NGOs must apply for 12A & 80G Certificate to provide income tax exemption to the donors! It also helps NGOs in availing government funding.
Setting up an NGO is not just a single procedure thing. It requires you to register for a few licenses and oblige them as well. As an NGO, you do generate income which is applicable for taxes. So, filing a certificate for 80G and 12A Registration helps in exempting you from paying the full amount of taxes.
Even for the donors, this certificate benefits as they are exempted from paying taxes on this amount.
Learn more about its various benefits on the website https://corpbiz.io/80g-and-12a-registration