PRE-REQUISITES OF PCP CERTIFICATION

NO PRE-REQUISITES

LEGAL & REGULATORY COMPLIANCE

1 REGISTRATION AS NPO

As required by law, the applicant organisation has obtained registration/licenses from

a)
relevant public authorities

2 ACTIVITIES WITHIN SCOPE OF WORK

a) The programmes and activities fall within the scope defined by the registration authority

3 FOREIGN NATIONALS

a) The applicant organisation maintains record of foreign nationals

The applicant organisation has made declaration that no foreign national is working without
b)
valid visa under its umbrella and without prior security clearance from relevant authorities

GENERAL PUBLIC UTILITY COMPLIANCE

4 MAINTENANCE OF RECORD OF BENEFICIARIES & PROGRAM EXPENDITURE

a) The applicant organisation maintains record of beneficiaries & program expenditure

i. The applicant organisation has submitted details of beneficiaries including names and contact
The applicant organisation has submitted details of program expense, relevant breakups and
ii.
disbursement
iii. The organisation provides free/partial free service to its beneficiaries.
INSTITUTIONAL MECHANISMS OF OVERSIGHT
5 GOVERNING DOCUMENT

a) The organisation has formulated a governing document

MAINTENANCE OF RECORD OF MEMBERS, GOVERNING BODY MEMBERS & THEIR

6
MEETINGS
The applicant organisation maintains record of members including their names, term of
a)
office and contact details

The applicant organisation maintains record of governing body members including their
b)
names, term of office, contact, qualification and professional profile

The minutes reflect that the organisation has a functional governing body i.e. at least one
c)
meeting is held during the evaluation period

7 PAYMENT OF REMUNERATION/BENEFIT TO MEMBERS

The organisation is a non-profit-distributing organisation and that all its income,

commodities, property and other assets shall be applied solely towards the promotion of its
a) objectives. Further, the organisation prohibits that funds or property of the organisation or
any part thereof are paid or transferred directly or indirectly to any of the members of the
organisation or their relatives.
 Payment of remuneration and other benefits shall be allowed only to the chief executive officer
i.
and directors who are non-members and are in the whole-time employment of the company

Payment of remuneration or other benefits by the company or its subsidiary entity for services or
ii. otherwise to members of the company or to their close relatives whether holding an office in the
company or its subsidiary or not, shall be prohibited
COMPLIANCE WITH TAX LAWS
8 COMPLIANCE WITH TAX LAWS & REGULATIONS

As required by law, the applicant organisation has obtained registration from the tax
a)
department

i. The applicant organisation has a valid national tax number (NTN)

ii. The applicant organisation has a valid sales tax registration number. (If applicable)

The applicant organisation has complied with the following periodic filing requirement as
b)
required by the tax law

i. Annual filing of income tax returns during the evaluation period

ii. Monthly filing of withholding tax statements during the evaluation period
iii. Filing of sales tax returns during the evaluation period.

The applicant organisation has ensured provision of appropriate information so as to make

c)
determination with regard to the following:

i. Organization's salary expense is within the prescribed threshold given in ITR 2002.
Organisation restricts surplus funds or monies set apart in compliance with the requirements
ii.
specified in ITR, 2002.
Organisation restricts its management & administrative expenditure in compliance with the
iii.
requirements specified in ITO 2001 & Income Tax Rules, 2002.
FINANCIAL MANAGEMENT
9 BANKING OF FUNDS

a) Funds of the applicant organisation are transacted through banking channels

i. The applicant organisation has at least one functional bank account

ii. The bank account (s) are in the name of the organisation
iii. The bank account (s) are operated on dual mandate/joint signatory system
iv. Funds of the applicant organisation are deposited in bank
v. Funds of the applicant organisation are transacted through its official bank accounts
10 MAINTENANCE OF BOOKS OF ACCOUNTS

The organisation ensures preparation and maintenance of books of accounts and related
a)
breakups

11 AUDIT OF FINANCIAL STATEMENTS BY AN EXTERNAL AUDITOR

a) External audit reflects compliance with the following requirements:

The organisation has provided latest due audited accounts before field evaluation. The same are
i.
signed by both auditor and the Management.
 The external auditor is registered with relevant registration authority in accordance with Income
ii.
Tax Rules
The governing body has approved the appointment of auditors in each year of the evaluation
iii.
period.
An external auditor has conducted an organizational audit covering all projects and programmes
iv.
and the total expense of the organisation.
The name and particulars of the organisation should be the same as mentioned on the registration
v.
certificate.
vi. The auditor has given a clear opinion in relation to true and fair representation of the account.
vii. There is no unresolved qualified opinion in the audited accounts
viii. The audited accounts reflect that expenditure has been incurred on program operations
The governing body has reviewed and approved the audited accounts at least once during the
ix.
evaluation period
The organisation has submitted audited accounts which have become due post evaluation. The
x.
same are signed by both auditor and the Management.
12 MAINTENANCE OF RECORD OF DONORS & DONATIONS

a) The applicant organisation maintains record of donors & donations

The applicant organisation has submitted details of donors (both national and foreign) including
i.
names and contact
ii. The applicant organisation has submitted details of donations and relevant breakups
13 SAFEGUARDING OF ASSETS
All assets of the organisation (fixed as well as investments) are held in the name of or are legally
a)
assigned to the organisation or its Governing Body
b) The organisation maintains proper books of accounts with regard to its assets
GENERAL
14 REQUISITE SCORE FOR PCP CERTIFICATION1
a) Legal & Regulatory Compliance
b) General Public Utility Compliance
c) Institutional Mechanisms of Oversight
d) Compliance with Tax Laws
e) Financial Management
f) Policies
g) Program Delivery
h) Overall
15 COMPLIANCE WITH PCP RECOMMENDATIONS

a) In case of renewal of certification status, the applicant organisation has ensured compliance with
at least 50% of the recommendations given during previous evaluation

16 STANDARD UNDERTAKINGS AND CHARTER AMENDMENTS

1
Each category of the Certification Model contains a certain number of parameters with each being assigned a score
against which a non-profit organization is assessed. An NPO can attain a maximum score of 1000. The category-wise
minimum score which an NPO must achieve to be finally certified is 50%. In addition, the NPO has to score an aggregate
of 600 marks out of 1000 to be certified. This scoring system aims to ensure that an NPO must possess institutionalized
capacity to perform through systems and processes.