FCRA Registration for NGO: A Plain Guide to Foreign Donations

FCRA registration for NGO groups is the permission that lets an Indian trust, society or section 8 company take donations from a foreign source again and again, for its stated purposes. It comes from the Ministry of Home Affairs (MHA) under the Foreign Contribution (Regulation) Act, called FCRA. This page is an independent guide written for NGO volunteers. It is not a government website. All forms, fees and decisions are only on the official site fcraonline.nic.in.

What FCRA registration for NGO work means

FCRA is the law that controls money and articles coming to Indian groups from foreign sources. A foreign source can be a foreign trust, a foreign company, a foreign government agency or a person who is not an Indian citizen. The MHA FAQ says that any amount received from a foreign source counts as foreign contribution, even if it is paid in rupees.

So the test is who gives the money, not which currency it comes in. A gift from a donor abroad, a grant from a foreign foundation, or rupees sent by an Indian branch of a foreign body may all need FCRA cover. When in doubt, read the MHA FAQ or write to the FCRA Wing before you accept anything.

People often search "what is FCRA in NGO Darpan". On the NITI Aayog side, the Darpan Unique ID is required for FCRA registration and renewal. The FCRA forms carry a field for the Darpan ID. If you do not have one yet, start with NGO Darpan registration and read what the Darpan ID is.

Who needs FCRA before taking foreign money

Any association with a definite cultural, economic, educational, religious or social programme needs FCRA registration or prior permission before it accepts foreign contribution. Without one of the two, the money cannot be taken, even for a good cause.

Some people and bodies cannot accept foreign contribution at all. The MHA FAQ lists, among others, election candidates, members of a legislature, judges, government servants and office bearers of political parties. A trustee who falls in one of these groups should take advice before the NGO applies.

Registration or prior permission: which one fits you

FCRA gives two routes. Pick the one that matches your age and your donor plan. The NGO FCRA registration process in India is the same for both in one way: everything is filed online.

The MHA FAQ says an association in its formative stage is not eligible for registration. Prior permission is the normal first step for such groups.

FCRA registration for trust, society or section 8 company

FCRA does not care which legal form you chose, as long as you are registered under the law that applies. A public charitable trust (see trust registration), a society (see society registration) and a not-for-profit section 8 company can all apply. So a trust FCRA registration follows the same path as a society's, and the FCRA section 8 company route is no different. Trust registration under FCRA does not need a new deed, but the objects in your deed must match the purposes you ask for.

The basics, as officially stated:

• The association should normally have existed for at least three years.
• It should have spent a minimum amount on its main activities in those years, not counting administrative cost. The amount is set in the FCRA rules and has changed over time, so check the current figure in the latest rules or FAQ on fcraonline.nic.in.
• Audited accounts for the last three years must be submitted.
• The applicant must not be fictitious or benami, and its key people must meet the other conditions in section 12 of the Act.
• Office bearers must give identity details. The current rules ask for Aadhaar, or a passport for foreign nationals.

Under the latest amendment rules, the certificate must also name the purposes and the states or union territories where you will work. Existing associations were given a set time to give these details. Check the newest notice on the portal for your case.

The designated FCRA account at SBI New Delhi Main Branch

All foreign contribution must first arrive in one designated "FCRA account" at the State Bank of India, New Delhi Main Branch. This rule has applied to every FCRA association since the amendment to the Act, and the MHA has said so in its notices and press releases. No other bank account can receive foreign money first.

From that account you may move money to one or more utilisation accounts in any bank to run your projects. Keep these rules in mind:

• Never put local donations into an FCRA account, and never pay foreign money into your domestic account.
• Do not move money back and forth between utilisation accounts.
• Keep every bank statement. The figures in your returns must match them.

The steps to open the account are in a Standard Operating Procedure (SOP) on fcraonline.nic.in. Read it before you start, because the bank will ask for the same papers in a fixed order.

Documents to keep ready

The FC-3A form lists the uploads. Most groups need these, in clear PDF scans:

• Registration certificate and trust deed, society MoA and rules, or company MoA and AoA
• PAN of the association
• Activity reports for the last three years
• Audited statements of accounts for the last three years
• Details and identity proof of key functionaries and office bearers
• Darpan Unique ID and the FCRA bank account details
• Affidavits or declarations in the format the form gives

Many of these are the same papers used for 12A and 80G registration and for NGO Darpan documents. Use the same names and addresses everywhere. Small spelling gaps between PAN, deed and Darpan cause many queries.

After approval: annual return, limits and renewal

Getting registered is only half the work. MHA checks how you use the money every year.

• Annual return in Form FC-4: filed online on the portal for each financial year, with receipts, donor details and how the money was used. A nil return is also needed in a year with no foreign money. Check the due date on the portal.
• Admin limit: no more than 20 percent of the foreign contribution received in a year can go to administrative expenses.
• No passing on: since the amendment to the Act, you cannot transfer foreign contribution to another association or person.
• Changes: report changes in key people, address or bank to MHA online, in the form and time the rules give.
• Renewal: registration is valid for five years. Apply for renewal well before the expiry date. The latest rules also look at how much foreign money you actually used before renewal. If you do not renew in time, registration ends.

Refusal, suspension and FCRA cancellation by MHA

MHA can suspend a registration for up to 180 days while it looks into a matter. It can cancel registration if the terms are broken, after giving the association a chance to be heard. The MHA FAQ says a cancelled association cannot get registration or prior permission again for three years.

Common reasons for trouble are late or missing returns, money used for purposes outside the certificate, foreign money in a domestic account, and transfers to other groups. Where the foreign money and assets go after cancellation is decided by MHA under the Act. Read the cancellation order and the latest rules closely, and take qualified advice.

Checking the NGO FCRA registration list and status

The portal publishes lists and status of FCRA associations. Donors often check this before they send money. You can search by the association's name or registration number; the exact menu names may differ. On NGO Darpan, your profile also shows whether you have FCRA details, so keep it updated. See NGO Darpan search for checking a Darpan profile. If you are comparing funding paths, also read CSR funding, which needs no FCRA because the money is Indian.