NGO - Lent out funds received

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..... NGO - Lent out funds received
Query (Issue) Started By: - NAVIN SINGHAL Dated:- 7-10-2009 Last Reply Date:- 1-7-2014 Other Topics
Got 3 Replies
Indian Laws
CAN NGO/NPO LENT OUT THE FUND/GRANT RECEIVED BY THEM TO ANT BUSINESS ENTITY WITH OR WITHOUT INTEREST Reply By Rama Krishana: The Reply: The question is not with or without interest. The question is that is it permissible as per th .....

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..... e bye laws. Is there any restriction as per the exemption conditions. What undertaking u have given for getting exemption. Whether lending of money is in accordance with the objects. If the answer is yes, I see no harm in lending the same with or without interest. Reply By DEV KUMAR KOTHARI: The Reply: Ethically not, unless it is to subserve purpose of the instition for example for some work or p .....

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..... roperty or supply etc. Legally and technically Mr. Rama Krishna has give his views, which I feel are sufficeint for you to study further, and send your own feed back for benefits of readres. This column of www.taxmanagementindia.com is to initiate discussion and ascertain various possible views to further the object of learning and sharing knowledge and to clear doubts. The issue placed should .....

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..... include some basic information about the subject matter so that readers can at least have some idea about the issue, problem ,related provisions and off course the views of the initiator of the issue. This will be helpful in getting better response from learned readers. In absence of the same, the readers cannot be serious about the issue and willing to spare time to merely provide information and .....

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..... solutions. This is my personal view. Reply By Sunil Kumar: The Reply: Precaution needs to be taken wrt foreign grants. There is restriction under FCRA for transfer of FC funds to person / NGO which dont have FCRA registration. Also, most of foreign donor put a clause in their grant agreement to avoid co-mingling of funds. It means no funds to be lent to anyone outside grant agreement.
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..... ussion Forum - Knowledge Sharing .....

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