***FCRA***

REGISTRATION
NGOs intending to receive funds and donations from other countries should first register under the
provisions of Foreign Contribution Regulation Act, 1976.

The NGOs cannot take foreign contribution directly. For this purpose they should be registered under
the Foreign Contribution Regulation Act 1976, commonly known as the FCRA.

There can be two types of contribution from the foreign source, i.e. one time or expected more than
once and even regularly. For any one time contribution the NGOs can receive the amount by seeking
prior permission of the FCRA Section of the Ministry of Home Affairs, Government of India; whereas for
multiple and regular contributions of the foreign source it is advisable to seek permanent registration
from the said Ministry.

Exactly what is Foreign Contribution Regulation Act:-

Foreign contribution regulation Act 1976 or FCRA is a law of government of India which manages receipt
of foreign contributions or help from outside India to Indian areas. This is important to ensure that such
help does not affect political or other circumstances in India. For real contribution, the arrangement of
law is not really difficult to comply. The routine compliance is restricted to filing of annual return every
year. This law is implemented by the ministry of Home affairs, Government of India. There is a different
section in the ministry to make sure compliance to the Foreign Funding Registration.

Foreign Contribution Regulation Act, 1976 is undergoing a sea change with its new avatar and at present
the Foreign Contribution Regulation Bill, 2010 has been passed by both houses of the Parliament. Now it
awaits the assent from the President to be enacted. This may take some time to come into force and till
that time the existing act, FCRA, 1976 governs the entire gamut of foreign funding.

Foreign Contribution (Regulation) Act, 1976 (FCRA) was enacted in the year 1976 with the prime
objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by
persons and associations working in the important areas of national life. The focus of this Act is to
ensure that the foreign contribution and foreign hospitality is not utilized to affect or influence electoral
politics, public servants, judges and other people working the important areas of national life like
journalists, printers and publishers of newspapers, etc. The Act also seeks to regulate flow of foreign
funds to voluntary organizations with objective of preventing any possible diversion of such funds
towards activities detrimental to the national interest and to ensure that such individuals and
organizations may function in a manner consistent with the values of sovereign democratic republic.

The organizations seeking foreign contributions for definite cultural, social, economic, educational or
religious programmes may either obtain registration or prior permission to receive foreign contribution
from Ministry of Home Affairs by making application in the prescribed format and furnishing details of
the activities and audited accounts. The registration is granted only to such association which has
proven track record of functioning in the chosen field of work during last three years and after
registration, such organization is free to receive foreign contribution from any foreign source for stated
objectives. Registration is granted only after thorough security vetting of the activities and antecedents
of the organization and office bearers thereof. However, such organizations which are newly established
and do not have proven track record of functioning may also receive foreign contribution for specific
activities, for a specific purpose and from a specific source after seeking project based prior permission
(PP) from the Ministry of Home Affairs

A Ngo relates to get subsidizes from abroad presuming that it has an international financing registration
declaration. Administration of India and outdoors subsidizing companies discharges a considerable
measure of funds for the well-being of the underprivileged area of the caste. Then again, such counts on
are not legally made use of by a variety of such collection. UNO keeps tabs on conglomerations who
have done extraordinary work in elevating the poor location of the caste. In this way, the right outlook
to getting legit financial resources is to channelize your vigor in working for the society. Presuming that
you would like to know the best ways to get a FCRA endorsement, you can counsel us.

The second generally essential viewpoint to get Foreign Funding enlistment is that you ought to have
used at least 10 lakhs rupees in the most current three years under the social activities to get Foreign
Contribution Regulation Act authentication. Consequently, you can ask for FCRA online through their
site. After the fulfillment of five years, you have to renew the enrollment for an extra five years. This
guideline will begin from the year 2015. You will just get a restoration if Government powers discover
your work veritable and exemplary.

Outside funding has turned into a standard part of Indian social order of NGO section. In any case
getting remote establishments is not that easy as it should be. NGOs meaning to get funds and
contributions from various other nations must initially registered under the arrangements this
internationl funding act 1976. Either long-term registration or prior consent for a specific contribution
can be looked for from the FCRA Section of Ministry of House Affairs. A signed up NGO having existence
for a minimum of three years can be registered under this arrangement.
The Ministry sends out the accepted application to local knowledge people for confirmation of the
credentials and records of the company. On their positive opinions, the FCRA Section of the Ministry
issues the Certification of Registration to the candidate organization.

