Advocate S.K.Prabhakar Shetty practices at City Civil Court Bangalore, Karnataka High Court, Karnata... Read More
What are the legal documents of a corporation which are needed to be checked which is willing to donate in an NGO?
We are an NGO and 2-3 corporate want to donate 2 to 5 crores in our NGO. We want to know what all documents should we ask them for and reasons why they want to donate such huge amount and what all taxes they are liable to pay?
- Sector-1, Noida
In all probability the corporates want to make such donations as part of their CSR requirements. At the bare minimum, you should verify whether the companies have been duly incorporated, who the directors are, whether the company has been conducting its business and has the necessary funds, and whether the company has authorized the release of funds through a board resolution. If an NGO gets itself registered under section 80G then the person or the organisation making a donation to the NGO will get a deduction of 50% from his/its taxable income. The NGO has to apply in Form No. 10G As per Annexure-29 to the Commissioner of Income Tax for such registration. Normally this approval is granted for 2-3 years. Feel free to get in touch if we could be of any further assistance to you.
Answered on 28 Sep 2018
3/3 people found this helpful
Didn't find the answer you are looking for?
Talk to experienced lawyer online and get your answered in minutes.