Foreign Contribution
Regulation Act (FCRA), 1976
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| This Document explains how to
get FCRA from Ministry of Home Affairs. |
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All organizations
(Socities/NGO's in India) who want to receive contribution from
foreign source MUST get
permission from the Ministry
of Home Affairs. Foreign source can be organization or individual
in any country outside India.
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- Organization outside India
donating to ------> Organization in India ------>
FCRA is MUST for organization
in India.
- Individual outside India
donating to -----> Organization in India ------>
FCRA is MUST
- Individual outside India
donating to -----> Indiavidual in India in rupees or
foreign currency ------> FCRA not required. Individual
receiving money in India has to show the money as income
and pay taxes to governemnt of India (if applicable).
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| What
is "FCRA"? |
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Foreign Contribution Regulation
Act (FCRA), 1976
An Act to regulate the acceptance and utilization of foreign
contribution or foreign hospitality by certain persons or
associations, with a view to ensuring that parliamentary institutions,
political associations and academic and other voluntary organizations
as well as individuals working in the important areas of national
life may function in a manner consistent with the values of
a sovereign democratic republic, and for matters connected
therewith or incidental thereto. (from MHA website)
for
more details click
here
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| Types of
FCRA permission |
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| a) Prior Permission under section
6(1A) (or one time permission) |
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| b) Permanent Permission under
section 6(1)(a), (permanent registration) |
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Important
Note!!
Organization
in India can apply for permanent registration/permission
only if the organization has history of prior permissions.
History means organization should get 3-4 times prior permission
over 3-4 years and prove to the MHA that funds receiveds
are spent for the purpose funds were requested. The organization
has to submitt accounts (FC-3
form) within 4 months at the end of financial
year to MHA. Failure to submitt accounts will lead to
NOT granting future prior permissions / cancelation
of permanent registration number.
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| How to apply
for prior permission FCRA? |
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| Organization in India MUST submitt
following document to MHA |
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| a) Application form for
grant of prior permission in Form FC-1A
(download
form) |
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b) Seperate
Bank Account for receipt and utilization of foreign
funds (any bank in India). Submitt details of the bank ccount
with the application
Note: Please
do not deposite any local funds in the accounts other then the
essential initial deposit specified by the bank for openeing
an account, in this account. |
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| c) Certified copy of
registration certificate
or Trust Deed (download
example) |
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| d) Details of activities
of the organization during the last three
years |
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e) Copies of audited
statement of accounts for the past
three years
| Must Include: |
Assets and
liabilities |
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Receipt and
payment |
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Income and
expenditure |
| Note: |
In case of
Prior permission if the org is one year old then also
they can apply for FCRA. (Three years audit report is
not necessary if org is less then three years old) |
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f)
Commitment letter from foreign
donor specifying the amount of foreign contribution (downloal
example)
(Asha Chapters make sure to issue the
letter on letter head and properly signed) |
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g) Copy
of project proposal
for which the contribution was solicted/is being offered
(download
example)
(Asha Chapters please sign each page of
project proposal for which organization is applying for the
prior permission) |
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h) If someone in the
organization is functioning as editor, owner, printer or publisher
of a publication registered under the Press and Registration
of Books, Act 1867, a certificate from
the Press Registrar that the publication is not a
newspaper in terms of section 1(1) of the said act.
(If organization is publishing anykind
of newletter, magazine etc please get the certificate and submitt
it with application, failure to do so will delay your FCRA permission) |
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| Please make
sure you (organization in India) submit all documents (a to
h), clearly with all information in one mail. Please mention
your address as clearly as possible in the application |
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| Where to
post the application? |
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The Secretary
to the Government of India, |
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Ministry of
Home Affairs, Jaisalmer House, 26, Mansingh Road, |
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New Delhi
- 110011 |
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If the organization has submitted
application correctly as requested they should get acknowledgement
and File Number
(e.g. No. II/21022/94 (0525 -01) 2006
-FCRA ) from Ministry of Home Affairs. Once you get
the file number with in three months
of receipt of acknowledgement your should get the prior permission.
