Socio Research & Reform Foundation

Dear Sir,

I am Finance Manager at an NGO.  

We maintain Books of Account for All Donor Project wise separate for each donor.

Now we had an Community event  (Six Monthly /Yealry). We had booked Event Expense in one head ” Community Event Expenses Sep-20″. This Expense include Travel Expenses , Food and Snacks, Flower bouquet, Supplies etc. All with each and every bill attached with proper Excel Sheet details. Now Auditor raised query that we should book Expenses “Nature wise” Like for- Food Expenses , Travel Expenses, Transport Expenses, Supplies expense all this in different Head Under Community Event Expenses. We told them we could not do so as their are many recurring program expenses at different project’s and diffreenet Funder.

Please Advice is their any specific requirement to provide the Expenditure Nature wise also to CA/Auditor laid by ICAI.

Thanks

Amar

This is just a reminder to those who have not yet filed their FCRA Annual Return (FC-4) for the Financial Year 2019-20.

“Please note last date for filing FC-4 is 30^th June 2021”

Applications for Annual Return have to be filed online, considering huge rush gathering, DON’T WAIT FOR THE LAST DATE. As often on last date one may face heavy traffic, and may not be able to access the website so easily.

Some important points to be taken care of before filing of FC-4 FY 2019-20 were as follows:

1. You can file this return, only if your organisation has been able to open FCRA Designated bank a/c in SBI, Main Branch, Parliament street, New Delhi- 110001.
2. Organisation must have Darpan unique ID before filing FC-4
3. FC4:
   1. Donor-wise details of FC rec’d
   2. You would need to give project-wise details including opening balance, receipts, utilisation and closing balance. Please ensure total of these details matches with other figures in the return.
   3. Total exp. on objects of your Association and Administrative Exps.
   4. Total purchase of Fresh Assets (during the year)
   5. FC transferred to other Associations during FY 2019-20
   6. In the Final Form Total Utilisation is auto-populated (e). This includes     (b) Total utilisation including Admin Expenses + (c) Total purchase of Fresh Assets + (d) FC Transferred to Other Association. Pl ensure e=b+c+d.
4. Documents required for filing FC- 4:
   1. Duly sign CA Certificate.
   2. Declaration to be sign by the Chief Functionary.
   3. Audited FCRA Financial Statements for the FY 2019-20. Pl ensure figures match with total figures declared in FC4.
   4. FCRA bank a/c statements duly certified by the banking officer.
   5. You may add any other document considered necessary by you.

Wishing you all the best in filing your Annual Return correctly and in a timely manner.

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Socio Research & Reform Foundation (NPO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

This is just a reminder to those who have not yet applied for renewal of their 12A & 80G certificates. Please note last date for applying is 30^th June 2021.

If not applied by that date, your existing registrations of 12A and 80G will no longer be valid, unless the government gives special extension.

Applications for renewal have to be filed online, don’t wait for the last date. Often on last dates one may face heavy traffic, and may not be able to access the website so easily, so the suggestion is that please complete the task of filing the returns at the earliest.

If you require any urgent help in this regard, please contact at mobile: 9350184168 or e-mail at “socio-research@sma.net.in”.

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Socio Research & Reform Foundation (NPO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

As we all know, FCRA 2020 made some fundamental amendments, and now it is not possible for a NGO to transfer Foreign Contribution (FC) including in kind Foreign contribution to another NGO. The pandemic has resulted in a lot of support for India worldwide, and a large amount of donations both in money and in kind have been rec’d. The in-kind donations mainly consists of essential medicines, oxygen supply equipment, ventilators, beds, etc. Several NGOs have been raising queries, if they can transfer these equipments, etc. to other charitable or Govt hospitals, considering the amendment under S.7 has taken away the power of transfer of FC (incl. In-kind assets) to other agencies. This is a real dilemma for most NGOs on how to provide succor relief to people in current situation.

Many NGOs have health improvement objectives included in their Trust Deeds/byelaws, though many may not be running hospitals. Does the FCRA amendment mean that such NGOs now cannot fulfil their health related objectives with FCRA funds. I believe this is not a correct position. Section 8(1)(a) of FCRA Act shows the way. Although overall section relates to Speculative & Administrative purposes, however the initial part of the section states ‘Every person, who is registered and granted a certificate or given prior permission under this Act and receives any foreign contribution,

(a) shall utilise such contribution for the purposes for which the contribution has been received ……..’.

