NGO should take following steps after receiving donation u/s 80G
1. Issue Receipt to donor: Recipient NGO must issue a receipt for donation received u/s 80G. The receipt must contain the name and address of the NGO along with Registration Number allotted by Income Tax Department, the name of the donor, the amount donated (please ensure that the amount written in words and figures tally with each other).
2. Produce photocopy of 80G certificate: NGO should give Xerox copy of 80G Certificate to donor along with the receipt of donation if it is demanded by donor.
3. Only donations in cash/cheque are eligible for the tax deduction: Donations in kind do not entitle for any tax benefits. For example, during natural disasters such as floods, earthquake, and many organizations start campaigns for collecting clothes, blankets, food etc. Such donations will not fetch donor any tax benefits.
