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| PRINCIPAL
AGENCIES OF THE UNITED NATIONS |
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FUNDING OF NGO OPERATIONS
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FUNDING
An NGO may draw its funds
from internal as well as external sources
(i) Membership contribution,
(ii) Sponsorship Fees,
(iii) Sales (such as sales of greeting cards, candles,
handicraft items, homemade foods items, books, etc.).
(iv) Interests,
(v) Community Philanthropists (patron members, life
members, etc.), and
(vi) Individual Donations.
Besides, an organisation
can save resources by using services of volunteers rather
than paid staff.
(a) Grant in aid (from
Central or State Government). Various funding schemes
operated by different Ministries of the Central Government;
(b) Donations in kind,
such as, medicines, books, food items, etc.;
(c) Private institutional or grants from:
(i) Parent NGOs,
(ii) Corporate Bodies,
(iii) Industrial houses
(iv) Sponsorship for an ticket collections from
fund raising events such as charity shows, musical
nites, etc.
(v) Advertisements,
(vi) Souveniers,
(vii) Other trusts/organisations,
(viii) Individuals,
(ix) Box Collections
(x) Tourists/Visitors
Outside India (Foreign Sources)
(a) Bilateral funding;
(b) Multilateral funding;
(c) Private institutional funding;
(d) Overseas non-resident communities.
The purpose for which, and the account of foreign contributions received are regulated by Foreign Contribution Regulation Act, 1976 (FCRA). Further the institutions receiving such funding are required to submit necessary documents and returns.
However, certain foreign donations are exempt from the provisions of FCRA and in respect of them the requirements of documentation and returns are not applicable.
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Eligibility Condition
Generally for receiving funding from either Indian or foreign
sources, the following are essential conditions:
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Legal Status: NGO should
have a legal status 9i.e. should have been registered
as a Society or a Trust or a Company under Sec. 25)
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Constitution and Working
Rules: The NGO should have proper constitution and objectives
framed in the form of Memorandum and Articles of Association/
Byelaws/ Trust Deed.
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Management: It shall
have a governing body with authority to conduct the
affairs to achieve the main objectives
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Non profit Character:
It should do its activities not for any profit but with
an objective to serve the targeted population. Even
if it carries on some auxiliary business in the interests
of development of its target audience, such profits
shall not be distributed by way of dividend to any of
its members
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Involvement: It shall
consist of such people who are voluntarily involved
in rendering the services to the target society and
also shall be able to attract volunteers
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Not to discriminate:
It shall not indulge in discriminating the target group
nor use the resources mobilized for furtherance of interests
of any political party or involve in creating communal
disharmony.
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Part record: Normally
the existing NGO with past record of good service and
non discriminating in nature are funded.
Application for grant in
aid/financial assistance shall be made in the prescribed
form or by furnishing, amongst others, the following information/
details:
General Profile for
the NGO:
(a) Name, address, legal
status (along with details of Registration like Certificate
of incorporation/registration no., etc.) and thrust area.
(b) Name(s) and address(es) of Chief/other functionaries
of the organisation.
(c) Main activities and sources of funding generally for
last three years. Bank details are also required in some
cases.
(d) Evaluation of the achievements, if any, carried out
by any independent agency along with the report thereof.
(e) Title of the project.
(f) Aims and objectives along with estimation of targeted
beneficiaries, expected qualitative improvement, etc.
(g) Strategy/action plan, details of training required,
availability of volunteers and their skills, etc.
(h) Financial requirement, sources of funding and financial
assistance required from Govt. under the respective program.
(i) Duration of the project and sustainability after support
is completed
(j) Monitoring and evaluation indicators
Documents to be furnished
Generally, the following
documents are required to be furnished alongwith the application:
(i) Copy of Registration
Certificate
(ii) Memorandum of Association & Bye-laws
(iii) Latest Annual Report
(iv) Audited Accounts along with auditors report/certificate
(v) List of important functionaries and employees
To avail financial assistance under the Central Government
Schemes, the organisation/ institution has to follow the
general terms and conditions of grants-in-aid as mentioned
below:
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The grant receiving agency
will be required to confirm in writing that the conditions
contained in the grant-in-aid rule are acceptable to
it an will execute a bond in favour of the President
of India to the effect that in the event of its failure
to abide by the same, it will refund the whole or such
part of the grant as the Government of India may decide.
