Engagement of foreign citizens in NGOs/Board

Posted on November 6, 2014 by SRRF

Dear Sir,

This is to obtain a clarification as to whether –

1) Foreign nationals can be enrolled on to the Governing Board of NGOs who are foreign contribution recipient.

2) Similarly, whether foreign nationals can be appointed to a position of Chief Executive/Executive Director to the NGO who is foreign contribution recipient and can be paid remuneration.

Thanks & Regards,

T.K.Mathew
Secretary & Chief Executive
Deepalaya
46, Institutional Area, D-Block, Janakpuri
New Delhi-110 058

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3 Responses to Engagement of foreign citizens in NGOs/Board

  1. Subhash Mittal says:
    November 14, 2014 at 6:54 am

    Dear Mr Mathew,

    Thank you for your particiapting in this forum.

    Legal aspects of the question raised by you are covered under Section 12 (4) of the FCRA Act. This provision specifies the conditions under which an application of registration / prior permission is likely to be rejected. These include if the person applying is benami (ficitious), has been prosecuted for conversions, prosecuted for communal disharmony, involved in sedition or violent methods, found guilty of diversion or mis-utilisation of funds, used funds for personal purposes, contravened FCRA or any other law.

    Thus it can be seen that FCRA has huge powers to deny FCRA registration. However under no provision (either under the Act or under rules) it prohibits that organisations who have foreigners on their Board would be denied FCRA registration / permisison. But the Dept has been generally rejecting cases for foreign citizens for a number of years. Now this practice has been codified under FAQs available on website (see FAQ No. 105).

    However even this FAQ restricts only non-Indian origin foreigners. Thus Indian origin foreigners, who have acquired foreign citizenships are permitted. Therefore on practical ground, the best way our experience suggests that if an NRI having foreign citizenship has a PIO card, and his inclusion can be justified on grounds of his status / contribution, dept would generally allow Indian origin persons to even hold executive positions. In past we have managed to get permisison with non-Indians on Board, as long as they were not holding any executive position on the Board / organisation.

    Hope the above clarifies, what you wanted to know.

    I also hope that this is not a one-time participation by yourself and the forum here will benefit from your vast expereience in the development sector by regular particiaption.

    warm rgds

    subhash

  2. Dr. O. P. Kulhari says:
    November 10, 2014 at 6:25 am

    Dear Members
    I agree with the response of Mr. Mathew regarding engagement of foreign citizens in the NGO.
    Thanks & with regards.
    Dr. O. P. Kulhari
    Secretary
    CULP, Jaipur

  3. B V Soma Sastry says:
    November 8, 2014 at 6:34 am

    Dear Mr. Mathew,

    There is no blanket restriction on the appointment of foreign national to the Board. The following conditions have been imposed by FCRA 2010:

    1. The foreigner is married to an Indian citizen
    2. The foreigner has been working in India for at least five years
    3. The foreigner has specialized knowledge on medical and health related fields
    4. The foreigner is ex-officio in terms of an inter governmental agreement
    5. The foreigner is an ex-officio from a multilateral body which is exempted from the definition of foreign source

    There is no restriction on payment of remuneration as long as the GB/BoT approves such payment.

    Thanks and regards,

    B V Soma Sastry

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