Consider tax exemption for a cause

The universe has a unique way of working and we never know how and when it brings us an opportunity to support and do something good for others. Here is a small incidence that introduced me to the path of charity. Just a week ago, I was consulting with my friend on how to cut down on tax. During the discussion, we came upon various ways such as housing loan, house rent allowance, children education allowance, medical insurance, donations, and the like. Though I had heard of these means, but contributing donation was something new for me. Curiously, I furthered the discussion on it. And, patiently my friend familiarised me with the whole concept of tax deduction on charity, the gist of which I have narrated below.

Witnessing the impactful groundwork of NGOs, the Government of India has made a provision wherein contributing donations to registered NGOs or charitable trusts can exempt you from paying taxes on the donated amount under Section 80G. You can either claim for 100% or 50% exemption on the donated amount based upon the NGO you have donated and the terms set by the Income Tax Act. This is applicable for both online donations and offline donations.

For instance, I identify with children-specific causes such as the right to education, child rights, and child health and development. So, I chose to contribute my taxable income to The Akshaya Patra Foundation, an NGO for children implementing the Mid-Day Meal Programme in association with the Central Government of India and various State Governments. The Mid-Day Meal Programme is an initiative that provides freshly cooked nutritious school lunch to government school and government-aided school children on all school days. And, Akshaya Patra aims at providing ‘unlimited food for education’ with the intention of supporting the education of children. This NGO has been in the service of children for the past 17 years, with a current beneficiary base of over 1.6 million children across 34 locations in 12 states of India. The tangible impact of Akshaya Patra is clearly visible in the stories of children and the impact studies that have been conducted in association with third-party research agencies. 

Personally, I was convinced with the service of Akshaya Patra and decided to make my foray into charity by donating to the Foundation. For more information on charity tax exemption, just click on tax-deductible donations. I am glad that I am saving tax by supporting millions of children, and would suggest everyone to connect with the cause.

5 ways an Indian NGO is empowering children

NGOs address a wide range of social, economic, and environmental concerns. But, every NGO has its own core area of work and influence. Similarly, The Akshaya Patra Foundation, an Indian mid-day meal NGO focussing on providing nutritious school lunch to government school children to counter classroom hunger and promote education. The NGO began its service way back in 2000 by serving meals to only 1,500 children in five schools of Bangalore. Over the 17 years of service, this NGO in Bangalore has progressed to become a nationwide movement to promote education and health among children through the Mid-Day Meal Programme. 

By implementing the Mid-Day Meal Programme in schools, Akshaya Patra wants to provide nutritious food to children, encourage uninterrupted schooling, improve health, and provide an avenue to explore aspirations so that children grow up to be confident and reliable citizens of the nation. In simple terms, Akshaya Patra is empowering children to be the future leaders of the nation.

Broadly speaking, the Mid- Day Meal Programme has had a significant impact on the education sector of the country. Studies report that there has been an increase in enrolment and attendance rate, improved health has been observed among children, and there is a decrease in the drop-out rate. This programme has proved itself to be a supporting pillar in bringing and retaining children at school. Working in a Public-Private Partnership model, Akshaya Patra is extending the mid-day meal benefits to children right at the grass root level. Currently, it is providing mid-day meals to more than 1.6 million children on every school day across 34 locations in 12 states. 

Observing the impact of the school meal programme, Akshaya Patra aims to feed 5 million children by 2020. Indeed a humongous task, but is achievable with a concerted effort from all of us. Hence, Akshaya Patra has provided an online platform to contribute to the cause. You can opt to donate online, start a campaign, sponsor a school or kitchen equipment, or just spread the word about Akshaya Patra’s cause. Your involvement will enable this NGO to empower more children across the country. So, be a part of nation-building by getting involved with Akshaya Patra.

Do items in your shopping basket add up to Rs. 95?

“Your total bill amount is Rs. 3,542”, said the cashier as he handed over the bill to me.
I took out my wallet, paid him the amount. And, as he was packing the items in a bag, I wondered ‘has my needs increased, am I buying impulsively, or has the prices of the commodities skyrocketed.’ 

