The Central Government has further tightened rules for organisations seeking foreign funding under FRCA Rules, 2011. The new rules have been notified on November 11, 2020.
What are new rules?
- Any organisation seeking registration under the Foreign Contribution (Regulation) Act (FCRA) 2010 must have operated for at least three years and spent a minimum amount of Rs 15 lakh on its core activities for the benefit of society during the last three financial years.
- Any organisation seeking prior permission for receiving a specific amount from a specific donor for carrying out specific activities or projects shall submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given.
- If the value of foreign contribution is over Rs 1 crore, it may be given in installments provided that the second and subsequent installment shall be released after submission of proof of utilisation of 75 per cent of the foreign contribution received in the previous installment and after field inquiry of the utilisation of foreign contribution.
- Student, farmer, worker and youth organisations have been exempted from ‘Political Organisation’ unless they participate in active politics or party politics. Political organisations can’t receive foreign funds.
- The amendments have made the FCRA, 2010 more stringent, with prohibition of transfer of funds from one NGO to another, decrease of administrative expenses through foreign funds from 50 per cent to 20 per cent, making Aadhaar mandatory for registration, and giving the government powers to stop utilisation of foreign funds through a “summary enquiry”.
- As per the FCRA, members of legislatures, political parties, government officials, judges and media persons are prohibited from receiving any foreign contribution.
(Source: The Hindu and Indian Express)
