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Home » Govt tightens norms for NGOs receiving foreign funds

Govt tightens norms for NGOs receiving foreign funds

NT BureauBy NT BureauNovember 12, 2020No Comments
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New Delhi: After introducing a more stringent regime for foreign-funded NGOs and associations with recent amendments to the Foreign Contribution Regulation Act, 2010, the government has now revised the Foreign Contribution (Regulation) Rules, 2011 to make them stricter.

The Union Home Ministry has made it clear that such organisations must have existed for at least three years and spent Rs 15 lakh in voluntary activities to be eligible to receive money from abroad.

In a notification, the Ministry also said office-bearers of the NGOs seeking registration under the Foreign Contribution (Regulation) Act must 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.

The FCRA rules were issued about two months after the central government had amended the law under which providing Aadhaar numbers of the office bearers of the NGOs was made mandatory, office expenses were brought down to 20 percent of such amount and election candidates, government servants, members of any legislature and political parties were prohibited from accepting foreign funding.

“A person seeking registration under clause (b) of sub-section (4) of section 12 of the Act shall meet the following conditions, namely:– (i) it shall be in existence for three years and have spent a minimum amount of rupees fifteen lakh on its core activities for the benefit of society during the last three financial years,” it said.

As per the rules, any NGO or person making an application for obtaining prior permission to receive foreign funds shall have an FCRA Account.

The government said “a person seeking prior permission for receipt of a specific amount from a specific donor for carrying out specific activities or projects shall meet certain criteria that include submission of a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given”.

 

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