NRI and International Donors: How to Fund a Student's Education in India

Many Indians living abroad carry a quiet wish: to help a bright student back home who could not otherwise afford to study. Some want to honour parents who believed in education. Others remember the teacher or scholarship that changed their own lives. But giving across borders raises real questions. Is it legal? Will I get a tax benefit? How do I know the money reaches the right student?

This guide answers those questions and shows how NRIs, OCI cardholders and international donors can fund a student's education in India through Kind Circle.

Can I donate to students in India from abroad?

Yes. Buddy4Study India Foundation, which runs Kind Circle, is FCRA-compliant and can receive foreign contributions from eligible donors abroad, subject to applicable laws. Donors from different countries can even contribute to the same circle – so a family spread across India, the US, the UK and the Middle East can fund one scholarship together.

NRI, OCI or foreign citizen: how is my donation treated?

Under India's Foreign Contribution (Regulation) Act (FCRA), your citizenship decides how your donation is treated – not where you live.

• Indian passport holders (including NRIs living abroad) – your donation is treated as a domestic contribution.
• Foreign passport holders, including OCI cardholders – your donation is a foreign contribution and must be received through the foundation's FCRA-compliant route, whichever account you send it from.

This is why we ask for passport details. Under current FCRA guidelines, foreign contributors must share identification details, including their passport number. These details are stored securely and used only for regulatory compliance.

Ways to give from outside India

1. Through Pragati Foundation USA (for US tax benefits)

Donors in the United States who want a US tax deduction can give through Pragati Foundation USA, a 501(c)(3) non-profit that partners with Kind Circle. Donors receive a US tax-deductible receipt, and can usually give by PayPal, Zelle, bank transfer or cheque. See the Pragati Foundation USA – Kind Circle of HOPE page to learn more.

2. International card payment on Kind Circle

For quick one-time gifts, international donors can pay by card directly on a circle page through our international payment partner. This route is simple, though it does not offer a foreign tax deduction.

3. Direct bank transfer to the FCRA account

Larger or recurring gifts can be sent by bank transfer to the foundation's designated FCRA account. Our team shares the details and helps you complete the required declaration.

4. Employer matching gifts

Many employers, especially in the United States, run matching gift programmes. Check with your HR team – a match can double your impact at no extra cost to you.

Will I get a tax benefit?

It depends on your country of residence and the route you choose:

• United States – giving through Pragati Foundation USA provides a US tax-deductible receipt.
• India – Buddy4Study India Foundation is registered under Sections 12A and 80G of the Income Tax Act. Indian passport holders with taxable income in India may be able to claim a deduction under applicable rules.
• Other countries – options vary. Write to us and we will share the current possibilities.

Every donor receives an official acknowledgement and receipt. For advice on your personal tax situation, please consult your tax advisor.

Start your own scholarship from abroad

You do not have to give to someone else's programme. You can start your own named scholarship – a Family or Memorial Kind Circle – and run it from anywhere in the world, with no trust or NGO to register.

The KVS & Geetha Scholarship Kind Circle is a good example. It was started by a US-based donor in memory of their parents, two lifelong teachers from Coimbatore, and supports students who score well but come from families with limited income.

As the Karta of your circle, you decide who to support and approve the final scholars, while the Kind Circle team handles verification, disbursal and reporting in India. Most of the coordination happens over email, WhatsApp and video calls, so time zones are rarely a problem. Read our step-by-step guide to starting a memorial scholarship on Kind Circle.

How you will know your money is making a difference

• Students are selected through a multi-layered verification process, backed by Buddy4Study's network of close to 4.5 million registered students.
• Scholarships are paid directly to the student's bank account or institution.
• Your circle page shows funds raised, disbursals and students supported.
• You receive progress updates and can choose to speak with your scholars by video call.

Quick answers

I am an NRI with an Indian passport. Is my donation foreign?
No. It is treated as a domestic contribution, even if you live abroad.

I hold an OCI card. Can I donate?
Yes. As a foreign passport holder, your donation is processed through the FCRA-compliant route, and passport details are required.

Can I give every month?
Yes. Depending on the payment route, recurring contributions are possible.

Who do I contact?
Write to kind@buddy4study.com for help with international donations, tax receipts, payment options or setting up your own circle.

Give back to where you began

Distance does not have to come between you and the change you want to see at home. Explore our circles to support a student today, or start your own scholarship from wherever you are.