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FAQs on Foreign Contribution Regulation Act (FCRA)

The FCRA requires international NGOs to register with the MHA to receive foreign contributions. Strict regulations govern how these funds are received, managed, and reported. This can add a layer of complexity to their operations in India.
Non-compliance can lead to penalties, cancellation of FCRA registration, and difficulty receiving future foreign contributions.
Some argue stricter FCRA regulations might contradict the global trend of unrestricted philanthropic giving. The government, however, maintains FCRA is necessary to ensure transparency and national security.
Yes, foreign contributions can be designated for disaster relief, but the recipient organization must be registered under FCRA and comply with regulations regarding utilisation of funds.
FCRA primarily applies to NGOs, not companies. However, CSR activities involving foreign funding might need to comply with FCRA regulations if they fall under the definition of "foreign contribution."
The FCRA online portal allows for electronic registration, filing of returns, and communication with the MHA, streamlining the compliance process.
FCRA aims to track all foreign contributions, including those received indirectly through other organizations. Organizations must report the source of all funds received.
Maintain meticulous records of all FCRA transactions, file returns promptly, and seek professional guidance if needed.
Educational institutions receiving foreign funds for research projects may need to register under FCRA depending on the nature of the funding and its use.
The FCRA framework includes provisions for appealing decisions and filing complaints with authorities if an organization feels aggrieved.

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Authors

Written by Nithya, Reviewed by Sushmitha Pawar. Last updated on Oct 10 2024, 04:38 PM

Sushmitha PawarBA.LLB (Hons), a senior legal expert specialises in NGO registration, NGO compliance, FCRA, trust, society, and fundraising.

Nithya Ramani Iyer,a criminologist and writer, serves as the SME and manages communications at Vakilsearch. Drawing from her experience at Seasearch Intelligence and Legal domains, she enriches our content with insightful perspectives.