US Donors: How to Get a Tax Deduction for Funding Students in India

Many Indian-Americans want to help a bright student back home finish college. One question comes up again and again: "Can I get a US tax deduction for it?" Yes, you can, when you give through the right route. This guide explains how US donors can fund students in India through Kind Circle and still receive a US tax-deductible receipt.

Why a direct gift to India is usually not deductible in the US

In general, the US tax system allows deductions for gifts to qualifying US charities, known as 501(c)(3) organisations. A donation sent straight to an Indian non-profit usually does not qualify for a US deduction, even if that non-profit is fully registered in India. That is why many US donors either give without a tax benefit or look for a US charity that works with partners in India.

The solution: Pragati Foundation USA

Pragati Foundation USA is a 501(c)(3) public charity in the United States. Its mission is "From Poverty to Prosperity through Education". It partners with Buddy4Study India Foundation, which runs Kind Circle, through a programme called the Kind Circle of HOPE – Helping Obtain Professional Education.

When you give through Pragati Foundation USA, you receive a US tax receipt every time. You can give:

• As a one-time gift or as a recurring gift
• By PayPal, Zelle, bank transfer or cheque

Who your gift supports

The Kind Circle of HOPE supports meritorious students from economically weaker families who are pursuing professional degrees in India, including:

• Engineering and technology
• Medicine and nursing
• Law and accounting
• Pharmacy and allied fields

Preference goes to girls, students from single-parent families, students with disabilities and orphans. Support can cover tuition, hostel and mess charges, based on each institution's actual fee structure, and can continue for several years as long as the student keeps up strong marks.

How your money reaches the student

1. You give to Pragati Foundation USA and receive your US tax receipt.
2. Students are verified by Buddy4Study India Foundation, drawing on its network of close to 4.5 million registered students.
3. Pragati Foundation USA selects the final scholars from the verified shortlist.
4. Funds are sent to India through Buddy4Study India Foundation's FCRA-compliant route.
5. Payment goes directly to the student's college or university. Every payment is matched with a receipt from the institution and shown in the circle's online passbook.

This means you get both things donors care about most: a US tax benefit, and clear proof that the money went to education.

Want your own named scholarship?

Some US donors want more than a general gift – they want a scholarship in their family's name or in memory of their parents. You can start your own Kind Circle and still choose the Pragati Foundation USA route for your US donations. The KVS & Geetha Scholarship Kind Circle, created by a family to honour their parents, is one example of a memorial circle with donors abroad.

Read our guide on how to start a memorial scholarship in India to see how it works.

Make your gift go twice as far

Many US employers match their employees' charitable gifts. If your company has a matching gift programme, your donation through a 501(c)(3) like Pragati Foundation USA may qualify. Read more in our guide to employer matching gifts.

Other ways to give from the US

• Card payment on Kind Circle – quick one-time gifts by international card. Simple, but no US tax benefit.
• Direct bank transfer to Buddy4Study India Foundation's FCRA account – useful for larger gifts, but again no US tax deduction.

If a US tax receipt matters to you, the Pragati Foundation USA route is the one to choose.

Why US donors choose Kind Circle

For many families in the US, the hardest part of giving to India is not the money – it is trust. Kind Circle was built to answer that worry. Every student is verified by Buddy4Study India Foundation before any payment is made. Every rupee is recorded on the circle's public page. And you receive regular updates on the scholars your gift supports, so you can see their progress from thousands of miles away.

Many US donors also find it meaningful to stay connected with the students they help. With their consent, scholars share thank-you notes and progress updates, and some donors choose to speak with their scholars on a video call. It turns a tax-deductible gift into a real relationship with a young person building their future.

Frequently asked questions

Will I get a US tax receipt for every gift?
Yes. Pragati Foundation USA issues a tax receipt for every donation.

Can I give every month?
Yes. Recurring gifts are possible through Pragati Foundation USA.

Where exactly does the money go?
Under the Kind Circle of HOPE, every payment is made directly to the student's college or university.

Do I need to be an Indian citizen?
No. US citizens, green card holders and other US taxpayers can all give.

Tax rules depend on your personal situation, so please confirm the details with your tax advisor.

Start giving

Visit the Kind Circle of HOPE page to learn more, or write to kind@buddy4study.com and we will guide you through giving from the US. For a wider view of all international options, read our guide for NRI and international donors.