Dear Dialogue Members,
We are a NGO (Pratham Books) works towards development and distribution of high quality children books in multiple Indian languages. We have an online platform to raise money “Donate a Book” (https://donateabook.org.in/). As of now, we are accepting only Indian Donations and have linked our Non-FC (domestic) Account to it. But now, lot of foreign donors are showing interest in donating to our various campaigns. I have a few queries (from statutory point) on this:
- Can we link our FC Account and start accepting foreign donations through on-line.
- Is there any paper work required for the same
- Is there any specific guidelines under FCRA Act which needs to be followed while accepting foreign donations on-line.
Looking forward for your valuable response.
Regards
Pragya Thakur
Dear Pragya, Please be very careful in going to use, infact you are already using online for non-fc transactions. The primary reason is that you would be having donors data in your system which is very critical and needs to be handled with utmost precautions and security controls. This falls under the IT(informatio technology) Act for which IT audit is also a mandatory thing. Other than that you need to have PCI-DSS certification if you are storing banking details of donors in your online or offline system. For more clarity on this, do refer IT Act and for clarity on information you need to have about donors in online portal, visit websites of prominent INGOs.
Thanks
Thanks Rajeev, a very practical advice.
Hello Pragya, It is after a long time that you have appeared on these pages. Welcome.
Regarding your query, I think both Shiva & Soma have already summarised I provide a point by response to your query.
1. Yes you can link FCRA account for online donations, provided your bankers allow it. I understand bankers have some reservations and you will need to work with them in this regard.
2. Regarding paperwork (or can I say precautions) that one needs to take are, (1) ensure that proper identity of the donor, alongwith proof of identity is disclosed, before the donor makes payment.
3. No FCRA Dept has not come out with any guidelines per se re online donations.
However please do take adequate precautions in this regard, I know Aam Adami Party used to have online donations facilities, however they had to take it off, after FCRA authorities questioned them regarding foreign donations.
warm rgds
Thank you all for your valuable inputs. Really being part of this group is great help for me.
Regards
Pragya
You may ask your foreign donors to send the money to your FC account only.You may also collect their full details including name, address, nationality, e-mail ID, the bank account details through which they are sending the donation etc., as all they details are now being asked by the FCRA department about the foreign donor. Your may furnish the details of funds received thus through FC-6 annually (or quarterly as per the new amendments being proposed)
Dear Pragya,
The FC account can be linked to online donation. It is important to note that FC money can be received only through banking channels. It is also important that we have to track the donors. Also, it is difficult to trace the donors to avoid the mixing of FC and NFC funds. Some amount of mechanism needs to be developed to check this.
Thanks and regards,
B V Soma Sastry