Foreign Contribution (Regulation) Act, 2010

In short

FCRA regulates how Indian organisations receive and use foreign contributions. It is among the most consequential compliance areas for NGOs working with international funders, and the rules tightened materially in 2020.

Who it applies to

Any Indian person or organisation receiving 'foreign contribution' (money or goods from a foreign source).

Key points

• —Requires FCRA registration or prior permission before accepting any foreign contribution.
• —All foreign funds must be received in a designated 'FCRA Account' at State Bank of India, Main Branch, New Delhi (2020 amendment).
• —Sub-granting of foreign funds to other organisations is prohibited (2020 amendment).
• —Administrative expenses from foreign contributions capped at 20%.
• —Annual return (Form FC-4) must be filed even in years with zero receipts; registration is renewable every 5 years.

Deadlines & renewal

Annual FC-4 by 31 December for the prior financial year; renewal application before the 5-year expiry.

What to do

Maintain the SBI New Delhi FCRA account, file FC-4 annually without fail, and track your registration's expiry date.

Worth knowing

Lapsed or suspended FCRA registration means foreign funds cannot be received or utilised until restored.