Strategic Philanthropy:
- Greater impact
- Tax efficiency
- Aligned with values
- Lasting legacy
- Family involvement
- Sustainable giving

Common Issues:
- Random, reactive giving
- Missed tax benefits
- Ineffective donations
- No measurement of impact
- Scams and frauds
- No family involvement

Eligible Deductions:
Donations to approved organizations:
- 100% deduction (some organizations)
- 50% deduction (most organizations)
- Limits may apply

Types:
1. Government funds: Usually 100%
2. Approved NGOs: 50% or 100%
3. Political parties: 100% under 80GGC

Donations to:
- Prime Minister's National Relief Fund
- National Defence Fund
- Chief Minister's Relief Fund
- Swachh Bharat Kosh
- Clean Ganga Fund
- National Sports Fund
- And similar government funds

Donations to:
- Government for family planning
- Approved universities
- IITs
- Specified institutions

Limit: 10% of Gross Total Income

Most Common Category:
- Approved charitable organizations
- NGOs with 80G registration
- Most public trusts

Calculation:
Donation: ₹1,00,000
Deduction: ₹50,000
Tax savings (30% slab): ₹15,000

Requirements:
1. Donation receipt with 80G details
2. Organization's registration number
3. PAN of organization
4. Valid period of 80G registration
5. Donation in approved mode (not cash > ₹2,000)

Cash/Cheque/Online:
- Simple and immediate
- Tax receipt obtained
- No ongoing commitment
- Easy to track

Goods and Services:
- Food, clothes, materials
- No tax deduction under 80G
- But valuable support
- Receipt recommended

Structured Giving:
- Regular monthly/annual
- Committed over time
- Enables larger impact
- Sustainable for charity

If You Own Business:
- 2% of profits for CSR
- Mandatory for qualifying companies
- Section 135 Companies Act
- Not a tax deduction

Giving Through Will:
- Charity as beneficiary
- Takes effect after death
- Can be specific amount or percentage
- No estate tax in India currently

Questions to Ask:
- What issues matter to you?
- Local or national impact?
- Education, health, environment?
- Religious or secular?
- Immediate relief or systemic change?

Approach:

Fixed Amount:
- ₹X per year
- Regardless of income

Percentage of Income:
- 5-10% of income
- Scales with earnings

Windfall Sharing:
- Give portion of bonuses
- Capital gains sharing
- Unexpected income

Due Diligence:
□ 80G registration valid?
□ FCRA if applicable?
□ Financial transparency?
□ Program effectiveness?
□ Administrative costs?
□ Track record?
□ Governance quality?

Resources:
- GuideStar India
- GiveIndia
- Organization's website
- Annual reports

Options:
1. Direct to charity
2. Through intermediary platform
3. Donor-advised fund
4. Private foundation
5. Charitable trust
6. Corporate giving (if business)

Implementation:
- Set up automatic donations
- Maintain receipts
- Track for tax filing
- Measure impact
- Adjust as needed

Benefits:
- Structured giving
- Tax exemptions (12A)
- Donor deductions (80G)
- Perpetual existence
- Family involvement
- Legacy creation

1. Decide objects/purpose
2. Choose trustees
3. Draft trust deed
4. Register trust
5. Apply for PAN
6. Apply for 12A registration
7. Apply for 80G registration
8. Start operations

What It Provides:
- Trust income exempt from tax
- Must apply 85% to charitable purposes
- Can accumulate 15%
- Annual compliance required

What It Provides:
- Donors get tax deduction
- Trust becomes more attractive
- 50% or 100% deduction for donors
- Increases donations

Charitable Trust Must:
□ File ITR-7
□ Maintain books
□ Get audited (if income > limit)
□ Apply 85% to objects
□ File with Charity Commissioner
□ Annual report preparation

Donor-Advised Fund:
- Donate to fund
- Get immediate deduction
- Recommend grants over time
- Fund managed by sponsor

Process:
1. Contribute to DAF
2. Get tax deduction immediately
3. Funds invested and grow
4. Recommend grants to charities
5. Sponsor processes grants

