Foreign Contribution Regulation Act
The Foreign Contribution (Regulation) Act, often abbreviated as FCRA, is an Indian legislation enacted in 2010 to regulate the acceptance and utilization of foreign contributions or donations by individuals, associations, and NGOs in India. Here are some key aspects of the Foreign Contribution Regulation Act (FCRA):
1. Objective :
The primary objective of FCRA is to ensure that the acceptance and utilization of foreign contributions and hospitality do not adversely affect the internal security, public interest, or national integrity of India.
2. Applicability :
FCRA applies to individuals, associations, and NGOs based in India that intend to receive foreign contributions. It regulates the acceptance, utilization, and accounting of such contributions.
3. Registration and Prior Permission :
Organizations seeking to receive foreign contributions must either register under FCRA or obtain prior permission from the Ministry of Home Affairs, Government of India. Registration is valid for five years and can be renewed thereafter.
4. Prohibitions and Restrictions :
FCRA prohibits certain categories of organizations and individuals from receiving foreign contributions, including political parties, candidates for election, government servants, and organizations of a political nature.
5. Utilization of Funds :
Foreign contributions received under FCRA can only be utilized for specific purposes as approved by the Ministry of Home Affairs. These purposes typically include social, cultural, educational, religious, and economic activities.
6. Compliance and Monitoring :
Organizations registered under FCRA are required to maintain separate designated bank accounts exclusively for receiving and utilizing foreign contributions. They must also submit annual returns, including details of the contributions received and their utilization, to the government for scrutiny.
7. Amendments and Amendments :
The FCRA has been subject to amendments over the years to streamline its provisions, enhance transparency, and ensure effective regulation of foreign contributions.
8. Recent Developments and Controversies :
FCRA has been a subject of debate and controversy due to its impact on the operations of NGOs and civil society organizations in India. Amendments and enforcement measures have been critiqued for potentially restricting legitimate charitable and developmental activities.