Donation from MNC – Local or FCRA?

Posted on November 30, 2011 by SRRF

Dear all,

We have received donation by cheque in Indian Rupees from an Multi National Company incorporated in India. Should this donation treated as an FCRA donation or a local donation.

Thanks & Regards,

Arvind Balamkar
Finance Associate
for TeachForIndia 9324827344

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7 Responses to Donation from MNC – Local or FCRA?

  1. B V Soma Sastry says:
    November 30, 2011 at 9:19 am

    Dear Arvind,

    Greetings from Hyderabad!

    The character of the funds will be decided based on the share holding pattern of the multinational company. If more than 50% of the stake holding in the company is of foreign national or institutions, the fund will be treated as FC.

    Thanks and regards,

    B V Soma Sastry

  2. Sailendra says:
    November 30, 2011 at 6:53 am

    Dear Arvinda Ji,

    Good morning!!!

    As per my knowledge it depends on the source of Donor. i.e

    1. If the donor receives funds from outside India & give donations from that money then it is treated as FC donation.
    2. If the 51% of share holders are foreigner then it should be treated as FC donation.
    Thanking you.

    With regards,
    Sailendra.

  3. Chandrakant Deshpande says:
    November 30, 2011 at 6:51 am

    Dear Arvind,

    The donation treatment would depend on the ownership/shareholding of the MNC if more than 50 % shares/ ownership are held outside India it will be a foreign contribution, and if more than 50% shares are in India it will become a local donation.
    You can also refer to the FAQ section on the FCRA website for more clarification.

    Regards
    Chandrakant Deshpande

  4. N.M.VALAN says:
    November 30, 2011 at 6:48 am

    Dear Aravind,

    Greetings from Valan!

    Thank you very much for your question.When you are recd money from the Multinational company towards the donation.You may recd a letter from the party along with cheque ,if the cheque is saying the money from the foreign source you can treat this money as a Foreign Contribution,if the letter is not saying anything you can treat this Indian Conribution .If you are not recd any letter from the party along with cheque ,Kindly ask the letter immediately for documentation purpose .You may not know which shows they given the money .If you have recd a letter from the party you share the contend to the all the people after that we will will give you details that money is FC or IC.

    Regards

    N.M.VALAN
    Manager- Admn.Finance
    Caritas India,CBCI Centre,1 Ashok Place,Gole Dakkanna,New Delhi – 110 001
    M.No.09811766178,Tel.No.011-23363390-.Ext.No.-211,23742339
    Fax.+91-11-23715146/23367488,valan@caritasindia.net,www.caritasindia.org

  5. ARD Gudur says:
    November 30, 2011 at 6:36 am

    local donation

    SK.BASHEER,
    Secretary,
    Association for the Rural Development(ARD)
    D.No.15/286, Valayanandapuram,
    Gudur – 524 101,
    SPSR Nellore Dt., Andhra pradesh
    Phone: 08624 250066, Cell:9533770999
    Email: ard.gudur@yahoo.com

  6. Anup Khosla says:
    November 30, 2011 at 6:32 am

    FCRA if shareholding is more than 50% by foreigners.

    Regards,
    Anup Khosla
    Sent from my iPhone

  7. Surya Prakash Loonker says:
    November 30, 2011 at 6:27 am

    Have to check with the company if they are owned more than 50% by foreign entities at the time of making the grant. They will issue a letter saying if this money is to be treated as foreign money or indian money. If it is a public company, then u can also find shareholding of their company on the internet but that might be outdated. So best to check with company their shareholding structure at time of grant.

    Surya Prakash Loonker

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