FCRA stands for Foreign Contribution Regulation Act. An NGO is applicable to receive funds from abroad if it has a FCRA Certificate.
Government of India and foreign funding agencies releases a lot of funds for the welfare of underprivileged section of the society. These funds are given on a periodic basis to the Non-Profit Organizations who has a FCRA certificate.
A donation, delivery or transfer of any article, currency or foreign security referred to in this clause by any person who has received it from any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution with the meaning of FCRA Act 2010.
Eligibility Criteria for FCRA Registration:
In order to be eligible to apply for proper FCRA registration following minimum requirements must be met with:
£ Be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 8 of the Companies Act, 2013 etc.
£ Any person making an application for registration shall have an FCRA Account i.e. a bank account with state bank of India, main branch, New Delhi.
£ An association should be in existence for at least 3 years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the Foreign Contribution is proposed to be utilized.
£ An association should have spent at least Rs. 15, 00,000/- over the last 3 years on its core activities for the benefit of the society during the last three financial years. The central government in exceptional cases or in cases where the person making the registration application is controlled by the CG or SG may waive this condition of Rs. 15 Lakhs.
£ An association should have 12A registration certificate as well as registration certificate also.
£ A person making an application may also include the existing capital investments, like bank, building, vehicles, etc. in computation of its eligibility of minimum spending of Rs.15 Lakh then such person shall:
ü Give an undertaking that the assets shall be vested henceforth with the person till the validity of the certificate.
ü They shall be utilized only for the activities covered under the Act.
ü The rules made thereunder and shall not be diverted for any other purpose till the validity of its certificate of registration remains valid.
Benefits for FCRA Registration:
£ Benefits those organizations which work for the benefit and better of the public and are involved in social work.
£ If the organizations are registered under FCRA, it helps the organization lawfully in receiving the foreign contributions and government aids.
£ An entity registered under FCRA can receive donations from foreign bodies.