Accounting of Income generated from training center build by FCRA Fund

Respected all

Our organisation is working in Rajasthan on various issues of the area and development issues. We have a training center here in the city built with FC fund. As we hear from here and there that as per the new provision of the FCRA, we can’t  receive  charge/ reimbursement  from outside organisations who want to organise their program here in the training center , These organisations want to organise training from their FC grants. Need guidance from respected members on the actual facts on this issue. How can we receive the charge of training organised : 

  1. If we ourselves organise a training as our program  with  FC Grants of our own organisation.
  2. If we ourselves organise a training as our program  with  Local Grants of our own organisation. 
  3. If an outside organisation organises a training  with FC-l Grants as their program.
  4. If an outside organisation organises with Local Grants as their activities.  

Please suggest us the best possible practice, 

Thanks with regards 

Kamlendra Singh 

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3 Responses to Accounting of Income generated from training center build by FCRA Fund

  1. Selwyn thomas says:

    The income received by renting your building for trainings should be shown as FC income. Then there won’t be any issue.

    Selwyn thomas

  2. Subhash Mittal says:

    Indeed the FCRA amendments have caused innumerous difficulties and confusion to many. Before answering your queries, I feel your submission has several confusions, which should be clarified. You state

    “as per the new provision of the FCRA, we can’t receive charge/ reimbursement from outside organisations who want to organise their program here in the training center”. This is an incorrect assertion, you can certainly charge for training. What amendment in S. 7 has done is stopped ‘transfer FCRA funds’ Entities which wish to organise their programs in your facility are not transferring funds as a Grant, but are utilising for organising a program as per their needs. Now to your specific queries:

    In case you organise a training using FC funds, you can always receive Fees / reimbursement from delegates / participants, including if another organisation pays for them. As in both cases, all the payer is doing that they are not transferring grant to you, but utilising services that you have offered, i.e. of training.

    Let me say, you or any other agency can organise all training programs using whatever funds, as long as these are not grants to you. You should not receive grant from an FCRA registered entity. That is the bottomline.

    Challenge will be funds that you receive whether you can deposit in SBI FCRA A/c.

  3. Subramania Siva says:

    Nothing prevents you from collecting charges for the training centre. If you conduct training in that building and show separate rent for your account, you may show the expenditure either in your FC account or local account, accordingly. If you collect rent from others, either from their FC or local account, you can receive it, but you have to account for it i your FC account ( even in utilisation account), as it is an income derived out of the building constructed out of FC funds. In IT, they have a ceiling for such income and you have to abide by IT rules in that case.

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