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CS Professional · CSR and Social Governance · Foreign Funding to Non-Corporate Entities

Anand Education Trust received foreign contribution in its FCRA Account at the specified SBI branch in New Delhi. It now wants to use the money at its Nagpur school. Under Section 17, which step is permitted?

The trust may open another FCRA Account in any scheduled bank of its choice to keep or utilise the contribution received in the New Delhi account. It cannot deposit local fee income into FCRA accounts, and personal accounts of trustees are not permitted.

  1. AOpen another FCRA Account in a scheduled bank of its choice for keeping or utilising the contribution received from the New Delhi accountCorrect
  2. BTransfer the money to a trustee's personal savings account for utilisation
  3. CDeposit its local fee income into the New Delhi FCRA Account to ease reconciliation
  4. DUtilise the funds only from the New Delhi account and never open any other account

Explanation

The first proviso to Section 17(1) lets the person open another FCRA Account in any scheduled bank of choice for keeping or utilising contribution received in the New Delhi account. The second proviso allows utilisation accounts in scheduled banks. The last proviso forbids depositing non-foreign funds, so fee income cannot go in. Utilising only from New Delhi is not required.

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