Read everything about The Ministry of Home Affairs extension of validity of FCRA-registered NGOs with pending renewal applications until 30 September 2024, ensuring compliance continuity.

Introduction 

The Ministry of Home Affairs (MHA) recently issued a public notice regarding the validity of FCRA registered NGOs and the extension for those registered under the Foreign Contribution (Regulation) Act (FCRA), 2010. According to the notice, NGOs with pending renewal applications will have their FCRA registration validity extended until 30 September 2024, or until their renewal applications are processed, whichever comes first. This move aims to provide continuity in operations for NGOs awaiting renewal approvals.

Furthermore, NGOs whose five-year validity period under FCRA expires between July 1 and September 30, and who have applied for renewal or will do so before their current validity ends, will also benefit from an extension until 30 September 2024, or until their renewal application submission is disposed of. This extension alleviates concerns over potential lapses in FCRA registration, ensuring uninterrupted access to foreign contributions for NGOs engaged in permissible activities under FCRA guidelines.

The MHA’s notification underscores its commitment to facilitating compliance while ensuring transparency and regulatory oversight in the utilisation of foreign funds by NGOs. It encourages timely submission of pending renewal applications and adherence to FCRA regulations to maintain lawful operations and accountability in the receipt and utilisation of foreign contributions.

FCRA Validity Extended

According to the recent MHA notification, this FCRA certificate renewal extension applies specifically to NGOs whose certificates were previously extended until 30 June 2024, under a public notice dated 28 March 2024. This measure aims to ensure continuity and compliance among FCRA-registered NGOs, providing them with adequate time to complete the FCRA renewal application process while maintaining transparency in the receipt and utilisation of foreign funds. This underscores the MHA’s commitment to facilitate the lawful operations of NGOs while upholding regulatory oversight and accountability under the FCRA framework.

Note:  The MHA emphasised the importance of adherence to FCRA regulations, highlighting that if an NGO’s renewal application is rejected, its registration will be considered expired from the date of refusal. This would result in the NGO becoming ineligible to receive or utilise foreign contributions until the renewal issue is rectified.

Eligibility for FCRA Validity Extension 

The validity extension of FCRA registration NGOs can be granted under certain conditions, typically related to compliance and application procedures set forth by the Ministry of Home Affairs (MHA), Government of India. Here are some key points regarding eligibility for an FCRA validity extension:

• Organisations applying for an extension of FCRA certificate validity must ensure full compliance with Foreign Contribution Regulation Act (FCRA) guidelines 
• This includes timely submission of annual returns, maintaining accurate records, and adhering to prescribed norms for utilising foreign contributions. The application process for Foreign Contribution Regulation Act (FCRA) certificate validity extension requires submission well in advance of the current registration’s expiry, following MHA guidelines and providing requisite documents 
• Evaluation criteria typically encompass an organisation’s compliance history and the impact of its activities, including financial statements, audit reports, and details of projects funded by foreign contributions  
• Each application undergoes thorough assessment by the MHA, considering the organisation’s objectives, funding sources, and operational scope. Renewals are granted for a specified period, typically five years, subject to periodic review and subsequent renewal 
• Staying informed about updates in the FCRA Contribution Regulations Act is crucial, as amendments may affect the renewal procedure. Adhering to new requirements ensures organisations remain compliant and facilitates a smooth extension process under the FCRA framework.

Conclusion

The MHA’s extension of FCRA registration validity for NGOs with pending renewal applications offers a much-needed reprieve, allowing these organisations to continue their vital work without interruption.  For FCRA certificate validity extension, FCRA-registered NGOs must strictly comply with the Foreign Contribution Regulation Act (FCRA) regulations. This includes submitting timely FCRA renewal applications with the necessary documentation and demonstrating a positive track record in utilising foreign contributions. The Ministry of Home Affairs evaluates each renewal application, emphasising adherence to updated guidelines and maintaining transparency in financial and operational practices. Ensuring compliance with these requirements is crucial for securing an extension of FCRA registration validity. For FCRA registration and compliance support choose Vakilsearch. 

FAQs on Validity of FCRA registered NGOs

What is the new rule of FCRA?

The need for transparency is emphasised in the most recent modifications to the FCRA Rules, which were introduced in September 2023. NGOs that have registered under the Foreign Contribution Regulation Act ,2010 are now obligated to furnish comprehensive details regarding their immovable and moveable assets that were established through foreign contributions.

What are the key rules under the Foreign Contribution (Regulation) Act, 2010?

FCRA regulates the acceptance and utilisation of foreign contributions or donations by individuals, associations, and NGOs in India. It mandates registration or prior permission from the government for receiving foreign funds and imposes reporting obligations to ensure transparency.

What are the FCRA limits?

The FCRA limits the use of foreign contributions strictly for social, educational, religious, economic, and cultural purposes. Funds cannot be utilised for political activities, speculative businesses, or activities detrimental to the national interest.

Who is prohibited under FCRA?

Certain categories of organisations, including political parties, candidates for election, government officials, and organisations of a political nature, are prohibited from accepting foreign contributions under the FCRA.

What occurs if the FCRA is not extended?

It is illegal to fail to renew your FCRA registration, and you may face fines and even jail time as a result. The organisation might potentially be prohibited in the future from accepting donations from overseas in certain situations.