We are a small NPO that just got our 80G approval. We have a corporate donor who wants to fund a specific project. Can we issue an 80G certificate for this donation even though it is for a specific purpose and not a general donation? What is the correct way to handle this on our books and in the receipt we provide?
Thanks for your query.
Since you are 80G approved, you can issue a donation receipt in Form 10BE to a donor for a specific grant. You will have to file Form 10BD i.e. Statement of Donations for each financial year by 31st of the following year and generate 10BE and provide to corporate donor so that it can claim 80G benefit. Without issuing Form 10BE, 80G benefit would not be possible.
CS Sharad Bhargava
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Since you have received a provisional 80G certificate (validity is 3 years) the NPO can issue the exemption certificate to the donor. Moreover, unlike in the past, issuance of the receipt by NPO will not suffice. NPO will have file Form 10BD in the IT portal for all the donations against which Form 10BE would be generated. This is the actual 80G exemption certificate that has to be downloaded and issued to the donor.
Also, the NPO will have to go for a regular registration (12A & 80G) within 6 months of commencement of activities or actual expiry of the certificate whichever is earlier. Since there is a donation lined up, it is better to go for regular registration immediately upon receipt of the funds because receipt of fund would technically mean “commencement of activities”