Can we pay for winners as prize money under FCRA accounts

FCRA & FCRR
1

we held a hackathon using FCRA funds an have to pay the winners. Can it be paid as prize money? or should it be termed differently

2

To avoid making payments as prize money to individuals from being treated as sub grant, the better alternative is to buy gift hampers and give them as gift for personal use which will not be treated as FC upto Rs.1 lakh under FCRA.

CS Sharad Bhargava

3

we cannot provide gifts for personal use as the prize money is meant for strengthening their initiative. This is a condition in our grant agreement. they are non FCRA organisations

4

Ok, so if these are organizations, providing FC in cash or kind is prohibited as per Section 7 of FCRA. Looking at the transaction as fee for service can possibly take it out of the FCRA ambit but needs to be thought through.

CS Sharad Bhargava