Can any FCRA registered NGO receive donation from an individual/person who is working abroad having NRE account in India? If yes, what are the terms and conditions will apply to the NGO who will receive the donation and person who is donating?
Please advice.
Thanks,
Randhir
Can we deposit donations received in foreign currency from NRIs in cash or by cheque from a foreign bank in normal account of NGO or it has to be deposited in FCRA account only? Please advise. Thanks.
FCRA 2010 covers foreign contribution which is defined in section 2 clause (h) to mean the donation, delivery or transfer made by any “foreign source”.
Per clause (j) “foreign source” includes in its sub clause (x) a citizen of a foreign country. Therefore only if a person of Indian origin holds a foreign passport then only shall fall within the ambit of foreign source and the donations received from such individual be regulated under FCRA.
Typically, when we say Non Resident Indian, it postulates an Indian residing overseas but holding Indian Citizenship. Hence, will fall outside the scope of foreign source thus donation from such individual will fall outside FCRA. However, it is advisable to take a copy of the passport of donor while receiving donations. FAQs in Ministry website also confirms so.
Dear Randhir, I feel your query has already been answered. All I will say is that as FCRA registered NGO you can receive donation from anyone. All you need to do while receiving any donation is obtain proof of their citizenship (copy of passport), particularly when you are depositing the funds in FCRA Account.
Dear Sir,
In FCRA it is not the currency in which Donation is to be received which is relevant for the purpose of coverage.It is the source more particularly foreign source as defined in Sec2(1)(j) of the FCA 2010 which will decide the coverage or otherwise. IN MY OPINION THE IN the instant case coverage of FCRA is not there.
If the donor gives in foreign currency or cheque, it could be accounted for in FC account. If he gives cheque from his NRI account in India, it could be deposited in the local account of the NGO.
If the donor is an Indian passport holder, his donation- even in foreign currency or from a foreign bank or from a foreign location- would be treated as local donation and not foreign contribution. His donation from the NRE account in India will also be local donation. All such donations from the NRI having Indian passport would have to be deposited in the local account of the NGO. The FCRA registered NGO is free to receive such donations the way it is free to receive donations from any Indian donor.