Impact Guru and GlobalGiving's strategic partnership enables US, UK and Indian tax benefits for Indian NGOs
US, UK, and Indian tax benefits now available for international and domestic donors giving to Indian NGOs on a single platform!
What is this partnership?
Impact Guru and GlobalGiving have entered into a strategic partnership to enable Indian, US, and UK donors to give to Indian causes they care about, through a single platform. Eligible NGOs and social enterprises raising money on ImpactGuru.com can now not just direct their Indian networks but also international donor networks, particularly NRIs (Non Resident Indians) / PIOs (People of Indian Origin), to give through GlobalGiving’s technology on ImpactGuru.com and offer US or UK tax benefits to international donors.
Why is it important?
India is home to the highest number of NGOs in the world with more than 33 lakh (3.3 million) nonprofits registered in the country. While only 13,000 NGOs in India are allowed to raise funds from foreign donors in compliance with current regulations, Indian nonprofits have historically raised more than Rs 8,500 crores (US$1.3bn) annually from international donors. It is estimated that a significant portion of international donation is led by Indian diaspora, which is the largest diaspora population in the world. According to Ministry of External Affairs, Govt. of India, there are more than 3 crore (30 million) NRIs / PIOs living outside India with more than 60 lakh (6 million) residing in the US and UK.
Incentives for your local and International Donor Networks: Tax incentives are often considered to be a crucial factor in encouraging philanthropy. By offering tax benefits to US and UK donors for cross-border giving into India, this partnership will help Indian NGOs and social enterprises attract more philanthropic capital to scale their existing programs.
Impact Guru’s and GlobalGiving’s Training + Support: By being a part of this partnership, organizations will also have access to full range of benefits like special matching and bonus days, online training academies, and GlobalGiving’s donor and donation management system.
Access to Impact Guru’s one-on-one account management: Once an organization’s fundraiser is posted on Impact Guru, our relationship manager will walk organizations through the entire process of posting a fundraiser, reaching out to donors, and running a fundraising fundraiser.
This partnership is particularly transformational for the social sector because more than 50% of funds raised online by nonprofits on Impact Guru are sourced from international donors. According to a research report by The Bridgespan Group, if the charitable contributions of Indian diaspora in US were consistent with those of other American households in similar income brackets, and they directed 40% of their philanthropy to India, $1.2 billion additional funds could flow from such donors towards Indian social causes per year.
What types of organizations can benefit from this partnership?
- Nonprofits based in India with registration under Foreign Contribution Regulation Act, 2010 can scale their programs with the support of international donors by enabling them to receive US and UK tax benefits.
- Social enterprises based in India are also eligible to either fundraise online or route their grants via Impact Guru and offer US tax benefits to their international donors on a case by case basis.
- NGOs and social enterprises across Southeast Asia (including Singapore, Hong Kong, Malaysia, Thailand, Philippines, Indonesia) can also fundraise on ImpactGuru.com and avail of these tax benefits on a case by case basis.
To learn more and initiate next steps, please complete the form on this page or contact the Impact Guru nonprofit customer support team at email@example.com.
All nonprofits and social enterprises will have to go through a thorough due diligence process before being eligible to benefit from this partnership to ensure a safe and secure online giving environment. A dedicated customer relationship manager will support you through every step of the fundraising journey; from fundraiser creation to your outreach activities. You will gain access to a variety of tools and training materials to widen your reach.
Indian NGOs through this partnership can now provide the same tax benefits provided by the US NGOs under section 501(c)(3), to their donors.
What were the key results of the pilot between Impact Guru and GlobalGiving in 2016?
Impact Guru and GlobalGiving had previously jointly conducted a 7 day fundraising fundraiser during Daan Utsav, a giving festival across India, where 17 existing GlobalGiving nonprofit partner organizations raised Rs 12 lakhs / US$18,000. The success of that fundraiser as one of the highest performing fundraisers for GlobalGiving’s Indian NGO partners is testament to a promising partnership that will change the face of nonprofit fundraising in India.
- 85 percent of the donors who gave had never given through GlobalGiving.org. That meant that these organizations were able to tap into another network of donors to succeed in this fundraiser due to the added availability of offering Indian 80G tax benefits.
- The median donation amount was the same as on GlobalGiving—about Rs 2,000 / US$28.
What are the due diligence guidelines?
Eligibility to offer US and UK tax benefits to international donors
- All Indian NGOs participating in this program must have registration under Section 12A and valid FCRA registration
- Indian social enterprises will be considered on a case by case basis if Impact Guru and GlobalGiving can establish that funds will be used for charitable purposes.
- Southeast Asian nonprofit organizations and social enterprises may be considered on a case by case basis if Impact Guru and GlobalGiving can establish that funds will be used for charitable purposes.
Process for Indian nonprofits
- Existing GlobalGiving NGO partners: Organizations that are already a part of the GlobalGiving community are automatically eligible to have this donation processing system turned on for fundraisers on Impact Guru. These partners will simply need to register with Impact Guru and start a fundraiser.
- Existing Impact Guru NGO partners: Indian NGOs who are registered on Impact Guru and have previously raised funds must be registered under FCRA and either obtain Gold or Platinum certification from Guidestar India or complete the due diligence application process on GlobalGiving’s website here.
- NGOs vetted by social sector intermediaries: NGOs currently registered and vetted by GiveIndia, Charities Aid Foundation India, Guidestar India (Platinum / Gold levels only), Dasra, Credibility Alliance and have FCRA registration are automatically eligible for the benefits under this partnership on ImpactGuru.com.
- Other NGOs: NGOs that are not registered on GlobalGiving or Impact Guru and have FCRA registration must go through a due diligence process to be eligible for the program. They must either obtain Gold or Platinum certification from Guidestar India or complete the due diligence application process on GlobalGiving’s website here.
To learn more and initiate next steps, please complete the form on this page or contact the Impact Guru nonprofit customer support team at firstname.lastname@example.org with the subject “Indian nonprofit onboarding”.
Process for Indian social enterprises
- Social enterprises registered in India who wish to participate in the program will be considered on a case by case basis upon due diligence by Impact Guru and GlobalGiving, if it can be established that funds will be used for charitable purposes.
To learn more and initiate next steps, please complete the form on this page or contact us at email@example.com with subject “Indian social enterprise onboarding”.
Process for Southeast Asian nonprofits or social enterprises
- Southeast Asian nonprofit organizations and social enterprises who wish to participate in the program may contact us, and will be considered on a case by case basis upon due diligence by Impact Guru and GlobalGiving, if it can be established that funds will be used for charitable purposes.
To learn more and initiate next steps, please complete the form on this page or contact us at firstname.lastname@example.org with subject “Southeast Asia onboarding”.
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