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

Jan Vikas Foundation, registered under FCRA, receives foreign contribution and decides to pass part of it as a grant to Gram Utthan Samiti, a smaller local NGO that lacks registration, to carry out a project. Under Section 7 of the FCRA, 2010, what is the position?

The transfer is prohibited. Section 7 says a person registered or holding prior permission under the Act, who receives foreign contribution, shall not transfer it to any other person, without any exception for size or the charitable nature of the recipient.

  1. AAllowed if the grant is below half of the amount received
  2. BAllowed if the Foundation informs the bank
  3. CAllowed if the Samiti is a charitable body
  4. DProhibited; a person registered or with prior permission who receives foreign contribution shall not transfer it to any other personCorrect

Explanation

Section 7, as substituted in 2020, states that no person who is registered or has prior permission and who receives foreign contribution shall transfer it to any other person. It contains no percentage threshold or charitable-purpose exception, so options with such conditions are wrong.

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