Based on the recent regulations from the Income Tax Department for all Non-Profit Organizations as well as on our situation in a religious set-up, I feel the need for us to have our own financial policy and procedure. Hence, taking into account our religious as well as the civil requirements, I present here the basic financial policy and procedure. This is meant to serve us as guidelines for our finance-related procedure. It is not exhaustive, but it shows the important areas of lacunae we are facing at present. Failure to follow these will attract penalties or even endanger the tax exemption of our registered societies. Though a burden it may be, keeping in mind the interests of our organizations and registered societies, it is better to adhere to this from now on than regretting later on for not having done anything about it. It is better that we follow these guidelines strictly, lest our registered societies get tax or legal problems of non-compliance.
Various Policies and Procedures
Accountability: Experience shows that for stewards who manage the resources on behalf of the owner, i.e., our Lord Himself, accountability is very central. As stewards, we are accountable to the existing structures like the religious Superiors, Governing Body, Donors and the Government. The Code of Canon Law refers to it time and again. Where there is no accountability, the organization will disintegrate.
Fr Alex G., SJ
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