UPSC Prelims Practice Questions — ‘Indian non-profits lag on digital maturity, AI’

Q1. A recent survey of 500 Indian non-profit organisations found them lagging on digital maturity and AI adoption. According to it, what is the main use Indian non-profits currently make of large language models (LLMs)?

  • A. Integrating them into complex programme workflows, as white-collar firms do
  • B. Running campaigns funded by monthly advertising grants of $10,000
  • C. Drafting reports and producing marketing content for their organisations
  • D. Filing compliance returns on the NPO Darpan and FCRA online portals

Q2. The report that found Indian non-profits scoring below 50% on 'digital maturity', based on a survey of 500 organisations, was brought out by which one of the following?

  • A. Digital for Nonprofits (D4NP), a Delhi-based organisation
  • B. Voluntary Action Cell of NITI Aayog, which runs NPO Darpan for non-profits
  • C. Foreigners Division of the Ministry of Home Affairs, which administers FCRA
  • D. IndiaAI FutureSkills pillar under the Ministry of Electronics and IT

Q3. An NGO wishes to receive grant-in-aid from a Union Ministry. Which of the following are correctly identified as registrations or empanelments it must hold for this purpose? 1. A Darpan ID from the NPO Darpan portal maintained by NITI Aayog 2. Registration on the Public Financial Management System (PFMS) 3. Mapping on the Expenditure Advance and Transfer (EAT) Module 4. Registration with the Ministry of Home Affairs under the Foreign Contribution (Regulation) Act, 2010 Which of the above is/are correctly identified?

  1. A Darpan ID from the NPO Darpan portal maintained by NITI Aayog
  2. Registration on the Public Financial Management System (PFMS)
  3. Mapping on the Expenditure Advance and Transfer (EAT) Module
  4. Registration with the Ministry of Home Affairs under the Foreign Contribution (Regulation) Act, 2010
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1 and 4 only

Q4. Consider the following statements regarding the NPO Darpan platform: 1. It is maintained by the Voluntary Action Cell of NITI Aayog. 2. The Darpan ID is issued manually by the District Collector after physical verification of the organisation. 3. The Darpan ID is required for NPOs seeking grants from Ministries/Departments of the Government of India. 4. Every non-profit organisation in India must obtain a Darpan ID, whether or not it seeks government grants. Which of the statements given above is/are NOT correct?

  1. It is maintained by the Voluntary Action Cell of NITI Aayog.
  2. The Darpan ID is issued manually by the District Collector after physical verification of the organisation.
  3. The Darpan ID is required for NPOs seeking grants from Ministries/Departments of the Government of India.
  4. Every non-profit organisation in India must obtain a Darpan ID, whether or not it seeks government grants.
  • A. 2 only
  • B. 1 and 3 only
  • C. 1, 2 and 4
  • D. 2 and 4 only

Q5. Which of the following are correctly identified as provisions of the Foreign Contribution (Regulation) Act, 2010, as it stands after the 2020 amendment? 1. Foreign contribution must first be received only in the designated 'FCRA Account' at the New Delhi Main Branch of the State Bank of India. 2. Not more than 20% of the foreign contribution received in a financial year may be used for administrative expenses. 3. Any association may be granted registration immediately on formation, whatever its period of operation. 4. Applicants must give the Aadhaar number of all office bearers, directors or key functionaries; foreigners may give a passport or OCI card instead. Which of the above is/are correctly identified?

  1. Foreign contribution must first be received only in the designated 'FCRA Account' at the New Delhi Main Branch of the State Bank of India.
  2. Not more than 20% of the foreign contribution received in a financial year may be used for administrative expenses.
  3. Any association may be granted registration immediately on formation, whatever its period of operation.
  4. Applicants must give the Aadhaar number of all office bearers, directors or key functionaries; foreigners may give a passport or OCI card instead.
  • A. 1 and 2 only
  • B. 2, 3 and 4 only
  • C. 1, 2 and 4 only
  • D. 1, 3 and 4 only

Q6. The ban on an FCRA-registered association transferring foreign contribution to any other person, including another FCRA-registered association, was brought in by which one of the following?

  • A. The Foreign Contribution (Regulation) Act, 2010, as originally enacted
  • B. The Foreign Contribution (Regulation) Amendment Act, 2020
  • C. The Finance Act, 2016, which amended the FCRA, 2010
  • D. The Foreign Contribution (Regulation) Act, 1976

Q7. A group of social workers wants to set up their NGO as a not-for-profit company. Which one of the following correctly identifies the ministry and law under which it would be registered?

  • A. NITI Aayog's Voluntary Action Cell, which alone registers every non-profit under the NPO Darpan framework
  • B. Ministry of Home Affairs, which registers all non-profits in India under the FCRA, 2010
  • C. Income Tax Department, whose Section 12AB approval by itself gives any NGO legal personality
  • D. Ministry of Corporate Affairs, under Section 8 of the Companies Act, 2013

Q8. In the context of the legal forms available to NGOs in India, which one of the following best describes a 'Section 8 company'?

  • A. A company formed for objects such as charity, education or environment protection that may pay up to 10% of its profits as dividend to members
  • B. A company formed for objects such as charity, education or environment protection that must apply its profits to those objects and is barred from paying dividends to members
  • C. A trust formed for objects such as charity, education or environment protection and registered under the Indian Trusts Act, 1882 with the Registrar of Companies
  • D. A company formed for objects such as charity, education or environment protection that may distribute its accumulated profits to members after five years of operation

Q9. For charitable trusts and institutions seeking income-tax exemption, what does the term 'Unique Registration Number (URN)' refer to?

  • A. A system-generated ID issued on NITI Aayog's NPO Darpan portal to NPOs seeking grants from Ministries
  • B. A registration number granted by the Ministry of Home Affairs to associations receiving foreign contribution
  • C. A sixteen-digit alphanumeric number issued by the Principal Commissioner or Commissioner on approval under Section 12AB
  • D. A registration number issued by the Ministry of Corporate Affairs to CSR implementing agencies

Q10. Which is the primary instrument through which Not-for-Profit Organisations registered on India's Social Stock Exchange raise funds from the public?

  • A. Zero Coupon Zero Principal instruments
  • B. Units of Social Impact Funds
  • C. Development Impact Bonds
  • D. Green Debt Securities

Q11. Which of the following are correctly identified as pillars of the IndiaAI Mission, approved with an outlay of about Rs 10,372 crore? 1. AIKosh 2. FutureSkills 3. Bhashini 4. Safe & Trusted AI Which of the above is/are correctly identified?

  1. AIKosh
  2. FutureSkills
  3. Bhashini
  4. Safe & Trusted AI
  • A. 1, 2 and 4 only
  • B. 1 and 2 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q12. Consider the following statements regarding the Corporate Social Responsibility (CSR) framework under the Companies Act, 2013: 1. The mandate applies to a company with net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more in a financial year. 2. Such a company must spend at least 2% of its average net profits of the three immediately preceding financial years. 3. NGOs acting as CSR implementing agencies must register with the Central Government by filing Form CSR-1; this has been mandatory since 1 April 2021. 4. Companies report their annual CSR spending and activities to the MCA21 registry through Form CSR-1. Which of the statements given above is/are correct?

  1. The mandate applies to a company with net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more in a financial year.
  2. Such a company must spend at least 2% of its average net profits of the three immediately preceding financial years.
  3. NGOs acting as CSR implementing agencies must register with the Central Government by filing Form CSR-1; this has been mandatory since 1 April 2021.
  4. Companies report their annual CSR spending and activities to the MCA21 registry through Form CSR-1.
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2 and 3 only