Mission Statement

All our endeavors to serve our clients in their best interest, ensuring that our service adds value. We strive to equip ourselves with knowledge and skills which help us in achievig this objective.

Home Up





Abbreviations Used: 

NGO : Non Government Organisation

FERA : Foreign Exchange Regulation Act

FCRA : Foreign Contribution Regulation Act

Laws relating to NGOs are mainly governed by FCRA with special emphasis on monitoring of foreign fund receipt by social organisations . FCRA has made it compulsory for organisations to seek prior approval or permanent registration to receive finds from foreign sources.


What is an NGO?

The word NGO is an abbreviation of Non Government Organisation. Any organisation working for a social, cultural, economic, educational or religious cause is termed as NGO.


What are the different kinds of legal status an NGO can have ?

An NGO can be formed under various legal forms:

1. Trust (Formed under a Trust deed and registered with Income Tax Authority.)

2. Society registered under Societies Registration Act.

3. Limited company incorporated under section 25 of The Companies Act.


What kind of activities an NGO can undertake ?

NGOs can undertake any lawful activity allowed under their Charter or Memorandum of Association.


What are the conditions for transfer of funds by NGOs?

Any NGO accepting foreign contribution should register itself with the Central Government. It has to intimate the Central Government of the amount of each foreign contribution received by it, the source from which and the manner in which such foreign contribution was received and the purposes for which and the manner in which such foreign contribution was utilised by it.

Any association which is not registered with the Central Government shall accept any foreign contribution only after obtaining the prior permission from the Central Government and should also give intimation to the Central Government as the registered association does.


What do the terms Foreign contribution, and foreign sources signify ?

Foreign contribution signifies donation, delivery or transfer made by any foreign source of any article or currency or foreign securities as defined under FERA.

Foreign sources includes the following : -

(i) the Government of any foreign country or its agency ,

(ii) any international agency other than the agency specified by the Central Govt.

(iii) a foreign company as specified in section 591 of the Companies Act including a subsidiary of a foreign company.

(iv) a corporation incorporated in a foreign country or territory,

(v) a multi-national corporation within the meaning of this Act,

(vi) An Indian company controlled by a foreign government, citizens of a foreign country, corporation incorporated in foreign country, Trusts, society body of individuals incorporated in a foreign country.

(vii) a trade union in any foreign country or territory, whether or not registered

(viii) a foreign trust or foundation

(ix) a society, club or other association of individuals formed or registered outside India,

(x) a citizen of a foreign country,


Do these organisations get any Income Tax benefits ?

Yes, income received by any religious or charitable trust, any other fund or institution established for religious or social purpose is not taxable provided the income is applied for the objects of the organisation.

However, to get exemption under Income Tax, it is essential for NGOs to register themselves with Income Tax Authorities.

Income Tax Benefits to Donors

People donating to these religious and charitable organisations also get an exemption of the amount of donation. The amount donated is either 100 percent or 50 percent exempt. The percentage of exemption differs for different organisations and is specified by authorities.


Are there any restrictions on acceptance of foreign contributions in India?

Yes, there are certain restrictions on acceptance of foreign contributions :

1. Any political party whether on its own or through its officers or representatives cannot accept any foreign contribution. Similarly, any citizen or resident of India shall neither accept nor deliver any currency which is accepted from any foreign source, to any political party directly or indirectly.

2. Organisations of political nature cannot accept any foreign contribution without prior permission of the government. Similarly, a resident or citizen of India shall neither accept nor deliver any currency for a political organisation.

3. Any person receiving any currency from a foreign source on behalf of any association, shall deliver such currency only to the organisation or its representative for which it was received.

4. Any candidate for election, who had received any foreign contribution within 182 days preceding the date on which he is duly nominated as candidate should give an intimation to the Central Government stating the amount of foreign contribution received the source from which and the manner in which such foreign contribution was received and the purposes for which, and the manner in which, such foreign contribution was utilised by him.


However, the persons receiving foreign contributions in the following form need not taken prior permission from the central govt.:-

(a) salary, wages or other remuneration either to individual or payment for business purposes.

(b) payment for international trade or for business transacted by him outside India

(c) by way of a gift or presentation received as member of any Indian delegation.

(e) Gift not exceeding Rs.8000 per annum


Are there also some rules that have to be followed in case of persons receiving scholarships from foreign sources?

Yes, any Indian citizen who receives any scholarship, stipend or any such payment from any foreign source should give an intimation to the Central Government within specified time of the amount, purpose, source and intervals of such payment rec’d by him. However, no such intimation is required if the scholarship received is upto Rs.36000/- during an academic year.    


