Foreign Contribution Regulation Act (FCRA)

All charitable organizations in India receiving foreign contributions come under the purview of this Act.

Foreign Contribution and Regulation Act 2010 (FCRA) is enacted with the following objects:

• 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 or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.

Who can receive contribution?

• Individual;

• HUF;

• Association like Trust, Society and Section 8 Company.

Can Private company receive FC? Yes (After fulfilling certain conditions)

Who cannot receive foreign contribution?

As defined in Section 3(1) of FCRA, 2010, the following are prohibited to receive foreign contribution:

• A candidate for election;

• Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;

• Judge, government servant or employee of any Corporation or any other body controlled on owned by the Government;

• Member of any legislature;

• Political party or office bearer thereof;

• Organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government.

• Association or company engaged in the production or broadcast of audio news or audio visual news or current affairs program through any electronic mode, or any other electronic form as defined in of Section 2(i)(r) of the Information Technology Act, 2000 or any other mode of mass communication;

• Correspondent or columnist, cartoonist, editor, owner of the association or company referred to above point.

• Individuals or associations who have been prohibited from receiving foreign contribution.
  

Eligibility criteria:

• An association should be registered either under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or under Section 8 (erstwhile Section 25) of the Companies Act, 2013;

• An association normally be in existence for at least 3 years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilized.

• An association should have spent at least Rs.10,00,000/- over the last 3 years on its aims and objects, excluding administrative expenditure.

• Statements of Income & Expenditure, duly audited by Chartered Accountant, for last 3 years are to be submitted to substantiate that it meets the financial parameter.

If 3 years’ criteria is not satisfied:

• Should take prior permission under FCRA 2010.

• Prior permission is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects.

Eligibility:

• Should be registered either under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or under Section 8 (erstwhile Section 25) of the Companies Act, 2013;

• Submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given.

• Separate bank account needs to be maintained

FEES:

• Rs. 2,000 for registration and

• Rs. 1,000 for prior permission.

Annual filing:

• Needs to be made on 31st of December every year

• Needs to maintain separate books of accounts

• Duly certified by a Chartered Aaccountant

• Filed in FCA-4 with scanned copies of income and expenditure, BS and receipt and payment statement

Forms & its Purpose:

FC-1 -

• Intimation of receipt of foreign contribution by way of gift from relative by an individual;

• Intimation about Foreign Contribution by way of articles from relative by an individual;

• Intimation about Foreign Contribution by way of Securities;

• Intimation of receipt of Foreign Contribution by a candidate for Election;

FC-2 -

• Application for seeking prior permission to accept foreign Hospitality;

FC-3 -

• Application for FCRA registration;

• Application for prior permission;

• Application for renewal of FCRA registration;

FC-4 -

• Annual Return

FC-5 -

• Application for seeking permission for transfer of foreign contribution to other unregistered person

FC-6

• Intimation of change of Name, Address, Bank details, Key members;

• Intimation of quarterly receipt of foreign contribution;

• Filing of annual returns of assets and liabilities by association ;