Section 8 in The Foreign Contribution (Regulation) Act, 2010
8 Restriction to utilize foreign contribution for administrative purposes.
(1) Every person, who is registered and granted a certificate or given prior permission under this Act and receives any foreign contribution,
(a) shall utilize such contribution for the purposes for which the contribution has been received:
Provided that any foreign contribution or any income arising out of it shall not be used for speculative business: Provided further that the Central Government shall, by rules, specify the activities or business which shall be construed as a speculative business for the purpose of this section.
(b) shall not defray as far as possible such sum, not exceeding fifty percent. of such contribution, received in a financial year, to meet administrative expenses:
Provided that administrative expenses exceeding fifty percent. of such contribution may be defrayed with prior approval of the Central Government.
(2) The Central Government may prescribe the elements which shall be included in the administrative expenses and the manner in which the administrative expenses referred to in sub-section (1) shall be calculated.