Administrative Expenses under FCRA Rules 2011

 

Administrative Expenses under FCRA Rules

 

An NGO which receives money under Foreign Contribution (Regulation) Act, 2010 is supposed to utilise it for the purpose for which it has been received. Section 8, Clause (b) of FCRA prescribes that an organization is not supposed to use more than 50% of the contribution received in administrative expenses. However, it is important for an organization to know that what all activities comes under the category of administrative expenses to ensure that it is not using more than 50% of the contribution for carrying out its administrative task without prior permission of government in order to avoid liability. Read further to know what kind of expenditures can be counted as administrative expenses

 

The Foreign Contribution (Regulation) Rules, 2011 that has been passed under Section 48 of FCRA prescribes the activities that will come under the category of administrative expenses.

 

What are administrative expenses?

 

(i) Salaries, wages, travel expenses or any remuneration realised by the Members of the Executive Committee or Governing Council of the organization and all the expenses towards hiring of personnel for management of the activities of the person of the organization along with the salaries, wages or any kind of remuneration paid, including cost of travel, to such personnel shall come in the category of administrative expenses.

 

However, is it possible to claim that you are hiring a person to facilitate further the purpose and function of the organization and get it excluded from administrative expenses?

 

Yes, it is possible to get such expenditure excluded from the list of administrative expenses if the expenses incurred are directly in furtherance of the stated objectives of the welfare oriented organisation.

 

(ii) Expenditure related to consumables like electricity and water charges, telephone charges, postal charges, repairs to premise(s) from where the organisation or Association is functioning, stationery and printing charges, transport and travel charges by the Members of the Executive Committee or Governing Council and expenditure on office equipment will be counted as administrative expenses.

 

(iii) Cost of accounting for and administering funds;

 

(iv) Expenses towards running and maintenance of vehicles;

 

(v) Cost of writing and filing reports;

 

(vi) Legal and professional charges; and

 

(vii) Rent of premises, repairs to premises and expenses on other utilities:

 

What kind of activities will not come in category of administrative expenses?

 

Expenditure that is incurred on salaries or remuneration of personnel engaged in training or for collection or analysis of field data of an association primarily engaged in research or training shall not be counted towards administrative expenses.

 

If expenditure is incurred in furtherance of the purpose of organization, it shall not be counted as administrative expense. However, the organization cannot claim that the payment towards maintenance of infrastructure or accounting and other office tasks are in the category of administrative expenses and are in furtherance of organization's objective as it is clearly excluded as specified as administrative expenses under the regulation.


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Ozg FCRA Registration, Project Approval & Liaisoning Consultant


======> Email: fcra.consultant@ozg.co.in

======> Website: http://fcra.ozg.in/ & http://registration.ozg.in

======> Contact # 096-503-15748

======> OFFICE: Monday - Friday | 10.30 AM - 5.30 PM

======> Language: English & Hindi

======> Follow @ facebook.com/FCRAregistration

======> Watch Ozg Fundraising TV @ fundraising.ozg.tv


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Ozg FCRA Registration, Project Approval & Liaisoning Consultant


