What is Foreign Contribution Regulation Act :-
Foreign contribution regulation Act 1976 or FCRA is a law of government of India which regulates receipt of foreign contributions or aid from outside India to India territories. This is essential to ensure that such aid does not effect political or any other situation in India. For genuine donation, the provision of law is not very difficult to comply. The regular compliance is limited to filing of annual return every year. This law is enforced by the ministry of Home affairs, Government of India. There is a separate section in the ministry to ensure compliance to the Foreign Funding Registration.
A Ngo is relevant to get subsidizes from abroad assuming that it has a international funding registration declaration.
Administration of India and outside subsidizing organizations discharges a considerable measure of trusts for the welfare of the underprivileged area of the social order. Then again, such trusts are not legitimately used by a number of such conglomeration. UNO keeps tabs on offering gives to that conglomeration who has done exceptional work in elevating the poor area of the social order. In this way, the right outlook to getting legitimate finances is to channelize your vigor in working for the social order. Assuming that you would like to know how to get a FCRA endorsement, you can counsel us.
The second generally critical perspective to get Foreign Funding enlistment is that you should have used at least 10 lakhs rupees in the most recent three years under the social use condition to get Foreign Contribution Regulation Act authentication. Subsequently, you can request fcra online through their site. After the fulfillment of five years, you have to renew the enrollment for an additional five years. This rule will start from the year 2015. You will just get a restoration if Government powers discover your work exemplary and veritable.
Outside financing has turned into a basic part of Indian social order of NGO segment. In any case getting remote stores is not that simple as it should be.
Documents Required For FCRA Registration :-
Under Section 6 of Foreign Contribution Regulation Act, it is given that any organization having a categorical social/ instructive/ religious/ financial article just acknowledge outside commitment in the wake of getting international funds registration. Following documents are essential for registration under FCRA.
- Copy of registration certificate of society or trust deed as the case may be.
- Copies of the audited statements of accounts for the last three years.
- Copies of the annual report of last three years.
- Bank Details:-
- Bank Name
- Account Number
- Bank Address.
- List of governing body
- Father’s Name
- Name of the chief functionary and his mobile Number
- Telephone Number of the office
- Copy of PAN Card of The Society /Trust.
Types of FCRA Registration : -
There are two types of Foreign Contribution Regulation Act certificates;
- Prior permission certificate which is possible after one year
- Permanent certificate for 5 years.
*For Prior Permission, these criterias shall be fulfilled :-
1. Prior permission certificate is given to those NGOs who have completed a minimum of one year in running.
2. The non government organization has to give the list of foreign donors along with their addresses, designations and cause for which they are donating.
3. The public welfare organization has to specify the total amount of money which is being received as a foreign donation.
*For Foreign Contribution Regulation Act certificate for 5 years, these criterias shall be fulfilled.
1. The Non Government Organization must be three years old.
2. Last three years annual report, audit report must be submitted.
3. Copy of pan card, Bye laws of the ngo shall also be given.
*After five years, FCRA certificate must be renewed. This rule will be implemented from the year 2015.
Time taken for Foreign Contribution Regulation Act Registration : -
Generally, the time taken for the registration is four months but it may vary if the NGO has multiple branches. The reason is that after online filing of Foreign Funding Registration, within 1 month, the officers of Intelligence Bureau, Department of Ministry of Home Affairs visits the office of the organization to verify whether it is properly working or not. In case of multiple branches, the officers will verify all the offices and finally send report to the Ministry. So the time for FCRA registration may be delayed. The non government organizations whether Trusts or Societies should preserve their audited account sheets, annual activities reports, minutes books, slips, bills, vouchers, photographs for proof of their social activities. This is of an immense help especially during the investigation by the IB officers during registration or Prior Permission or verification by the government officers during any government funding or corporate officers applicable for corporate social responsibility funding. So for registration to get international funds, there are following three steps involved : -
- Online filing at the website of Ministry of Home Affairs
- Report sent by the IB Team after one month
- Hard Copy Submission in the Ministry
Benefits of Foreign Contribution Regulation Act:-
The ngo can approach various foreign funding agencies after FCRA registration. Some of them are as follows-
1. British High Commission
2. Bill and Melinda Gates Foundation
4. Ford Foundation
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)
15. Japanese Embassy
One thing is very clear. The foreign funding agencies only donate to those ngos working in specific area or for particular cause like education, women empowerment, health etc.
The social welfare organizations who work in a genuine way get awarded for their exemplary work and achievement.
The motto of a NGO should not be to misuse the fund but to work for the social upliftment of the poor and the needy and give the world a boost.
Cancellation of FCRA Registration : -
There are numerous reasons where a NGO’s foreign funding registration can be cancelled on conditions like –
- The fund given by the foreign donor is not utilized properly and used for own personal interest.
- The ngo fails to file annual compliance for three consecutive years
- Any member of the organization files a complaint that the NGO is not working properly and if it is proved.