Size Guide

Please Follow Lawmart Shipping & Delivery Policy - https://www.lawmart.in/shipping_delivery.php

Please Follow Lawmart Return & Cancellation Policy - https://www.lawmart.in/return_cancellation.php

Foreign Contribution Regulation Law Manual (FCRA Manual)

???? 1. Introduction

• Purpose of the FCRA: To regulate the acceptance and utilization of foreign contributions or foreign hospitality by certain individuals or associations or companies.

• Objective: Ensuring that foreign contributions do not affect the sovereignty, integrity, and security of India.

????? 2. Historical Background

• FCRA, 1976: Introduced during the Emergency to restrict foreign influence.

• FCRA, 2010: Replaced 1976 Act to align with modern compliance, transparency, and accountability norms.

???? 3. Key Definitions (Section 2)

• Foreign Contribution: Donation, delivery, or transfer from foreign source (money, article, security).

• Foreign Source: Includes foreign governments, international agencies (excluding UN, World Bank, etc.), foreign companies, citizens, and trusts.

• Association: NGO, society, trust, company registered under section 8 of the Companies Act, etc.

????‍?? 4. Applicability of the Act

FCRA applies to:

• Associations receiving foreign funds.

• Political parties, legislators, election candidates, judges, government servants, journalists (certain categories).

???? 5. Prohibited Recipients (Section 3)

• Election candidates

• Correspondents, columnists, editors of registered newspapers

• Judges, government servants, employees of corporations

• Members of legislatures

• Political parties or office bearers

? 6. Registration & Prior Permission (Section 11 & 12)

• Permanent Registration: Valid for 5 years.

• Prior Permission: For one-time receipt.

• Eligibility: At least 3 years' track record in charitable activities; filed income tax returns.

???? 7. Bank Account Requirements (Section 17)

• Only one designated FCRA account with SBI, New Delhi Main Branch (NDMB).

• Other utilization accounts must be linked to this primary account.

???? 8. Annual Returns & Recordkeeping (Section 18)

• Mandatory filing of Form FC-4 every year.

• Books of accounts, vouchers, and records must be maintained for a minimum of 6 years.

???? 9. Suspension & Cancellation of Registration (Section 13 & 14)

• Suspension: Up to 180 days.

• Cancellation: On violation of FCRA provisions.

• Post-cancellation: Assets to be disposed of in a prescribed manner.

???? 10. Offences & Penalties (Section 35-42)

• Accepting or utilizing foreign funds without registration: Up to 5 years imprisonment or fine or both.

• Compounding of certain offences allowed under Section 41.

???? 11. FCRA Rules, 2011 (As Amended)

• Rules prescribe procedures for:

  • Application for registration/prior permission

  • Filing returns (Form FC-1, FC-2, FC-3, FC-4)

  • Changes in key functionaries, bank, address, objectives

?? 12. FCRA (Amendment) Act, 2020 – Key Highlights

• Prohibition on sub-granting foreign funds to other NGOs.

• Aadhaar number mandatory for all key office-bearers.

• Cap on administrative expenses from foreign contribution reduced to 20% (earlier 50%).

• FCRA account must be opened only in SBI, NDMB.

• Suspension of registration increased.

???? 13. Foreign Hospitality (Section 6)

• Prior approval required for public servants before accepting foreign hospitality while visiting abroad.

???? 14. Important Forms under FCRA

• Form FC-1 – Receipt of foreign contribution in the form of gifts/articles.

• Form FC-2 – Application for permission to accept foreign hospitality.

• Form FC-3A/B/C – Application for registration or prior permission.

• Form FC-4 – Annual return.

???? 15. Compliance Checklist

• ? Maintain FCRA designated bank account at SBI, NDMB.

• ? Renew registration every 5 years (Form FC-3C).

• ? File FC-4 within 9 months of financial year end.

• ? Report changes in key functionaries/objects/address within 15 days.

• ? Do not sub-grant foreign contributions.

?? 16. Common Violations

• Non-reporting or delayed reporting of contributions.

• Utilization from an unapproved bank account.

• Diversion of funds for administrative/personal expenses.

• Accepting funds from prohibited sources.

???? 17. FAQs and Clarifications

• Can foreign donations be received in INR? – Yes, if the source is foreign.

• Are CSR funds foreign contributions? – No, CSR funds from Indian companies are not foreign contributions.

• Is donation from NRI a foreign contribution? – Only if the NRI holds a foreign passport.

???? 18. Enforcement & Regulatory Authority

• Ministry of Home Affairs (MHA), FCRA Win