Licences & Legal

FCRA (Foreign Contribution Regulation Act) — Meaning

The law requiring NGOs to have registration or prior permission before receiving foreign donations.

What is FCRA (Foreign Contribution Regulation Act)?

The Foreign Contribution (Regulation) Act, 2010 requires NGOs to obtain registration or prior permission from the Ministry of Home Affairs before accepting foreign contributions. Registration needs three years of existence and ₹15 lakh spent on core activities in the last three years. Foreign funds must be received in the designated FCRA account at SBI, New Delhi Main Branch, administrative expenses are capped at 20%, transfers to other NGOs are prohibited, and an annual return (FC-4) is filed by 31 December.

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