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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Sarvodaya Trust receives foreign contributions and is registered under the Foreign Contribution (Regulation) Act, 2010. Which accounting requirement flows from that Act?

A trust registered under FCRA must keep separate accounts of foreign contributions received and utilised, receive them in the designated bank account, and file annual returns. It cannot mix them freely with local funds or skip reporting.

  1. AIt may mix foreign contributions freely with local funds in any bank account
  2. BIt must maintain separate accounts of foreign contribution received and utilised and file annual returnsCorrect
  3. CIt is exempt from maintaining any account of such receipts
  4. DIt need only report foreign receipts when asked by the trustees

Explanation

The FCRA framework requires a registered person to keep separate books of account for foreign contribution, receive it in the designated bank account, and file annual returns of receipts and utilisation. Mixing funds or having no reporting contradicts these requirements.

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