The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates how NGOs and associations in India receive and use foreign donations. Any organisation with a definite cultural, economic, educational, religious or social programme must hold FCRA registration or prior permission from the Ministry of Home Affairs before accepting a foreign contribution.
Benefits of FCRA Registration
- Legal ability to receive foreign donations and grants
- Access to international foundations, institutions and diaspora donors
- Greater credibility with global partners
- Long-term funding from foreign sources for programmes in India
Registration vs Prior Permission
- Registration – for established organisations that meet the eligibility criteria. It allows them to receive foreign contributions from any permitted source for five years.
- Prior permission – for newer organisations that do not yet meet the criteria. It is granted to receive a specific amount from a specific donor for a specific purpose.
Eligibility for Registration
- Registered as a trust, society or Section 8 company and in existence for at least three years
- Has spent at least ₹15 lakh on its core activities over the last three financial years, excluding administrative expenses
- Office-bearers are not involved in diversion of funds, communal activities or anti-national activities
- Has a valid PAN and up-to-date income tax compliance
Documents Required
- Registration certificate and governing documents
- PAN of the organisation
- Audited financial statements and activity reports of the last three years
- Details and Aadhaar of key functionaries
- Commitment letter from the donor (for prior permission)
- Details of the FCRA designated bank account
Process
- Open the designated FCRA account at the State Bank of India, New Delhi Main Branch
- File the online application in Form FC-3A (registration) or FC-3B (prior permission) on the FCRA portal
- Pay the fee and upload documents
- Respond to any queries during verification by the Ministry of Home Affairs
- Receive the registration or permission certificate
Key Compliance Requirements
- Foreign contributions must be received only in the designated FCRA account
- Foreign funds cannot be mixed with domestic funds
- Administrative expenses are capped at 20% of foreign contributions received
- Foreign contributions cannot be transferred to other organisations
- An annual return in Form FC-4, with audited statements, must be filed by 31 December each year
- Registration must be renewed before expiry in Form FC-3C
Frequently Asked Questions
Who needs FCRA registration?
Any NGO or association that wants to receive foreign contributions for its programmes, including donations from foreign citizens, foreign organisations and foreign sources in India.
Is a donation in Indian rupees from a foreign source a foreign contribution?
Yes. A donation from a foreign source is a foreign contribution even if it is paid in Indian rupees.
How long is FCRA registration valid?
Five years. A renewal application must be filed before the registration expires.