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The NGOs can not take foreign contribution directly. For this function they must be registered under the Foreign Contribution Regulation Act 1976, commonly referred to as the FCRA.
There can be two types of contribution from the foreign source, i.e. one time or anticipated more than as soon as as well as regularly. For any one time contribution the NGOs can get the amount by seeking prior authorization of the FCRA Area of the Ministry of House Affairs, Government of India; whereas for regular and multiple contributions of the foreign source it is suggested to seek long-term registration from the said Ministry.
For this purpose an application is to be made by the NGO, which need to be in working for at least 3 years after its due registration, to the Secretary to the Government of India, ministry of Home Affairs, 26 Mansingh Roadway, New Delhi Ã¢EUR" 110003 in the recommended Form FC-8 along with the wanted enclosures (Certificate of Registration, Memorandum and Rules or the Trust Deed or other proof of registration, audited monetary statement and activity report of the least three years, and if possible letter of the prospective donor.
The Ministry sends out the accepted application to neighborhood intelligence people for confirmation of the credentials and records of the organization. On their favorable remarks, the FCRA Section of the Ministry problems the Certificate of Registration to the candidate company.
It is important to receive foreign contribution just in one designated savings account. The candidate company need to open a fresh bank account with the objective to operate it for such funds and discuss it in the application. The said Ministry will straight notify the worried bank to keep watch on the use of the foreign contribution and report back to the Ministry in case of any inconsistency.
The companies signed up under the FCRA have to preserve separate accounts sustained under the FC head and submit a return in the suggested format to the Ministry together with the audited statement of accounts of the previous year by 31 July every year.