FCRA Registration for NGOs — Foreign Funding Compliance Guide

FCRA Registration: Valid for 5 years. Required for NGOs that want to receive foreign contributions. The organization must be registered under the Societies Registration Act, Indian Trusts Act, or Companies Act (Section 8 company). It must have been in existence for at least 3 years.

FCRA Prior Permission: Granted for specific projects or specific donors. Valid for the specific purpose for which it is granted. Required for organizations that do not have regular FCRA registration or are less than 3 years old.

The organization must be registered under a central or state law (Societies Act, Trusts Act, or Companies Act). It must have been in existence for at least 3 years at the time of application.

The organization must have spent at least Rs. 10 lakhs on its charitable activities in the last 3 years. The key office bearers must not have been convicted of any offence involving moral turpitude or violation of FCRA.

The organization must have a designated FCRA bank account (FCRA Account) in a scheduled bank in the district where it is located. All foreign contributions must be received and utilized only through this account.

Step 1: Register on the FCRA online portal (https://fcraonline.nic.in). Submit the online application in Form FC-3A (for registration) or Form FC-3B (for prior permission).

Step 2: Upload the required documents — registration certificate, memorandum/rules, audited financial statements for 3 years, details of activities, and a declaration by the chief functionary.

Step 3: The application is processed by the MHA. Field inquiries may be conducted. If satisfied, the FCRA certificate is issued. The processing time is typically 3-6 months.

Registration certificate under the applicable law, Memorandum of Association/Rules/Trust Deed, audited financial statements for the last 3 years, annual report for the last 3 years, details of activities undertaken, list of key office bearers with Aadhaar/PAN, resolution authorizing the FCRA application, and a declaration regarding conviction/criminal proceedings.

Annual Return: File FC-4 annual return within 60 days of the financial year end (i.e., by May 29). The return must be audited by a Chartered Accountant and contain details of foreign contributions received and utilized.

Utilization: Foreign contributions must be used only for the purpose for which they were received. At least 80% of the foreign contribution must be used for the core activities of the organization.

Reporting: Any change in the governing body, address, or objectives must be reported to the MHA within 30 days. The FCRA account details must be maintained properly.

Foreign contributions cannot be used for activities that are prejudicial to national interest. Contributions from certain organizations or countries specified by the MHA are prohibited. Transfers of foreign contributions to other organizations are restricted.

The FCRA Amendment Act, 2020 introduced several restrictions — FCRA registration is valid for 5 years (renewable), the utilization of foreign contributions must be through the designated FCRA bank account only, contributions must be received in a branch of SBI, New Delhi, and administrative expenses are capped at 20%.