AccountAid Capsules 2005 (165-189)

However, not all endowments are as big. Georgia Perimeter College had just $370,000 (Rs.1.7 crores) in June 2004. Still, the average size of each institution’s endowment is failry big: $360,651,000 (Rs.16.60 arabs). 741 institutions participated in the survey.

The University endowments in USA have also come in for some criticism. Most tend to spend only 5% of their asset base each year. This was meant to be the minimum spending requirement. However, in effect, it is being seen by the Universities as the maximum spending limit!

What is the nature of this criticism?

Historically, the endowments have been earning around 10-11%each year. Out of this they spend 5%. Another 3% can be said to be used to cover inflation. That still leves another 2-3%, which could be spent safely, without hurting the endowment. If this was to happen, then possibly the tuition fee could be cut to half at some of the Universities.

[References:

Wikipedia: http://en.wikipedia.org/wiki/Financial_endowment

‘So Nicely Endowed!’ Newsweek: Kaplan College Guide, Arian Campo-Flores, http://www.msnbc.msn.com/id/5626570/site/newsweek/

National Association of College and Universities Business Officers: 2004 NACUBO Endowment Study: http://www.nacubo.org/x2376.xml]

188: More on Giving in USA - 1

(26-Dec-05)

The US economy is the biggest in the world. Giving in USA also tends to be appropriately big. Take for instance enowment funds that American Universities have.

Some of the richer ones each have endowments, which may add up to a billion dollars or more (Rs.45 arabs).

For example, Harvard has more than 9400 separate endowments. These added up to more than $22 billion (Rs.10.18 kharabs) as of June 2004.

In an earlier year (2003), its return on the investments came to 12.5%. It then spent 5% of the total endowment ($770 million, Rs.35.42 arabs) during the year, per tax requirements. Of course, this was only a small part of its total budget ($2.4 billion, Rs.1.10 kharabs)!

Contd. in 189…

[References:

Wikipedia: http://en.wikipedia.org/wiki/Financial_endowment

‘So Nicely Endowed!’ Newsweek: Kaplan College Guide, Arian Campo-Flores, http://www.msnbc.msn.com/id/5626570/site/newsweek/

National Association of College and Universities Business Officers: 2004 NACUBO Endowment Study: http://www.nacubo.org/x2376.xml]

187: Religious Giving in USA

(23-Dec-05)

An article in The Economist has described how some churches in USA are reinventing themselves by applying sound business practices to church activities. The article also provides some glimpses into American religious giving. For example:

· Lakewood Church in Houston had an income of $ 55,000,000 in 2004. Translated into Indian figures, this comes to Rs.2.58 arabs. This is one out of 1000 churches in USA, which are counted as mega-churches. Broadly speaking, you qualify as a mega-church if 2,000 or more people attend.

· The Fellowship Church in Grapevine, Texas, has an annual budget of $30,000,000 (Rs.1.38 arabs). It spends 15% of its budget (Rs.21 crores) on technology.

· Willow Creek Association, the consulting arm of the Willow Creek Church, offers advice to 11,500 member churches. It earns $ 20,000,000 (Rs.92 crores) a year from this.

· Mr. Creflo Dollar, chief pastor of World Changers Church International in Georgia, drives a Rolls Royce and travels in a private Gulfstream jet.

· Ms. Joyce Meyers, often seen on GOD TV, owns a house worth $2,000,000 (Rs.9.20 crores). She also owns private jet worth $10,000,000 (Rs.46 crores).

[References:

‘Jesus, CEO: America’s most successful churches are modeling themselves on businesses’ , The Economist, London, p. 51, 24-December 2005

While all 501(c)(3) charities in USA are required to disclose their finances to public, churches (including non-Christian religious organizations) are exempt from this requirement. Therefore, relatively little is known about religious giving and spending in USA. – Ed.]

186: Shree Venkateswara’s Diamond Headband

(23-Dec-05)

On Thursday night, a devotee offered a bejewelled headband to Bhagwan Shree Venkateswar at Thirupati. The diamond-studded band, valued at Rs.1.4 crores (~$300,000), was received by Shri APVN Sharma, officer of the Thirumala Thirupati Devasthanam Trust.

Now two questions arise:

1. Can the unnamed devotee claim this as a deduction from his / her income tax?

2. How will the gift be valued and accounted in the Trust’s books?

Well, the devotee can not claim it as a deduction under section 80G. Reason is that Income Tax Act in India does not recognize donations in kind as donations at all.

