Fcra violation and legal impact on trustees


In a Public Charitable and Educational Trust the trustees are concerned about some potential violation of FCRA. One American in serving an organisation as volunteer. He is a consultant per his position and business card from the organisation in India namely ABCD India Trust at Assam. He is registered with FRRO in Assam and Form-C from a hotel in Assam is given as residence. Actually he is based in Tamilnadu. He has some fund from USA for his church and other donors. The fund is deposited into his bank account in USA and India. He has ATM card to withdraw money in India. Directly he funds some activities in Kodai Villages from the money he withdraws from the ATMs. He is reporting to a Trustee of one trust in Kodai, Tamilnadu.The American get the receipts signed by benificiaries and account into his expense report and the Trust in Tamilnadu with which he works use those progams as the program of the trust. Thus used for double activity report. What do you say about the usage of his fund for the programs? Is it affecting FCRA? Why and what is impact on the Trust and the Trustee to who he reports to?

Other two foriegners are getting fund in their countries from their friends and pastors of churches in abroad. The fund deposited into their (2 foreigners) bank account in India and abroad are withdrawn by those two foreigners in India and brought to a Trust which is working with the aboove said American. Partially these funds are used for church/gospel work and religious purposes without disclosing in the financial statment of auditor at the year end. The money brought in by the 2 foreigners are called as Annonimous Donations or special gift without identifying the donors. Sometime the name of the 2 foreigners are indicated in the cash book.What is your conclusion - is it a violation of FCRA and how will it be considered if such funds are used for relegious purposes? How will it affect the trustees of the trust? 

Please share your thoughs and advice. Thank you.

 
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