Generosity and a little help go a long way. Whether helping the underprivileged with education or fundraising for expensive medical treatment, crowdfunding platforms have been the light on the other side of the tunnel for hundreds.
However, the role of crowdfunding is no longer limited to only paying medical bills. One can contribute to social empowerment through fundraisers or online crowdfunding and enjoy tax benefits at the same time. Every donation comes linked with a tax-saving form as a reward for contributing to a noble cause.
In India, numerous business ideas or creative campaigns are successfully crowdfunded. Ketto is a flag bearer for online fundraising that has empowered and successfully funded numerous social and entrepreneurial projects.
According to the Crowdfunding Report 2019 by World Bank, nearly $96 billion a year is expected to be raised through crowdfunding websites by 2025. Varun Sheth, Co-Founder & CEO of Ketto, also mentioned, “Donation or rewards-based crowdfunding has seen success in India.”
With the state of crowdfunding gaining momentum in India, it is imperative to know how your contribution/investment in crowdfunding initiatives can drive social change while saving your taxes. Continue reading to learn more about it.
3 Ways to Contribute Towards Social Empowerment Harnessing Crowdfunding
I have contributed numerous times to many causes and have always saved tax on every contribution. Ketto makes it easy and convenient to create a crowdfunding campaign to support social causes, medical treatments, creative campaigns, education, child welfare, animal fundraisers, etc.
Here are three ways to be a part of social empowerment:
1. Raising funds for medical treatment
Unexpected medical conditions, accidents or mediclaim rejection often put people in a helpless situation. However, raising funds for treatment in India has now become easy with the rise in crowdfunding platforms and generous donations from people.
Healthcare is expensive, and irrespective of the government funds and coverage like Ayushman Bharat, it is not enough for lower to middle-income families to cover the expenses of expensive treatments like cancer, heart transplant, liver transplant etc.
Health insurance rejection is one of the prominent reasons why many people have to retort to creating fundraising campaigns. The cancer crowdfunding on Ketto, for instance, has helped many patients fund their cancer treatment.
An ongoing fundraiser for a 5-year-old kid, Abir, with leukaemia, has managed to raise Rs 4,21,10,513 for his cancer treatment via Ketto. Another success story is a fundraiser campaign by Chhavi that raised Rs 5,03,749 and helped pay for her mother’s breast cancer treatment.
Suren successfully raised Rs 14,28 350 for his friend ChittI Babu suffering from chronic kidney failure, and eventually helped with a kidney transplant.
Ketto is proud to be a part of helping thousands like Abir, Suren and Chhavi, not only pay for their cancer treatment but numerous other expensive medical conditions.
Contributing to medical crowdfunding on Ketto could be the easiest, but most effective way to help a social cause that can give someone a new lease on life put a smile on a loved one’s face and bring back a member home from prolonged hospital stays, among other help.
2. Help with education
Educating India through crowdfunding is a major contributor to social empowerment and has helped many people pursue education or support projects that work with the education of the underprivileged.
Education crowdfunding is raising money for education-related causes and helps empower individuals and India as a nation. Here are some of the benefits of crowdfunding for education and it empowers:
- The money raised through crowdfunding help NGOs, teachers and organisers buy classroom supplies, develop computer labs, purchase books, and build toilets and infrastructure for schools
- Crowdfunding is a great way to create funds for upgrading schools
- Education crowdfunding has even helped deserving students pay for their higher education expenses
Pratishtha Deveshwar’s story is inspiring: A horrendous accident left Pratishtha wheelchair-bound, but that did not dim her determination. She managed to secure an admission offer at the University of Oxford but lacked the finance to fulfil her dreams. However, the Ketto fundraiser helped raise Rs 21 lakh+ out of the goal amount of Rs 28 lakh.
Another successful education fundraiser was by Surya Sen Singh, that managed to raise almost Rs 4 lakh, and the campaign was to “Help Build A Public Library for Ghazipur’s Kids”. The fundraiser is to build a public library to supplement the school and bring internet access.
3. Contribute to entrepreneurial projects
Crowdfunding via Ketto has helped the successful launch of ventures and entrepreneurial projects. The fundraiser ventures on Ketto aim to impact the world and the environment.
For instance, a fundraiser has helped Team India win SpaceX’s hyperloop competition by raising a fund of Rs 35,81,868. Another example of a successful entrepreneur campaign was by Planet Voice Foundation, to plant one trillion trees worldwide and managed to raise Rs 8+ lakh supported by 725 supporters.
Tax Benefits from Contributing to the Fundraiser
Contributing towards social empowerment on crowdfunding India platforms is not only generous but also helps save taxes. For instance, one is eligible for tax benefits when donating to a cause on Ketto.
Donation to registered NGOs or charitable trusts makes the donor eligible for the 80G certificate that exempts a part or full tax payment.
80G certificate is provided to certain registered NGOs or charitable trusts. This makes contributors under the Income Tax Act eligible for a tax deduction under section 80G.
On contributing to NGOs with a valid 80G certification, one can get a 50 – 100% reduction in the annual income tax returns. However, as a donor, it is recommended to cross-check as not all the NGOs in India are registered to provide an 80G certification.
Making a donation on Ketto makes it easy and convenient to get the tax benefit form. After donating to a social cause or for a medical fundraiser, an email and the 80G certificate are sent to the contributor’s email.
The PDF for the 80G certificate or tax saving form can be attached as proof of deduction while filing for the income tax returns.
Contributing to a good cause is empowering and it greatly impacts society. Ketto has made starting a fundraising campaign easy, convenient, and accessible through online crowdfunding.
With all the support and donation, donors get tax benefits from contributing to the fundraisers. Every contribution aims to make society and the community a better place to live while saving tax through the 80G certificate.