A NGO is a non-profit entity that functions independently of the government, focusing on humanitarian, social, or developmental objectives.
Formation of NGOs in India:
Societies:
Registered under the Societies Registration Act, 1860.
Trusts: Private Trusts are
registered under the Indian Trusts Act, 1882 which is a central legislation.
Public Trusts are registered under respective state laws.
Charitable Companies:
Registered as non-profit companies under Section 8 of the Companies Act, 2013.
Foreign Contribution Regulation: NGOs that receive foreign contributions or donations must obtain prior registration or permission under the Foreign Contribution (Regulation) Act (FCRA), 2010, administered by the Ministry of Home Affairs (MHA).
ReplyDeleteThe FCRA, 2010 governs the receipt and utilization of foreign funds by individuals, associations, or companies, including NGOs.
ReplyDeleteIts core objective is to prevent foreign contributions from undermining India’s sovereignty, integrity, security, economic or scientific interests, public order, or leading to any offence or harm to individuals.
ReplyDeleteKey Amendments in the Foreign Contribution (Regulation) Amendment Act, 2020:
ReplyDeleteMandated that all foreign contributions be received only through a designated "FCRA Account" at a specified bank (State Bank of India, Delhi).
Prohibited transfer of foreign contributions from the recipient to any other person or entity.
Reduced the permissible limit for administrative expenses from 50% to 20% of the foreign funds received.
ReplyDeleteEmpowered the Central Government to:
ReplyDeleteRestrict or suspend further receipt or utilization of foreign contributions following a summary inquiry.
Require Aadhaar or other identification documents for office bearers, directors, and key functionaries of NGOs.