CHARTER FOR NGOs / ASSOCIATIONs GRANTED PRIOR PERMISSION OR REGISTRATION UNDER THE FOREIGN CONTRIBUTION (REGULATION) ACT, 1976.
- An association granted prior permission or registration under the Foreign Contribution (Regulation) Act, 1976 (FCRA) should receive the FC and subsequently utilise it using an exclusive designated bank account, as intimated in the application form. Do not deposit any local funds in this bank account.
- An association granted prior permission or registration under FCRA is required to carry out the activities, for which FC is received, in India only and the amount should not be utilised for purposes other than for which it is received.
- Any fixed asset acquired out of the FC and any article received in kind from the foreign source should be in the name of the association and not in the name of any individual in the association.
- Not more than 30% of the FC shall be defrayed to meet administrative expenses of the association.
- An association granted prior permission or registration under FCRA should maintain a separate set of accounts and records, exclusively for foreign contribution received and utilised-
(a) in Form FC-6, where the FC relates only to articles;
(b) in the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised.
(c) in Form FC-7, where the FC relates to foreign securities.
- Every account giving details of the receipt and purpose-wise utilisation of the FC, including the interest earned on the FC amount, should be maintained on an yearly basis, commencing on the 1st day of April each year and every such yearly account, duly certified by a chartered accountant in Form FC-3 alongwith a balance sheet and statement of receipt and payment should be furnished in duplicate, within four months of the closure of the year i.e before 31st July. Even if no FC is received during a year, a ‘Nil’ return is required to be filed with the Ministry of Home Affairs within the prescribed time limit.
- No FC should be transferred to an association which has not obtained either prior permission or registration under FCRA or to any person or association, prohibited under FCRA from receiving any FC.
- Change of name, address, registration, nature of activities or aims and objectives of an association should be intimated to the Ministry of Home Affairs within 30 days of effecting the change, alongwith the documentary evidence effecting the change.
- Prior permission of Ministry of Home Affairs should be obtained for replacing 50% or more of the office bearers.
- Prior permission of Ministry of Home Affairs should be obtained for changing bank account for valid and convincing reasons.
- The forms can be downloaded from Ministry of Home Affairs Web Site at http//mha.nic.in/fcra.htm.