FCRA PRIOR PERMISSION

Organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities,

Fcra Prior Permission

NGOs intending to receive funds and donations from other countries should first register under the provisions of Foreign Contribution Regulation Act, 1976.

The NGOs cannot take foreign contribution directly. For this purpose they should be registered under the Foreign Contribution Regulation Act 1976, commonly known as the FCRA.

There can be two types of contribution from the foreign source, i.e. one time or expected more than once and even regularly.

APPLICABILLITY

For any one time contribution the NGOs can receive the amount by seeking prior permission of the FCRA Section of the Ministry of Home Affairs, Government of India;

Organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose from a specific source after seeking project based previous permission (Prior Permission) from the Ministry of Home Affairs.

WHO CAN APPLY

Societies Registration Act, 1860, Indian Trust Act, 1882,Charitable & Religious Trust Act 1920,Sec 25 of Companies Act 1956,Sec 8 of Companies Act 2013
NGO can apply for FCRA Prior Permission after completion of 1 year from the Date of NGO Registration.

BENEFITS OF FCRA PRIOR REGISTRATION

NGO can avail foreign funding various foreign sources.
NGO can approach various Foreign Financing Companies to avail foreign Funding for their projects
NGO can apply after completion of 1 year from the Date of Registration without waiting for 3 years completion in order to apply for FCRA Permanent Registration

PRIOR PERMISSION WILL BE REQUIRED UNDER THE FOLLOWING CIRCUMSTANCES:

Organisation does not have permanent FCRA registration number.
FCRA registration number has been cancelled by the Government.
The association is instructed by the Central Government to take prior permission where power have been provided to prohibit any organisation from receiving foreign funds.
FCRA number is suspended due to violation of the provisions and conditions specified under the FCRA.
Organisation is of political nature, not being a political party.
Any person resident in India or any citizen of India resident outside India, receiving foreign funds on behalf of an organisation of political nature.

FCRA BANK ACCOUNT

It is essential to receive foreign contribution only in one designated bank account. Therefore, the applicant organisation should open a fresh bank account with the intention to operate it for such funds and mention it in the application. The said Ministry will directly inform the concerned bank to keep watch on the use of the foreign contribution and report back to the Ministry in case of any discrepancy.

MINIMUM REQUIREMENTS

Societies Registration Act, 1860, Indian Trust Act, 1882,Charitable & Religious Trust Act 1920,Sec 25 of Companies Act 1956,Sec 8 of Companies Act 2013
NGO can apply for FCRA Prior Permission after completion of 1 year from the Date of NGO Registration.

DOCUMENT REQUIRED

Copy of Registration Certificate
Copy Memorandum of association & Article of Association / Trust Deed/ By – Laws
Copy of PAN card of NGO
Copy of 80G Registration Certificate (If Available)
Copy of 12A Registration Certificate (If Available)
FCRA A/c – Copy of Accountopening letter/ cancelled Cheque of FCRA A/c
Income Tax Return +Audit Report of Past 3 Years
Activities Reports (Last 3 Years), Photos & News paper Cutting.
Details of Members (Attached Format)
Copy of Any Prior Permission granted to Organization (If Available)
Commitment letter of Foreign the donor on Letter head with Sign & seal
Project Proposal for which foreign contribution will be received

Got Questions?

FAQ

WHEN NGO CAN APPLY FOR FCRA PRIOR PERMISSION

NGO Can Apply for FCRA prior Permission after Completion of 1 years from the date of REgistration of NGO

WHAT ARE THE ELIGIBILITY CRITERIA FOR GRANT OF PRIOR PERMISSION?

An organisation in formative stage is not eligible for registration. Such organisation may apply for grant of prior permission under FCRA, 2010. Prior permission is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects. For this purpose, the association should: (i) be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956 etc; (ii) submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given; and (iii) submit copy of a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilised.

WHETHER THE AMOUNT OF FOREIGN CONTRIBUTION FOR WHICH PRIOR PERMISSION HAS BEEN GRANTED CAN BE RECEIVED BY AN ASSOCIATION IN INSTALLMENTS?

There is no bar on receiving such foreign contribution in installments. However, the aggregate amount should not exceed the specified amount for which prior permission has been granted. The association shall have to submit the mandatory return in FC-6 form for receipt and utilisation of the foreign contribution on a yearly basis, till the amount of foreign contribution is fully utilised. Even if no transaction takes place during a year, a NIL return should be submitted.

WHETHER AN ASSOCIATION SHOULD OPEN AN EXCLUSIVE FC A/C BEFORE SUBMISSION OF AN APPLICATION FOR REGISTRATION OR PRIOR PERMISSION?

Yes. Since the FC A/c through which foreign contribution is proposed to be received and utilised is to be mentioned in the application seeking registration or prior permission, as the case may be, the association should open such an exclusive FC A/c with a Bank. This A/c number would be mentioned in the letter granting registration or prior permission to the association