The Indian income tax act has a provision that is vital, the 80g registration which allows the non-profit organizations such as charitable trusts, societies and non-governmental organizations to offer donor tax deductions on their contributions. This registration is an indication of being recognized by the income tax department and, therefore, the establishment of the organization as a legitimate charitable organization. In the case of non-profits, gaining the status of 80g is not only a procedural detail but a strategic action that has a major impact on the funding environment. In case the donors know that their donation is tax-deductible, they tend to give generously as they are assured of deductions as stipulated by section 80g of the income tax act. This acknowledgement gives the organization the credibility stamp that guarantees the donors the transparency and compliance of the organization with the regulatory standards. The relevance of 80g registration is not only credibility. It is a booster in raising different sources of funds such as individual donors, corporate sponsors and philanthropic foundations. The reason is that many corporate social responsibility (CSR) activities focus on working with the organizations registered under 80g since it is easy to claim tax benefits. Also, government grants and subsidies tend to be offered to registered charitable organizations which further increase the capacity of the non-profit to raise funds.