Section 80g of income tax act offers tax deductions to individuals or companies that make donations to prospective charitable trusts, ngos or institutions. Donors are allowed to deduct 50 to 100% of the donation made by them, depending on the approval status of the organization. This minimizes tax liability incurred by the donor, as well as enhances social responsibility. In the case of the ngos, 80g registration is a source of credibility, increased donations and adherence to government standards with more fundraising efforts.