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

Sahyog Trust, an FCRA-registered NGO in Pune, has received a foreign donation. Its treasurer proposes depositing the foreign money in the Trust's regular savings account in a local scheduled bank, along with domestic donations, for convenience. Under the FCRA, 2010, what is the position?

Not permitted. A registered NGO must receive foreign contribution only in a designated FCRA Account at the specified State Bank of India branch in New Delhi, and no funds other than foreign contribution may be received or deposited in such accounts.

  1. APermitted, since any scheduled bank account may hold foreign contribution
  2. BNot permitted; foreign contribution must be received only in the designated 'FCRA Account' in the specified State Bank of India branch at New Delhi, and no other funds may be deposited in itCorrect
  3. CPermitted if the domestic donations are shown separately in the books
  4. DPermitted for amounts below the prescribed limit

Explanation

Section 17 requires a certificate holder to receive foreign contribution only in an account designated 'FCRA Account' in the specified SBI branch at New Delhi. The proviso bars depositing any funds other than foreign contribution in such accounts. Mixing it with domestic donations in a regular account breaches this.

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