NGOs meaning to receive funds and contributions from various other countries need to initially registered under the arrangements of Foreign Contribution Regulation Act, 1976. Either permanent registration or prior authorization for a certain contribution can be looked for from the FCRA Area of Ministry of Home Affairs. A signed up NGO having existence for at least 3 years can be signed up under this provision.

The NGOs can not take foreign contribution straight. For this purpose they should be signed up under the Foreign Contribution Regulation Act 1976, generally known as 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 quantity by looking for prior permission of the FCRA Section of the Ministry of House Affairs, Government of India; whereas for multiple and routine contributions of the foreign source it is recommended to seek permanent registration from the stated Ministry.

For this purpose an application is to be made by the NGO, which need to be in working for a minimum of three years after its due registration, to the Secretary to the Government of India, ministry of House Affairs, 26 Mansingh Road, New Delhi âEUR” 110003 in the recommended Form FC-8 together with the wanted enclosures (Certification of Registration, Memorandum and Rules or the Trust Deed or other evidence of registration, audited financial statement and task report of the least three years, and if possible letter of the potential benefactor.

The Ministry sends the accepted application to local intelligence people for confirmation of the qualifications and records of the organization. On their favorable remarks, the FCRA Section of the Ministry concerns the Certificate of Registration to the candidate company.

It is necessary to receive foreign contribution just in one designated savings account. Therefore, the candidate company should open a fresh checking account with the objective to run it for such funds and mention it in the application. The said Ministry will straight inform the concerned bank to keep watch on using the foreign contribution and report back to the Ministry in case of any discrepancy.

The organizations registered under the FCRA need to preserve different accounts sustained under the FC head and submit a return in the prescribed format to the Ministry in addition to the audited statement of accounts of the previous year by 31 July every year.

The companies signed up under the FCRA, must inform to the Ministry about any modification in name of the organization, its Registered Office and objectives and items within 30 days of the applicable modification. Likewise, prior consent will be needed from the said the Ministry for any modification in the designated bank or replacement of more than half of members of the governing body at the time of its registration under the FCRA.

The management ought to be cognizant of numerous provisions of the FCRA and need to strictly follow the exact same otherwise they might face a number of strenuous penalties under the Act.

Foreign Contribution Regulation Act (FCRA) was enacted in the year 1976 and just recently, customized in the year 2010 with the prime objective of controling the acceptance and usage of foreign contribution and foreign hospitality by associations and persons working in the essential locations 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 important locations of national interest viz journalists, printers and publishers of newspapers, and so on.
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