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

Asha Seva Society holds an FCRA certificate and receives foreign contribution in its New Delhi SBI FCRA Account. It wishes to use the money for its school projects in Odisha through a branch of a scheduled bank near the project site. Which course is consistent with Section 17?

The Society may open another FCRA Account or utilisation accounts in scheduled banks of its choice and transfer funds to them from the New Delhi SBI FCRA Account. Receipt must still occur first in the specified SBI branch account.

  1. AOpen another FCRA Account, or one or more utilisation accounts, in scheduled banks of its choice and transfer the foreign contribution into them from the SBI New Delhi FCRA AccountCorrect
  2. BAsk donors to remit directly into the Odisha bank account
  3. CWithdraw cash and deposit it in a savings account of the Society's trustee
  4. DNot allowed; all spending must be only from the New Delhi branch

Explanation

The provisos to Section 17(1) allow another FCRA Account, or one or more accounts, in scheduled banks of choice for keeping or utilising foreign contribution transferred from the SBI New Delhi FCRA Account. Direct receipt elsewhere is not allowed, and a trustee's personal account is not an account of the person.

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