It is necessary to receive foreign contribution just in one designated bank account. For that reason, the
applicant organization should open a fresh savings account with the intention to operate it for such
funds and mention it in the application. The said Ministry will straight inform the worried bank to keep
watch on the use of the foreign contribution and report back to the Ministry in case of any
inconsistency. The organizations signed up under the FCRA need to keep separate accounts incurred
under the FC head and send a return in the recommended format to the Ministry together with the
audited statement of accounts of the previous year by 31 July every year.

The non government organizations registered under the FCRA, ought to inform to the Ministry about
any change in name of the organization, its Registered Workplace and purposes and objects within 30
days of the appropriate change. Similarly, prior consent will be needed from the stated the Ministry for
any modification in the designated bank or replacement of more than half of members of the governing
body at the time of its registration under the FCRA. The management ought to be cognizant of various
arrangements of the FCRA and need to strictly follow the exact same otherwise they may deal with a
number of extensive punishments under the Act. Foreign Contribution Regulation Act (FCRA) was
enacted in the year 1976 and just recently, modified in the year 2010 with the prime objective of
managing the approval and usage of foreign contribution and foreign hospitality by persons and
associations working in the important locations of nationwide interest.

The focus of this Act is to ensure that the foreign contribution and foreign hospitality is not made use of
to affect electoral politics, public servants, judges and other people working in to the crucial locations of
national interest viz reporters, printers and publishers of newspapers, etc.

Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from
foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation
Act, 2010. Such a registration under the Foreign Contribution Regulation Act, 2010 is called a FCRA
registration. In this article, we look at the procedure for obtaining FCRA registration in India. Eligibility
for obtaining FCRA Registration

Organizations seeking foreign contributions for definite cultural, social, economic, educational or
religious programmes may obtain FCRA registration or receive foreign contribution through “prior
permission” route. It is preferable for an FCRA applicant to be a Trust or Society or a Section 8 Company.
The not-for-profit entity must have also been in existence for a minimum of three years while making
the FCRA application and should not have received any foreign contribution prior to that without the
Government’s approval. Additionally, the entity seeking registration should have spent at least
Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure.
Statements of Income & Expenditure, duly audited by Chartered Accountant, for last three years are to
be submitted to substantiate that it meets the financial parameter.
In case a newly registered entity would like to receive foreign contributions, then approval for a specific
activity, specific purpose and from a specific source can be made to the Ministry of Home Affairs
through the Prior Permission (PP) method.

Criteria for grant of FCRA Registration:-

Once, an FCRA application is made in the prescribed format, the following criteria are check before
providing registration.

(a) The ‘person’ or ‘entity’ making an application for registration or grant of prior permission- Is not
fictitious or benami;
Has not been prosecuted or convicted for indulging in activities aimed at conversion through
inducement or force, either directly or indirectly, from one religious faith to another;
Has not been prosecuted or convicted for creating communal tension or disharmony in any specified
district or any other part of the country;
Has not been found guilty of diversion or mis-utilisation of its funds;
Is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its
ends;
Is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes;
Has not contravened any of the provisions of this Act;
Has not been prohibited from accepting foreign contribution;
The person being an individual, such individual has neither been convicted under any law for the time
being in force nor any prosecution for any offence is pending against him.
The person being other than an individual, any of its directors or office bearers has neither been
convicted under any law for the time being in force nor any prosecution for any offence is pending
against him.

(b) the acceptance of foreign contribution by the entity / person is not likely to affect prejudicially –

The sovereignty and integrity of India;

The security, strategic, scientific or economic interest of the State;
The public interest;
Freedom or fairness of election to any Legislature;
Friendly relation with any foreign State;
Harmony between religious, racial, social, linguistic, regional groups, castes or communities.

(c) the acceptance of foreign contribution-

Shall not lead to incitement of an offence;

Shall not endanger the life or physical safety of any person.
Types of FCRA Registration:-
There are 2 kinds of Foreign Contribution Regulation Act certificates :

1. Prior consent certification which is possible after one year.

2. Long-term certificate for 5 years.

For Prior Approval, these criterias should be fulfilled :-

1. Prior authorization certificate is provided those NGOs who have finished a minimum of one
year in running.
2. The non government organization has to offer the list of foreign benefactors in addition to
their addresses, classifications and cause for which they are donating.
3. The public welfare organization needs to point out the overall quantity of cash which is being
received as a foreign donation.
* For Foreign Contribution Regulation Act certification for 5 years, these criterias shall be
satisfied.
1. The Non Government Company must be three years old.
2. Last 3 years annual report, audit report should be sent.
3. Copy of pan card, Bye laws of the ngo shall also be offered.
* After 5 years, FCRA certification must be renewed. This guideline will be executed from the
year 2015.

