The NGOs cannot take foreign contribution directly.
For this purpose they should be registered under the Foreign Contribution
Regulation Act 1976, commonly known as the FCRA.
There can be two types
of contribution from the foreign source, i.e. one time or expected more
than once and even regularly. For any one time contribution the NGOs can
receive the amount by seeking prior permission of the FCRA Section of
the Ministry of Home Affairs, Government of India; whereas for multiple
and regular contributions of the foreign source it is advisable to seek
permanent registration from the said Ministry.
For this purpose an
application is to be made by the NGO, which should be in working for at
least three years after its due registration, to the Secretary to the
Government of India, ministry of Home Affairs, 26 Mansingh Road, New
Delhi – 110003 in the prescribed Form FC-8 along with the desired
enclosures (Certificate of Registration, Memorandum and Rules or the
Trust Deed or any other proof of registration, audited financial
statement and activity report of the least three years, and if possible
letter of the prospective donor.
The Ministry sends the accepted application to local
intelligence people for verification of the credentials and records of
the organisation. On their positive remarks, the FCRA Section of the
Ministry issues the Certificate of Registration to the applicant
It is essential to receive foreign contribution only
in one designated bank account. Therefore, the applicant organisation
should open a fresh bank account with the intention to operate it for
such funds and mention it in the application. The said Ministry will
directly inform the concerned bank to keep watch on the use of the
foreign contribution and report back to the Ministry in case of any
The organisations registered under the FCRA have to
maintain separate accounts incurred under the FC head and submit a
return in the prescribed format to the Ministry along with the audited
statement of accounts of the previous year by 31 July every year.
The organisations registered under the FCRA, should
inform to the Ministry about any change in name of the organisation, its
Registered Office and aims and objects within 30 days of the applicable
change. Similarly, prior permission will be required from the said the
Ministry for any change in the designated bank or replacement of more
than half of members of the governing body at the time of its
registration under the FCRA.
The management should be well aware of various
provisions of the FCRA and should strictly follow the same otherwise
they may face a number of rigorous punishments under the Act.
Address of Ministry of Home Affairs to apply directly:
The Secretary to the Government of India,
Ministry of Home Affairs, Jaisalmer House, 26, Mansingh Road,
New Delhi - 110011