Divya-Jyoti Sansthan is a registered Company under section 8 of the Companies Act, 2013, to operate eye hospital in various places of India for charitable purpose. The Sansthan received an offer of huge grant/donation fr
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2024
Divya-Jyoti Sansthan is a registered Company under section 8 of the Companies Act, 2013, to operate eye hospital in various places of India for charitable purpose. The Sansthan received an offer of huge grant/donation from Madela Foundation, USA, for techno-oriented medical services in India with better quality. What are the conditions under FCRA, 2010, with respect to acceptance of foreign grant/donation?
Answer & Explanation:
Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. Such registration under the Foreign Contribution Regulation Act, 2010 is called a FCRA registration. Organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may obtain FCRA registration or receive foreign contribution through "prior permission" route. Prior permission is granted for receipt of a specific amount from specific donor/ donors for carrying out specific activities/projects. FCRA Prior Permission shall be granted to the Indian recipient organizations subject to its satisfying the following: The Chief Functionary of the recipient Indian organization should not be a part of the donor organization. At least 75% of the office-bearers/ members of the Governing body of the Indian recipient organization should not be members/employees of the foreign donor organization. In case of foreign donor organization being a single person/individual that person should not be the Chief Functionary or office bearer of the recipient Indian organization. In case of a single foreign donor, at least 75% office bearers/members of the governing body of the recipient organization should not be the family members and close relatives of the donor.
Topics: Foreign Exchange Management
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