FCRA Registration
Many Non-Governmental Organizations (NGOs), Trusts, Societies, and Section 8 Companies engage in activities aimed at promoting social welfare, cultural development, religious activities, education, and economic progress. To fund these activities, they often seek contributions from foreign donors. However, receiving foreign contributions in India is regulated by the Foreign Contribution (Regulation) Act, 2010 (FCRA). This law ensures transparency and prevents any misuse of foreign funds against national interests.
What is FCRA Registration?
FCRA Registration is mandatory for any organization in India that intends to receive foreign contributions. The Ministry of Home Affairs (MHA) administers this process through the FCRA Online Services portal. The purpose of this registration is to regulate the receipt and utilization of foreign contributions to ensure that such funds do not adversely affect national security, integrity, or public interest.
Who Needs FCRA Registration?
Any entity - including NGOs, Trusts, Societies, or Section 8 Companies - wishing to receive funds from foreign sources must register under FCRA. Organizations engaged in:
- Social welfare and community development
- Educational advancement
- Religious propagation
- Cultural promotion
- Economic development
are required to obtain FCRA Registration before receiving any foreign contribution.
Types of FCRA Registration
This is a project-specific and donor-specific approval granted to organizations intending to receive foreign contributions for a defined purpose. It is ideal for newly formed organizations or those without a track record of foreign funding.
Features:
- Requires specification of foreign donor, contribution amount, and project details.
- Valid only for the sanctioned project.
- Non-transferable.
FCRA Permanent Registration (Regular Registration)
This is a long-term registration granted to organizations with a proven track record in social work and existence of at least three years.
Features:
- Valid for five years and renewable.
- Allows receipt of multiple foreign contributions from different donors.
- Subject to annual compliance and periodic scrutiny by government authorities.
Eligibility Criteria for FCRA Registration
For Prior Permission:
- The organization need not be three years old.
- It must have a confirmed commitment from a foreign donor.
- The purpose of the contribution should be specific and detailed in the application.
For Permanent Registration:
- The organization must be registered as a Trust, Society, or Section 8 Company.
- It should have been in existence for at least three years.
- It must have engaged in reasonable activity in its chosen field for the benefit of society.
- It should have spent at least Rs. 10,00,000 in the last three financial years on its activities, excluding administrative expenses.
- Must have a proper record of financial statements and annual reports.
Documents Required for FCRA Registration
Registration certificate of the organization (Trust Deed, Society Registration Certificate, or Certificate of Incorporation)
Memorandum of Association (MOA) and Rules & Regulations
PAN card of the organization
Darpan ID from NGO Darpan Portal
Details of key functionaries, including PAN, Aadhaar, and residential addressDetails of key functionaries, including PAN, Aadhaar, and residential address
Audited financial statements for the last three years (for Permanent Registration)
Activity report of the last three years
Commitment letter from the foreign donor (for Prior Permission)
Bank account details (must be opened in the New Delhi Main Branch of SBI)
Affidavit and declaration from Chief Functionary
80G and 12A Licence
Step-by-Step Procedure for FCRA Registration
Register on NGO Darpan Portal:
- Visit https://ngodarpan.gov.in/
- Register your organization and obtain a Darpan ID.
Open Designated Bank Account:
Open a bank account in the State Bank of India, New Delhi Main Branch, for the receipt of foreign contributions.
Apply Online on FCRA Portal:
- Go to https://fcraonline.nic.in/
- Fill Form FC-3A (for Permanent Registration) or Form FC-3B (for Prior Permission).
- Upload necessary documents.
- Provide details of key functionaries and governing body.
Payment of Application Fees:
- Rs. 5,000 for Permanent Registration
- Rs. 10,000 for Prior Permission
Submit the Application:
- Review the details and submit the application.
- Note the Application Reference Number (ARN) for future tracking.
Scrutiny and Background Check:
The Ministry of Home Affairs will conduct a scrutiny and may involve the Intelligence Bureau (IB) for background verification.
Grant of Registration:
If approved, the registration is granted within 90 to 120 days.
FCRA Renewal Process
Apply for renewal at least six months before the expiry of registration.
File Form FC-3C on the FCRA portal.
Pay the renewal fee of Rs. 5,000.
Ensure compliance with all previous filing and reporting obligations.
Post-Registration Compliance Under FCRA
- Filing Annual Returns in Form FC-4 by December 31 each year.
- Quarterly disclosure of foreign contribution receipts on the organization’s website within 15 days from the end of the quarter.
- Maintain exclusive bank account(s) for foreign contributions.
- Maintain proper books of accounts and records.
- Inform MHA within 15 days of any change in key functionaries, bank account details, address, or objectives.
Grounds for Cancellation or Suspension of FCRA Registration
- Violation of FCRA provisions.
- Misuse or diversion of foreign funds.
- Non-filing of mandatory annual returns.
- Supplying false information during the application process.
- Activities prejudicial to the sovereignty and integrity of India.
Penalties for Non-Compliance
- Suspension of registration.
- Forfeiture of foreign contributions.
- Blacklisting from future foreign funding.
- Monetary penalties up to Rs. 10 lakh.
- Criminal prosecution in severe cases.