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The organisation in
receipt of financial assistance shall be open to inspection
by an officer of the concerned Department/ Ministry
of the Government of India or concerned State Department/
UY administration or a nominee of these authorities.
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The accounts shall be
maintained properly and separately and submitted as
and when required. They should be open to a check by
an officer deputed by the Government of India or the
State Government. They shall be open to a test check
by the Comptroller and Auditor General of India at his
discretion.
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The audited accounts
together with the utilization certificate in the prescribed
form duly countersigned by the chartered accountants
are required to be furnished within six months in respect
of a preceding year or after expiry of the duration
for which the grant was approved.
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The agency shall maintain
a record of all assets acquired wholly or substantially
out of the government grant and maintain a register
of such assets in the prescribed Performa (if any).
Such assets shall not be disposed off, encumbered or
utilized for purposes other than those for which the
grant was given, without prior sanction of the government
of India. If the agency ceases to exist at any time,
such properties shall be reverted to the Government
of India.
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The programmes of the
organisation/institution receiving support under any
scheme shall be opened to all the citizens of India
without the distinction of being utilized for the approved
purpose, the payment of grant may be stopped and the
earlier grants be recovered.
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The organisation/ institution
must exercise reasonable economy in the working of approved
project.
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If the concerned ministry
is not satisfied with the progress of the project or
it finds that there has been a breach or violation of
any of the terms and conditions, it reserves the right
to terminate the grant-in-aid.
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The grantee organisation
shall implement orders in regard to the reservation
of posts for SCs and STs.
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An organisation organizing
a seminar/ conference or a workshop under any scheme
shall not invite foreign delegates without the prior
approval of the Government of India.
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In case of grants for
building, the organisation must complete the construction
of the building within a period of two years from the
date of receipt of the first installment of the grant
unless an extension is granted by the Government of
India.
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If it is found at a
later date that the organisation has withheld or suppressed
information regarding grants from other official sources,
the grant of the Central Government may be cancelled,
reduced or the organisation may be asked to refund the
grant already paid to it.
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Equipment purchased
out of the grant-in-aid will be the property of the
concerned Department/ Ministry, which will decide about
its disposal on the completion of the project. The organisation
may submit a proposal in this regard before the completion
of the project.
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The orgnaisation will
submit to the concerned department/ ministry, six monthly
progress reports of the project along with a certified
statement of expenditure actually incurred and an estimate
of expenditure for the next six months period in the
prescribed form. The release of subsequent installments
will be subject to a satisfactory progress of the project.
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The organisation shall
furnish to the concerned Ministry such information as
the Ministry may require from time to time.
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All other conditions
of the grant shall be as prescribed under General Financial
rules, 1963, as amended from time to time.
Acceptance and utlisation
of foreign contribution and hospitality by associations
whether incorporated or not, is regulated by the Foreign
Contribution (Regulation) Act, 1976.
Association Eligible
to receive foreign Contribution
For the purpose of acceptance of foreign contribution
and hospitality, associations have been divided into three
categories, viz.:
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Associations registered
with the Central Government
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Associations not
registered with the Central Government
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Organisations of
political nature
Registration / Prior Permission
Any society, trust or charitable company, carrying on educational, charitable, religious, economic, cultural or social welfare activities, and desirous of receiving any foreign contribution from a foreign source, is required to obtain registration under Section 6(1) of the Act. Any such association which is not registered or which has been denied registration, can receive foreign contribution only after obtaining prior permission from the Central Government under Section 6(1A) of the Act.
An organisation cannot receive project grants from foreign countries through another organisation registered under FCRA, unless the former organisation has obtained either registration or prior permission.
An organisation cannot receive foreign funds on mere filing an application for registration/prior permission, foreign contribution can be received only after the registration/ prior permission is actually obtained.
Operation of Bank Accounts in respect of Foreign
Funds covered under FCRA
Only one bank should be maintained and operated exclusively for receipt of foreign contribution. The details of such a bank account should have been informed to the FCRA Division while making the application for registration or prior permission and it should have been specified in the Registration letter or Prior Permission order.
If the organisation wants to change the designated bank
account then a fresh application in appropriate form must
be made justifying the reasons necessitating such a change.
FCRA
FORMS - C Form in pdf
FCRA
FORMS - 1A in pdf
FCRA FORMS
- 2 in pdf
FCRA FORMS
- 3 in pdf
FCRA FORMS
- 4 in pdf
FCRA FORMS
- 8 in pdf
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