NGO - Lent out funds received

[NAVIN SINGHAL]

CAN NGO/NPO LENT OUT THE FUND/GRANT RECEIVED BY THEM TO ANT BUSINESS ENTITY WITH OR WITHOUT INTEREST

AI Summary

Can NGOs Lend Grant Funds to Businesses? Legal and Ethical Considerations Under FCRA and Bylaws Explored. An individual inquired whether an NGO can lend funds received as grants to a business entity, with or without interest. One respondent emphasized the need to check the NGO's bylaws and exemption conditions to determine permissibility. Another highlighted ethical concerns, suggesting lending should align with the NGO's purpose. A third response warned about restrictions under the Foreign Contribution Regulation Act (FCRA) regarding foreign grants, noting that many donors prohibit co-mingling of funds. The discussion aimed to explore various perspectives and enhance understanding of the legal and ethical considerations involved in such financial transactions by NGOs.