Benefits of Obtaining FCRA Registration
Legal Authorization to Receive Foreign Funds
FCRA Registration legally authorizes an NGO or entity to accept donations and contributions from foreign sources, which is otherwise prohibited by law.
Enhances Credibility and Transparency
Having an FCRA Registration builds credibility with foreign donors and funding agencies as it assures them of compliance with Indian laws and transparency in fund utilization.
Opens Global Funding Opportunities
With FCRA Registration, organizations can collaborate with international agencies, apply for global grants, and participate in international projects that require foreign funding.
Helps in Expanding Impact
Foreign contributions can significantly enhance the reach and impact of social welfare projects, enabling organizations to implement larger-scale initiatives.
Builds Trust with Stakeholders
Being FCRA registered reassures all stakeholders -including beneficiaries, government authorities, and donors - that the organization is operating lawfully and ethically.
Facilitates Foreign Partnerships
It allows NGOs to partner with foreign governments, international NGOs, and global institutions, fostering cross-border collaborations.
Ensures Long-Term Sustainability
Access to foreign contributions can help NGOs maintain financial sustainability for long-term projects, reduce dependency on local funding, and ensure continuous operation.
Mandatory for Certain Activities
For organizations working on international collaborations, humanitarian aid, or projects involving foreign entities, FCRA Registration is a mandatory requirement.
Case Studies of NGOs Benefiting from FCRA Registration
Smile Foundation:
Smile Foundation, a prominent NGO in India working in the areas of education, healthcare, and livelihood, leveraged its FCRA registration to secure funding from international donors like Give2Asia and various corporate social responsibility (CSR) initiatives abroad.
Pratham Education Foundation:
Pratham, known for its large-scale education initiatives across India, gained significant foreign funding support after registering under FCRA.
Akshaya Patra Foundation:
Akshaya Patra, running one of the world’s largest mid-day meal programs, utilizes its FCRA registration to receive substantial foreign donations.
Goonj:
Famous for its disaster relief and community development initiatives, Goonj has been an active FCRA-registered organization.
Child Rights and You (CRY):
CRY, advocating for child rights, has consistently utilized its FCRA status to raise international funds.
These case studies highlight how FCRA registration has empowered NGOs to expand their reach, enhance their impact, and build sustainable models of social development through foreign contributions.
Frequently Asked Questions (FAQs)
Is FCRA Registration mandatory for receiving foreign donations?
Yes, it is mandatory under the FCRA, 2010. Any NGO, Trust, Society, or Section 8 Company must obtain FCRA Registration before receiving any foreign contributions.
What is the validity period of Permanent FCRA Registration?
Permanent FCRA Registration is valid for five years from the date of approval. It must be renewed at least six months before the expiry date.
Can a new NGO apply for Permanent Registration?
No, only organizations that have been in existence for at least three years and have a track record of societal activities with an expenditure of at least Rs. 10,00,000 in the last three financial years are eligible for Permanent Registration.
Can foreign contributions be received in any bank account?
No, foreign contributions must be received only in a designated account opened in the State Bank of India, New Delhi Main Branch, as mandated by the FCRA 2010 amendments.
What happens if I don’t renew my registration on time?
Failure to renew on time leads to lapse of registration, after which the organization cannot legally receive foreign contributions.
Are NIL returns mandatory if no foreign funds are received?
Yes, even if no foreign contribution is received, the organization must file NIL returns annually to comply with FCRA regulations.
Can I transfer foreign funds to another NGO?
No, the recent amendments prohibit the transfer of foreign funds from one NGO to another, even if both have FCRA registration.
How much can I spend on administrative expenses?
As per the FCRA amendment, an organization can spend only up to 20% of its foreign contribution on administrative expenses.
What is the penalty for violating FCRA provisions?
Violations can lead to penalties including suspension or cancellation of registration, fines up to Rs. 10 lakh, forfeiture of funds, and possible prosecution.
Can I voluntarily surrender my FCRA Registration?
Yes, an organization may voluntarily surrender its registration by applying to the Ministry of Home Affairs with relevant documents, including utilization of funds report.
How long does it take to get FCRA Registration approved?
Generally, it takes 90 to 120 days for the Ministry of Home Affairs to process the application after scrutiny and background checks.
Is Aadhaar mandatory for key functionaries?
Yes, submission of Aadhaar details of key functionaries is mandatory as per the FCRA amendments.
What documents are required for FCRA Renewal?
For renewal, organizations must submit Form FC-3C along with previous compliance reports, financial statements, and payment of renewal fees.
What is the role of the Intelligence Bureau (IB) in FCRA registration?
The IB conducts background checks on the organization and its key functionaries to ensure compliance with national interests before approval.
What happens if there is a change in key functionaries?
Any change in key functionaries must be intimated to the Ministry of Home Affairs within 15 days through the FCRA portal.
Can an organization receive foreign funds before getting FCRA Registration?
No, receiving foreign contributions without FCRA Registration or prior permission is a punishable offense.
What is the procedure if the designated bank account is changed?
The change must be immediately reported to the MHA through the FCRA portal with relevant documentation.
What are the consequences of filing false information in FCRA applications?
Providing false information can lead to rejection of application, cancellation of existing registration, penalties, and criminal proceedings.