The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month.
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Key provisions of FCRA, 2010 |
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Key aspects |
Description |
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About |
It regulates foreign donations and ensures that such contributions do not adversely affect internal security |
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Established |
In 1976 during Emergency period amidst the apprehensions that foreign powers were interfering in India’s affairs by pumping money through independent organisations |
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Implementation |
Ministry of Home Affairs |
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Applicability |
To all associations, groups and NGOs which intend to receive foreign donations. |
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2010 Amendment |
Consolidated the law on utilisation of foreign funds, and to prohibit their use for “any activities detrimental to national interest”. |
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2020 Amendment |
Gave the Government tighter control and scrutiny over the receipt and utilisation of foreign funds by NGOs. |
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Filing of annual returns |
The annual returns must be filed on the lines of Income Tax. |
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Foreign contribution |
It means the donation, delivery or transfer made by any foreign source |
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How foreign funds can be availed by NGOs |
All NGOs must receive foreign funds in a designated bank account at SBI’s New Delhi branch. |
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Utilisation of foreign funds |
Utilised only for the purpose for which they have been received and as stipulated in the Act. |
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Who can receive foreign contribution? |
It must have a definite cultural, economic, educational, religious or social programme with prior FCRA registration/ permission from the Central Government. |
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Who cannot receive foreign contribution? |
The candidates for elections, journalists or newspaper and media broadcast companies, judges and Government servants, members of legislature and political parties or their office-bearers, and organisations of a political nature. |
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Aadhaar provision |
It is mandatory for all the office-bearers, directors and other key functionaries of an NGO. |
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Administrative expenses |
It was capped at 20% of the total foreign funds received, earlier the upper limit was 50% |
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Bar on sub-granting |
It barred sub-granting by NGOs to smaller NGOs who work at the grass roots level. |
The Government reserves the right to cancel the FCRA registration of any NGO if it finds it to be in violation of the Act.
Since 2015, the FCRA registration of more than 16,000 NGOs have been cancelled on account of violation.
Quick Facts
Centre for Policy Research
World Vision India (WVI)
References
