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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

Jal Mitra Society, an NGO, wants to receive contributions from a donor in Germany for its village water projects. Under the Indian framework for foreign funding of non-governmental organisations, what must the society ordinarily do before accepting such foreign contribution?

Jal Mitra Society must first obtain registration or prior permission under the Foreign Contribution (Regulation) Act, 2010 and receive the funds in the designated FCRA bank account. Purpose of the project does not exempt it, and police or company registrar intimation does not substitute.

  1. AObtain registration or prior permission under the Foreign Contribution (Regulation) Act, 2010 and receive funds in the designated bank accountCorrect
  2. BOnly inform the local police station within thirty days of receipt
  3. CObtain approval from the Registrar of Companies
  4. DNothing, because contributions for water projects are always exempt

Explanation

An NGO accepting foreign contribution generally needs FCRA registration or prior permission and must receive the money through the designated account. Intimation to police or the Registrar of Companies is not the regime, and there is no blanket exemption for water projects.

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