Centre tightens norms for foreign contributions

Centre tightens norms for foreign contributions

Non-governmental organisations (NGOs) wanting to access foreign funds must now stick to a list of activities specified by the Centre, according to the latest amendment to the Rules of the Foreign Contribution Regulation Act (FCRA), 2010, notified on Monday.

While NGOs seeking foreign funds are required to register under one of the five permitted categories, namely social, economic, educational, cultural, and religious, this is the first time separate activity lists have been laid out for those in each category.

NGOs must now disclose their activities, the geographical scope of their programmes, their websites, social media accounts, and publications. They must pay separate fees for each category and State or Union Territory they operate in, as opposed to the previous single fee for FCRA registrants.

Any new registration must follow the new norms and existing registrations must comply with the changes within the next year. Any violations will be penalised with a minimum fine of ₹1 lakh, according to another order from the Union Home Ministry.

The Ministry regulates all foreign donations through the FCRA. Earlier amendments of the Rules only required NGOs to give an undertaking that their acceptance of foreign funds is not likely to affect the sovereignty and integrity of India or impact friendly relations with foreign states or disrupt communal harmony.

The amended Rules also broaden the definition of an NGO’s “key functionary” beyond office-bearers and directors to include trustees, partners, the Karta or head of a Hindu Undivided Family, governing body members, and anyone else controlling or managing the organisation. Associations having foreign nationals (other than persons of Indian origin) as key functionaries will ordinarily not be considered eligible for registration or prior permission, unless specifically permitted by the Centre, according to the new Rules. NGOs must also declare whether their association or any of their key functionaries brought out any publication during the year, including books, magazines, and newspaper articles.

A senior government official said that the amendments were effected to bring uniformity in Foreign Contribution forms (F-C) and to avoid duplication.