FCRA Rules Governing NGOs

UNDER WHAT LAWS ARE NGOs REGISTERED?

Non-government organizations are registered under various Acts and different states have different laws. For receiving foreign grants, they have to register with the Ministry of Home Affairs (MHA) that assigns a unique FCRA registration number, which is renewed every five years. NGOs are regulated by the foreign Contribution (Regulation) Act.

HOW MANY NGOs ARE REGISTERED UNDER FCRA?

130,071 NGOs are registered with NGO-DARPAN, an online platform under NITI Aayog, through self-declaration. Several NGOs active in states and Union Territories may not be part of NGO-DARPAN. Post-December 31,2021, 16,829 NGOs are registered under FCRA; some are under the prior permission category. FCRA licenses of 5,789 NGOs lapsed on January 1, 2022. FCRA licenses of 179 NGOs including Missionaries of Charity were denied due to violation of laws or adverse report.

Mean While, the Centre has extended the renewal deadline to March 31, 2022, for those NGOs whose licenses were expiring between September 30, 2020, and December 31,2021.

WHAT ARE THE FCRA LAWS?

Enacted in 1976, the FCRA was amended in 2010 and later in 2020. The FCRA is applicable to all associations, group and NGOs who intend to receive foreign donations. Under the 2020 amendment, public servants have been barred from receiving foreign contributions.

The Act makes Aadhaar as identification document mandatory for all office-bearers, directors or key functionaries receiving foreign contributions. The Act also mandates that foreign contributions must be received only in a designated FCRA account of the State Bank of India in New Delhi. The law adds that not more than 20% of the total foreign funds received can be utilized for administrative expenses. It was 50% earlier.

WHAT ARE THE REASONS FOR SUSPENDING/NOT RENEWING FCRA LICENCES OF NGOs?

It has been observed that most NGOs become ineligible for reasons such as violation of laws, indulging in political activities, adverse intelligence reports, criminal action initiated against them, failure to submit annual returns, among others, Under the FCRA rules, it is mandatory for NGOs to submit their annual returns every year for receiving foreign funds. One of day key challenges international NGOs face is to blend the recipient country programmes with the donor national government programmes. Because of this conflict, MHA had blacklisted several international NGOs in the past. S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *