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Foreign Contribution Regulation Act, 1976. An act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain persons or associations, with a view to ensuring that parliamentary institutions, political associations and academic and other voluntary organizatio
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1. WELCOME TO THE SEMINAR ON FCRA
2. Foreign Contribution Regulation Act, 1976 An act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain persons or associations, with a view to ensuring that parliamentary institutions, political associations and academic and other voluntary organizations as well as individuals working in the important areas of national life may function in a manner consistent with the values of a sovereign democratic republic, and for matters connected therewith or incidental thereto.
3. Need for Foreign Contribution Regulation Act, 1976 Regulating Foreign contribution meant for influencing elections or individuals or associations working in important areas of national life.
Not meant to prohibit receipt of foreign contribution for genuine purposes.
Security considerations.
4. Foreign Contribution Foreign contribution means the donation, delivery or transfer, made by any foreign source of any
a) article, not given to a person as a gift, for personal use, if the market value in India of such article exceeds one thousand rupees;
b) currency, whether Indian or foreign;
c) foreign security as defined in clause 2(i) of the Foreign Exchange Regulation Act, 1973.
NOTE : Contributions made by a citizen of India living in another country, from his personal savings, through the normal banking channels, is not treated as foreign contribution.
It is advisable to obtain the passport details of the concerned citizen of India before accepting such contributions.
5. Foreign Source Government of foreign country or any agency of such Government.
International agencies, not being of
a) United Nations or its specialized agencies
b) World Bank
c) International Monetary Fund
d) Such other agencies as so notified by the Central Government.
Foreign company or Corporation incorporated in foreign country
Trade Union in a foreign country
Foreign Trust or Foundation or Society or Club formed or registered outside India
Company where more than half of shareholding held by foreign Govt., foreign citizens, foreign corporations
Citizens of foreign countries
6. Who cannot accept Foreign Contribution Candidate for elections.
Correspondents, columnists, cartoonists, editor, owner, printer.
Judge, Government servant or employee of any corporation
Member of any Legislature
Political party or office-bearer thereof.
7. Types of permission An association having a definite cultural, economic, educational, religious or social programme can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with the Central Government.
8. Registration Means permanent permission to accept foreign foreign contribution from any foreign source.
Granted to associations with proven track record having definite cultural, economic, educational, religious, social programme.
Reasons for rejection of Registration Applications
Association being in formative stage
Association formed for personal gain
Association involved in prosetylisation
Members of Executive Committee involved in illegal/criminal activities
Sister association prohibited under the act
Applicant association prohibited
Association involved in anti-national activities
Stated objects of the association not being pursued.
Applicant having close links with another association with doubtful credentials
Incomplete application.
9. Must Do’s for the Registered Association Designated exclusive Bank account for receipt and utilization of foreign contribution.
Submission of annual FC-3 returns.
Change in members, home, address, objectives of the association to be reported to Central Government within 30 days.
Change in the O.B’s by 50% or more with prior permission only
Exclusive accounts for utilisation of foreign contribution and audit by the Chartered Accountant.
Exclusive accounts for receipt and utilization of foreign contribution .
Substantial proportion of foreign contribution to be spent on welfare activities
Reduction in Administrative expenses
10. Prior Permission When required
Where the association does not have a FCRA registration
Where the association is placed under prior permission category
Where registration is frozen
Associations of political nature, not being political party
Essentials of prior permission
Donor specific
Donee specific
Amount specific – within overall limits
Purpose specific
11. Penalties Prohibition
Placing the association in prior permission category
Fine
Seizure/confiscation of the foreign contribution
Imprisonment upto 5 years
12. Role of Banks Prime source for receipt and utilization
Can keep a watch over activities of doubtful associations
Information about foreign contribution
Not to allow receipt and utilization of foreign contribution without Registration or prior permission.
13. Bilateral Development Assistance Preferred Bilateral partner countries Japan
United Kingdom
United States of America
Germany
European union Countries
Russian Federation
Preferred Areas for Bilateral Development Assistance
Projects of economic and social importance
Technical assistance programmes that aim at enhancement of knowledge/skills of Indian Nationals
Each project to be cleared by the DEA. No blanket permission to any NGO based on reputation/past performance
FCRA clearance compulsory
14. Procedure for clearing the proposals Bilateral partners to identify the recipient organisations and projects.
Submission of brief particulars of programme/project to the DEA.
Response of DEA to bilateral partners.
Approval of list of recipients/programmes/projects.
Transfer of funds by bilateral partner to the recipient organizations.
Monitoring the physical and financial progress of the projects.
15. RECEIPT OF FOREIGN CONTRIBUTION Year Amount % Increase over
Rs/crores previous Year
2000-01 4535.2 15.56
2001-02 4871.9 7.42
2002-03 5046.5 3.58
16. Amount wise break-up of foreign contribution received by reporting associations Year Below Between Between Above
Rs.1 cr Rs.1-5 cr Rs.5-10 cr Rs.10 cr
2000-01 13815 669 62 52
2001-02 14761 721 77 59
2002-03 15650 798 76 66
17. TOP DONOR COUNTRIES Foreign Contribution Rs/crores
2000-01 2001-02 2002-03
USA 1492.63 1658.29 1679.84
Germany 664.51 702.33 715.04
UK 677.59 679.29 685.38
Italy 269.78 304.55 315.82
Netherlands 227.04 237.37 261.88
18. TOP DONORS Foreign Contribution (Rs. in crores)
2000-01 2001-02 2002-03
Ford Foundation, USA 41.32 56.05 121.94
World Vision 80.43 78.33 90.24
International, USA
Foundation Vicent E Ferrer, 63.26 63.06 79.16
Spain
Christian Children Fund, USA 43.07 44.27 75.15
Foster Parents Plan
International, USA 76.37 72.37 53.73
19. TOP RECIPIENT STATES/UNION TERROTORY Foreign Contribution (Rs. in crores)
2000-01 2001-02 2002-03
Delhi 763.05 794.42 880.77
Tamil Nadu 649.45 695.49 774.99
Andhra Pradesh 589.52 559.56 629.76
Karnataka 489.96 504.98 489.12
Maharashtra 466.91 464.35 505.13
20. TOP RECIPIENT DISTRICTS Foreign Contribution Rs./crores
2000-01 2001-02 2002-03
Bangalore 365.13 362.19 357.66
Chennai 310.77 311.55 363.45
Mumbai 240.25 298.28 283.59
Kolkata 167.38 168.38 181.44
Ananthapur 165.43 115.42 168.95
21. TOP PURPOSES PURPOSE 2000-01 2001-02 2002-03
Rural Development 547.74 464.61 486.50
Establishment Expenses 170.05 859.00 673.77
Construction and
Maintenance of School 192.46 242.24 275.74
Relief/Rehabilitation of 339.77 438.65 265.85
Victims of Natural Calamities
Construction of hospital/
dispensary/clinic -------- 145.77 186.65
22. TRENDS Year Registered Associations Amount of foreign
(As on 31st March of F.Y) contribution received
(in crores rupees)
1993-94 15,039 1865
1994-95 15,723 1892
1995-96 16,740 2168
1996-97 17,723 2571
1997-98 18,489 2864
1998-99 19,834 3402
1999-00 21,244 3924
2000-01 22,924 4535
2001-02 24,563 4872
2002-03 26,404 5047
23. ISSUES IN THE FUNCTIONING OF NGO’S Non-existent regulatory mechanism
Accountability
No perspective planning for NGO SECTOR
Proliferation of paper organisations
No National NGO policy
Comprehensive National Legislation Required