The Foreign Contribution (Regulation) Act, 2010 (42 of 2010) dated the 26th September, 2010 was notified in the Gazette of India – Extraordinary – Part II - Section I dated the 27th September, 2010.
While the provisions of the repealed fcra, 1976 have generally been retained, the fcra, 2010 is an improvement over the repealed Act as more stringent provisions have been made in order to prevent misutilization of the foreign contribution received by the associations.
Organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programs may either obtain registration or prior permission to receive foreign contribution from Ministry of Home Affairs by making application in the prescribed format and furnishing details of the activities and audited accounts. The registration is granted only to such association which has proven track record of functioning in the chosen field of work during last three years and after registration, such organization is free to receive foreign contribution from any foreign source for its stated objectives. Registration is granted only after thorough security vetting of the activities and antecedents of the organization and office bearers thereof.
However, such organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose and from a specific source after seeking project based prior permission (PP) from the Ministry of Home Affairs. Read More