In case of no communication within three months from MHA by
default you are granted the prior permission. Application
process has to end within three months. |
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| !!Check
online the status of your application on Ministry of Home affairs
website!! |
| MHA Website
---->Click Application Status ------> Click Prior Permission
-----> Enter File Number ----->Submit |
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| If
you are successfull in getting FCRA then after three months
you should get letter from MHA |
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| (downloade
example page1
page2) |
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| After you
receive the FCRA prior permission |
| Within four months of end of
financial year sumbit the accounts to Ministry of Home Affairs
on Form FC-3 (download
FC-3 Form) duly attested by cartered
accountant. Failure to do so will make sure you NOT
getting FCRA prior or permanent permission in future.
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| !!!!Warning!!!! |
Please
avoid being "OverSmart" by tring to call Ministry
of Home Affairs Office, Bribing officials (CID & MHA officials),
using conatcts both in your relatives (who are govt officials)
and politicians in power. All such action will only delay your
application and if "Asha for Education" comes
across anysuch thing we will withdraw the "Letter of
Commitment". We
at Asha for Education has "Zero Tolerance Policy"
for all above
Simple and easiest way to get FCRA prior permission is to follow
the laid down process and without any problems you will get
the permission to receive funds from foreign source |
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| If you are reading this para
then you are unlucky one
to be rejected by the Ministry of Home Affairs for FCRA |
| Reasons for
Rejection |
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| a)
If the application is not accompanied by the commitment
letter of the donor. |
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| b)
If the application is not accompanied by the copy
of project for which foreign contribution was solicited/is
being offered. |
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| c)
If the association has not filed its annual
FC-3 returns, of receipt and utilization of foreign
contribution received with prior permission, within the stipulated
period. |
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| Rejection
for Permanent Registration |
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| a)
If the association is not in existence for three years at least. |
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| b)
If the association has not carried on any activity in its chosen
field during the last three years. |
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| c)
If the association has not received foreign contribution, with
prior permission, during the preceding three years. |
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| d)
If the association has not made any substantial contribution,
excluding expenditure on administration, (Rs.6,00,000 over a
period of three years or Rs.2,00,000 per year) in its field
of interest. |
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| Other
reasons for rejection |
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If the association is not registered
under the Societies Registration Act, 1860 or the Indian Trusts
Act, 1882 or section 25 of the Companies Act, 1956.
If any of the office bearers/trustees, including the chief
functionary, is a foreign national, other than of Indian origin.
If the association has a single office bearer/member.
If the association is found to have been formed for personal
gain or for diversion of the funds for undesirable purposes.
If the association is found to be fictitious or ‘benami’ in
nature.
If the credibility of any member of the governing body is
in doubt.
If the association has close links with another association
which has been refused registration under FCRA or prohibited
under FCRA or violated the provisions of FCRA.
If the association has links with any banned organizations.
If the principal office bearers of the association have been
convicted by any court of law under any act or if a prosecution
for any offence is pending against them.
If the principal office bearers of the association have been
found guilty of diversion or misutilisation of funds of the
said association or any other association in the past.
If the activities of the association are found to be aimed
at conversion through inducement or force, either directly
or indirectly, from one religious faith to another.
If the association is found to propagate sedition or to advocate
violent methods to achieve its ends.
If the association is found to be creating communal tensions
or disharmony.
If the office bearers of the association are also office bearers
of another association and one of these associations has come
to adverse notice.
If the association’s Printed work is not certified by the
Press registrar of India not to be a newspaper in terms of
section 1(1) of the Press Registration of Books Act, 1867.
If the source of foreign contribution is found to be adverse
to the interests of the country.
If the acceptance of foreign contribution by the association
is likely to be prejudicial to (a) the sovereignty and integrity
of India; (b) free and fair elections to any Legislature or
House of Parliament; (c) public interest; (d) friendly relations
with a foreign state; or (e) harmony between any religious,
social, linguistic, regional groups, caste or community.
If the association has not filed
its annual FC-3 returns, of receipt and utilization of foreign
contribution received with prior permission, within the stipulated
period.
If the association has violated any provisions
of the Act or Rules in the preceding three years and the said
violation has not been remedied or rectified
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