With regard to accounting, the situation is equally peculiar. The ICAI has not released any accounting standards for charitable or religious organizations. As a result, most people try to apply the standards issued for commercial organizations in such situations. The result? A gift valued at Rs.1.4 crore will probably be accounted in the Trust books at Rupee 1.

[References:

‘Bhagwan Venkateswar ko 1.4 karod ke jewar arpit’, Dainik Jagran, New Delhi, p. 11, 23-December 2005

Accounting Standards 10 and 12, issued by the Institute of Chartered Accountants of India]

185: Sale of Trust Property

(15-Dec-05)

Recently, the Delhi High Court has said that prima-facie, trust property can not be sold, mortgaged or exchanged without prior-permission of court.

The observation was made by Justice Vikramjit Sen in a matter relating to sale of some land by Sarvadeshik Arya Pratinidhi Sabha to Shri Ashok Mehra.

The case is presently being heard and a final order is expected in due course.

It may be noted that in some states such as Tamilnadu, Maharashtra and Gujarat, official permission is required under law for a charity to alienate or mortgage land etc.

[References:

'Trust can't sell assets wihtout permission', Hindustan Times, New Delhi, p. 4, 12-December 2005]

184: Another Cess (pool)?

(13-Dec-05)

NGOs in Maharashtra are quite familiar with the term cess. They have been paying 2% of their income every year to the Charities Commissioner. Tax-payers also know about the 2% education cess introduced last year. This yields about 80 arabs annually. There has also been some talk of a health cess, in addition to the education cess. Why all these cesses, when the Government already collects, income tax, VAT, Service tax, road tax, etc.

Well, a cess is levied on a limited number of users, who benefit from a particular service. A key feature is that the money can not be spent on general objects. It should be spent on specific purposes.

Now the Delhi Government is planning to introduce a 1% cess on the building industry. This will be added to the cost of a building and ultimately recovered from the buyers. The cess will be used to provide insurance and other benefits to construction workers.

This is a strikingly ambitious scheme. Construction workers often migrate from one place to another and from one trade to another. Administering the scheme would probably be quite a challenge. In the past, Government has found it difficult to administer schemes such as Provident Fund, ESI, etc., where the odds are not so high.

Let us then hope and pray that this cess also does not turn into a cess-pool.

[References:

Capsule 182: Education Cess and Right to Education

1 arab = 100 crores = 1 billion

'Social Security for workers', Hindustan Times, New Delhi, 30-November 2005]

183: And now: FCRA in Russia!

(26-Nov-05)

We had earlier reported how Russia is one of 23 countries, which place legal restrictions on foreign funding of elections. In this, Russia was among illustrious company, notably that of UK, USA, France, Germany, Japan, Canada, and Spain.

India also imposes such a ban through FCRA, which is all set to be strengthened further with a new bill called FCMC. However, the Indian legislation is different in that FCRA also monitors funding of NGOs, in order to ensure that foreign funds are not used for political activities. India's neighbors, such as Pakistan and Bangladesh, also exercise some form of control over NGOs.

Now Russia is also planning to extend similar controls over private charities, which may be supporting political activities. This has led to protests by the affected groups and some uncharitable headlines in the Western press.

What provisions does the bill contain? Details are not available, but some of the key provisions include the following:

1. Foreign organisations would need to register in Russia as Russian organisations. They would not be allowed to register as branch offices or representative offices.

2. Such organisations should be governed by Russians or by foreigners living permanently in Russia. This would give Russian authorities legal jurisdiction over them.

3. It may become more difficult for them to receive foreign funding.

4. The State Commission would have powers to investigate them and shut them down if found justified.

[References:

FCRA: Foreign Contribution Regulation Act, 1976

FCMC: Foreign Contribution Management and Control Bill

"Kremlin out to stifle NGOs, charities - New law aims to restrict foreign support for political activity; Greenpeace, Amnesty affected", p. 25, Times of India / Times International, New Delhi, 25-Nov-2005

"Nationalists take aim at NGOs 'plotting' to destabilise Russia" Neil Buckley, FT.Com, Published: November 26 2005 http://news.ft.com/cms/s/9c9dc506-5e42-11da-a9e8-0000779e2340.html]

182: Education Cess and Right to Education

(19-Nov-05)

Presently, the Government spends about Rs.470 arabs annually on elementary education. After the Right to Education Bill is passed, this will probably double to Rs.1000 arabs. Where will the Government get the extra money for this?

