Wondering if a DARPAN ID is required for FCRA registration. This guide delves into the necessity of obtaining a DARPAN ID, its role in the registration process, and the benefits it provides for organisations receiving foreign contributions
Introduction
Non-governmental organisations play a crucial role in many social, economic, and other developmental efforts. NGOs can get funding from foreign countries and organisations to support their activities. However, for an organisation to legally receive funding from a foreign source, they would meet the criteria set forth in the Foreign Contribution Regulation Act,2010. A DARPAN ID is one of the prerequisites. This ID provides a comprehensive explanation of what a DARPAN ID is, its role in FCRA registration, and an overview of the procedures that must be followed to complete the process.
DARPAN is the Digital Accessible Registration and Partnership Accounts on NFP Sectors is an electronic initiative that aims at having a core banking solution for fund transfer, disbursement, and expenditure for the entire NFP sector. The primary goal of introducing the DARPAN Portal is to create and maintain a comprehensive, reliable database of NGOs in the country. Upon registration on this portal, NGOs are issued a DARPAN ID, which serves as a digital identity for the institution. This implies that by having a DARPAN ID, an NGO can have full access to various government services, activities, and schemes.
What is DARPAN ID?
The DARPAN (Development Assistance for Resource and Network) ID is a unique identification number that NITI Aayog issued to NGOs and voluntary Organisations . Such an identification number serves to help improve the transparency and effective allocation of governmental assistance to the nonprofit sector. In this way, after obtaining a DARPAN ID, the NGOs could formally be recognised as officially registered in the national database. Such recognition not only guarantees instant credibility but also provides direct access to governmental grants and foreign contributions. Moreover, it establishes mechanisms of ensuring that such organisations are traceable and well-accountable, as this directly translates to instilling trust and reliance upon the same.
Can NGO Receive Foreign Contribution Without a Darpan ID?
Without a DARPAN ID, NGO in India cannot legally accept foreign contributions without the Foreign Contribution Regulation Act, 2010. The development of a DARPAN ID is pivotal to the Act and a requirement before FCRA registration. FCRA registration is crucial in regards to the non-governmental organisations that lack authority to accept donations from outside countries. In the absence of the DARPAN ID, NGOs cannot legally access international funds from the entry state or internal contributions. It is a paramount requirement for any organisation to consider the urgency of developing DARPAN ID as an eligible requirement for accepting foreign contributions.
The Relationship Between DARPAN ID and FCRA Registration
Without a Darpan ID, an NGO, it is legally incapable of receiving foreign contributions without complying with the regulations established under the Foreign Contribution (Regulation) Act, FCRA, 2017. This law stipulates that a DARPAN ID is necessary for FCRA registration, which is a mandatory process for any NGO intending to take donations from international sources. Short of the DARPAN ID, an NGO is unable to become registered under FCRA since it cannot undertake the registration process and is therefore incapable of receiving funds from international sources. Hence, obtaining a DARPAN ID is a requisite action for an NGO that aspires to undertake fundraising in which it will acquire donations or funds from international sources.
The DARPAN ID is a sure way of ensuring that the NGO meets the laid measures legally and is therefore authorised to claim the benefits that come with international funding. For an NGO that endeavours to bring aboard financial support from international sources, acquiring a DARPAN ID and FCRA registration is an ardent requirement.
Benefits of Having a DARPAN ID
Having a DARPAN ID for FCRA registration offers several benefits:
- Enhanced Transparency: A DARPAN ID enhances an NGO’s transparency, making it more credible and trustworthy to foreign donors
- Streamlined Process: Providing a DARPAN ID during the FCRA application can simplify certain steps, as it accelerates the verification of the NGO’s credentials
- Access to Schemes: NGOs may also have easier access to government funds and programs that are only available to registered organisations if they have a DARPAN ID
- Increased Visibility: Registered NGOs with a DARPAN ID may receive greater visibility within government databases, which can lead to more opportunities for collaboration and funding.
Conclusion
To sum it up, although NGOs can get numerous benefits from having a DARPAN ID, they still need to remember that it does not bring them FCRA registration. The organisation that considers receiving donations from overseas should first and foremost focus on meticulously following FCRA standards of performance and making certain that all paperwork is in place before the registration process starts. FCRA registration and having the DARPAN ID can be extremely beneficial for NGOs that need to deal with numerous challenging obstacles on the way to receive foreign investments. In the end, careful preparation, observance of the established regulations, and a visible demonstration of the organisation’s devotion to the mission are required to pass an FCRA registration successfully. Get Expert support for hassle free FCRA registration and DARPAN ID.
FAQs
How can an NGO obtain a DARPAN ID?
To get a DARPAN ID for an NGO, you can register the organisation on the Darpan portal. The registration process typically requires submitting detailed information about the NGO, including its activities, financial records, and other relevant documentation.
Is there any official statement that clarifies the mandatory nature of DARPAN ID for FCRA registration?
A DARPAN ID is not legally required for applying for FCRA registration. This policy is designed to lessen the burden on NGOs, particularly smaller ones that may find the process challenging.
Does having a DARPAN ID influence the chances of approval for an FCRA application?
The DARPAN ID enhances an NGO’s transparency and credibility, making it easier to verify the organisation’s details and streamline the approval process. Although it does not guarantee approval, it can facilitate smoother interactions with regulatory authorities and improve the organisation’s overall profile, potentially increasing the likelihood of a successful FCRA application.
