The eligibility for fundraising for a Nonprofit NGO organization differs from local fundraising and foreign fundraising. Nonprofit NGO fundraising needs some certifications and Indian government approvals to run their project in a successive way.
As a nonprofit NGO organization, when you plan for fundraising towards a social welfare project, you shall check your eligibility. The eligibility shall be classified into two different fitness of the organization. Social welfare projects shall be undertaken with two fundraising methods.
1. National Fundraising. 2. International Fundraising.
National fundraising is meant for raising funds in local, that is, inside the native country or native place.
International fundraising is meant for raising funds outside your native country. That is a foreign country.
Both types of fundraising need different eligibilities.
As an Indian NGO organization, before proceeding to fundraise in local you have to check with the following eligibilities.
1. PAN card, for the organization. 2. Valid 12A Certificate without expiry up to the project. 3. Valid 80G certificate without expiry to provide tax exemption to the donors. 4. Valid 35ac certificate without expiry to provide tax exemption to the donors.
If your plan is to run out a medical and research-oriented project from your organization, then you can avail 35ac certification which is valid for the specific project. Other than medical and research-oriented objects 35ac certifications and its subsections shall be issued by the social welfare ministry of Indian government under request and fitness for some other projects cause.
It is the law in every country, that whatever the foreign currency enters into their country, the receiver should get prior permission of the native government. It applies to all countries. As same there are specified rules and laws of the Indian government, that, whatever the organization, corporate or any entity, should get prior permission from the Home ministry of India towards their foreign currency dealings.
In such a manner, a nonprofit organization should also apply for prior permission with the Indian Government and at the relevant departments to obtain foreign funds for their projects. A certificate called FCRA under Foreign contribution regulation Act 1976 will be issued to the nonprofit organization. When you deal with an FCRA project, separate bank account, separate accounting procedures, should be followed. Also, there are many other flexible rules related to the FCRA fundraising project.
The 80g, 35ac, will not be used when you deal with the foreign fundraising. But a valid 12A is a must.
Also when you deal with FCRA projects to receive foreign fund or contribution, a valid FCRA certificate is must and you should not mix FCRA funds with NON-FCRA related projects or its funds.
The government has powers to approve, reject, or to suspend or to blacklist any approvals already issued to NGO. At any time or at any situation a valid FCRA certificate shall be suspended or blacklisted or disapproved by Government if the Nonprofit NGO is against to Law.
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