The Government has introduced education cess of 2% last year. However, annual collections are coming to just about Rs.80 arabs. So the Government is likely to either borrow money or raise taxes further.

Incidentally, 6% of GDP, planned to be spent on education, comes to around Rs.1700 arabs. If that target is to be reached, then the Government has to either cut expenditure on other heads or raise taxes even more.

Service tax is a likely candidate for further increase. In some Scandnavian countries, service tax is as high as 25%. This is surely serving as a beacon to the Finance Ministry.

[References:

An arab (100,00,00,000) is equal to 100 crores or 1 billion.

"Right to Education may tax you more", p. 19, Economic Times, New Delhi, 14-Nov-2005]

181: Service Tax on NGOs

(18-Nov-05)

If Economic Times is to be believed, then NGOs may also be soon be paying service tax. This may be done next year by removing the present requirement that the service provider be a 'commercial concern'.

A small beginning in this direction has already been made in 2005 by bringing in clauses 25A and zzze. However, an exception is provided for activities 'which are in the nature of a public service and are of a charitable, religious or political nature'.

[References:

Section 65 (25A), Chapter V and VA of the Finance Act, 1994, as amended by the Finance Act, 2005

Section 65 (105) (zzze), Chapter V and VA of the Finance Act, 1994, as amended by the Finance Act, 2005

"Service tax likely on charitable societies and non-profit cos", p. 1, Economic Times, New Delhi, 14-Nov-2005]

180: Service Tax on Clubs

(17-Nov-05)

In June 2005, service tax was introduced on fees and subscriptions collected by clubs and associations from its members. Does this mean that NGOs have to pay service tax on dues collected from their members?

No. This applies only where the members receive services, facilities or advantages against the dues paid.

This means tax would be due from clubs such as Delhi Golf Club, Gymkhana Clubs, etc. Resident Welfare Societies collecting security charges etc. could also end up paying service tax. However, this is applicable only when their turnover exceeds Rs. 4 lakhs (400,000) per year.

[References:

Section 65 (25A), Chapter V and VA of the Finance Act, 1994, as amended by the Finance Act, 2005

Section 65 (105) (zzze), Chapter V and VA of the Finance Act, 1994, as amended by the Finance Act, 2005]

179: Escorts Hospital and Charity Privileges

(16-Nov-05)

The Escorts Hospital (EHIRC) was set up in Delhi a couple of decades ago as a charitable trust by the Escorts group of companies. The hospital specialized in heart care and bypass surgery. It soon developed an excellent reputation. People stopped going to USA for their heart bypass operations.

About three years ago, EHIRC was converted from a charitable trust to a non-charitable trust and then later to a company. The hospital was then sold to Fortis Healthcare, a company of the Ranbaxy group. Considering its goodwill and the value of real-estate, it must been an immensely valuable deal for the both the parties.

One of the trustees of EHIRC took the matter to court. The Minister of Finance also made a statement saying that such misuse of charity law would not be permitted. DDA also tried to intervene in the matter saying that the deal violated conditions of allotment of the land at concessional prices.

Fortis has recently made a statement to clear the air, saying that no law has been violated, and that DDA consent is not required.

There have been several other cases across India where charitable hospitals have been taken over by upcoming Medicare chains. Escorts has drawn more attention because it is a well-known hospital and a pioneer in heart-surgery.

These takeovers point to a general trend where powerful corporate groups are changing the shape and structure of medical care in the country. This may be partly due to emergence of a rich class of patients who demand and expect attention and courtesy during hospitalization and are willing to pay for it. Another reason could be the growing popularity of medical insurance policies, where the patient doesn't have to foot the bill and doesn't care if he/she is charged more.

Irrespective of what happens in the Escorts case, it is likely that this deal will have far-reaching implications for the NGO sector. The case may lead to further tightening of charity law and erosion of other privileges to charitable organisations.

[References:

EHIRC: Escorts Heart Institute and Research Centre

DDA: Delhi Development Authority

"Fortis says DDA consent not required", p. 5, Hindustan Times, Delhi, 16-nov-2005]

178: A Shift in FCRA

(29-Sep-05)

The NGO sector has been requesting the Government to shift the FCRA Department out of the Ministry of Home Affairs. So far the Government has not agreed. However, the Department has shifted its office away from Khan Market.

