Saturday, August 20, 2016

Gist of Foreign Contribution

Foreign contribution is regulated under the provisions of the Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) and the Foreign Contribution (Regulation) Rules, 2011 (FCRR, 2011) Both FCRA, 2010 and FCRR, 2011 have come into force simultaneously with effect from 1st May, 2011 through notifications in the Gazette of India [S.O. 999 (E) dated the 29th April, 2011]

Foreign Contribution (Regulation) Act, 1976 (FCRA, 1976) and the Foreign Contribution (Regulation) Rules, 1976 have been repealed.

The primary purpose of this Act is to ensure that foreign contribution is utilized for bonafide activities without compromising on concerns for national security to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies.

FCRA, 2010 has done away with the concept of a ‘permanent’ registration. Five-year validity has been stipulated for all Associations registered earlier. The Act has also stipulations for proactive disclosure of information in respect of foreign contributions exceeding Rs. 1(one) crore received by an NGO in a year.

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