Donation Records, Registration and Rules in Nepal

Rules about donations in Nepal depend on what kind of body you are, where you are registered and what your constitution says. A general article cannot tell you what applies to you. What it can do is explain the records that make compliance easier, and point you to the people who decide. Treat this as record-keeping guidance, not legal or tax advice.

Your constitution comes first

Most community bodies have a constitution, trust deed or by-laws that say who may receive money, who signs for it, how it is banked, what it may be used for and how accounts are presented. Read yours before setting up any system. If it says all spending needs two signatories, the software roles should reflect that. If it says accounts are presented at the annual general meeting in Baisakh or at another time, plan reports for that date.

Registration and who you report to

Different bodies register with different authorities: a district administration office, a local level, the Social Welfare Council for some non-profits, the Cooperative Division for co-operatives, the Guthi arrangements for traditional trusts, or others. Each has its own reporting expectations, renewal dates and rules on foreign funds. Do not guess. Ask your registering authority and your accountant what must be filed and by when, then use the software to produce the underlying records.

Tax treatment of donations

Whether a donation is tax deductible for the donor, or exempt for the receiving body, is set by law and can change. In Nepal this is a question for the Inland Revenue Department and your accountant. Do not copy rules from other countries; terms like 80G belong to the Indian system and do not automatically apply here. What you can do is keep the records any rule is likely to need:

• Donor name, address and PAN where available.
• Amount, date and mode of payment.
• Numbered receipt copies.
• Bank statement or wallet statement matching the gift.
• Purpose of the gift and the fund it was credited to.

Foreign contributions

If you receive money from abroad, extra rules may apply to how it is received, banked and reported, especially for NGOs. Ask your registering authority and bank about permission requirements before accepting, and record the foreign currency amount, the exchange rate used and the NPR actually received. Keep the donor's details and the purpose. If a donor wishes to send funds through a relative in Nepal, still record it as a gift with a proper receipt and let your accountant advise.

Cash and large gifts

Large cash gifts may attract questions from banks and authorities. Keep records of who gave, why and what you did with the cash, and deposit promptly in the organisation account. If a donor insists on privacy, discuss how to protect the name in public reports without hiding it from those who legitimately need to see it, such as your auditor.

Audit and annual accounts

Document	Why an auditor may ask
Receipt book and cancelled copies	To check completeness of income
Bank statements	To match deposits to receipts
Fund-wise ledger	To show restricted gifts were used as intended
Expense vouchers	To show spending was authorised
Committee minutes	To show decisions on large spending

Your auditor may belong to a body such as the Institute of Chartered Accountants of Nepal. Ask them in advance what they want to see, so records are prepared in a suitable form.

Personal data and donor privacy

Donor records contain names, phone numbers, addresses and sometimes PAN. Treat this information with care even where no specific rule forces you to. Limit who can see the full donor list, avoid posting names and amounts on public notice boards without consent and do not share contact lists with third parties. Ask donors whether they are happy to be named in thank-you lists, and record their choice. If rules on personal data apply to your body, your lawyer can advise, and the software should allow you to restrict access and export or remove a donor on request where appropriate.

Minutes and approvals

Beyond receipts, keep minutes of meetings that approve spending, set targets and name signatories. Number them and store them with the accounts. Auditors and authorities often start with minutes because they show who decided what. A decision recorded the same week is far more convincing than one written months later. Where your constitution requires two signatories for payments, reflect that in who can approve vouchers in your records.

What software can and cannot do

The WebsNP donation software is designed to keep receipts, donors, funds and expenses in order so you can answer an auditor or authority quickly. We do not claim any official approval, certification or direct connection to a government system. Where you need a particular receipt wording or report layout, we configure it once you tell us what is required.

If you are a religious trust or guthi, read also about temple, guthi and trust software, which adds land, rent and puja records.

Your next step

Ask your accountant three questions: what receipts you must issue, what must be reported and when, and how long records must be kept. Write the answers down and bring them to a WhatsApp chat or demo with us so we can set up the system to match.

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