UPSC Governance – Chapter 15: NGOs, Donors, Charities and the Development Industry (22 MCQs)

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UPSC Governance – Chapter 15: NGOs, Donors, Charities and the Development Industry (22 MCQs) – 22 questions, subject: Governance. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  

The main law for the registration of societies in India is the:

Correct Answer: D [Societies Registration Act, 1860]

Explanation:

The Societies Registration Act, 1860 governs societies of seven or more members formed under a memorandum and rules.

2.  

The Foreign Contribution (Regulation) Act is administered by the:

Correct Answer: A [Ministry of Home Affairs]

Explanation:

The FCRA, 2010 is administered by the Ministry of Home Affairs, which registers NGOs and monitors their foreign contributions.

3.  

Under the FCRA (Amendment) Act, 2020, administrative expenses from foreign contribution are capped at:

Correct Answer: C [20 per cent]

Explanation:

The 2020 amendment cut the administrative-expense cap from 50 per cent to 20 per cent of the foreign contribution.

4.  

Mandatory corporate social responsibility in India is provided under:

Correct Answer: A [Section 135 of the Companies Act, 2013]

Explanation:

Section 135 of the Companies Act, 2013 made CSR spending mandatory for companies above the thresholds from 1 April 2014.

5.  

NGO-Darpan, which gives NGOs a unique ID, is a portal of:

Correct Answer: D [NITI Aayog]

Explanation:

NGO-Darpan is a NITI Aayog portal that gives NGOs a unique ID for dealing with government schemes.

6.  

Under the FCRA, 2020 amendment, foreign contribution must first be received in a designated account at the:

Correct Answer: C [State Bank of India, New Delhi Main Branch]

Explanation:

The 2020 amendment requires foreign contribution to be received first in an FCRA account at SBI, New Delhi Main Branch.

7.  

Médecins Sans Frontières was founded in:

Correct Answer: C [1971]

Explanation:

Médecins Sans Frontières was founded in France in 1971 and received the Nobel Peace Prize in 1999.

8.  

Which international NGO publishes the Corruption Perceptions Index?

Correct Answer: B [Transparency International]

Explanation:

Transparency International, founded in 1993 and based in Berlin, publishes the annual Corruption Perceptions Index.

9.  

The National Policy on the Voluntary Sector was adopted in:

Correct Answer: A [2007]

Explanation:

The National Policy on the Voluntary Sector, 2007 recognised the sector's independence and called for an enabling environment.

10.  

Consider the following statements:

1. A Section 8 company cannot pay dividends to its members.
2. Public servants are barred from receiving foreign contribution under the FCRA.
3. NGOs may transfer foreign contribution freely to other registered NGOs.

Which of the statements given above is/are correct?

Correct Answer: B [1 and 2 only]

Explanation:

Section 8 companies cannot pay dividends and public servants are barred from foreign contribution; onward transfer is banned since 2020.

11.  

Assertion (A): Critics say some NGOs are more accountable to donors than to the people they serve.

Reason (R): Funding decisions and reporting are controlled by donors, while beneficiaries have little say.

Correct Answer: A [Both A and R are true, and R is the correct explanation of A]

Explanation:

Because donors control funding and reporting, NGOs tend to answer upward to funders rather than downward to beneficiaries.

12.  

Amnesty International received the Nobel Peace Prize in:

Correct Answer: C [1977]

Explanation:

Amnesty International, founded in London in 1961, was awarded the Nobel Peace Prize in 1977.

13.  

A company must spend on CSR if, in a financial year, its net profit is at least:

Correct Answer: D [₹5 crore]

Explanation:

Section 135 applies to a company with net profit of ₹5 crore or more, besides the net-worth and turnover thresholds.

14.  

The ASER surveys on children's learning are brought out by:

Correct Answer: B [Pratham]

Explanation:

The Annual Status of Education Report (ASER) has been facilitated by the NGO Pratham since 2005.

15.  

Which of the following is an inter-governmental organisation rather than an NGO?

Correct Answer: A [Asian Development Bank]

Explanation:

The Asian Development Bank is a multilateral bank whose members are governments, so it is inter-governmental, not an NGO.

16.  

The first Foreign Contribution (Regulation) Act was passed in:

Correct Answer: B [1976]

Explanation:

The first Foreign Contribution (Regulation) Act was enacted in 1976; it was later replaced by the FCRA, 2010.

17.  

Arrange the following in chronological order:

1. Societies Registration Act
2. National Policy on the Voluntary Sector
3. First Foreign Contribution (Regulation) Act
4. FCRA (Amendment) Act

Select the correct answer using the code given below:

Correct Answer: C [1-3-2-4]

Explanation:

1860, 1976, 2007, 2020.

18.  

In which year did the Supreme Court uphold the FCRA (Amendment) Act, 2020?

Correct Answer: D [2022]

Explanation:

In Noel Harper v. Union of India (2022) the Supreme Court upheld the FCRA (Amendment) Act, 2020.

19.  

Under the Income-tax Act, 1961 (replaced by the Income-tax Act, 2025 from 1 April 2026), tax deduction for donors who gave to registered charities was provided under:

Correct Answer: B [Section 80G of the Income-tax Act]

Explanation:

Section 80G of the 1961 Act gave donors a deduction for gifts to approved charities; Section 133 of the 2025 Act now does so.

20.  

Under the Foreign Contribution (Regulation) Act, which of the following is barred from accepting foreign contribution?

Correct Answer: B [A candidate for election]

Explanation:

Section 3 bars candidates, political parties, legislators, judges, government servants and journalists, among others.

21.  
UPSC Prelims 2015

Amnesty International is:

Correct Answer: B [a global Human Rights Movement.]

Explanation:

Amnesty International, founded in 1961 in London, is a global movement for human rights.

22.  
UPSC Prelims 2016

'Doctors Without Borders (Medecins Sans Frontieres)', often in the news, is:

Correct Answer: B [A non-governmental international organisation]

Explanation:

MSF is an independent international medical humanitarian NGO founded in 1971.

➤ Full notes, maps, tables, a reason for every option and Mains PYQs – U12 · Governance (UPSC book, ₹249): www.shanmugamiasacademy.in/study-materials/upsc-governance

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