Dear Sir,
This is Sourav Ghosh from Delhi, I have a query regarding the FCRA utilization account. Is it possible to transfer fund to Grant Partner i.e, another NGO main FCRA designated account from our organization FCRA utilization account. I will be highly obliged to you if you please respond by question. Thank you for your support and cooperation.
Regards,
Sourav
While law is silent on this, however it is observed that FCRA Dept has become far more observant of all Utilisation A/cs. It has requested the bankers to be more vigilant of any transfer amongst Utilisation A/cs. As per the FAQ, Dept has asked Bankers to keep a full track of all transactions under FCRA. Hence your partner’s banker may raise objection that funds are not coming from FCRA Account. Also since you are required to intimate details of all funds transferred to NGO Partners in your Annual Return (FC4).
While not forbidden in the rules, it is advised not to use Utilisation A/c for transfer of FCRA funds to another Bank A/c, and that too of another organisation.
Yes, you can, but better to avoid. Technically there is no restriction against. Avoiding is an over cautious approach, which is how you should approach most things in FCRA
As far as I know, you can transfer FC money to another FC-registered NGO, only from your FC main account and not from your utilisation account.
Hi Sourav
You can do so, As per FCRA law, there is no limitation in transferring foreign contribution to another organisation from the utilisation accounts but you should avoid such transaction, if possible. And should try to make a transfer from the Main account. Because the FCRA department also suggests that: ” the Association should preferably avoid such practice for keeping the accounting process simple.”