs remain one of our focus areas. While we build and curate more products for you, we would love to hear thoughts and comments below!

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Frequently Asked Questions About 80G Receipts

What is an 80G tax receipt?

An 80G tax receipt is a document issued by registered charitable organisations that allows you to claim tax deductions on your donations under Section 80G of the Income Tax Act. The receipt serves as proof of your charitable contribution and contains all necessary details for claiming deductions when filing your income tax returns.

What is the limit of 80G claim?

The 80G deduction limit is generally 10% of your adjusted gross total income. Additionally, you can claim either 50% or 100% of your donation amount as a deduction, depending on the organisation’s registration category. Cash donations above ₹2,000 are not eligible for any deduction.

What is the use of 80G?

Section 80G encourages charitable giving by providing tax benefits to donors. It reduces your taxable income, thereby lowering your tax liability while supporting social causes. The provision helps bridge the funding gap for charitable organisations working in areas like education, healthcare, and poverty alleviation.

What items are under 80G?

80G covers monetary donations made to registered charitable organisations, government relief funds, and approved institutions. Eligible payment modes include cheques, online transfers, demand drafts, and cash up to ₹2,000. In-kind donations, volunteer services, and political contributions are generally not covered under 80G.