FCRA 2010 + 2020 amendment. NGOs/trusts receiving foreign donations. SBI Delhi designated account mandatory. FC-4 annual returns. 20% admin cap. No sub-granting.
FCRA = Foreign Contribution Regulation Act 2010. REGULATES foreign donations/funding to: (1) NGOs. (2) Trusts. (3) Societies. (4) Section 8 companies. (5) Associations. KEY: (1) REGISTRATION mandatory before accepting foreign contributions. (2) MHA (Ministry of Home Affairs) administered. (3) ANNUAL RETURNS (FC-4). (4) DESIGNATED SBI Delhi account mandatory (2020 rule). (5) Non-compliance: registration cancellation + penalties. ENSURES foreign funding not misused.
FCRA REGISTRATION: (1) PERMANENT REGISTRATION: for established orgs (3+ years existence + ₹15L spent on objectives). Valid 5 years, renewable. (2) PRIOR PERMISSION: for new orgs or specific projects. One-time approval. ELIGIBILITY: (1) Registered NGO/trust/society. (2) Cultural, economic, educational, religious, social programs. (3) Clean track record. (4) NOT for political parties + government servants + media. PROCESS: online via FCRA portal (fcraonline.nic.in).
FCRA 2020 AMENDMENT (stricter): (1) SBI NEW DELHI main branch account MANDATORY for receiving foreign funds. (2) SUB-GRANTING banned (FCRA org can't transfer to another FCRA org). (3) ADMINISTRATIVE expense cap: 20% (reduced from 50%). (4) AADHAAR mandatory for office bearers. (5) Many NGOs lost registration. IMPACT: (1) Significant compliance burden. (2) Centralized monitoring. (3) Smaller NGOs struggled. STRATEGIC: maintain meticulous records + compliance to retain registration.
FCRA COMPLIANCE: (1) FC-4 ANNUAL RETURN: by December 31 (for previous FY). (2) Quarterly disclosure of foreign funds received (website). (3) DESIGNATED SBI account statements. (4) UTILIZATION certificate. (5) AUDITED accounts. (6) SEPARATE books for foreign vs domestic funds. (7) NO mixing FCRA + non-FCRA funds. PENALTIES: (1) Late FC-4: penalty. (2) Misuse: registration cancellation. (3) Criminal prosecution for violations. STRATEGIC: dedicated FCRA accountant + annual audit critical.
FCRA STRATEGY: (1) REGISTER before accepting any foreign funds. (2) SBI Delhi designated account mandatory. (3) SEPARATE FCRA books strictly. (4) 20% admin expense cap — plan budgets. (5) NO sub-granting — direct utilization only. (6) FILE FC-4 annually by Dec 31. (7) WEBSITE quarterly disclosure. (8) RENEW registration every 5 years. (9) CSR funds from Indian companies: NOT foreign contribution (domestic). (10) FOREIGN INDIVIDUAL donations + foreign company + foreign trust: FCRA applies. (11) ENGAGE FCRA-specialist CA. CRITICAL: non-compliance = registration loss + funding freeze. Many prominent NGOs lost FCRA status 2020-23.