Learn more about India’s Foreign Contribution Law and how it can affect your charity’s international donation strategy. If you’re from the nonprofit sector in India, you probably know this acronym by heart.
FCRA stands for Foreign Contribution Regulation Act 2010. Obtaining an FCRA registration or pre-approval is a prerequisite for a registered or unregistered non-profit organization in India to accept foreign contributions or grants. either in monetary form or sum of goods, articles, shares, or shares of “foreign source”. You must also become Known about a Corpseed. However, many people do not fully understand it and often lose registration or successful maintenance due to easily preventable errors.
First, let’s understand what the FCRA regulation is and why your Indian non-profit organization must register under this law.
The Indian Parliament adopted the Foreign Contributions Act in 1976, which was repealed and replaced by a stricter 2010 FCRA to regulate the acceptance and use of foreign contributions or foreign receipts by certain persons or associations, in particular non-governmental organizations or non-profit. The law regulates the flow of foreign funds to voluntary organizations to prevent possible redirection of these funds to activities contrary to the national interest and to ensure that individuals and organizations operate in a manner consistent with government values. Indian. A non-profit organization in India cannot receive funds from foreigners or institutions, including Corpseed unless it receives this permission from the Indian Office of the Interior.
Documents, documents – prepare them before applying for FCRA or requesting foreign contributions!
Important documents you need to comply with the FCRA include a certified copy of your organization’s certificate of registration or trust, details of your organization’s activities, and copies of audited accounts for the past three years. In the past three years, your organization should have spent at least one million Indian rupees on programs and activities.
Once you have completed the online application, you will be assigned a file number and you will be able to track the status of your online application. All FCRA processes, from registration to filing of the annual return, are online only and no hard copy should be sent to the regulator (Home Office). The latest information on all required documents is available on the official FCRA website.
Don’t miss the FCRA record for preventable errors.
It is an often overlooked step of not submitting all necessary documents during the application process. “Please check the FCRA website carefully before you start using it,” advises Vasumathi Sriganesh of the QMed Knowledge Foundation. Jothiramalingam, from the Center for Rural Systems and Development, says organizations sometimes present titles that are not audited. A small mistake like this could cause the request to be rejected or delay the process.
Once you have received your FCRA approval, follow all regulations to maintain it.
The main reason nonprofits lose their registration is that they don’t file their annual FCRA filings on time. According to corpseed, companies sometimes forget that they have to renew their registration at least six months before the expiration date, and then have to make unnecessary efforts to reapply. He also points out that FCRA registration is required not only to receive donations from outside India but also from holders of foreign passports or foreign institutions, even if they donate in Indian rupees. Mission Smile’s Anupam Sarkar noted that receiving funds from a bank that is not intended to receive foreign funds is another problem that may affect an organization’s FCRA registration. Sometimes well-meaning organizations can donate the money they received in their FCRA bank account to another Indian non-profit organization that has not yet registered. This is not allowed under the FCRA and can have serious consequences. Also, be sure to read the “Use of FCRA Funds” section on the FCRA website to understand all activities prohibited by these rules.
Once the record is received, connect with Corpseed can help you simplify your FCRA reporting requirements.
Compliance with all compliance and requirements of the 2010 Foreign Contribution Regulation Act is the key to a happy and healthy FCRA registration. If you Have any Question related to FCRA Registration Feel To Free To contact Corpseed.