The new address is:

Ministry of Home Affairs, Foreign Division (FCRA)
Jaisalmer House,
26, Maan Singh Road
New Delhi –110 011
Ph: 011- 2338 3075, 2469 8009

[References:

FCRA: Foreign Contribution (Regulation) Act, 1976 ]

177: The new FCRA Bill

(7-July-05)

On 24th June, the MHA and ICAI organised a workshop at Delhi on FCRA and money-laundering. At this workshop, it was also announced that the Government is planning to replace the FCRA with a new law.

The proposed bill is now available at www.AccountAid.net. It is called the Foreign Contribution (Management and Control) Bill, 2005. It proposes far-reaching changes in the FCRA.

[References:

MHA: Ministry of Home Affairs; http://mha.nic.in/fore.htm; Also see http://mha.nic.in/fcmc-bill-05.pdf for a copy of the bill.

ICAI: Institute of Chartered Accountants of India; www.icai.org ]

176: ICAI on FCRA

(7-June-05)

The ICAI has recently come out with a useful publication on FCRA. It is titled 'A Study on Foreign Contribution (Regulation) Act 1976.

The booklet explains the basic provisions of FCRA and contains some useful practice notes for Chartered Accountants. It also covers some frequently asked questions. The FCRA Act and Rules are also included though without the forms.

Some of views contained in the book need to be carefully assessed before taking any important steps. These include views on transactions between FCRA and local funds (pages 5, 64), and multiple bank accounts (pages 10, 63) for FCRA funds.

Containing 129 pages, the booklet is priced at Rs.100 and is available from ICAI sale counters.

[References:

ICAI: Institute of Chartered Accountants of India; www.icai.org ]

175: MPLAD Funds to open up to NGOs?

(17-May-05)

According to a news report, the MPLAD limit may now go up to Rs.3 crores, from the present Rs.2 crores. The MPs have been asking for the limit to be raised to Rs.5 crores.

Two important features of the revised scheme may be that firstly, a certain percentage may have to be spent on drinking water, roads, education, electricity, etc.

Secondly, the MPs may be allowed to spend the money through private institutions, trusts etc. The MPs have been raising this demand for quite some time. Initially, there may be a limit of Rs.5 lakhs on this.

Why do the MPs want to spend this money through the NGOs? Well, for one thing, the NGOs are much better equipped for this and possibly closer to the people. Secondly, it is easier to work with NGOs, as there is lesser paperwork. Thirdly, the accounting is less complicated.

Whatever may be the reasons, one thing is for sure: the modified scheme will help bring the MPs closer to the NGOs.

[References:

'Saansadon ko kshetriya vikas ke liye milegi jyada raashi', p.1, Dainik Jagran, New Delhi, 17-May-2005

MPLAD: Member of Parliament Local Area Development Scheme. Under the scheme, each MP is authorised to commit and spend upto Rs.2 crore in his/her constituency on various public works and other schemes beneficial to the constituents.

Rs. 1 crore = Rs. 10 million, ~230,000 US $

Rs. 1 lakh = Rs.100,000, ~ 2,270 US $

This is based on a news report about a proposal. It has not yet been implemented.- Ed.]

174: Check your FCRA application status on Internet!

(13-May-05)

The FCRA Department has recently revamped its web-site. You can now check the status of your application (for registration or prior-permission) by visiting the following web-site:

http://mha.nic.in/fcra.htm

Follow the following steps once you reach the site:

· Click on 'Application Status'.

· Choose the applicable option.

· Punch in your file number in the window that opens up.

You can use this facility only once you receive an acknowledgement for your application. This acknowledgement letter contains the file number.

173: What does the Tax amendment bill contain?

(13-May-05)

This Thursday, the Government has tabled a bill in the parliament. It is called Taxation Laws (Amendment) Bill 2005. Some of the provisions may make NGOs' fiscal management more complicated.

According to the news report, the provisions include the following:

· Exempt schools and hospitals, with receipts below Rs. 1 crore, will also need to file income tax returns.

· Public trusts with mainly related persons as trustees may face tougher tax provisions.

· Rules related to registration and exemption of charities under Income Tax are being tightened. These may involve deeper scrutiny before registration is granted.

· Donations above Rupees 20,000 can be accepted only through account payee cheques or drafts.

· Audit rules for charities will be tightened.

Please note that these are only proposals in the Bill. These are not yet law. These will become law only when both Houses pass the bill, and the President gives his assent.

[References:

'Nakad donation se pravesh ka khel ab nahin chalega', p.1, Dainik Jagran, New Delhi, 13-May-2005

'Anti-tax evasion bill introduced', p.11, Indian Express, New Delhi, 13-May-05

Rs.20,000 = ~ 460 US $; Rs. 1 crore = Rs. 10 million, ~230,000 US $

Also see AccountAid Capsules 168, 171 and 172

The text of the Bill is not yet available on the Finance Ministry or Lok Sabha web-sites.- Ed.]

