Gyandeep Shiksha Samiti (GSS) is a registered society based in Lucknow, engaged in promoting elementary and adult education in underserved districts of Uttar Pradesh. The Samiti recently received an offer of financial as

As per Section 2(1)(h) of Foreign Contribution (Regulation) Act, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source of any article, not being an article given to a person as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum as may be specified from time to time by the Central Government by the rules made by it in this behalf; of any currency, whether Indian or foreign; of any security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999. In the given case, the financial assistance offered by the overseas philanthropic foundation constitutes a foreign contribution under FCRA. As per the provisions of FCRA, 2010, Gyandeep Shiksha Samiti (GSS) can obtain permission to accept foreign contribution either by Registration under the Act or seeking Prior Permission. An existing entity satisfying the conditions under the Act can obtain registration. However, an organisation in formative stage is not eligible for registration and therefore, it can obtain prior permission. Since GSS started utilising the foreign remittance without completing statutory formalities, it has violated the provisions of FCRA. It should immediately obtain either FCRA Registration or Prior Permission, as applicable, before accepting or utilising any foreign contribution.