Transparency and Accountability in Managing Foreign Contributions

Strong governance ensures every contribution reaches its intended purpose and creates lasting impact.

India’s regulatory framework governing foreign contributions to voluntary organisations continues to evolve. Recent legislative and regulatory developments, including amendments notified in June 2026, reinforce the importance of transparency, accountability and sound governance in the management of foreign contributions.

The revised FCRA framework places greater emphasis on ensuring that foreign contributions are received for clearly defined charitable purposes, utilised only for approved activities, and supported by robust financial records and reporting. These developments are intended to strengthen public confidence in the voluntary sector while promoting greater transparency and accountability.

At Mukti, these principles have always been integral to our governance. Foreign contributions are received only for approved charitable purposes and specific projects that support our mission across West Bengal. These include programmes in education, healthcare, women’s empowerment, livelihoods, disaster resilience and community development in both rural and urban areas.

Mukti maintains project-wise accounting for all foreign-funded programmes, ensuring that every grant is monitored against its approved objectives and budget. Depending on donor requirements, foreign contributions are managed through dedicated project bank accounts or common FCRA utilisation accounts, with separate accounting maintained for each project. Temporary surplus funds, where permitted, are invested in fixed deposits in accordance with the applicable regulatory framework until they are required for programme implementation.

We are grateful to our overseas partners and donors for their continued trust. As transparency expectations continue to evolve globally, this is a request to our partner Mukti organisations in USA, Australia and Switzerland to retain comprehensive records of the original source of funds for grants made to Mukti, including the purpose of the donation and any conditions attached to it. Such documentation strengthens accountability, facilitates reporting and contributes to the highest standards of governance across the charitable sector.

At Mukti, transparency is not merely a regulatory requirement—it is a commitment to our donors, beneficiaries and partners. Through sound governance, prudent financial management and independent audit, we remain committed to ensuring that every contribution is used responsibly and creates lasting impact for the communities we serve.

By – Soumitra Bose

Vice President

Lead Finance & Compliance, Mukti