NGO may draw its funds from internal as well as external sources:
funds from internal as well as external sources:
(a) Internal Sources
(ii) Sponsorship Fees,
(iii) Sales (such as sales of greeting cards, candles, handicraft items, home-made food items, books, etc.),
(iv) Interest,
(v) Community philanthropists (patron members, life members etc.), and
(vi) Individual Donations. Besides, an organization can save resources by using service of volunteers rather than paid staff.
(b) External Sources Within India:
(a) Grant in aid (from central or State Government). Various funding schemes operated by different Ministries of the Central Government, as discussed in this Book.
(b) Donations in kind, such as medicines, books, food items, etc.
(c) Private Institutional support or grants from –
(i) Parent NGO, get ngo registration. (ii) Corporate Bodies,
(iii) Industrial houses,
(iv) Sponsorship for and ticket collections from fundraising events such as charity shows, musical nights, etc.,
(v) Advertisements,
(vi) Souvenirs,
(vii) Other trusts/organizations,
(viii) Individuals,
(ix) Box Collections
(x) Tourists/Visitors Outside India
(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 the 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. These have been discussed later in this Book.
i.) The Government Organization of any foreign country or territory and any agency of such a Government:
organization of any foreign country
ii.) Any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government, may, by notification in the official Gazette, specify in this behalf,
iii.) A foreign company within the meaning of section 591 of the Companies Act, 1956 (1 of 1956), and also includes-
(a) A company which is a subsidiary of a foreign company, and
(b) A multi-national corporation within the meaning of this Act.
iv.) A corporation, not being a foreign company, incorporated in a foreign country or territory,
v.) A multi-national corporation within the meaning of this Act,
vi.) A company within the meaning of the CMYK June 2006 The Chartered Accountant 1727 Companies Act, 1956, if more than one-half of the nominal value of its share capital is held, either singly or in the aggregate, by one or more of the following, namely:
(a) The government of a foreign country or territory,
(b) Citizens of a foreign country or territory,
(c) Corporations incorporated in a foreign country or territory,
(d) Trusts, societies or other associations of individuals (whether incorporated or not), formed or registered in a foreign
country or territory,
vii.) A trade union in any foreign country or territory, whether or not registered in such foreign country or territory,
viii.) A foreign trust by whatever name called, or a foreign foundation, which is either in the nature of the trust or is mainly financed by a foreign country or territory.
ix.) A society, club or other association of individuals formed or registered outside India,
x.) A citizen of a foreign country, but does not include any foreign institution, which has been permitted by the Central Government by notification in the Official Gazette, to carry on its activities in India;
