Skip to content

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

Navjyoti Society's FCRA registration was cancelled under section 14. At that time it held ₹18 lakh of unspent foreign contribution and a vehicle bought from foreign funds. What happens to these under the Act?

The unspent foreign contribution and the assets created from it vest in the authority prescribed under the Act after cancellation. That authority must return them to the Society if it is subsequently registered under the Act. The Society itself does not keep them.

  1. AThey remain with the Society, which must spend them within one year
  2. BThey must be distributed among the office-bearers in proportion to their service
  3. CThey vest in the authority prescribed, and are returned to the Society if it is later registered under the ActCorrect
  4. DThey automatically pass to the donor abroad

Explanation

Section 15(1) provides that foreign contribution and assets created from it in the custody of a person whose certificate is cancelled vest in the prescribed authority. Section 15(3) requires the authority to return them if the person is subsequently registered under the Act. The Society cannot keep them, and nothing sends them to donors or office-bearers.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Funding to Non-Corporate Entities shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Funding to Non-Corporate EntitiesFree diagnostic mock

More Foreign Funding to Non-Corporate Entities questions