Wednesday, September 15, 2010

NEW LAW TO REGULATE FOREIGN CONTRIBUTIONS-FCRA

Parliament enacted a new law to enforce stricter regulations for foreign contributions in form of gifts,
funds and other forms to individuals and social organizations in the wake of changed internal security
environment and large fund flow. Parliament's approval of the foreign contribution (Regulation)Bill,
2010 came against the backdrop of only 18000 of the over 40,000 organisations, which received foreign contribution in the country reporting the inflows of funds and submitting their accounts. Highlights are:

  • Annual return to be filed by NGOs on foreign fund receipts and expenses
  • Apply for renewal every five year s
  • Cancellation if returns not filed
  • NGOs against national interest not eligible for foreign funds
  • FCRA silent on definition of national interest

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