NGOs meaning to receive funds and contributions from other nations must initially registered under the provisions of Foreign Contribution Regulation Act, 1976. Either permanent registration or prior approval for a certain contribution can be looked for from the FCRA Area of Ministry of Home Affairs. A signed up NGO having existence for a minimum of three years can be signed up under this arrangement.
The NGOs can not take foreign contribution directly. For this function they ought to be registered under the Foreign Contribution Regulation Act 1976, frequently called the FCRA.
There can be two types of contribution from the foreign source, i.e. one time or anticipated more than once as well as regularly. For any one time contribution the NGOs can receive the amount by looking for prior approval of the FCRA Area of the Ministry of Home Affairs, Government of India; whereas for regular and numerous contributions of the foreign source it is suggested to seek long-term registration from the said Ministry.
For this function an application is to be made by the NGO, which need to be in working for a minimum of 3 years after its due registration, to the Secretary to the Government of India, ministry of Home Affairs, 26 Mansingh Roadway, New Delhi Ã¢EUR" 110003 in the suggested Form FC-8 along with the preferred enclosures (Certification of Registration, Memorandum and Rules or the Count on Deed or any other evidence of registration, audited financial statement and task report of the least 3 years, and if possible letter of the potential benefactor.
The Ministry sends out the accepted application to regional knowledge individuals for verification of the qualifications and records of the company. On their positive opinions, the FCRA Area of the Ministry concerns the Certificate of Registration to the candidate company.
It is important to receive foreign contribution just in one designated checking account. Therefore, the applicant company need to open a fresh savings account with the intention to operate it for such funds and discuss it in the application. The said Ministry will directly notify the concerned bank to keep watch on the use of the foreign contribution and report back to the Ministry in case of any disparity.
The organizations signed up under the FCRA need to maintain different accounts sustained under the FC head and submit a return in the prescribed format to the Ministry together with the audited statement of accounts of the previous year by 31 July every year.
The organizations signed up under the FCRA, should inform to the Ministry about any change in name of the company, its Registered Office and purposes and items within 30 days of the appropriate modification. Similarly, prior consent will be required from the stated the Ministry for any modification in the designated bank or replacement of majority of members of the governing body at the time of its registration under the FCRA.
The management needs to be aware of different arrangements of the FCRA and should strictly follow the exact same otherwise they may face a number of extensive punishments under the Act.
Foreign Contribution Regulation Act (FCRA) was enacted in the year 1976 and recently, modified in the year 2010 with the prime objective of managing the approval and application of foreign contribution and foreign hospitality by associations and individuals working in the essential areas of nationwide interest. The focus of this Act is to ensure that the foreign contribution and foreign hospitality is not made use of to influence electoral politics, public servants, judges and other people working in to the vital locations of nationwide interest viz journalists, printers and publishers of papers, etc.