12a and 80g Registration Made Simple for NGOs with First Startup

12a and 80g registration refers to approvals granted under the Income Tax Act, 1961 that help eligible non-profit entities access tax advantages.

Broadly:

• 12A (now typically issued under the 12AB framework) enables eligible NGOs to claim exemption on income applied for charitable or religious purposes (subject to conditions).
• 80G enables donors to claim deductions on donations made to approved institutions, which encourages donations.

Under 12a and 80g registration, the 12A approval (commonly processed under Section 12AB today) is aimed at the organisation. Once granted, it supports income tax exemption on eligible income, provided the NGO meets compliance requirements and applies funds for stated charitable objectives.

Under 12a and 80g registration, 80G approval is aimed at donors. Donors who contribute to an eligible NGO with 80G approval may claim deductions as per the applicable rules, encouraging long-term contributions and better fundraising outcomes.

12a and 80g registration is typically available to entities that are set up for charitable purposes and are properly constituted under Indian law. Common eligible forms include:

• Charitable trusts (public charitable trusts)
• Registered societies
• Section 8 Companies (non-profit companies)
• Educational institutions operating on a non-profit basis
• Medical institutions operating on a non-profit basis
• Other eligible public charitable/religious organisations (subject to conditions)

To qualify for 12a and 80g registration, organisations generally need to demonstrate that they are genuinely working towards charitable objectives and that their governance and finances support those objectives.

Key expectations often include:

• The entity must be created for charitable/religious purposes as recognised under the Act
• Activities should be genuine and aligned with stated objectives
• Income and assets should be used for charitable purposes (not private benefit)
• Proper books of accounts must be maintained
• Returns and other statutory filings should be completed on time where applicable
• Activities should not be structured for profit distribution

For 80G under 12a and 80g registration, common expectations include:

• The organisation should be set up for charitable purposes and serve the public interest
• Funds should be used only for eligible charitable purposes
• Proper accounting and donation records must be maintained
• The organisation should follow the conditions applicable to donations and utilisation

Getting 12a and 80g registration can significantly improve the financial sustainability and credibility of a non-profit.

Key benefits include:

Income Tax Relief for the NGO

With 12A/12AB approval under 12a and 80g registration, eligible income applied to charitable objectives can be exempted, improving the funds available for impact.

Tax Incentive for Donors

With 80G under 12a and 80g registration, donors may claim deductions on donations—an important motivator for individual donors, HNIs, and corporate CSR contributors.

Stronger Trust and Credibility

Approvals under 12a and 80g registration make it easier to establish legitimacy with grant makers, CSR teams, and institutional funders.

Improved Compliance Discipline

The process encourages better governance, documentation, and audit readiness—often improving the NGO’s ability to scale.

The validity of 12a and 80g registration can depend on the kind of approval granted (for example, provisional vs regular) and the current regulatory framework applicable at the time of approval.

In general, you should plan for:

• Monitoring your approval period and validity dates
• Maintaining continuous compliance (books, utilisation, filings)
• Preparing ahead for renewals where required

12a and 80g registration may require renewal/revalidation depending on the approval type and rules applicable at the time of issue. The safest approach is to track expiry dates and initiate renewals well in advance, ensuring there is no interruption in donor confidence or tax benefit continuity.

A clean documentation set is critical to avoid objections or delays in 12a and 80g registration. While exact requirements can vary case-to-case, commonly requested documents include:

• Incorporation/registration proof (Trust Deed / Society Registration Certificate / Section 8 Certificate)
• Constitutional documents (MOA/AOA for Section 8; bye-laws for society; trust deed for trust)
• PAN of the organisation
• Details of trustees/members/directors (as applicable)
• Address proof of registered office (as applicable)
• Bank account details and statements (as applicable)
• Activity note describing charitable work undertaken/planned
• Financial statements/audit reports (where applicable)
• Any other supporting registrations or IDs used for grants (where applicable)

A structured approach reduces turnaround time and prevents rework. The 12a and 80g registration process should be treated as both a compliance filing and a documentation exercise that tells your NGO’s story clearly and truthfully. 12a and 80g registration is smoother when the organisation’s objectives, activities, and accounting align from day one.

