Every NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration doesn't provide any benefit to the persons making donations. The Income Tax Act has certain provisions which offer tax benefits to the "donors". Under Sec 35 AC of Income Tax Act, a donor can receive 100% rebate of Income Tax on any amount of donation. The objective of the said provision is to encourage business organizations and wealthy individuals to contribute more in social and economic welfare of general public. Thus NGOS can raise millions of rupees for approved projects under 35 AC of Income Tax Act leading to mutually beneficial relationship between corporate sector and civil society.The Central Government has constituted a National Committee to identify projects and schemes to be notified under section 35AC, such committee normally consists of eminent persons. All NGOs are entitled to apply to the National Committee to get its projects or schemes approved.
http://www.brngoconsultancy.in/35-ac.php