Individual giving and crowdfunding

Individual giving means raising money from people rather than from companies, foundations or government: one-off gifts, monthly donations, appeals, events and crowdfunding. It takes years to build, but it gives an NGO money it can spend where the need is greatest, without depending on one funder’s priorities. Doing it well takes a clear ask, easy ways to give, proper receipts and tax paperwork, care with donors’ data, and the habit of thanking people and telling them what their money did.

This guide is for NGO founders and fundraisers. It covers monthly giving, campaigns and crowdfunding, taking payments, receipts and donors’ tax deductions, anonymous donations, donors’ data, gifts from abroad, and keeping donors.

Why individual giving matters

Most grants pay for a project. Individual gifts are usually unrestricted: you can use them for whatever your objects allow, such as reserves, the core costs grants don’t cover, or a new idea no funder will back yet. They matter most in an NGO’s early years. An independent NGO needs three years of similar work before it can implement a company’s CSR (see how NGOs can get CSR funding), and individuals often carry it through those years.

Local giving is also a sign of trust. When people in your own town support you, funders notice.

Monthly giving

A base of monthly donors is worth more than a stream of one-off gifts, because you can plan around it. Donors can give through UPI AutoPay, a card mandate or a standing instruction from their bank.

• Make a specific ask. Say what a monthly amount pays for, honestly: “₹500 a month buys a girl’s learning materials for a year”, not “₹500 a month changes a life”.
• Make it easy to start, change and stop. People who can pause a gift are less likely to cancel it.
• Report back. A short update every quarter, a yearly report and your audited accounts on your website.

Campaigns and crowdfunding

An appeal asks for money for one clear need, by a set date, with a target: a new centre, flood relief, a year of a programme. Run it through your own website, email and messaging lists, and events.

A crowdfunding platform hosts a campaign page and takes donations online, usually for a fee. Platforms work in different ways, so before you start, ask:

A good campaign has a true story told with consent, a realistic target, regular updates and a thank-you to everyone who gave. Never use images of children in distress, or invent urgency. See telling your NGO’s story.

Taking payments safely

• Use the NGO’s own bank account, never a founder’s or a staff member’s.
• Prefer electronic payments: UPI, bank transfer, card or cheque. A donation of more than ₹2,000 in cash gets the donor no tax deduction (section 133(5) of the Income-tax Act, 2025), so take larger gifts another way. And never accept ₹2 lakh or more in cash from one person in a day: section 186 (formerly 269ST) bars it, with a penalty that can equal the amount.
• Record gifts in kind, such as books or food, but tell donors they don’t qualify for a deduction (section 133(4)).
• Give a receipt for every gift, with the donor’s name, the amount, the date and the mode of payment.

Receipts and donors’ tax deductions

The Income-tax Act, 2025, in force since 1 April 2026, replaced the old section 80G with section 133. For most NGOs:

So don’t promise every donor a tax saving. Many individuals use the default tax regime and can’t claim at all.

The statement of donations. For each financial year from 2026-27, an approved NGO files Form 113 (formerly Form 10BD), the first by 31 May 2027. Donations received in 2025-26 were reported in Form 10BD under the old Act, by 31 May 2026. After you file, the portal generates Form 114 certificates (formerly 10BE) for donors. Each donor is identified by a PAN, passport number, voter ID number or foreign tax number; Aadhaar isn’t on the list in the Income Tax Department’s manual. A late statement costs ₹200 a day, capped at the amount involved, and failing to file can bring a penalty of ₹10,000 to ₹1,00,000. See donation statements and certificates and tax deductions for donors.

Anonymous donations

An anonymous donation is one for which you don’t keep a record of the donor’s name, address and other prescribed details. They are taxed at 30% to the extent that, in a tax year, they exceed ₹1 lakh or 5% of your total donations, whichever is higher. Organisations run wholly for religious purposes are outside this rule.

Keep records wherever you can, including for event collections and small UPI gifts. See corpus, anonymous and other special donations.

Donors’ data and consent

Donor lists are personal data. Under the Digital Personal Data Protection Act, 2023 and the DPDP Rules, 2025, the main duties for organisations apply from 13 May 2027, and charities aren’t exempt. Prepare now:

• Collect only what you need. Ask for a PAN only from donors who want a tax certificate.
• Tell people why. Give a clear notice, for a specific purpose, when you collect their details, and ask separately before sending fundraising messages.
• Keep it safe. Limit who can see donor records, and never share or sell lists.
• Delete what you no longer need, and honour requests to see, correct or erase data.
• Plan for a breach. Affected people must be told promptly, and the Data Protection Board must get a detailed report within 72 hours.
• Children’s data needs verifiable consent from a parent or guardian, which matters if students fundraise for you.

See data protection for NGOs.

Gifts from abroad

Under the Foreign Contribution (Regulation) Act, 2010 (FCRA), an NGO may accept foreign contribution only with FCRA registration or prior permission. According to the Ministry of Home Affairs:

• Indian citizens living abroad (NRIs) giving from their personal savings through normal banking channels aren’t giving foreign contribution. Keep a copy of their passport details to show they’re Indian citizens.
• Foreign citizens, including people of Indian origin who hold an OCI or PIO card, are a foreign source, wherever they live and whatever the currency.

If you have FCRA registration, foreign contribution must arrive in your FCRA account at the State Bank of India’s New Delhi Main Branch. If you don’t, check that your website and any crowdfunding page can’t take gifts from foreign citizens. See who counts as a foreign source.

Thanking and keeping donors

Keeping a donor costs far less than finding a new one.

• Thank people quickly and personally, and send the receipt promptly.
• Tell them what happened: specific, honest results, including what didn’t work.
• Ask how they want to hear from you, and stick to it.
• Invite them in: an open day, a visit, a call with a programme lead.
• Publish your annual report and audited accounts, so donors can see where money goes.

Common mistakes

• Promising every donor a tax deduction.
• Collecting donations into a personal account.
• Keeping no record of donors, so gifts count as anonymous.
• Missing the 31 May deadline for the statement of donations.
• Accepting gifts from foreign citizens without FCRA registration or permission.
• Using people’s photos, or children’s, without consent.