News accounts from the past week noted that India is in the midst of a growing COVID-19 crisis. On Monday, India reported over 350,000 new cases. Cumulatively, more than 17 million cases have been identified since they began taking count. As reported, some experts believe that the actual total may be close to half a billion. As vaccine distribution in India started in January, this second surge was not expected. While all age categories are being impacted, this latest spike is also hitting a larger number of younger people. Some urban areas like New Delhi are seeing significant numbers. Hospitals are experiencing over-capacity demands and oxygen is in short supply in some areas. For donors seeking to help India as it battles these pandemic challenges, BBB Wise Giving Alliance offers the following advice. 

Indian Restrictions on Foreign Donations

New government regulations, the Foreign Contribution Regulation Act, that took effect in India in September 2020 place limitations on the use of foreign donations:

• A foreign grant made to an Indian charity cannot be passed along and sub-granted to another organization. This will limit the ability of recipients of foreign donations to extend their reach in other communities.
• All Indian charities are required to establish a new bank account at the State Bank of India that will solely be used to receive foreign donations. Information on the contribution and its intended use is reported to the central Indian government.
• India also further restricted the limit on the way charities use foreign gifts. Only up to 20% of the amount received can be used for administrative/overhead expenses of the recipient Indian charity. (Previously the limit was 50%.)

Crowdfunding

See this previous Wise Giving Wednesday blog for tips on supporting crowdfunding efforts. In general, it is much more difficult to verify the trustworthiness of individuals than it is to assess charities. Remember to review the rules and procedures of crowdfunding sites as they do not all operate in the same way. See if the posting is specific on how funds will be used and if it will update supporters about the activities as they are implemented. If the funding specifies support will go to an established charity, see the new Indian government regulation restrictions noted above and also consider supporting the referenced charity directly by visiting its website as well as Give.org to see if the charity has been evaluated in relation to the BBB Standards for Charity Accountability.

Tax Deductibility

In general, only contributions to a U.S. based charity that is tax-exempt under section 501(c)(3) of the Internal Revenue Code would be deductible as a charitable gift for federal income tax purposes. Donations given directly to an Indian based charity or to an individual collecting funds on a crowdfunding platform would not be deductible.

The following BBB Accredited Charities (i.e., meet the 20 BBB Standards for Charity Accountability) report to have programs providing assistance in India. Visit the websites of these charities to learn more about the nature of these efforts. (For information on Canadian-based charities, check with the Canada Revenue Agency.)

CARE USA
Catholic Relief Services
Direct Relief
GlobalGiving Foundation
International Medical Corps
Lutheran World Relief
SEWA International

Video of the Week

As part of our Building Trust Video Series, we are pleased to provide a video featuring an interview with Beth MacNairn, Deputy Director, Health Volunteers Overseas (a BBB Accredited Charity) that works to address the global health workforce crisis by implementing programs that meet the needs of the host country and institutions, are sustainable, and build local capacity. The organization states that its volunteers provide clinical and didactic education through continuing education and degree granting programs, faculty and staff training, mentoring, education material development, and professional collaboration.

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.

H. Art Taylor, President & CEO
BBB Wise Giving Alliance