 

Graphically speaking, I fail to understand how my grocery bill constantly shows an upward trend every month. I don’t remember when was the last time somebody handed me a bill of below Rs. 1,000. It does bother me, but again with the usual humdrum and busy schedule, I forget about it until the next shopping. And, then came the moment of truth when on a regular day at work, I saw my colleague donating to an NGO named The Akshaya Patra Foundation. After she finished her transaction, I enquired about the NGO. Her reply completely left me amazed.

She said, “Akshaya Patra is an NGO for children that provide food to government school children on every school day. The NGO has been operating the school meal programme for the past 17 years. It has a pan-India presence and presently serves school lunch to more than 1.6 million children.” At this, I stopped her and said that it must be a really expensive affair because grocery for one household itself costs somewhere between Rs. 2,500 – Rs. 3,000. My colleague smiled and said, “Akshaya Patra feeds 3 children for an entire year with Rs. 2,850.” And, she pointed towards the donation page of the NGO. I was totally stumped at what I had just heard and what I was seeing on the screen.

She added, “Though I am in a situation where I can afford food, I know how the hunger pangs feel. On the days when I have to skip my breakfast and rush to office, or skip my lunch to complete a report, my body and mind give up. It becomes very difficult to remain focussed on what I am doing. Well then, what about those children who aren’t even sure of getting their next meal. This particular fact drew me to support Akshaya Patra’s cause because their effort ensures at least one nutritious meal per day. That’s why on every special occasion like my birthday, my parents anniversary or during festivals I make online donations for NGO.” 

And, before I could process all that she was saying, my colleague scrolled down the page and said, “When you donate to Akshaya Patra, you also become eligible for 80G deduction on your donated amount. This means the amount you donate becomes eligible for tax exemption, a benefit that you can utilise at the time of income tax filing.”

That evening, to find answers to the innumerable questions popping in my head, I read up on the humongous task that Akshaya Patra is doing. In the end, I realised that maybe I can never bring down my grocery bill, but I sure can ensure nutritious meals for children for an entire year with an amount less than my monthly grocery expense. And convinced with Akshaya Patra’s endeavour, I took my first ever step towards contributing charity!

Valuing food production and tackling food wastage in Akshaya Patra

“Indians waste as much food as the whole of United Kingdom consumes”, cites CSR journal. Not a pretty picture for a country where millions go hungry, every day. The deplorable hunger condition in India can be gauged from the below facts: 

In addition, according to the FAO’s (Food and Agricultural Organisation of the United Nations) estimates in ‘The State of Food Security and Nutrition in the World, 2017” report, India is home to the largest undernourished population in the world with: 

While the country is battling these statistics, spending capacity and consumption trends among consumers have only worsened the hunger scenario. Despite being in such a critical state where India cannot afford to waste any food, it is reported that Rs. 88,800 crores worth of food wasted in India per year. Apart from ‘food loss’ i.e. wastage of raw food products during harvest, storage or in transit, mainly due to inadequate and disorganised infrastructure and supply chain, ‘food waste’ i.e. wastage of food at the consumer level. Below are some of the areas that contribute to maximum food wastage:

And, ironically, India is home to both ‘food waste’ and ‘food loss’! 

However, kudos to the several organisations that have directed all their efforts towards countering the prevalent hunger situation. One such organisation is The Akshaya Patra Foundation, an Indian charitable trust serving mid-day meals at government schools. The main inspiration to establish this Foundation came from a heartfelt incident many years ago. One day, during a visit to Mayapur, a village near Calcutta, His Divine Grace A. C. Bhaktivedanta Swami Prabhupada saw a group of children fighting with stray dogs over scraps of food. This incidence left Srila Prabhupada immensely disturbed, and he set forth a resolve that no child within a radius of ten miles from our centre should go hungry. This motivating and determined resolution led to the establishment of Akshaya Patra in June 2000 with the core objective to feed the children so that they get nourishment and education too.

Initially, the Foundation served cooked meals to just 1,500 children in five government schools of Bangalore. This Indian charitable trust is cognizant of the importance of food in the lives of people, especially children. Hence, to maximise the potential of the school lunch programme, it employs state-of-the-art kitchens, innovative technology, and smart engineering to cook and deliver nutritious and hygienic meals to each school on each working day. The Foundation operates centralised kitchens in urban and semi-urban regions and decentralised kitchens in remote areas. The centralised kitchens are highly mechanised units with the capacity to cook up to 100,000 meals, whereas decentralised kitchens are smaller units operated by Self-Help Groups under the supervision of Akshaya Patra’s kitchen in-charges and catering to a group of schools in a particular area.