Grants in aid from the Govt. of India:

Govt. of India allocates the grants in aid for carrying out the specific programmes as well as for block general purposes. These grants are made out to voluntary organisations who are involved in implementing these programmes. Grants-in-aid has been defined as the sum which a superior authority assigns to an inferior authority. For allocation of the financial resources, the Govt. of India has framed General Financial Rules for deciding the right agency. By and large the rules and conditions governing these specific schemes flow from the grants-in-aid rules mentioned in these schemes of the various ministries and departments. Some of these rules and conditions are given below:

  1. The organisations / institution/ agency should be registered under an appropriate act such as Societies Registration Act, 1860, Charitable Trusts Act, Cooperative Societies Act or under any law in force.

  2. The organisations seeking funds should be a recognised and reputed one; its work should be reported satisfactory by the concerned department of the State Govt. or the U. T. administration.

  3. It must be a properly constituted broad based Managing /Executive Committee with its powers , duties and responsibilities clearly defined and laid down in a written constitution.

  4. It should have been engaged in social welfare /development activities for a minimum period of 3 years oprior to seeking the grant.

  5. The programmes and services of the voluntary organisations should be open to all irrespective of caste , creeed and religion.

  6. The organisations must be financially sound. It must have facilities , research, personnel and experienced staff for undertaking activities for which grant is allocated.

  7. It should not be a profit oriented body benefitting any specific individual or a group of individuals.

  8. The grantee organisations must execute a bond, that it will abide by all the conditions of grant, failing which the grant shall be refunded.

  9. Grantee agency must accept the right of grantor to inspect the aided agency at any time in order to study its working and to ensure proper utilization of grants.

  10. Agency should be able to generate its own resources including the contributions from the community.

  11. Grant should not be utilised for purposes other than those for which it issanctioned.

  12. Agencies should have certain methods and procedures relating to budgets, accounting and audit of the grants sanctioned.

  13. The institutes shall maintain separate accounts of the programmes for which the grant is received, distinct from the accounts of its normal activities.

  14. The payment of grant may be stopped or earlier grants recovered if the grantor is not satisfied with the utilisation of funds for the stated objectives.

  15. The grantee agency should submit the duly audited accounts as and when required.

  16. The grantee organisations should submit the progress reports as specified in the relevant scheme.

  17. The grant organisations should maintain an account with a bank or a post office in the name of the institutions , to be operated by at least two office bearers.

  18. The grantee organisations are prohibited from handing over the funds and the implementation of the programmes to another organisations.

  19. The accounts should be audited by a Chartered Accountant or a govt. authority within two months from the close of the financial year.

  20. Grants shall not be allocated for the same purposes if already financed by some other deptt. of the Central Govt.

  21. Unspent balance of the grant should be refunded at the close of the year.

  22. The agency must guarantee that the assets acquired out of the grants funds shall not be sold, dispossessed or alienated, encumbered, mortgaged at any time for purposes other than those for which grant is sanctioned. A record of such assets should be maintained by the grantee in the form prescribed by the grant-giving agency.

There are various schemes sponsored by the various central Government ministries such as Ministry of Social Justice and Empowerment, Ministry of Health and Family Welfare, Ministry of Human Resources Development. The applicant voluntary organisations applying for such grants in aid should file these through the relevant state level department. The recommendations made by these departments shall be considered while sanctioning these grants.

Schemes sponsored by the Ministry of Social Justice and Empowerment, Shashtri Bhawan, New Delhi

Name of the scheme

Purposes and the eligibility

1. Scheme for Welfare of children in need of care and Protection

The main purposes of the scheme is to rehabilitate destitute children as normal citizens of the country. The scheme seeks to provide individualized and personal care to destitute children with the help of institutional and non institutional care.

The scheme is implemented through registered voluntary ( national level) organisation.

2. Scheme for Foster Care Services


The objective of the scheme is welfare of the destitute children by providing the homely atmosphere to those who become destitute at an early age.

It is made available to reputed V.O. working in the field of promoting foster care services in India.

3.Organisational assistance to Voluntary social welfare organisations

The objective is to provide assistance to voluntary organisations with a view of developing their organisational efficiency.

4. Scheme for Assistance to disabled persons for purchases /fittings/of aids/appliances

The main objective is to assist needy physically handicapped persons in procuring quality and modern aids and appliances that can promote their physical rehabilitation.

The eligible are the individuals who are physically handicapped.

5. Grants in aid for sponsoring research on rehabilitation of the handicapped

The projects are intended to help in finding the solutions to the problems of the handicapped and facilitate their effective rehabilitation .The projects under this sponsoring shall be of an applied nature and result and action oriented.

