A PRESENTATION ON

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APRESENTATION ON
FCRA

• BY
• Shri D.S. Mishra, Joint Secretary (F), MHA

IN PRAVASI BHARATIYA DIVAS, HYDERABAD 09th
JANUARY 2006
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Foreign Contribution (Regulation) Act, 1976

• Is an act to regulate the acceptance and
  utilization of foreign contribution or foreign
  hospitality by certain persons or associations.

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FEWFACTSANDFIGURES
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Receipt of Foreign Contribution
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Amount wise break-up of Foreign Contribution
received by reporting Associations
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Top Donor Countries
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Top Donors
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Top Recipient States/Union Terrotories
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Top Recipient Districts
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Top Purposes
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Trends
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Purpose of FCRA

• Regulating foreign contribution meant for
  influencing elections or individuals or
  associations working in important areas of
  national life.
• Regulating receipt of foreign contribution for
  genuine purposes.
• Ensuring that foreign contribution is not used
  for activities detrimental to national interest.

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Foreign Contribution

• Means the donation, delivery or transfer, made by
  any foreign source of any
• article, not given to a person as a gift, for
  personal use, if the market value in India of
  such article exceeds one thousand rupees
• currency, whether Indian or foreign
• foreign security.
• NOTE Contributions made by an NRI, from
  his/her personal savings, through the normal
  banking channels, is not treated as foreign
  contribution.

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Foreign Source

• Government of foreign country or any agency of
  such Government.
• International agencies, not being of
• United Nations or its specialized agencies
• World Bank
• International Monetary Fund
• Such other agencies as so notified by the Central
  Government.
• Foreign company or Corporation incorporated in
  foreign country
• Trade Union in a foreign country
• Foreign Trust or Foundation or Society or Club
  formed or registered outside India
• Company where more than half of shareholding held
  by foreign Govt., foreign citizens, foreign
  corporations
• Citizens of foreign countries

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Who cannot accept Foreign Contribution?

• Candidate for elections.
• Correspondents, columnists, cartoonists, editor,
  owner, printer.
• Judge, Government servant or employee of any
  corporation
• Member of any Legislature
• Political party or office-bearer thereof.

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Types of permission
An association having a definite cultural,
economic, educational, religious or social
programme can receive foreign contribution after
it obtains the prior permission of the Central
Government, or gets registered with the Central
Government.
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Registration

• Means permanent permission to accept foreign
  contribution from any foreign source.
• Granted to associations which are in existence
  for more than 3 years and have spent over Rs.6
  lakhs in last 3 years in chosen area of
  activities.

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Prior Permission

• When required
• If the association is not eligible for
  registration
• Association is placed under prior permission
  category under law
• If association is of political nature, not being
  a political party.
• Essentials for prior permission
• Specific to donor, amount and project
• Commitment letter from donor.

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Penalties

• Prohibition
• Placing in prior permission category
• Fine
• Seizure/confiscation of the foreign contribution
  / created assets
• Imprisonment upto 5 years.

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Transparency in FCRA Administration
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Common reasons for rejection of registration are
listed on MHAs website
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Citizens Charter is available on MHAs website
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Charter for followings stakeholders are available
on MHAs website

• Charter for NGOs/Associations applying for grant
  of Prior permission/Registration under the FCRA.
• Charter for NGOs/Associations granted Prior
  permission/Registration under the FCRA.
• Charter for the Chartered Accountants.
• Charter for the Banks.

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Allowed Activities

• Programs permitted to be carried out by
  associations having different nature is given on
  the website.
• This list is illustrative and not exhaustive.

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Act / Forms

• FCR Act is available on website.
• Application form for registration / prior
  permission in downloadable from are available on
  website.
• Application form for change in bank account
  number or address in downloadable from are
  available on website.

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On line status query

• Status of application for registration / prior
  permission is available online
• Salient features of Annual Report is placed on
  website.

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Other information

• Online list of registered associations is
  uploaded on website
• List of prohibited / ordered to be on prior
  permission category associations is available on
  website.

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FCMC Bill

• Draft FCMC Bill is placed on website for inviting
  views of stakeholders
• Bill is under consideration of GoM.

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Salient features of Bill

• Decentralized administration structure
• Registration for - 5 years with a provision for
  renewal
• Organizations of political nature, not being
  political parties, - not allowed
• Allowing multiple bank account for utilization of
  foreign fund
• Amount prescribed for receipt from relatives and
  not considered as FC is being raised
• Amount of gift from third party not considered on
  FC being raised
• Provision of fixed ceiling on Admin. Expenses
• Provisions for suspensions / cancellation
• Mandating banks to report receipt and utilization
  of FC etc.

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Future plans

• Introduction of online applications for FCRA
  NIC is working on this
• Online submission of Annual Returns (FC-3) by
  associations NIC is working on this.

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Responsible Officers

• List of officers dealing with FCRA matter is
  given on website

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THANKS
For further details please visit our website
www.mha.nic.in