Entity Formation and Legal Setup: Ensure your trust/society/Section 8 company is correctly formed, with appropriate objects written into the founding documents.

Document Compilation and Quality Check: Gather incorporation proofs, governance details, financials, and activity descriptions. Confirm that names, addresses, PAN, and dates are consistent everywhere.

Application Drafting: Provide accurate information regarding objectives, governance, and operational footprint. Add clear descriptions of charitable programmes and intended beneficiaries.

Submission and Acknowledgement: Submit the application in the prescribed manner and keep a full submission set for your records.

Clarifications and Follow-Ups: Authorities may seek clarifications, additional documents, or explanations. Timely and well-drafted responses matter.

Approval Order and Certificate: Once approved, maintain the order/certificate safely and update your donor communication and finance processes accordingly (e.g., donation receipts referencing approval details).

Many organisations prefer 12a and 80g registration online because it can reduce paperwork movement and speed up coordination—especially for founders managing teams across cities in India.

To succeed with 12a and 80g registration online, ensure:

• Documents are legible, complete, and correctly self-attested where required
• File naming is consistent (to avoid confusion during review)
• The activity note is clear, factual, and aligned with your objects
• The authorised signatory and contact details are correct for notices/queries

Costs for 12a and 80g registration generally depend on complexity, the entity type (trust/society/Section 8), documentation readiness, and the level of professional support required.

While government fees and professional fees can differ by case, founders should budget for:

• Professional drafting/review of deeds or MOA/bye-laws (if needed)
• Audit/financial statement preparation (if applicable)
• Filing and representation support
• Compliance setup for donation receipts, utilisation tracking, and recordkeeping

If you are comparing service providers, ask what is included: document review, submission, query handling, and post-approval compliance guidance.

The 12a and 80g registration process cost can rise when:

• Objects in the deed/MOA need correction
• Accounts are incomplete or not properly audited (where needed)
• Past filings are missing
• Activities are not documented clearly
• Governance details are inconsistent across records

A cost-effective approach is to first do a gap check: confirm entity structure, objects, basic accounting hygiene, and an activity note that matches reality.

Receiving 12a and 80g registration is not the finish line. You also need ongoing compliance practices to protect the approval and keep donor confidence high.

After 12a and 80g registration, put a standard donor receipt process in place:

• Receipt numbering and consistent format
• Correct donor details
• Donation amount and mode
• Referencing the organisation’s approval details where appropriate
• Proper recordkeeping for future audits and reviews

Strong internal controls make approvals sustainable:

• Separate tracking of restricted vs unrestricted funds (if applicable)
• Board/Trustee meeting minutes and governance documentation
• Expense approvals and programme documentation
• Clear audit trail for project spends

Avoid these frequent pitfalls that delay or weaken 12a and 80g registration applications:

• Objects clause is too broad, vague, or mixes non-charitable intent
• Activity note is generic, copied, or not aligned with actual work
• Missing trustee/director details or identity/address proofs
• Inconsistent names/addresses across deed, PAN, bank, and filings
• Weak bookkeeping or unexplained transactions
• Failure to respond to notices/queries on time

Timelines for 12a and 80g registration vary depending on:

• Application completeness
• Query volume and response time
• Workload at the reviewing office
• Whether the entity is newly formed or has historical records

A practical way to reduce delays is to submit a “review-ready” application: clean documents, clear activities, and consistent financials.

If your audience is based in India and expects clear, step-by-step support, First Startup can position its 12a and 80g registration service around what NGOs actually need:

• Practical document checklist and pre-filing review
• Structured application drafting aligned with your objects and activities
• Support for clarifications and follow-ups
• Guidance on receipts, donor communication, and compliance hygiene

Want a smoother 12a and 80g registration experience? Get started today with First Startup.