Limit for transfer of Sub-Grant to FCRA Registered Organisation

Posted on July 19, 2013 by SRRF

Following query received form Pragya:

Our Organisation is FCRA registered organisation . We give sub grants to other FCRA registered Organisations. Is there any limit of transferring of funds (as grants) to registered organisation. In Sec 7 (Rule 24), it is mentioned we can transfer sub grant to private trust or non-FCRA registered organisation after approval from Department not exceeding 10% of total FC receipts during the year. Do, this means that there is no limit for Grants released to FCRA registered Organisation.

Looking forward for your response.

Regards

Pragya

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3 Responses to Limit for transfer of Sub-Grant to FCRA Registered Organisation

  1. Subhash Mittal says:
    July 23, 2013 at 2:00 pm

    Dear Pragya,

    The limit you rightly refer to is only on non-registered organisations which is covered by rule 24(4). Registered organisations are covered by Rule 24(2), while there is no limit in these cases, you need to ensure that registered organisations to whom you are transferring funds are not being proceeded against. In this regard, you may refer to a clarification letter issued by the Dept. to SRRF. It is available on web-site. Link: http://www.srr-foundation.org/workshop/16_June_11/Clarification_Rec%27d.pdf

    What I would suggest that to keep yourself safe, please take an undertaking from the organisations that you are transferring funds to that it has nether been proceeded against nor any proceedings are pending against it or any of its office bearers under FCRA.

    warm rgds

    subhash

  2. Ashok Shamala says:
    July 22, 2013 at 7:45 am

    Dear Friends

    I have red the FCRA 2010 Rules book, it is right .

    With Best Regards
    Ashok.Shamala
    CEO-CRIDA-INDIA

  3. B V Soma Sastry says:
    July 22, 2013 at 7:37 am

    Dear Pragya,

    Greetings from Hyderabad!

    There is no limit on the transfer of funds as sub grants to organizations registered under FCRA. The clause under Sec 7 (Rule 24) that you are mentioning was in the rules originally released by MoHA on 29.04.2011 w.e.f. 01.05.2011.

    Subsequently MoHA came up with a clarification on the issue stating that organizations registered under FCRA can receive funds subject to the condition that recipient NGO was not proceeded under the FCRA since the date of its registration under the Act.

    So far as the unregistered organizations is concerned, FC-10 has to be filed and permission sought from MoHA for transfer of funds. The organization transferring funds in such manner cannot transfer more than 10% of the FC funds received by them in the FY.

    I hope this clarifies the point.

    Thanks and regards,

    B V Soma Sastry

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