Cartoons Children Foundation is a charitable trust, formed with an objective of enhancing the standard of living of slum children and it carries out various welfare projects for children. The trust was registered during
CS Executive · Setting up of Business Entities and Closure · PYQS · June 2021
Cartoons Children Foundation is a charitable trust, formed with an objective of enhancing the standard of living of slum children and it carries out various welfare projects for children. The trust was registered during November, 2020. This foundation receives many donations from outside India, which is utilized for the activities like education, healthcare, livelihood of the needy and poor children. Explain whether the trust is eligible to receive such foreign contribution under Foreign Contribution Regulation Act, 2010 in Financial Year 2021-22. State the eligibility criteria for FCRA registration.
Answer & Explanation:
Organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may obtain FCRA registration or receive foreign contribution through prior permission. For grant of FCRA registration under FCRA, 2010, the association should: be registered under an existing statute like the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 8 of the Companies Act etc; Normally be in existence for at least three years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilised. An organization in formative stage is not eligible for certificate of registration. Such organization may apply for grant of prior permission under FCRA, 2010. In case a newly registered entity would like to receive foreign contributions, then approval for a specific activity, specific purpose and from a specific source can be made to the Ministry of Home Affairs through the Prior Permission (PP) method. As Cartoons Children Foundation is registered during November, 2020 (less than three years in existence). Hence Cartoons Children Foundation are required to take prior permission for a specific activity, specific purpose and from a specific source under FCRA, 2010 before accepting any foreign contribution in Financial Year 2021-22.
Topics: Foreign Contribution
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