172: Making NGOs more accountable...

(11-May-05)

According to a news report, the Finance Minister plans to 'increase the accountability of charitable organisations'. A Bill to amend the tax laws will be introduced by Friday. This Bill will bring funds received by charities under the government scanner.

The Minister has also said that the aim is 'only to ensure there is a trail of the financial transactions in such organisations and not any form of harassment.'

Why choose Friday, the 13th, which is traditionally associated with bad luck?

Well, be thankful that he did not choose Wednesday, the 11th instead, which happens to be Akshay Teej!

[References:

'Funds to charitable bodies to be tracked', p.16, Hindustan Times, New Delhi, 11-May-2005

Also see AccountAid Capsules 168 and 171

According to the Hindu Lunar calendar, Akshaya Teej falls on 11th May this year. Anything done this day is considered to be long-lasting and of great permanence. Which is why many Indians, particularly in Rajasthan, choose to get married on this day- Ed.]

171: Yet another proposal to amend FCRA!?

(2-May-05)

According to a news-report, there is now another proposal to amend the FCRA. The objective is to prevent 'massive diversion of foreign funds by NGOs'.

The latest proposal involves the following changes:

1. Making it mandatory for banks to report on transactions

2. Setting up five regional offices of FCRA to improve enforcement

3. Review of FCRA registration every five years

According to the Minister of State for Home, Shri Sriprakash Jaiswal, 'the aim is to ensure that funds are received and used by the right people and is used for the specified purpose, the changes will not make receiving foreign funds more difficult.'

No one will disagree with the sentiments of the Honourable Minister. However, FCRA was not designed to ensure that NGOs use their funds properly. It was designed to ensure that foreign funds are not used to influence Indian electoral politics. Therefore, if the Ministry is now getting interested in the proper use of funds by NGOs, then this is a significant change indeed.

According to the report, the Home Minister, Shri Shivraj Patil has
cleared the proposed changes. A note will be put up to the cabinet soon. After that, the Parliament is likely to be informed in the current session.

It is said that history repeats itself. There have been several such
proposals in the past: in 1988, then in 1996, again in 2002 and now in 2005. None made it to the Parliament. Let us see whether this proposal fares any better.

[References:

FCRA: Foreign Contribution (Regulation) Act, 1976. Applicable in India

'Centre to scan flow of funds to NGOs', p.4, Indian Express, New Delhi, 1-May-2005]

170: Is Gratuity part of Salary?

(11-Apr-05)

In a recent judgment, the Supreme Court has ruled that gratuity can not be debited to the salary account.

The application had been moved by Rajasthan Welfare Society, and several other educational societies. These societies get grant-in-aid from the Government. They were debiting gratuity to the budget head of salary in their grant accounts.

The High Court of Rajasthan had ruled against this practice earlier. Now the Supreme Court has confirmed the judgment.

The Supreme Court has also clarified that it is compulsory for such societies to pay gratuity under Payment of Gratuity Act, 1972.

[References:

'Gratuity vetan ka hissa nahin', Rajasthan Patrika, New Delhi, 11-April-05

Payment of gratuity is compulsory for NGOs employing 10 or more persons. - Ed.]

169: FCRA receipts in 2002-03

(1-Apr-05)

In 2002-03, NGOs and other charitable or religious organisations in India, received a total of 50.47 arab Rupees as foreign contribution. This includes money as well as materials.

The biggest donor country, as usual, was USA, with Rs.16.80 arab. It was followed by Germany with Rs.7.15 arab. Next came UK with 6.85 arab Rupees.

Maximum amount of funds were received by organisations registered in New Delhi: about 8.8 arab Rupees.

According to the Home Ministry, there are about 12 lakh (1.2 million) NGOs active in India.

[References:

'NGO funds under scanner', Hindustan Times, New Delhi, 18-Feb-05

'Swayamsevi Sangathanon per kasegi lagaam', Hindustan, Nai Dilli, 18-Feb-05

One arab is equal to 100 crores (one billion or 1000 million).]

168: Comprehensive Legislation for NGOs?

(31-Mar-05)

If Indian NGOs sometimes feel that the Government does not care for them, then the Government seems all set to make amends.

