TaxTMI 
TaxTMI 
CAN NGO/NPO LENT OUT THE FUND/GRANT RECEIVED BY THEM TO ANT BUSINESS ENTITY WITH OR WITHOUT INTEREST
NGO - Lent out funds received
07 Oct 2009 
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Permissibility of lending by NGOs depends on bylaw compliance, objects, exemption undertakings and foreign grant restrictions.
Permissibility of an NGO lending received funds requires compliance with the NGO's bye laws, alignment with its stated objects, and consistency with any undertakings given for tax or exemption purposes; foreign contributions and donor covenants-including restrictions on transfers to unregistered recipients and prohibitions on co mingling-constitute independent limits that must be checked before lending to outside business entities. (AI Summary)
Permissibility of an NGO lending received funds requires compliance with the NGO's bye laws, alignment with its stated objects, and consistency with any undertakings given for tax or exemption purposes; foreign contributions and donor covenants-including restrictions on transfers to unregistered recipients and prohibitions on co mingling-constitute independent limits that must be checked before lending to outside business entities. (AI Summary)