It is imperative that such large-scale cooking requires a lot of planning and structured processes so that neither raw materials nor cooked meals reach the trash bin. Hence, Akshaya Patra mandatorily follows some standard operating processes such as: 

The above-mentioned measures have helped Akshaya Patra combat food wastage in its purview of operations. And, by doing so, this Indian charitable trust is making nutrition-rich food available to over 1.6 million children on every school day. So that this NGO can multiply its reach, it has made the online donation for charity available to all for easy and safe transactions. Every contribution towards this NGO will be directed and utilised in ensuring food security for children through regular school meals. Additionally, this lunch will support children in continuing school, concentrating better in their lessons, and participating actively in co-curricular activities such as sports and cultural. 

Needless to say, if we can contain food wastage, it will benefit many millions of lives, not just in India but globally too. It is estimated that if we can save one-fourth of the food that is currently being wasted globally then we will have enough to feed 870 million hungry people in the world which also includes the 194.6 million hungry people in India. The concern of food wastage is so critical that it receives a clear mention in the Sustainable Development Goal 12.3 stating, “By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses.” Hence, when there is adequate food production, and availability of advanced technologies for harvesting, storing and disbursing food products, than the onus lies on us to ensure that every citizen avails the right to food, and every child is nourished and healthy.

50% Tax Exemption under Section 80G of Income Tax Act

Non-Governmental Organisations (NGOs) play a crucial role in addressing various socio-environmental issues such as illiteracy, hunger, malnutrition, poverty, unemployment, climate change, pollution, and the like. The operational success of NGOs can be attributed to their focussed and strategized functioning towards a particular issue or a set of related issues. For instance, The Akshaya Patra Foundation, an NGO in India aims at countering the twin problem of hunger and illiteracy by providing mid-day meals to children at government schools. No matter what causes a particular NGO is focussing on, all NGOs create a platform and welcome the participation of all of us. And, one of the many ways to get involved with a cause is to offer charity.

Aside from the satisfaction of doing a philanthropic act, offering charity can also benefit you financially. Yes, by donating towards an NGO you can avail tax exemption under 80G deduction. As a move to encourage people and business establishments to support various causes, the Government of India introduced Section 80G to give tax exemptions on donations made towards charitable organisations. However, you will be eligible to avail this tax benefit only if you are donating towards certified NGOs and charitable institutions. By certification, it means the NGO or Trust must have a 12A Certificate along with tax exemption status under Section 80G, Section 80 GGA, and Section 35AC (i & ii, i & iii) of the Income Tax Act of 1961.

The limit of deduction is either 50% or 100% of the donated sum depending on the charitable organisation you have chosen. This is in view of the segregation made by the Income Tax Department wherein certain Trusts and NGOs can offer 100% deductions to their donors and some can offer 50% deductions on the donated amount. Well, one such registered NGO in India that provides tax benefits for your donations is The Akshaya Patra Foundation. Akshaya Patra is a mid-meal NGO serving school lunch to children in government and government-aided school across 12 states of India. 

-    The Foundation is registered as a not-for-profit organisation under the Indian Trusts Act, 1882     

      (Reg. No. 154).
-    It is registered under Section 12A (a) of the Income Tax Act, 1961.
-    The Foundation is also registered under Section 6 (1) (a) of the Foreign Contribution (Regulation) 

      Act, 2010 (FCRA Reg. No. 094421037).

As per the revised tax exemption act, effective 1 April 2017, donations above Rs. 500 to Akshaya Patra will be eligible for 50% tax exemption under Section 80G of Income Tax Act. But, you must note that a cash donation of above Rs. 2,000 is not applicable for 80G certificates. The benefits of 80G deduction are applicable only for Indian and NRI donors (Indian citizens, holding an Indian passport). To know about tax exemption for foreign donors, click here. 

By contributing to Akshaya Patra, you will help in providing school lunch to millions of children who come socio-economic background. The school lunch helps such children to continue schooling by countering classroom hunger. The education and nourishment they receive through the Mid-Day Meal Programme empower them to grow up to be skilled and resourceful citizens of the nation. This means by donating towards the mid-day meal cause, you are supporting zealous, young lives thereby contributing to nation-building. And, simultaneously, you are also benefitting from income tax exemption, making it a win-win situation for the cause and you!