The above clearly lays down method on how an NGO which receives FC can utilise the same. It should be utilised for the purposes for which it was received. Thus the two important terms, which arise from S.7 & S.8 are ‘Transfer’ and ‘Utilization’. The amendment though it has prohibited transfer, howeverit does allow utilisation.

It is upto an NGO how it formulates its project, so that FC is utilised and not transferred.

Example: Some NGOs have indicated that they have rec’d the FC in kind, for enhancing healthcare infrastructure. Say oxygen plant has been rec’d. Obviously the NGO unless it itself is running a hospital cannot install the plant, however if the purpose of the grant is to enhance healthcare infrastructure of Hospitals, what stops it to actually implement a project enhancing such infrastructure. It could give such Oxygen Plants or ventilators to the Hospitals, with certain safeguards. For the NGO, utilisation takes place, as soon as it installs the Plant at the Hospital. Or a ventilator is given to the Hospital to enhance its capacities at the ICU. The NGO will record its project expenditure as soon as it hands over these equipment to the Hospitals. This can be treated as Utilisation of FC and not transfer. Thus the project that the NGO formulates is for ‘enhancing infrastructure of Hospitals’. In other words for the NGO the direct beneficiaries of the projects are Hospitals.

To whom all an NGO could give such benefits to? Obviously the NGO would give these to Hospitals. My suggestion is that the beneficiaries of such a project should be Govt Hospitals, as most Govt hospitals are exempt from FCRA provisions due to the Notification No. SO 459E dt 30^th January 2020, as long as they are subject to compulsory audit by CAG or its agencies. In this regard most Govt hospitals are subject to audit by CAG/AG.

Can the NGO give these to other Hospitals run by Charitable agencies? While I believe if the objective of the Project is to enhance infrastructure of Hospitals, and if the project is properly formulated, this may be considered. However, considering FCRA amendment has directly prohibited transfers to FCRA registered charitable entities, therefore to be safe, it should not consider such charitable hospitals and focus only on Govt Hospitals eligible under above referred Notification.

Disclaimer: It may be stated that the above views are of Shri Subhash Mittal not of SRRF. These have been given for general awareness of SRRF Dialogue members and do not form any contractual relationship between the SRRF or opinion giver or the person/s receiving these information or anyone taking action based on the same. It should not be relied upon as a substitute for detailed advice or a basis for formulating business decisions.

If you find the above information of relevance, you may visit our web-site http://www.srr-foundation.org, where you will find a large data on various aspects of Development Related issues.

Dear Sir

Thanks for the information. Please guide us in
Is it Mandatary to file annual returns of assets and liabilities of all director board members under the Lokpal and Lokayukt as if FCRA funding received more than 10Lakh

With regards

Bhau

Further to our earlier post relating to extension of Renewal Date, it may be noted that Ministry of Home Affairs has extended the due date for opening of FCRA Account in State Bank of India, New Delhi Main Branch (NDMB) to 30^th June 2021 (Notice: F. No. II/21022/36(58)/2021-FCRA-III).

The Notice states that all the persons/NGOs/Associations who already have been granted certificate of registration or prior permission by Central Government may take note that they shall not receive any FC in any account other than the designated “FCRA Account” opened at NDMB from the date of opening of such account or 1^st July 2021, whichever is earlier.

This will give relief to majority to NGOs, who have not yet been able to open their bank account in SBI, Parliament Street. (click here for FCRA Notification)

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Socio Research & Reform Foundation (NPO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

We are happy to inform you all that Ministry of Home Affairs extended the validity of registration certificates whose registration expiring / expired during the period between 29^th September 2020 and 30^th September 2021 (Notice: F. No. II/21022/36(58)/2021-FCRA-II).

The new date for all the organizations whose validity of registration falls between above period will be 30^th September 2021. (click here for FCRA Notification)

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Socio Research & Reform Foundation (NPO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Greetings !

Our NGO, a section 8 co, has 12AA certificate. Didn’t have 80G as we never applied for. Hence no question of rejection. Now we are applying for revalidation of 12AA, I couple of queries:

1) Shall we apply for12AA and 80G together or
2) Shall we first wait for approval of 12AA and then apply for 80G, Please guide.

Regards,

for Human Hope Foundation

Unavailability of Original 12A certificate:

Amended Rules requires uploading of certified copy of 12A registration certificate. However, there are multiple institutions which were granted registration almost 45 years back and either the certificate has got badly mutilated or lost. But, in Assessment orders U/s 143(3) since beginning factum of registration is mentioned. How such institutions will upload the certificate or there will be any other remedy for the same?

Regds.

CA Ravi Prakash Sah