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

Lakshmi Foundation's FCRA certificate was cancelled under section 14. It holds Rs 15 lakh of unspent foreign contribution and a building built from it. Who gets custody under section 15?

The unspent foreign contribution and the building created from it vest in the authority prescribed under the Act. Under section 15(1), the cancelled entity does not keep them, and they are returned only if the entity is subsequently registered again.

  1. AThe foundation keeps it for use on non-FCRA activities
  2. BThese vest in the authority prescribed for this purposeCorrect
  3. CThe foundation's trustees may distribute it to similar charities
  4. DIt vests in the State Bank of India branch at New Delhi

Explanation

Section 15(1) vests the foreign contribution and assets created from it, in the custody of a person whose certificate is cancelled, in such authority as may be prescribed. The foundation cannot keep or distribute them; return is only if it is later registered under the Act.

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