Well then, go ahead and begin the ripple effect of charity by choosing to donate online to charity or offer an offline donation. Your charitable contribution will potentially create a healthy, educated, and responsible generation.

The impact of mid-day meal in Uttar Pradesh

Uttar Pradesh is the most populous state of India. And, it is reported that over the next 10 years, Uttar Pradesh and Bihar will together account for 31% of youngest Indian population between five and 14 years. This indicates that education and health will play deciding factors for them to turn into assets for the country. As per the Census 2011, the literacy rate of Uttar Pradesh is just 67.7%. Among the many factors that affect school enrolment and literacy rate is the provision of the Mid-Day Meal Scheme. The Supreme Court mandated Mid-Day Meal Scheme was introduced in the state in September 2004. And, currently this scheme covers over 123.57-lakh students in 1,14,125 primary schools and 54.94-lakh students in 54,394 upper primary schools in the state. Over the years, the state has observed tangible impact of the scheme in school enrolment, attendance, and health of the students. And, this impact was furthered by The Akshaya Patra Foundation, and NGO in Lucknow.

In Uttar Pradesh, Akshaya Patra provides mid-day meal in two locations - Vrindavan and Lucknow. The NGO began its journey of providing mid-day meal in Uttar Pradesh by establishing the Vrindavan kitchen in August 2004. Currently, 1,20,262 children in 2,010 schools get benefitted from this kitchen. The kitchen at Lucknow was established in March 2015 and presently provides mid-day meal to 91,418 children in 1,011 schools. Keeping hygiene and cleanliness as our topmost priorities while preparing mid-day meals for children, both the kitchens in Uttar Pradesh are ISO 22000:2005 certified. The mid-day meals served in Uttar Pradesh follow a local palate inclusive of roti with subzi, so that maximum children readily and joyfully eat their school lunch. 

As part of self-assessment of the Mid-Day Meal Programme, Akshaya Patra time and again conducts third party assessments. One such assessment was conducted by Sigma Research and Consulting Pvt. Ltd. in 2014. The report studied eight location of Akshaya Patra based on the variables pertaining to four main objectives: elimination of classroom hunger, social equity, nutrition and health, and enrolment, retention and attendance. The assessment showed a positive trend on all the variables and the overall score of Uttar Pradesh was 9.43 on a scale of 10. This reveals that while there is significant impact of the mid-day meal in Uttar Pradesh, there is also scope for creating more impact.

Currently, Akshaya Patra is providing nutritious school lunch to 2,11,680 children in 3,021 schools in Uttar Pradesh. This means each day millions of children are able to attend school and take steps towards their aspirations. You too can act as a catalyst by choosing to sponsor a child. Come forward and join the ‘unlimited food for education’ motto of this NGO in Lucknow.

Unlock Better Educational Opportunities for Children

It is not difficult to bring a smile to the faces of children. But, it can be a challenge trying to ensure a long-lasting smile on their faces.

While a little fun and play can keep them happy, the effect of that would be only temporary. What if you are able to keep a smile on a child's face from ensuring they are happy!  Well, you can.

Just unlock a better education for a child. A child denied the right to education, for various reasons, be it due to lack of financial wherewithal or a lack of financial support, can't be happier than by just knowing that he/she can get educated and then be able to read and write. By merely being able to read and write, a child will discover that it has a whole big world it can learn about. 

Here's the chance to light up the faces of children. Make a donation to unlock their smiles! It's easier for children to smile when their stomach is full. A stomach full of delicious, healthy, wholesome meal helps then concentrate and perform better in class. The Akshaya Patra Foundation has known that for the last 17 years. Today, it feeds over 1.6 million school children every day.

While a wholesome meal can drive away hunger, it makes them beam with satisfaction and delight. Akshaya Patra is committed to the happiness of children with its 'unlimited food for education philosophy' and as part of its efforts, the Foundation has launched this special initiative. For every smiley you click to unlock, you sponsor a wholesome meal for a child for a full year. Thus, you can choose to sponsor multiple children and put bright smiles on their faces!

Smile is the key that fits the lock of everybody heart. So, why not contribute your mite towards the cause by donating to the cause. What better vehicle than Akshaya Patra.
Click away your mouse, as it is your key to unlock the smiles of children.