1. Permissible Fundraising Methods

• Donations & Grants (from individuals, corporations, or foreign entities)
• CSR Funds under the Companies Act, 2013
• Membership Fees (non-refundable)
• Government Schemes & Subsidies

2. Legal Compliance Requirements

• FCRA Registration mandatory for foreign donations
• 12A & 80G Certifications for tax-exempt donations
• Transparent Accounting with audited financial statements

3. Prohibited Fundraising Activities

• Equity Investments (no share issuance)
• Profit-Linked Crowdfunding
• High-Interest Loans

4. Donor Transparency Norms

• Disclosure of Fund Utilization in Annual Reports
• No Anonymous Donations above ₹2,000 (Income Tax rules)
• Project-Specific Reporting to grant providers

5. Financial Management Rules

• 85% Income Expenditure Mandate (Section 11, IT Act)
• Separate Bank Accounts for restricted/unrestricted funds
• Surplus Reinvestment (no profit distribution)