Foreign contribution administrative expense limits require dedicated use of funds and prior approval for excess expenditure.

Recipients of foreign contribution must use it only for the purpose for which it was received and must not apply the contribution or related income to speculative business. Administrative expenses must, as far as possible, remain within twenty per cent of foreign contribution received in a financial year. Expenditure beyond that limit requires prior approval of the Central Government, which may prescribe the components and calculation method for administrative expenses.

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