Philanthropic donations can pay you monetarily, finds think tank report

India offers two different rates of deduction on its most popular tax incentive scheme (also known as the 80G scheme), 50 per cent and 100 per cent, depending on the recipient

With Budget 2023-24 just months away, a 2021 study based on research of tax incentives and philanthropy in 12 countries, by the Centre for Social Impact and Philanthropy (CSIP) at Ashoka University and the Centre for Budget and Governance Accountability (CBGA), a think tank focusing on public policies and government finances in India, reached interesting conclusions.

When an individual makes a charitable donation, he/she incurs a cost or a price. When there are no tax incentives, the price of giving is the same as the monetary value of the donation. 

Tax incentives reduce a donor’s tax outgo or result in tax savings