Importance of 80g and 12a Registration for Charitable Trusts
The 80g and 12a registrations are essential to charitable trusts since they enjoy the tax exemption benefits which motivates giving and philanthropy, where the 80g section enables the donors to claim deductions on their donations and 12a provides the legal status to the trust, making them transparent and credible. The effect of these registrations combined is the increased capacity of the trust to solicit funds, increase its social impact and ensure that it operates within the government compliance and regulations to build confidence in the minds of both donors and beneficiaries.