FAQs - NGO sector/Charitable Trusts/Charitable Societies


What is foreign contribution?

Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it is treated as foreign contribution?

Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees. What limit has been prescribed in FCRA, 2010 in respect of such articles?

Who can receive foreign contribution?

Who cannot receive foreign contribution?

Whether donation given by Non-Resident Indians (NRIs) is treated as ‘foreign contribution’?

Whether donation given by an individual of Indian origin and having foreign nationality is treated as ‘foreign contribution’?

Whether foreign remittances received from a relative are to be treated as foreign contribution as per FCRA, 2010?

Whether individuals not covered under section 3 or a HUF can accept foreign contribution freely for the purposes listed in section 4 of FCRA, 2010?

Can the fee paid by the foreign delegates/participants attending/participating in a conference/seminar etc. be termed as foreign contribution and thus require permission from FCRA?

Can foreign contribution be received in rupees?

Will interest or any other income earned from foreign contribution be considered foreign contribution?

Whether interest or any other income earned out of foreign contributions be shown as fresh foreign contribution receipt during that year or not?

Can NGOs use the foreign contributions for investment in Mutual Funds and other speculative investments?

Can capital assets purchased with the help of foreign contributions be acquired in the name of the office bearers of the association?

Can an association invest the foreign contribution received by it in profitable ventures and proceeds can be utilized for welfare activities?

Can foreign contribution be received in and utilised from multiple Bank Accounts?

Whether inter-account funds transfer shall be allowed within the multiple accounts that an Association is now permitted to open for the purpose of utilizing the foreign contributions and the level of diligence required on the part of the Banks in this regard?

Can foreign contribution be mixed with local receipts?

Whether expenses like ‘interest paid to bank’, ‘bank charges’, ‘hospitality’ etc. can be included in ‘administrative expenses’?

Is there any restriction on transfer of funds to other organisations?

How would an organisation that is registered or has obtained prior permission under FCRA and intends to transfer a part of the foreign contribution received by it to another organisation would know whether the recipient organisation has been proceeded against under FCRA?

What are the eligibility criteria for grant of registration?

What are the eligibility criteria for grant of prior permission?

Whether the amount of foreign contribution for which prior permission has been granted can be received by an association in installments ?

Whether Banks should allow an association which is applying for registration or prior permission under FCRA, 2010 to open an exclusive FC A/c with INR?

Whether an association should open an exclusive FC A/c before submission of an application for registration or prior permission?