Foreign contributions or funds received from outside India are regulated under the Foreign Contribution Regulation Act (FCRA). This Act was introduced to ensure that foreign funding does not affect India’s sovereignty, political independence, or public interest. As per FCRA, non-governmental organizations (NGOs), charitable trusts, and other entities receiving donations from foreign sources must obtain registration. The registration process is handled by the FCRA department under the Ministry of Home Affairs, and prior approval is mandatory. NGOs cannot legally receive foreign donations without completing this FCRA registration.
The FCRA registration remains valid for a period of five years from the date of approval. If the organization continues its operations, it must apply for renewal at least 12 months before the license expires. Additionally, the organization is required to inform the relevant authorities at least six months prior to the expiration of the FCRA license.
FCRA registration offers several key benefits, which include:
Access to Foreign Funding – Organizations with FCRA registration can receive consistent support and financial assistance from foreign entities, whether from a parent office abroad or other international sources.
Regulatory Compliance – Registered entities remain compliant with all rules and regulations set under the FCRA, ensuring legal operations.
Acceptance of Foreign Donations – Only FCRA-registered organizations are allowed to legally accept donations and contributions from overseas donors.
Government Assistance – Registration enables organizations to lawfully receive foreign aid or government support, allowing full utilization of state or international assistance.
Enhanced Credibility – FCRA registration, particularly for NGOs and non-profits dependent on foreign funding, improves public and institutional trust, enhancing the organization’s reputation.
To be eligible for FCRA registration, an organization must primarily engage in charitable or social welfare activities without the intention of making a profit, such as in education, healthcare, arts, culture, and related fields. Additional requirements include:
Minimum Operational Period – The organization should have been legally registered and actively functioning for at least three years before applying for FCRA registration.
Financial Statements – Audited financial statements for the past three years, signed by a qualified accountant, must be submitted, including detailed income and expenditure accounts.
Minimum Funding – The NGO’s primary activities must involve a minimum fund utilization of Rs. 10 lakhs, excluding administrative costs.
Legal Registration – The applicant must be registered under relevant laws such as the Indian Trusts Act, 1882, the Societies Registration Act, 1860, or as a Section 8 Company under the Companies Act, 2013.
he following documents are needed to apply for FCRA registration:
Certified Copy of Registration – Copy of the certificate of incorporation, society registration, or trust registration.
Organization Details – PAN card and basic information of the non-profit entity.
Governing Documents – Copy of the founding deed, memorandum of association, and articles of association.
Income Tax Certificate – Certificate issued under Section 12AB of the Income Tax Act.
Head of Organization – Signature or imprint of the chief functionary.
Board Resolution – Certified copies of resolutions passed by the governing body.
Activity Report – Detailed report of the organization’s activities conducted in the last three years.
Audited Accounts – Audited financial statements of the organization for the previous three years.
The process to apply for FCRA registration is as follows:
Visit the FCRA Website – Start by going to the official FCRA portal and navigate to the “Forms” section.
Select the Appropriate Form – Choose between FC-3A (for full FCRA registration) or FC-3B (for prior permission) based on your requirement.
Create an Account – Click on “Apply Online” and then “Sign Up” to generate a username and password. After successful registration, a confirmation message will appear.
Login to Your Account – Use your credentials to log in and select “FCRA Registration” from the available options.
Start New Registration – Click on FC-3 to initiate a new registration application.
Fill Organization Details – Complete the form carefully, providing the NGO’s name, address, and contact information.
Executive Committee Details – Fill in the details of the Executive Committee by selecting the corresponding section in the form.
Key Feature Details – Add, edit, or remove important features of the organization in the “Add Key Feature Details” section.
Upload Required Documents & Payment – Upload all mandatory PDF documents and complete the registration process using any of the available online payment options.
This process ensures your NGO or organization is legally authorized to receive foreign contributions under the FCRA.
Failing to comply with FCRA regulations can lead to serious consequences for an organization. Some examples of non-compliance include:
Accepting foreign contributions without valid FCRA registration.
Using received foreign funds for purposes other than those declared during registration.
Not maintaining proper accounts or failing to submit annual returns on time.
Providing false or misleading information in FCRA applications or reports.
Transferring foreign funds to entities not authorized under FCRA.
Such violations can result in penalties, suspension, or cancellation of FCRA registration, along with legal action under the Foreign Contribution Regulation Act.
Obtaining FCRA registration provides numerous advantages for organizations involved in social and charitable work. It allows them to legally receive foreign contributions, access a wider range of funding, enhance their credibility, and collaborate effectively with international donors and partners.
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