Receipt of foreign donation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2012 Dear friends/ experts,

There is a trust carrying on the work of education of Muslim students. Maulana Sahib of the trust has some approaches in foreign countries. He is now a days on the tour to some Arabic countries. He is expecting some grant in the form of donation from maulana’s of those countries for his school.

So hereby I am seeking your valued advice on the matter. I have searched regarding this. I found Form FC-1A and Form 8 and others. Guide me on the matter that how to accept foreign contribution/donation. I will open a separate bank account for depositing the same , but I want to know the procedure regarding foreign Contribution..

Form FC-1A and Form 8 which I found states about prior permission, where applicant has to give the name of prospective donor and amount of donation, but in my case donor and amount is not at all fixed. It is like any maulana can give any amount as per their ability to donate.

Kindly guide me on the same .

Yogesh Agarwal

Yogesh Agarwal (Expert)
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12 January 2012 I would like to suggest you to take a registration under FCRA instead of going the way of prior permission since you are supposed to receive the contribution many times at regular intervals...

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2012 Thankx... But tell me the procedure for registration in detail. Form required, and everything...

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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15 January 2012 The trust needs to check its existence and amount that has been incurred by it before applying for FCRA registration.

Anuj
+91-9810106211
femaquery@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2012 Anuj sir,

Its a registered trust running "MADARSA" school for muslim studnts. Now which kind of expenses you are saying? And yes tell me the procedure also for getting registered under FCRA and after getting registration the procedure to bring my foreign donation to my accounts.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Got it! Here’s a clear guide on receiving foreign donations for your trust under FCRA (Foreign Contribution Regulation Act, 2010):

1. FCRA Registration or Prior Permission
Who needs it?
Any trust or NGO receiving foreign contribution must obtain either:
FCRA Registration (valid for 5 years, renewable), or
Prior Permission from the Ministry of Home Affairs (MHA) for each individual foreign donation (if registration is not available).
Since your trust is ongoing and expecting regular donations, applying for FCRA Registration is advisable rather than seeking prior permission every time.
2. FCRA Registration Procedure
Application Form:
Fill Form FC-3 (Application for registration under FCRA) on the MHA's FCRA portal.
Submit details about your trust, its activities, constitution documents, audited accounts, identity proofs, etc.
Documents required:
Trust deed
Registration certificate of trust
PAN and TAN of the trust
Audited financial statements for last 3 years (if applicable)
Details of office bearers and key persons
Information about activities and beneficiaries
Note on Donors:
You do not need to specify donor names or amounts at registration stage.
Processing Time:
Usually 3-6 months, if all documents are in order.
3. After Getting Registration
Opening a Separate Bank Account:
Open a designated FCRA bank account at the State Bank of India (SBI) New Delhi branch.
This account is mandatory to receive and utilize foreign contributions.
Receipt of Foreign Contribution:
Foreign donations can be received only into the FCRA-designated bank account.
Maintain proper receipts and records of every donation.
Utilization:
Expenses should be strictly for the objectives of the trust, and in compliance with FCRA guidelines.
You must maintain accounts and get them audited annually by a Chartered Accountant.
4. If Not Registered Yet: Prior Permission Route
You may seek prior permission for specific donations (Form FC-4) only when you do not have registration.
Here, you have to mention donor details and amount, so it is difficult for open-ended donations from multiple unknown donors.
5. Reporting & Compliance
Annual returns (Form FC-4) have to be filed every year with MHA, including details of foreign contribution received and its utilization.
Non-compliance can lead to cancellation of registration or penalties.

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