Friday, May 30, 2025

The Ministry of Home Affairs (MHA) has recently announced new amendments to the Foreign Contribution (Regulation) Rules, 2011 affecting the manner in which non-governmental organizations (NGOs) operating in India can receive and utilize foreign funds.

 


6 comments:

  1. What are the Key Provisions of the New FCRA Rules for NGOs?
    Ban on Publication Activities: NGOs engaged in publication-related activities must now obtain a certificate from the Registrar of Newspapers for India ensuring compliance with media regulations and declaring they are “Not a Newspaper.”

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  2. Financial Disclosure: NGOs applying for FCRA, 2010 registration must submit financial statements and audit reports for the past three years, including assets and liabilities, income and expenditure, and receipts and payments accounts.
    FATF Compliance: NGOs must declare adherence to Financial Action Task Force (FATF) Good Practice Guidelines, aligning with India’s efforts to strengthen oversight of foreign financial flows.

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  3. New Requirements for Receiving Foreign Contributions: NGOs must submit a commitment letter from foreign donors matching the donation with a detailed project report with expense breakdown.

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  4. Obligations for Previously Registered NGOs: If an NGO’s FCRA registration has expired or been cancelled, it must submit an affidavit detailing the receipt and utilisation of previously received foreign contributions.
    Foreign Contribution Regulation Act

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  5. About: FCRA is a law enacted in 1976 during the Emergency to regulate the acceptance and use of foreign contributions by individuals, associations, and organizations in India.
    It ensures that such contributions are used only for legitimate purposes and do not compromise national interest.

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  6. Amendments: The original FCRA Act, 1976 was repealed and replaced by new legislation in 2010 to modernise the law governing foreign contributions.
    In 2020, additional amendments were introduced to tighten the regulations and improve oversight of foreign donations.

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