Dear Friends,
Prior permission letters specify number of and amount of each instalment to which Bank Managers decide to stick. Project holders seek funds based on action plan dictated by the seasons and community preparedness and convergence possibilities Bank’s insistence on instalments as defined in the prior permission letter.
What is the NGO supposed to do!
Udayashankar
Dear Friends,
FCRA began the new practice of mentioning cash flow plan as per their own understanding unrelated to the details given in FC-3B, in prior permission letters and the same are share with concerned Banks. They may not be doing it in all the cases. Concerned Bank Manager had shown few other such letters concerning other NGOs.
The case I am associated with did not give cash flow plan in FC-3B.
FCRA should be insisting on only details required in FC-3B, as Sri Subhash Mittal rightly mentioned.
At a loss to understand how to go about such a case to convince FCRA for enhancing the ease of doing poverty alleviation works. FDI for profit seems relatively hassle free compared to FDI / Foreign Grants – not for profit!
Udayashankar
Prior Permission application FC-3B only asks for total amount of Foreign Contribution committed, brief details of project & main budget lines. It does not ask for cash flow at all. Hence unless entity has voluntarily disclosed these details such details are not required by FCRA authorities.
In the given situation, the banker can be informed that there is change in the cash flow plan and while donor remains committed to the commitment made, changes in fund-flow would take place.