Dear Sir/Madam,
I got your contact information from your website and have a quick question.
- Can a NRI be on the executive committee of a non-profit organization which is applying for FCRA renewal? This NRI still holds a valid Indian passport, Aadhar card etc.
Thank you so much in advance for your advice.
Best regards,
Seshu
Thank you so much for your befitting answers.
While an Indian passport holding NRI legally can be a member of the Governing Board, practical experience tells us that when field officers try to contact such persons and find that they spend most of their time outside India, the report that they send to MHA is generally adverse.
Yes, an NRI (Non-Resident Indian) can be on the board of a Non-Profit Organization (NPO) registered under the Foreign Contribution Regulation Act (FCRA), subject to certain conditions. Here’s a detailed explanation:
Key Points to Consider:
Eligibility of NRIs under FCRA:
The FCRA does not explicitly bar NRIs from being on the board of an organization receiving foreign contributions.
NRIs are Indian citizens residing abroad, and they are not considered “foreign sources” under FCRA. Therefore, their presence on the board does not directly affect the organization’s FCRA compliance.
Filing and Reporting Obligations:
The NPO must ensure that all statutory filings and disclosures are made accurately. If the NRI contributes funds, the NPO must ensure these are from permissible sources as per FCRA rules.
Practical Implications:
While there is no legal prohibition, the organization must assess the NRI’s ability to actively participate in board meetings and compliance activities, given the possible geographical and logistical constraints.
The NPO should ensure that board members, including the NRI, are fully aware of FCRA regulations to avoid inadvertent violations.
Approval and Registration:
If the NPO is considering having NRIs as board members, it is advisable to inform the Ministry of Home Affairs (MHA) proactively, especially in cases where the NPO’s activities involve significant foreign contributions.
Points of Caution:
Dual Responsibility: Board members of NPOs registered under FCRA hold responsibility for ensuring compliance with FCRA rules. Non-compliance, even inadvertently, can lead to serious penalties, including cancellation of FCRA registration.
Background Check: Ensure the NRI has no affiliations with prohibited organizations or activities under Indian law.
In conclusion, an NRI can be a board member of an FCRA-registered NPO. However, the organization must maintain strict compliance with FCRA rules and ensure proper governance mechanisms are in place. If required, consulting legal experts specializing in FCRA matters would add further clarity and risk mitigation.
While there are no rules or legal provisions prohibiting persons of foreign nationalities from being on Board, etc. However FAQs particularly state that ‘foreign nationals’ should not be on the Board of entities. In case of your query, you have stated that NRI holds a valid Indian Passport, which means s/he is an Indian national, hence can be there on the Board / Executive Committee of a NPO.