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FCRA 2010: Issues And Challenges

FCRA 2010: Issues And Challenges. Individuals. Individuals now covered by FCRA Scholarships exempt Need FCRA registration / permission for: Program Activities Non-academic Fellowships. Fellowship. Difference between scholarship and fellowship Prior-permission for fellowship

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FCRA 2010: Issues And Challenges

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  1. FCRA 2010: Issues And Challenges

  2. Individuals • Individuals now covered by FCRA • Scholarships exempt • Need FCRA registration / permission for: • Program Activities • Non-academic Fellowships

  3. Fellowship • Difference between scholarship and fellowship • Prior-permission for fellowship • Consultancy fees?

  4. Electronic Media • Prohibition on media expanded to include: • Organization producing or broadcasting news / current affairs programs through any electronic mode (audio/ video) • Use of Internet as a mode of transmission • Other modes of mass communication • Individuals not covered, except as owners of the organization

  5. Panchayats • Panchayats defined as legislature • Not eligible to receive foreign funds • Members / candidates • Can not accept foreign funds • Need permission for foreign hospitality etc. • Form FC-9

  6. Political Activities • Wider coverage of organizational forms • Wider definition of ‘political activity’ • …steps towards advancement of larger socio-economic or political interests of the organisation • …habitually engages itself in , …political action like bandh, hartal, rastaroko, rail roko…in support of public causes

  7. Administrative Expenses • Capped at 50% of total foreign contribution received in a year • Includes: • Salaries, Fees, Travel • Rent and other Overheads • Excludes: • Salary of field researchers, Doctors, teachers etc. • Direct program expenses(?)

  8. Speculative Investments • Restrictive definition of ‘speculative activities’ • …has an element of risk of appreciation/ depreciation…linked to market forces, incl. investment in mutual funds… • …any scheme that promise high returns like investment in chits, land etc….not directly linked with declared aims…

  9. Interests of the State • Registration cannot be granted if it might affect: • the security, strategic, scientific or economic interest of the State • Not defined in law • Might include: • Nuclear energy • Work in border states • Internal unrest • Defense expenditure / strategy • Displacement issues

  10. Secondary Grants • Secondary transfer of FC to non-FCRA NGOs: • 10% of total FC received • Prior-permission needed • Secondary transfer of FC to FCRA NGOs • Validate FCRA registration of receiver

  11. Renewal See page 110 of AccountAble Handbook: FCRA 2010 for more. • Renewal required every five years • Old registrations valid till 30-Apr-2016 • Apply 6-12 months prior to expiry • Delayed application allowed • Registration frozen in the meanwhile • Can lapse if no activity for two years • Renewal of FCRA Registration: FC-5

  12. Further Reading AccountAble 35: FCRA Fellowships AccountAble 84: ‘Foreign Source’ in FCRA 2010 AccountAble 96: Introduction to FCRA 2010

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