Foreign Contribution Regulation Act (FCRA)

Foreign Contribution Regulation Act (FCRA): Recently, the Ministry of Home Affairs (MHA) amended the Foreign Contribution Regulation Act (FCRA) rules, tightening compliance requirements for NGOs engaged in publication activities and those receiving foreign contributions.

• About FCRA: Enacted in 1976 during the Emergency,it regulates the acceptance and use of foreign contributions by individuals, associations, and organizations in India to ensure they are used legitimately and do not threaten national interests.

o The Act was amended in 2010 and again in 2020 to enhance transparency and curb the misuse of foreign funds.

o FCRA registration is valid for five years and must be renewed six months prior to expiry.

o The Ministry of Home Affairs (MHA) can suspend an NGO’s FCRA registration for up to 360 days if found in violation.

o Aadhaar has been made mandatory for all key functionaries, directors, or office-bearers of NGOs

o Public servants are prohibited from receiving foreign contributions

o NGOs can use only 20% of foreign funds for administrative purposes, reduced from the earlier 50%.

o NGOs are barred from transferring foreign funds to other organizations or entities.

o Foreign contributions are prohibited for candidates, journalists, media personnel, judges, public servants, politicians, and political parties.