Question 1

What is FCRA full form?

Accepted Answer

FCRA stands for the Foreign Contribution Regulation Act. It regulates the acceptance and utilisation of foreign contributions by organisations to ensure that such contributions do not adversely affect national interest.

Question 2

Can an organisation receive foreign contributions without FCRA registration?

Accepted Answer

No, without FCRA registration, organisations are not authorised to accept contributions from overseas.

Question 3

How long does it take to obtain FCRA registration?

Accepted Answer

The average time to complete an FCRA registration is 3 months. This timeline covers the paperwork preparation, application submission, and evaluation process carried out by India's Ministry of Home Affairs. It is subject to change.

Question 4

What are the penalties for late filing of annual returns under FCRA?

Accepted Answer

Late filing penalty starts from ₹10,000. Legal action and sanctions may be imposed for filing annual returns after the deadline under the FCRA. If returns are not filed on time, organisations risk financial penalties, suspension of their registration, or possibly cancellation of their FCRA registration.

Question 5

Can FCRA registration be suspended or cancelled?

Accepted Answer

Yes, if an organisation doesn't follow the rules set forth in the Act, its FCRA registration may be suspended or terminated.

Question 6

What should an organisation do if there are changes in its executive committee or key functionaries?

Accepted Answer

An organisation must promptly notify the Ministry of Home Affairs of any changes to its executive committee or important personnel. Maintaining the validity of the registration for receiving foreign contributions and ensuring compliance with requirements are ensured by updating the FCRA registration details.

Question 7

Is it mandatory to have a designated FCRA bank account?

Accepted Answer

Yes, getting a designated FCRA bank account is a main requirement for organisations. This account is only used to receive and handle contributions from overseas, guaranteeing accurate tracking of funds and transparency in accordance with FCRA guidelines.

Question 8

What types of foreign contributions are prohibited under FCRA?

Accepted Answer

The FCRA prohibits candidates, journalists, media companies, judges, government servants, politicians, and political organisations from receiving foreign funds.

Question 9

Can foreign contributions be transferred to another organisation?

Accepted Answer

Without Ministry of Home Affairs approval, foreign contributions cannot be directly transferred to another organisation. Also, the receiving entity needs to have an FCRA registration.

Question 10

What is the process for surrendering FCRA registration?

Accepted Answer

To surrender FCRA registration, an organisation must submit a formal request to the Ministry of Home Affairs. This process involves settling any pending compliance issues, submitting final reports, and providing reasons for surrender. The Ministry will review the request and, if satisfied, formally cancel the registration.

Question 11

How can an organisation ensure compliance with FCRA regulations?

Accepted Answer

By keeping correct records of foreign contributions, submitting yearly returns on schedule, and routinely checking compliance requirements, an organisation can guarantee compliance with FCRA standards. Maintaining compliance with FCRA standards can also be aided by hiring legal or financial professionals to supervise adherence and carry out internal audits.

Question 12

What are speculative investments, and are they allowed under FCRA?

Accepted Answer

The FCRA forbids speculative investments, which include high-risk stock market investments. The Act requires foreign contributions to be utilised exclusively for the declared goals of the organisation and prohibits using them for high-risk ventures that might compromise the integrity and intended use of the money.

Question 13

What role does the Ministry of Home Affairs play in FCRA registration?

Accepted Answer

The FCRA registration procedure is supervised by the Ministry of Home Affairs. It oversees the use of foreign donations, checks for compliance with the Act, and evaluates and approves applications. In addition, the Ministry manages cancellations and renewals and offers advice on complying with FCRA rules.

Question 14

Are there any exemptions under FCRA for certain organisations or activities?

Accepted Answer

Under the FCRA, some organisations—such as those whose main priorities are disaster relief, healthcare, and education—may be granted exemptions for particular types of operations. They still have to follow the usual compliance guidelines, though. Depending on the organisation's goals and how they affect national interests, exemptions are given.

Question 15

What happens if an organisation fails to renew its FCRA registration on time?

Accepted Answer

An organisation runs the danger of losing its eligibility to accept contributions from overseas if it neglects to renew its FCRA registration on time. The organisation may be subject to fines and prohibitions on receiving more foreign financing, as well as the suspension or cancellation of the registration.

FCRA Registration

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