FCRA (Foreign Contribution (Regulation) Act ) 2010

1. FCRA (FOREIGN CONTRIBUTION
(REGULATION) ACT ) 2010
( PREVIOUSLY 1976 )
(A basic requirement for entities receiving contribution from
Foreign Source)
NGOs under FCRA act
Presented By:
Dr. Renuka Asagi
Mr. Muthuraj K

2. PREAMBLE OF THE ACT
 This Act may be called the Foreign Contribution
(Regulation) Act, 2010.
 It extends to the whole of India, and it shall also
apply to :—
 citizens of India outside India.
 associate branches or subsidiaries, outside India, of
companies or bodies corporate, registered or
incorporated in India.

3. PURPOSE
 The primary purpose of regulating the inflow of foreign
contributions and ensuring that the received foreign
contributions are not utilized for purposes other than
those specified under the legislation.
 To regulate the acceptance and utilization of foreign
contribution or foreign hospitality by certain individuals
or associations or companies.
 To prohibit acceptance and utilization of foreign
contribution or foreign hospitality for any activities
detrimental to the national interest

4. WHAT IS FOREIGN CONTRIBUTION
 “Foreign Contribution” is defined by FCRA as a
donation, delivery or transfer made by a foreign source of:
 (i) any article (unless given to an individual for personal
use), the value of which should not to exceed Rs. 25,000/-
 (ii) currency, foreign or Indian, or
 (iii) foreign securities including all foreign Debentures,
Bonds, Shares, Stocks and Similar Instruments Of Credit.
 Any income or interest generated from such contributions
is also treated as a foreign contribution under the FCRA.

5. ENTITIES TO WHOM FCRA, 2010 APPLICABLE?
As per Section 2(m) of FCRA, 2010 provisions of the Act
shall be applicable on the following “persons” receiving
Foreign Contribution from the Foreign Source:-
 An Individual
 Hindu Undivided Family
 An Association
 A Company Registered Under Section 25 Of The
Companies Act, 1956 (now, section 8 of the Companies
Act, 2013)
 The organizations having a definite cultural, economic,
educational, religious or social programme are entitled to
accept foreign contributions under the FCRA.

6. INTRODUCTION
 NGOs play a critical role in the progression of the
economically/ physically weaker sections of the society.
Also, usually, operations of NGOs are entirely dependent on
donations from both domestic and foreign sources.
 However, NGOs often drift along an indistinct line while
gaining funds and capital. The source of these funds can
range from Foreign funding, charity, government-funded
campaigns, donations as well as corporate social
responsibility.
 While locally-sourced funds are not under extreme scrutiny,
foreign funding is highly regulated, owing to concerns about
the source, and ultimate goals, of the funds.

7.  To that end, the Foreign Contribution (Regulation) Act
(FCRA) monitors foreign funding for NGOs. Nearly 30,000
Indian NGOs are enlisted with the FCRA to procure
foreign money.
 understand how to generate foreign funding keeping in
mind the provisions of the FCRA
 Under the Act, all societies, companies, associations and
NGOs have to fulfill definite criteria to be eligible for
foreign funds. Moreover, registration with the Central
Government is also crucial. However, there is a particular
provision to take prior permission based on each case.

8. ELIGIBILITY FOR GRANT OF REGISTRATION
 The NGO must be registered under an existing law like the
Companies Act, the Indian Trusts Act or the Societies
Registration Act etc.
 The NGO must have been in operation for three years.
 The NGO must not have an already registered parent
society under FCRA.
 The NGO must not have a foreigner on the board.
 Besides from being in operation for at least three years, the
NGO must submit evidence of projects undertaken in the
specified field of activity.
 The NGO is also required to spend Rs. 10,00,000 or more
during the last three years on its aims and objectives,
excluding the expenditure on administration

9. FCRA REGISTRATION
 Foreign Contribution Regulation Act (FCRA) is an act,
passed by the Indian Parliament, “to consolidate the law to
regulate the acceptance and utilization of foreign
contribution or foreign hospitality by certain individuals or
associations or companies and to prohibit acceptance and
utilization of foreign contribution.
 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

10.  An application for registration of an organization for
acceptance of foreign contribution shall be made
electronically on-line in Form FC-3, and shall be followed by
forwarding the hard copy of the on-line application duly
signed by the Chief Functionary of the NGO together with
the necessary documents including the following.
 Form FC-3 duly filled in triplicate.
 Audited statement of accounts of past three years.
 Annual Report specifying activities of past three years.
 If the NGO is a registered Trust or Society a certified copy of
the registration certificate.
Registration process for an NGO under the FCRA
(https://fcraonline.nic.in/home/index.aspx)

11.  Copy of the Memorandum of Association and/or the Articles
of Association as applicable.
 List of Main objects and definite programmes for which the
contribution is to be accepted / utilized.
 Details of names and addresses of the members of the
Executive Committee/Governing Council etc. of the NGO.
 Copy of any (if any) prior permission granted to the
organization.
 Copy of resolution of Governing Body of the organization,
authorizing the registration under FCRA.
 Copy of Power of Attorney or the resolution of Governing
Body by which the Chief Functionary is authorized to submit
FC-3.
 List of present members of the Governing Body of the
organization and the office bearers.

12. 
 Copy of any Journal or other publication of the organization.
 If the association is having any parent or sister or subsidiary
organization which is registered under the FCRA then the
registration number along with Ministry of Home Affairs file
number should be mentioned.
 If the association has submitted any application earlier then its
reference number should be mentioned.
 If the association has received any foreign contribution with or
without the prior approval of the Central Government, then the
detail should be given.

13.  Details of Bank along through which the foreign contribution
shall (intended to) be received.
 Copy of certificates of exemption or registration issued by the
Income Tax Department u/s80G and 12A.
To
 Secretary to the Government of India, Ministry of Home Affairs,
New Delhi.

17. CONCEPT OF ‘PRIOR PERMISSION’ UNDER
FCRA
 An association or an organization can receive foreign
contribution even without registration with prior permission
from the FCRA department.
 Foreign funds and materials can only be received under two
circumstances:
 A) the organization has obtained permanent registration from
the FCRA department.
 B) the association or the organization obtains prior permission
from the FCRA department on case to case basis.

18. PROCEDURE FOR OBTAINING ‘PRIOR PERMISSION’
 The Organization is required to apply in Form FC-4 for
prior permission to the FCRA department along with the
documents mentioned below for registration.
 Certificate of Recommendation,
 (1) Collector of District
 (2) Department of the State Government
 (3) Ministry or Department of the Government of India
 And all required documents for registration. whichever is
available.

21. REGISTRATION FEE
 The fee for obtaining registration would be Rs.
2000/- and for prior permission Rs. 1000/-

22. RENEWAL FCRA REGISTRATION
 Every five years NGOs have to renewal FCRA license by
providing all details.( including Annual returns,
administrative chares, donors list and over all activities
done through foreign contributions)
 It is applicable for prior registration organization also.

23. Thank You.