6. Scheme of assistance to organisations for disabled persons

The scheme seeks to provide financial assistance mainly for developing services in the area of prevention of disabilities, early detection and intervention ; education , training and rehabilitation.

7.Assistance to Voluntary agencies for prevention, detection and management of Childhood disabilities.

This scheme is jointly promoted by the Govt. of India and UNICEF. It seeks projects of non governmental organisations having a focus on preventive and early detection of disability among children. Projects eligible for this assistance would include community and family based rehab. programmes for disabled children; efforts aimed at creating awareness among families and community leaders ; innovative programmes of training in early detection /intervention methods for families etc.

8.Grants in aid rules for sponsoring research

The scheme provides assistance for conducting research in the field of social welfare, social policy and social development. Priorities with in these broad areas will be given to projects of an applied nature keeping in view plan policies and prgs.

9. Grants in aid rules for sponsoring publications

Grants are provided for publications of studies and documentation in the field of social welfare and policy development.

10. Grants in aid for Workshops / seminars

The Ministry also provides financial assistance for organising workshops /seminars which will help disseminate research findings, identify problems areas , discuss problems and identify research needs etc. in the broad field of social welfare , social policy and social development.

11. Grant-in-aid rules for supporting projects (Tribal Development) of all India or Inter state nature

The scheme aims at supporting action oriented studies on problems of scheduled tribes particularly in the field of economic development for generation at necessary data to improve formulations and implementations of tribal developmental prgs.

Schemes sponsored by the Ministry of Human Resource Development Shashtri Bhawan , New Delhi

12. Scheme of assistance for construction/ extension of Hostel buildings for working women with a day care centre

The scheme seeks to provide suitable accommodation in healthy environment for the working women and day care centres.

13.Scheme for short stay homes for women and girls


14.Scheme for setting up women’s training centres/institutes for rehab. of women in distress

The main objective is to rehabilitate destitute women through vocational trainings and residential care.

15.Scheme for organisational assistance to voluntary organisations for women and child development

The scheme seeks to support and help the V.O. for women and children to maintain their central offices, a vital input in the running of their activities.

16.Scheme of Nutrition programmes

through Balwadis and Day care centres for pre school children in the age group of 3 to 5 years.

The programme seeks to provide supplementary food for children in the age of 3-5 years and envisage that it would form a basis for the development of other services like health, education and welfare.

17.Scheme for assistance to V.O. working in the field for adult education

Promotion of adult education and eradication of mass illiteracy

18. Scheme of assistance to V.O. for early childhood education

(Universalisation of education)

Early Childhood education programmes

Schemes sponsored by the Ministry of Health and Family Welfare, New Delhi

1. Scheme for improvement of health services

The scheme seeks to provide the medical care to rural and high density urban slums for expansion and improvements of existing nursing facilities.

2.Schemes for sanctioning grants-in-aid for promoting the voluntary blood donations camps

The scheme seeks to promote intensive and extensive education of the public and motivate them to donate the blood.

3.Grants to Under graduate college of Indian Systems of Medicines and Homeopathy run by the V.O.

The scheme seeks to provide the financial assistance with a view to improve the standard of education in the undergraduate ISM and homeopathy colleges for the purchase of lab. equipment and setting up of the book banks.

4.Grants-in-aid to the V.O. engaged in the Family welfare programmes

The scheme seeks to encourage V.O. to take up the family welfare programmes by running the Family welfare centres.

Other schemes sponsored by various ministries

Concerned Department /Board



National Wasteland Development Board

Lok Nayak Bhawan, New Delhi

Scheme for Grant of Financial assistance to V.O.

The objective under this scheme is to bring under productive uses the wastelands in the country through a massive programme of afforestation and trees planting. The major steps include identification of lands, motivation of villagers, assisting the villagers wither as a group in obtaining tres rights on lands etc.

The Board shall emphasis on the issues relating to laying of nurseries, forestry and pasteur development activities and development of culturable wasteland including improvements of land .

National Fund for Rural Development (Department for Rural development) Krishi Bhawan New Delhi

Scheme for rural Development

The Govt. accords highest priority to programmes of rural development for attaining the objectives of increasing agricultural production, creating employment, eradicating poverty and bringing overall improvement in the rural economy.

Projects qualifying for these assistance:

-construction and maintenance of rural link roads

-construction and maintenance of drinking water projects

-construction and maintenance of hospitals and dispensaries

-establishment of rural industries and animal product units for generating employment in rural areas



Back Home Up Next