NGO Receiving
Donation from Outside India
ü
There are certain restrictions for
NGOs to receive donation from outside India
NGO need to
have either prior permission or registration under FCRA.
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In order to receive contribution in
any kind or currency from foreign sources NGO needs the approval from Indian
government which is called prior permission or they have to register under FCRA
(foreign contribution regulation act) .
Foreign source
includes:
a)
The Government of any foreign country
or territory and any agency of such Government.
b)
Any international agency, not being
the United Nations or any of its specialized agencies, the World Bank, International
Monetary Fund or such other agency as the Central Government may, by
notification in the official Gazette, specify in this behalf.
b)
c)
A foreign company within the meaning
of the section 591 of the Companies Act, 1956 (1 of 1956), and also includes-
a. A company which is a
subsidiary of a foreign company.
b. A multi- national
corporation within the meaning of this Act.
d)
A corporation, not being a foreign
company, incorporated in a foreign country or territory.
e)
A multi-national corporation within
the meaning of this Act.
f)
A company within the meaning of the
Companies Act, 1956 (1 of 1956), if more than one-half of the nominal value of
its share capital is held, either singly or in the aggregate, by one or more of
the following, namely:
a. Government of a foreign
country or territory.
b. Citizens of a foreign
country or territory.
c. Corporations incorporated in
a foreign country or territory.
d. Trusts, societies or other
associations of individuals (whether incorporated or not), formed or registered
in a foreign country or territory.
g)
A trade union in any foreign country
or territory, whether or not registered in such foreign country or territory.
h)
A foreign trust by whatever name
called, or a foreign foundation which is either in the nature of trust or is
mainly financed by a foreign country or territory.
i)
A society, club or other association
of individuals formed or registered outside India
j)
A citizen of a foreign country, but
does not include any foreign institution, which has been permitted by the
Central Government by notification in the Official Gazette, to carry on its
activities in India
Any
organization, which has a 'definite cultural, economic, educational, religious
or social program', is covered by FCRA. For practical purposes, this definition
covers all NGOs and also the unregistered societies like Mahila Mandals. NGO
with FCRA registration or prior permission should not give FCRA funds to NGOs
which do not have FCRA registration or prior-permission. NRI donations to an
Indian NGO may be Indian funds or FC funds. If the NRI holds an Indian
passport, then the donation will be Indian funds. If not, then these will be FC
funds. The type of bank account or currency does not matter.
From
donor point of view, the following guidelines will be helpful in deciding whom
to donate and what are the implications:
ü
If you are holding Indian Passport,
you are free to donate to any NGO registered in India
ü
If you are a non-resident Indian, not
holding Indian Passport, you can donate to NGOs that registered under FCRA.
Your donation will be treated as of foreign source.
ü
If you wish to donate an NGO that is
not registered under FCRA, you may give a letter of intention to donate a
specified amount for a specific purpose/program of the NGO to the Central
Government of India and the NGO. NGO need to apply for prior permission, under
FCRA act, by attaching your letter of intention. Once prior permission is
received by the NGO, then that NGO is eligible to accept your donation.
ü
If you are a citizen of any country
other than India
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Please verify the NGO for FCRA
certificate before you donate.
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