Advantages:
- Immediate tax benefit
- Give over time
- Investment growth
- Simplified record-keeping
- Advisory role retained

Options:
- GiveIndia
- Dasra
- CAF India
- Some community foundations

Process:
- Open donor account
- Transfer funds
- Recommend grants
- Provider handles compliance

Section 135 Companies Act:

Applicable to:
- Net worth ≥ ₹500 crore
- Turnover ≥ ₹1,000 crore
- Net profit ≥ ₹5 crore

Requirement:
- Spend 2% of average net profit
- On approved CSR activities
- Schedule VII activities

Voluntary Corporate Giving:
- Employee matching programs
- Corporate foundations
- Cause-related marketing
- Skills-based volunteering

If You Own a Business:
- Personal giving vs. corporate
- Consider visibility needs
- Tax efficiency comparison
- Branding considerations

Types:

Specific Bequest:
"I give ₹10,00,000 to [Charity Name]"

Percentage Bequest:
"I give 10% of my estate to [Charity]"

Residuary Bequest:
"I give the remainder of my estate to..."

Contingent Bequest:
"If my spouse predeceases me..."

Will Clause Example:
"I give and bequeath to [Charity Name], 
a charitable trust registered under 
12A of Income Tax Act, having its 
registered office at [Address], the 
sum of ₹[Amount] / [%] of my estate 
to be used for their general charitable 
purposes."

Important Points:
- Name charity correctly
- Include registration details
- Specify purpose (if desired)
- Consider residuary vs. specific
- Inform charity (optional)
- Update if charity closes

Benefits:
- Shared values
- Next generation learning
- Family bonding
- Legacy building
- Meaningful discussions

Options:
1. Family meetings to decide causes
2. Each member chooses allocation
3. Site visits together
4. Volunteering as family
5. Matching children's giving
6. Family foundation

Age-Appropriate Giving:
- Young children: Donation jars, volunteering
- Teens: Research organizations, larger decisions
- Young adults: Involvement in family giving
- Adults: Full participation in strategy

Time and Skills:
- Board service
- Pro bono professional work
- Hands-on volunteering
- Mentoring
- Fundraising

Maximize Impact:
- Use professional skills
- Long-term commitments
- Leadership roles
- Advocacy and influence

Ensure Your Giving:
- Achieves intended outcomes
- Is used effectively
- Creates real change
- Worth continuing

Methods:
- Request impact reports
- Visit organizations
- Talk to beneficiaries
- Review financials
- Third-party evaluations
- Output vs. outcome metrics

Based on Results:
- Continue effective giving
- Increase successful partnerships
- Stop ineffective donations
- Try new approaches
- Learn and improve

Warning Signs:
- Pressure for immediate donation
- Cash-only requests
- No 80G registration
- Vague about program
- Can't provide receipts
- Similar name to known charity
- No verifiable address
- Refuses questions

Before Donating:
□ Verify 80G registration
□ Check on GuideStar India
□ Visit office if possible
□ Review financials
□ Talk to beneficiaries
□ Check online reviews
□ Start small

If You Suspect Fraud:
- Report to Charity Commissioner
- Inform Income Tax department
- Share on social media (carefully)
- Report to police if warranted

Strategy:
Instead of ₹1 lakh/year for 3 years
Give ₹3 lakhs in one year

Why:
- Exceeds standard deduction threshold
- Itemize in one year
- Standard deduction other years
- Same total, more tax benefit

Donate Stock Instead of Cash:
- Avoid capital gains tax
- Get deduction for full value
- More to charity, same cost to you

Note: India rules differ from US
Check current provisions

End of Financial Year:
- Make donations before March 31
- Get deduction in current year
- Plan in advance
- Don't rush decisions

Options:
1. Named fund at charity
2. Endowment contribution
3. Building or program naming
4. Scholarship in your name
5. Charitable trust
6. Foundation creation

Permanent Funds:
- Principal preserved
- Income used for programs
- Perpetual giving
- Lasting legacy
- Institution's stability