OCI Cardholders and Donating to India: What FCRA Means for You

If you hold an Overseas Citizen of India (OCI) card, India is still home in many ways. You may have family here, a school you remember, a town you grew up in. It is natural to want to support a student here. But when OCI cardholders try to donate to an Indian non-profit, they are often asked for passport details and told the gift is a "foreign contribution". That can feel confusing. This guide explains why, in simple terms.

What is FCRA?

The Foreign Contribution (Regulation) Act, or FCRA, is the Indian law that governs money given by foreign sources to organisations in India. A non-profit can receive foreign contributions only if it is registered under FCRA, and only into its designated FCRA bank account. The law also requires the organisation to record specific details about each foreign donor.

Buddy4Study India Foundation, which runs Kind Circle, is FCRA-compliant and can receive foreign contributions from eligible donors.

Why an OCI donation counts as foreign

Under FCRA, citizenship decides how a donation is treated – not where you live and not which bank account you pay from.

• An OCI card is not Indian citizenship. OCI cardholders are citizens of another country.
• So a donation from an OCI cardholder is a foreign contribution, even if it is paid from an Indian bank account such as an NRO account.
• By contrast, an NRI who still holds an Indian passport is an Indian citizen. Their donation is treated as a domestic contribution, even if they live abroad.

Quick reference

Why we ask for your passport number

Under current FCRA guidelines, foreign contributors must provide identification details, including their passport number. This is a legal requirement, not an extra step we have added. Your details are stored securely and used only for regulatory compliance.

How OCI cardholders can give on Kind Circle

1. Direct transfer to the FCRA account

You can send your donation by bank transfer to Buddy4Study India Foundation's designated FCRA account. Our team will share the account details and help you complete the donor declaration.

2. Card payment on a circle page

For quick one-time gifts, you can pay by international card on any circle page.

3. Through Pragati Foundation USA (for US taxpayers)

If you live in the United States and want a US tax deduction, you can give through Pragati Foundation USA, a 501(c)(3) charity that partners with Kind Circle. Read our guide on how US donors can get a tax deduction for funding students in India.

What about Indian tax benefits?

Foreign contributions received through the FCRA route generally do not carry Indian income-tax deductions such as 80G. If you also earn taxable income in India, please talk to your tax advisor about what applies to you. Read our simple guide to 80G tax benefits on education donations for more.

Common mistakes to avoid

• Paying from an NRO account and assuming it is domestic. For an OCI cardholder, it is still a foreign contribution.
• Sending money to a non-FCRA account. Foreign contributions must go only to the organisation's designated FCRA account.
• Leaving out passport details. Without them, the donation cannot be processed correctly.

If you are unsure, just write to us before you give. We will tell you exactly which route to use.

Start a scholarship as an OCI cardholder

OCI cardholders can also start their own named scholarship on Kind Circle – in memory of parents or grandparents, or for students from their hometown. Your circle runs under Buddy4Study India Foundation, so you do not need to set up a trust or deal with FCRA paperwork yourself. Your family members in India, who hold Indian passports, can contribute to the same circle as domestic donors.

See our guide on starting a memorial scholarship on Kind Circle.

A quick example

Meera grew up in Pune and moved to the United States, where she later became a US citizen and received her OCI card. She still has an NRO account in India. When she wanted to fund a scholarship in memory of her grandmother, she assumed that paying from her Indian account made it a domestic donation. It did not – because Meera is no longer an Indian citizen, her gift is a foreign contribution under FCRA.

The fix was simple. She shared her passport details, sent her donation to Buddy4Study India Foundation's FCRA account, and her brother in Bengaluru, who holds an Indian passport, contributed to the same circle as a domestic donor. The scholarship now runs smoothly, fully within the rules. (This example is illustrative.)

Frequently asked questions

I am an OCI cardholder paying from my Indian NRO account. Is it domestic?
No. Your citizenship is not Indian, so it is a foreign contribution and must follow the FCRA route.

My spouse has an Indian passport. Can they give as a domestic donor?
Yes. Each donor is treated according to their own citizenship.

Will I receive a receipt?
Yes. Every donor receives an official acknowledgement and receipt.

We are here to help

Giving across borders should feel simple. Write to kind@buddy4study.com with any question, or explore our circles to find a cause close to your heart.