Application for Financial Assistance
NGOs can apply for financial assistance in the form of grants and loans from Government Agencies and private donor organizations.
DRAFTING GRANT APPLICATION
Applications for grant-in-aid / financial assistance shall be made in the prescribed form or by furnishing, amongst others, the following information/details
General Profile for the NGO:
a) Name, address, legal status (along with details of Registration like Certificate of incorporation/registration no., etc.), and thrust areas.
b) Name (s) and address (es) of Chief/other functionaries of the organization.
c) Main activities and sources of funding generally for the last three years. Bank details are also required in some cases.
d) Evaluation of the achievements, if any, carried out by any independent agency along with the report thereof.
PROJECT PROFILE:
a) Title of the project.
b) Aims and objectives along with an estimation of targeted beneficiaries expected qualitative improvement, etc.
c) Strategy/ action plan, details of training required, availability of volunteers and their skills, etc.
d) The financial requirements, sources of funding, and financial assistance required from Govt. under the respective program.
e) Duration of the project and sustainability after support is completed.
f) Monitoring and evaluation indicators.
Documents to be furnished
Generally, the following documents are required to be furnished along with the application:
i. Copy of Registration Certificate
ii. Memorandum of Association & Bye-laws
iii. Latest Annual Report
iv. Audited accounts along with auditors’ report/certificate.
v. List of important functionaries and employees.
2. Terms and Conditions of Grant-in-Aid from Govt
To avail financial assistance under the Central Government schemes, the organization/institution has to follow the general terms and conditions of grant-in-aid as mentioned below:
a) The grant receiving agency will be required to confirm in writing that the conditions contained in the grant-in-aid rules are acceptable to it and will execute a bond in favor of the President of India to the effect that in the event of its failure to abide by the same, it will refund the whole or such part of the grant as the Government of India may decide.
b) The organization in receipt of financial assistance shall be open to inspection by an officer of the concerned Department/Ministry of the Government of India or concerned State Department/UT administration or nominee of these authorities.
c) The accounts shall be maintained properly and separately and submitted as and when required. They should be open to a check by an officer deputed by the government of India or the State Government. They shall be open to a test check by the Comptroller and Auditor General of India at his discretion.
d) The audited accounts together with the utilization certificate in the prescribed form duly countersigned by the chartered accountants are required to be furnished within six months in respect of a preceding year or after the expiry of the duration for which the grant was approved.
e) The agency shall maintain a record of all assets acquired wholly or substantially out of the government grant and maintain a register of such assets in the prescribed proforma (if any). Such assets shall not be disposed of, encumbered, or utilized for purposes other than those for which the grant was given, without prior sanction of the government of India. If the agency ceases to exist, at any time, such properties shall be reverted to the Government of India.
f) The programmes of the organization/institution receiving support under any scheme shall be open to all the citizens of India without the distinction of being utilized for the approved purpose, the payment of grant may be stopped and the earlier grants be recovered.
g) The organization/institution must exercise a reasonable economy in the working of the approved project.
h) If the concerned ministry is not satisfied with the progress of the project or it finds that there has been a breach or violation of any of the terms and conditions, it reserves the right to terminate the Grant-in-aid.
i) The grantee organization shall implement orders in regard to the reservation of posts for SCs and STs.
j) An organization organizing a seminar/conference or a workshop under any scheme shall not invite foreign delegates without the prior approval of the Government of India.
k) In case of a grant for building, the organization must complete the construction of the building within a period of two years from the date of receipt of the first installment of the grant unless an extension is granted by the Government of India.
l) If it is found at a later date that the organization has withheld or suppressed information regarding grants from other official sources, the grant of the Central Government may be canceled, reduced or the organization may be asked to refund the grant already paid to it.
m) Equipment purchased out of the grant-in-aid will be the property of the concerned Department/Ministry, which will decide about its disposal on the completion of the project. The organization may submit a proposal in this regard before the completion of the project.
n) The organization will submit to the concerned Department Ministry, six-monthly progress reports of the project along with a certified statement of expenditure actually incurred and an estimate of expenditure for the next six months period in the prescribed form. The release of the subsequent installment will be subject to the satisfactory progress of the project.
o) The organization shall furnish to the concerned Ministry such information as the Ministry may require from time to time.
p) All other conditions of the grant shall be as prescribed under General Financial Rules, 1963, as amended from time to time
Grant-in-aid from Foreign Agencies
Acceptance and utilization of foreign contribution and hospitality by associations, whether incorporated or not, is regulated by the Foreign Contribution (Regulation) Act, 1976. The detailed provisions of the FC (R) Act, 1976 are explained in the next chapter.
Given above are the most important Grant Application Guidelines.
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