[Inpycon] Receiving funds from foreign sponsors

[Dhananjay Nene]

On Mon, Mar 14, 2011 at 10:16 AM, Sreekanth S Rameshaiah
<sree at mahiti.org> wrote:
>
>
> On 14 March 2011 10:02, satyaakam goswami <satyaakam at gmail.com> wrote:
>>
>> On Mon, Mar 14, 2011 at 9:45 AM, Sreekanth S Rameshaiah <sree at mahiti.org>
>> wrote:
>>>
>>> Dear All,
>>> The IPSS CANNOT receive foreign money. We do not have a specific
>>> permission under FCRA. It would be best if we get them to pay either
>>> the organizers (Pune team in this case, through any of their registered
>>> commercial entities) directly or we get them to pay vendors. If these
>>> options ( or something similar) are not possible, please drop the idea.

Speaking for self, I wouldn't touch the idea of routing a foreign
currency remittance awkwardly with a 100 foot pole. imho the
destination of the funds must be IPSS and the decision must rest with
the treasurer or equivalent of IPSS.
>>
>> why do you think we should drop the idea ? , the conversations i had here
>> in Delhi were also on same lines but looks like there is a provision to
>> receive with a temporary certificate , i think we should pursue this since
>> this will bite us again and again every year.
>>
>
> Its based on my 13 years of experience in FCRA.
> Its not easy to get the the temporary license easily for organisations that
> do not have other income tax exemptions (with out using any short cut
> route). Also, you need this approval for every unique foreign currency donor
> contribution.
> As you have already taken the lead in speaking to your auditor/ subject
> experts proceed with it. If community finds it worth it, then definitely
> proceed. We will wait for your feedback.

I think this matter really needs to move specifically into the domain
of whoever is the treasurer for IPSS. I am not aware of the specific
office bearers of the society, but in this case this particular
position carries some fiduciary responsibilities along with it. I
think we are all agreed that such funds might be useful so there is no
doubt into that. What remains is the matter of deciding (sorry if I
reopen otherwise answered questions - I am attempting to place it in a
perspective) :

a) Can IPSS receive foreign funds at all ?
b) Can IPSS receive foreign funds and subject them to tax without
risking the non profit character ? (which clearly means there will be
tax payable on the same)
c) Is the non-profit character of IPSS sufficient enough to allow
tax-exemption to sponsors
d) What are the documentation requirements for FCRA especially with
IPSS being a non profit organisation (needs to be checked with the
bank)
e) Can the IPSS conduct these transactions and the necessary
documentation steps. Mind you it can be time consuming if an FCRA
certificate is required (which right now is an assumption until one
talks to the bank)

End of the day this decision rests with the treasurer or equivalent of IPSS.

Dhananjay

> Regards,
> - sree
>
>
>
>
>
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