FCRA 2010: FORMALITIES

FCRA CANCELLATIONS

4,137 FCRA registrations cancelled:

Most in Tamil Nadu (794), least in Mizoram (1)

299 cancellations in Delhi

4,126 cancelled ‘on violation’, 11 on request

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REASON FOR CANCELLATION

Non filing of FC-3 FC-3 Sent to old Address of Ministry

FC-3 misplaced by Ministry

Defunct??

Notice from FCRA not received

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FORMALITIES FOR NGOS

Getting Funds

Prior-permission: FC-4

Proxy Permission: FC-10

Registration: FC-3

Renewal: FC-5

Banking / Accounts

Accounts

Designated Bank

Secondary Bank

Records

Event Register

Distribution Register

Investment Register

Returns

FC-6

FC-7

FC-8

Changes

Office Bearers

Bank Account

Address, Objectives,

etc.

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PRIOR PERMISSION

Separate permission for each grant till registration is not granted

Procedure for prior-permission Form FC-4

Applying online at http://mha.nic.in/fcraweb/fc_login.aspx

Fees

Grounds for Denial

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See from page 105 of AccountAble Handbook: FCRA 2010 for more.

PROXY PERMISSION

Needed for transferring funds to NPO without FCRA registration

Paper application in FC-10 by transferor NPO

Limit of 10% on transfer amount

Transfer to specific FC bank account

File to MHA by registered post

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See page 188 of AccountAble Handbook: FCRA 2010 for more.

FCRA REGISTRATION

Fill form FC-3

Registration granted if NPO has a satisfactory track record of three years

Submit application online at http://mha.nic.in/fcraweb/fc_login.aspx

Don’t click submit till you have all the documents

Send printed application with documents and Fees

Cool off period:

No fresh application for at least six months from date of first application

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COMPOUNDING

Depositing a cheque or draft for foreign contribution without registration or prior permission

Rs. 25,000 or 3% whichever is higher.

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Nature of Offence PenaltyAccepting and using foreign contribution for specified purpose without FCRA registration or prior – permission

Rs. 1,00,000 or 5% whichever is higher.

Accepting foreign contribution in kind without registration or prior permission

Rs. 10,000 or 2%, whichever is higher.

Accepting a cheque or draft for foreign contribution without registration or prior permission

Rs. 10,000 or 2% of the foreign contribution involved whichever is higher.

BANK ACCOUNTS

Exclusive designated FCRA bank account

Multiple secondary bank accounts allowed for using FC

No permission needed

Intimation to FCRA within 15 days on letterhead

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See page 121 of AccountAble Handbook: FCRA 2010 for more.

SECONDARY BANK ACCOUNT?

Operating the Secondary Accounts

No domestic funds / payments

FC funds first received in designated FCRA bank account.

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See page 101 of AccountAble Handbook: FCRA 2010 for more.

BANK CHANGES

Change of Designated Bank Account

Change in Bank name / Account number UTI Bank -> Axis Bank

Computerization of bank accounts

Secondary FCRA Bank Account: 15 days

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FCRA RECORDS

Separate set of account books

Retain for six years

Separate set of Records

Salary register

Distribution register

Program register for activity locations

Investment Register

For investments made out of FC money

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ANNUAL RETURNS

Three returns:

FC-6: Cash or Kind Provide address of each activity

FC-7: Articles / material

FC-8: Shares etc.

Nil return also to be filed

All three must be audited

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PUBLICATION OF ACCOUNTS

Compulsory for foreign contribution in a financial year > 1 crore Registration as well as prior-permission

Include contribution in all forms for calculating limit

No format prescribed

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See page 128 of AccountAble Handbook: FCRA 2010 for more.

CHANGE IN OFFICE BEARERS Who are office bearers?

Cumulative change ≥ 50%

Compared with Body at time of application

Prior-permission needed

No fresh receipts allowed till then

Interim prior-permission for fresh receipts

Applies to all FCRA NGOs (PP/ registered)

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OTHER CHANGES

Change in name, address, aims or objects: 30 days

Use specified form

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See page 102of AccountAble Handbook: FCRA 2010 for more.

OTHER MATTERS

Gift from relatives: FC-1

Election Candidates: FC-9

Foreign Hospitality: FC-2

Emergency Foreign Hospitality: 60 Days

Report by Banks: Receipt of more than a crore in 30 days

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FURTHER READING

AccountAble 14: Changing FCRA Bank Account

AccountAble 35: FCRA Fellowships

AccountAble 84: ‘Foreign Source’ in FCRA 2010

AccountAble 96: Introduction to FCRA 2010

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