The Home Minister chaired a high-powered meeting earlier this month. The meeting was attended by HRD Minister (Sh. Arjun Singh), Rural Development Minister (Sh. Raghuvansh P. Singh), Minister for Social Justice & Empowerment (Su. Meira Kumar), and Minister of Culture (Sh. Jaipal Reddy).

The meeting commended NGOs for their good work. It also felt that some NGOs need to be more transparent in their working.

What was decided at the meeting? First, that a national database should be set up on NGOs. Second, that an expert group should be formed to frame a national policy on NGOs. Third, a comprehensive legislation on NGOs should be passed.

Curiously, just a month prior to this meeting, the Planning Commission had organised a consultation to draft a national policy on NGOs. Four expert groups have also been formed to work on this.

What could be the reason for this seeming overlap? Possibly there is a mistake in the latest news report.

Or it could be due to the way all good Governments should work: the left hand knoweth not what the right hand doeth!

In the meanwhile, let's keep our own hands crossed and hope for the best.

[References:

'NGO funds under scanner', Hindustan Times, New Delhi, 18-Feb-05

'Swayamsevi Sangathanon per kasegi lagaam', Hindustan, Nai Dilli, 18-Feb-05]

167: Cheques in Drop Boxes

(4-Feb-05)

A few years ago, foreign banks in India started a system of drop-boxes for collecting cheques. Then Indian banks also followed suit. Some customers have always wondered how safe are these.

Not very safe, it seems. Delhi Police have arrested two security guards for stealing cheques from drop-boxes. These guards, from a private security agency, were posted at the Preet Vihar Branch of Indian Overseas Bank. They would steal the cheques, erase the names from the cheque, write their own names and get the cheques encashed. According to the police, they had encashed at least five such cheques. At the time of their arrest, they were tampering with a sixth cheque.

According to the newspaper, several such cases have come to light in recent months.

What can you do about this? One option is to stop using drop-boxes.

Another, more practical solution, is to read AccountAble 9: Banking, and AccountAble 12: Filling Cheques Safely. Both are available at www.AccountAid.net. Both the issues contain practical tips on how you to protect your cheques from alteration.

[References:

'Two bank guards arrested for stealing cheques', P.3. Hindustan Times, New Delhi, 4-Feb-05]

166: Corporate Takeover of Charitable Hospitals

(31-Jan-05)

In a new twist to their sense of Corporate Social Responsibility, some corporate groups in Delhi are eyeing charitable hospitals for take-over.

Unfortunately for them, the land allotment rules of DDA do not allow alienation of land allotted as low prices to charitable institutions.

So what? There is always a way around an inconvenient law. The corporate groups are now entering into 'management contracts' with the concerned Trusts. This allows them to run the hospital as they wish, including raising the fees 4-5 times. The land allotment rules are also not violated in a technical sense.

Why takeover an existing hospital instead of building a new one? For several reasons: prime location, existing clientele, infrastructure, staff, etc.

The first hospital to go corporate is 'Jessa Ram Hospital' in Karol Bagh, which is now renamed 'Fortis Jessa Ram Hospital'. Other cases include Devki Devi Foundation in Saket, and Balaji Trust in Patparganj, both of whom have entered into management contracts with Max Healthcare. Mool Chand Khairati Ram Hospital may also go the same way.

What are the implications for charitable hospitals in general? If this trend continues, the Government will, sooner or later, be forced to revise the rules related to tax exemption for charitable hospitals.

Curiously, this trend towards more expensive healthcare is driven by mediclaim insurance. If you are insured you don't really care how much the treatment costs you. Someone else will be footing the bill.

[References:

DDA: Delhi Development Authority

'Corporates cast net on hospitals', P.3. Hindustan Times, New Delhi, 31-Jan-05]

165: FCRA relaxation for Tsunami Relief

(10-Jan-05)

FCRA Department has relaxed FCRA provisions for Tsunami relief. Organisations which do not have FCRA can now accept FCRA funds / materials by opening a separate bank account. They should designate this account as 'name of organisation - Tsunami Relief Account'. This account should be used only for FCRA funds received for Tsunami relief.

They should apply for FCRA permission in form FC-1A within one week of opening the account. They need not wait for the prior-permission to start accepting funds or materials.

Intimation of receipt should be sent in form FC-3 by 31st July 2005.

This relaxation is valid only upto 31-March-2005. A copy of the press release and the notification are available at www.AccountAid.net.

[References:

http://mha.nic.in/Tsunami-I.pdf

http://education.vsnl.com/accountaid/Tsunami_FCRA.htm

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