For obtaining registration under the FCRA, the applicant association should preferably be
registered under any of the following Acts :-

1. Societies Registration Act, 1860

2. Indian Trusts Act 1882
3. Charitable and religious Trusts Act 1920
4. Companies Act 1956 (Section 25)

Time taken for Foreign Contribution Regulation Act Registration : -

Typically, the time taken for the registration is 4 months but it might vary if the NGO has several
branches. The reason is that after online declaring of Foreign Funding Registration, within 1
month, the policemans of Knowledge Bureau, Department of Ministry of Home Affairs visits the
workplace of the organization to confirm whether it is appropriately working or not. For
registration to get international funds, there are following 3 actions involved: -
1. Online filing at the website of Ministry of House Affairs.
2. Report sent by the IB Team after one month.
3. Hard Copy Submission in the Ministry.
Benefits of Foreign Contribution Regulation Act :-
The NGO can approach different foreign financing companies after FCRA registration. Some of
them are as follows -

1. British High Commission.

2. Bill and Melinda Gates Foundation.
3. Oxfam.
4. Ford Foundation.
5. SWISSAID.
6. Infinity Foundation.
7. BORDA( Germany ).
8. Canadian High Commission.
9. New Zealand High Commission.
10. Findhorn Foundation.
11. GIFRID( Israel ).
12. European Commission(EC).
13. UNESCO.
14. AUSAID.
15. Japanese Embassy.

Something is extremely clear. The foreign financing agencies only donate to those ngos working
in certain area or for particular cause like education, women empowerment, wellness etc . The
social welfare organizations who work in an authentic method get granted for their exemplary
work and achievement. The slogan of a NGO must not be to misuse the fund however to work
for the social upliftment of the poor and the needy and provide the world a boost.

Cancellation of FCRA Registration: -

There are numerous reasons where a NGO's foreign funding registration can be canceled on
conditions such as--

1. The fund given by the foreign contributor is not made use of correctly and used for own
individual interest.
2. The ngo fails to submit yearly compliance for three successive years.
3. Any member of the company submits a complaint that the NGO is not working effectively and
if it is proved.

Regarding grant of FCRA Registration:-

1) The FCRA registration is granted only to such association, which has proven track record of
functioning in the chosen field of work during last three years, and after registration, such
organization is free to receive foreign contribution from any foreign source for stated objectives.
2) Organizations which are newly established and do not have proven track record of functioning
may also receive foreign contribution for specific activities, for a specific purpose from a
specific source after seeking project based previous permission (PP) from the Ministry of Home
Affairs.

Key Points for FCRA Registration:-

Before starting registration process, It is ensured that

1. NGO is at least three years old.

2. It does not have a parent Society which is already registered under FCRA.
3. Majority of the members of the board should not be on the board of another Society, which is
already registered under FCRA.
4. The parent society of the applicant, if any, should not be based abroad.
5. No foreigner is on the board of the society.

Registration process without complying with the above is likely to be useless. There are no legal
requirements regarding the above condition.
Internally Ministry of Home Affairs does not grant a registration without ensuring the above
major issues.

FCRA Bank Account:-

it is essential to receive foreign contribution only in one designated bank account. Therefore, the
applicant organisation should open a fresh bank account with the intention to operate it for such
funds and mention it in the application. The said Ministry will directly inform the concerned
bank to keep watch on the use of the foreign contribution and report back to the Ministry in case
of any discrepancy.
Thanks & Regards,

Gunjan Ahuja
(9540455558)

K.C NGO Consultancy Services Pvt. Ltd

(NGO Management System)
Website:- www.ngoconsultancyservices.in
http://kcngoconsultancy.blogspot.in

1-floor, 52-C, Krishna Complex, Hasanpur, I.P. Ext.Patparganj Delhi-110092

For 24x7 please feel free to have a word with us @
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