======> Email: fcra.consultant@ozg.co.in

======> Website: http://fcra.ozg.in/ & http://registration.ozg.in

======> Contact # 096-503-15748

======> OFFICE: Monday - Friday | 10.30 AM - 5.30 PM

======> Language: English & Hindi

======> Follow @ facebook.com/FCRAregistration

======> Watch Ozg Fundraising TV @ fundraising.ozg.tv


Ozg FCRA Registration Consultants in Chennai, Ozg FCRA Registration Consultants in Mumbai, Ozg FCRA Registration Consultants in Kolkata, Ozg FCRA Registration Consutants in Bangalore, Ozg FCRA Registration Consultants in Andhra Pradesh, Ozg FCRA Registration Consultants in Tamil Nadu, Ozg FCRA Registration Consultants in Bihar, Ozg FCRA Registration Consultants in Northeast India, Ozg FCRA Registration Consultants in Orissa (Odisha), Ozg FCRA Registration Consultant in Karnataka, Ozg FCRA Registration Consultant in Kerela, Ozg FCRA Registration Consultant in Gujarat, Ozg FCRA Registration Consultant in Madhya Pradesh, Ozg FCRA Prior Permission, Ozg FCRA Prior Registration, Ozg Foreign Contribution (Regulation) Act, Ozg FCRA for Trust, FCRA for Society, Ozg FCRA for Hospital Trust, Ozg Ozg FCRA for Educational Trust, Ozg FCRA for Social Trust, FCRA for Charity. Ozg FCR Registration, Ozg FCRA Online Registration, Ozg FCRA Registration Fee, Ozg FCRA for NGO, Ozg Ozg FCRA for foreign funds, FCRA Consultant, Ozg FCRA Registration Consultants in New Delhi, Ozg FCRA Registration Consultants in Chennai, Ozg FCRA Registration Consultants in Mumbai, Ozg FCRA Registration Consultants in Kolkata, Ozg FCRA Registration Consutants in Bangalore, Ozg FCRA Registration Consultants in Andhra Pradesh, Ozg FCRA Registration Consultants in Tamil Nadu, Ozg FCRA Registration Consultants in Bihar, Ozg FCRA Registration Consultants in Northeast India,


Ozg FCRA Registration, Project Approval & Liaisoning Consultant


======> Email: fcra.consultant@ozg.co.in

======> Website: http://fcra.ozg.in/ & http://registration.ozg.in

======> Contact # 096-503-15748

======> OFFICE: Monday - Friday | 10.30 AM - 5.30 PM

======> Language: English & Hindi

======> Follow @ facebook.com/FCRAregistration

======> Watch Ozg Fundraising TV @ fundraising.ozg.tv

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Ozg FCRA Registration, Project Approval & Liaisoning Consultant


======> Email: fcra.consultant@ozg.co.in

======> Website: http://fcra.ozg.in/ & http://registration.ozg.in

======> Contact # 096-503-15748

======> OFFICE: Monday - Friday | 10.30 AM - 5.30 PM

======> Language: English & Hindi

======> Follow @ facebook.com/FCRAregistration

======> Watch Ozg Fundraising TV @ fundraising.ozg.tv


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Ozg FCRA Registration, Project Approval & Liaisoning Consultant


======> Email: fcra.consultant@ozg.co.in

======> Website: http://fcra.ozg.in/ & http://registration.ozg.in

======> Contact # 096-503-15748

======> OFFICE: Monday - Friday | 10.30 AM - 5.30 PM

======> Language: English & Hindi

======> Follow @ facebook.com/FCRAregistration

======> Watch Ozg Fundraising TV @ fundraising.ozg.tv


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Ozg FCRA Registration, Project Approval & Liaisoning Consultant


======> Email: fcra.consultant@ozg.co.in

======> Website: http://fcra.ozg.in/ & http://registration.ozg.in

======> Contact # 096-503-15748

======> OFFICE: Monday - Friday | 10.30 AM - 5.30 PM

======> Language: English & Hindi

======> Follow @ facebook.com/FCRAregistration

======> Watch Ozg Fundraising TV @ fundraising.ozg.tv

Ozg FCRA Registration Consultants in Orissa (Odisha), Ozg FCRA Registration Consultant in Karnataka, Ozg FCRA Registration Consultant in Kerela, Ozg FCRA Registration Consultant in Gujarat, Ozg FCRA Registration Consultant in Madhya Pradesh, Ozg FCRA Prior Permission, Ozg FCRA Prior Registration, Ozg Foreign Contribution (Regulation) Act, Ozg FCRA for Trust, FCRA for Society, Ozg FCRA for Hospital Trust, Ozg Ozg FCRA for Educational Trust, Ozg FCRA for Social Trust, FCRA for Charity.



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