What do 12A, 80G and FCRA registrations mean for you as a donor? A plain-language guide to the three registrations behind safe, compliant giving in India.
When you give to a cause, you want to know that your money is in safe hands and used properly. In India, three registrations tell you a lot about whether a non-profit is set up to receive donations responsibly: 12A, 80G and FCRA. This guide explains each one in plain language, and why they matter whenever you support a student's education.
This article is general information, not legal or tax advice. Rules change, so please confirm details with a qualified advisor.
12A: recognition as a charitable organisation
What it is: Registration under Section 12A of the Income Tax Act recognises an organisation as a charitable body for tax purposes.
Why it matters to you: A 12A-registered organisation is recognised by the tax authorities as working for charitable purposes, and it must use its funds for those purposes and keep proper accounts. It is a basic sign that the organisation is set up correctly.
80G: tax benefits for donors
What it is: Registration under Section 80G allows donors to claim a deduction on eligible donations to the organisation when they file their income tax return.
Why it matters to you: If you pay tax in India and file under the old tax regime, your donation may reduce your taxable income. To claim it, you need your PAN on the donation and the certificate the organisation issues after the financial year. India's new Income-tax Act, 2025 carries this benefit forward from tax year 2026-27 under a new section number, but most people still call it 80G.
Read our detailed guide: 80G tax benefits on education donations.
FCRA: permission to receive foreign donations
What it is: The Foreign Contribution (Regulation) Act governs donations from foreign sources. An Indian non-profit can receive foreign contributions only if it is registered under FCRA, and only into its designated FCRA bank account.
Why it matters to you: If you are a foreign citizen or an OCI cardholder, you can only give legally to an organisation that is FCRA-compliant. Your citizenship – not where you live – decides whether your donation is foreign. That is why foreign donors are asked for passport details.
Read more: OCI cardholders and FCRA and our guide for NRI and international donors.
At a glance
| Registration | What it does | Who it matters to |
|---|---|---|
| 12A | Recognises the organisation as charitable for tax purposes | Every donor |
| 80G | Lets donors claim an income-tax deduction | Indian taxpayers under the old regime |
| FCRA | Allows the organisation to receive foreign contributions | Foreign citizens and OCI cardholders |
Where Kind Circle fits in
Kind Circle is a philanthropic initiative of Buddy4Study India Foundation, which is:
- Registered under Section 12A of the Income Tax Act
- Registered under Section 80G of the Income Tax Act
- FCRA-compliant, able to receive foreign contributions from eligible donors
This is what makes Kind Circle a "virtual NGO". When a family, company or alumni group starts a scholarship on Kind Circle, it runs under these registrations. The founders do not have to set up a trust, apply for 12A or 80G, or seek FCRA registration themselves – a process that can take a long time and, for FCRA, usually requires years of track record. Read how to start a scholarship without registering a trust or NGO.
What else to look for in a non-profit
- Official receipts for every donation
- Clear reporting on how funds are used
- Verification of the people being helped
- Direct payments to beneficiaries or institutions
On Kind Circle, every circle page shows donations and disbursals publicly, and every student is verified. Read where your donation goes.
Frequently asked questions
Can a US donor claim 80G?
80G is an Indian tax benefit. US taxpayers can get a US deduction by giving through Pragati Foundation USA. Read our guide for US donors.
Can a company's CSR spending go through Kind Circle?
Yes. Read about CSR scholarship programmes.
A quick checklist before you donate
- Is the organisation registered under 12A?
- If you want a tax deduction in India, is it registered under 80G – and are you filing under the old tax regime?
- If you are a foreign citizen or OCI cardholder, is it FCRA-compliant?
- Will you receive an official receipt?
- Can you see how your money is used?
If the answer to these questions is yes, you can give with confidence.
Give with confidence
Knowing the basics of 12A, 80G and FCRA helps you give safely and wisely. Questions about receipts, certificates or foreign donations? Write to kind@buddy4study.com.
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