FCRA Registration for NGOs — Foreign Contribution Compliance and Returns

The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates the acceptance and utilisation of foreign contributions by NGOs, trusts, societies and Section 8 companies in India. Any organisation that wishes to receive funds from foreign sources — whether grants, donations or gifts — must first obtain FCRA registration. Here is the complete guide.

Who Needs FCRA Registration?

• Any NGO, trust, society or Section 8 company that wants to receive foreign contributions (funds from foreign individuals, organisations or governments)
• Applies to: development organisations, educational institutions, health organisations, religious bodies, research institutions
• Note: Some organisations are permanently prohibited from receiving foreign funds — political parties, government servants, media organisations, journalists, judges

Eligibility for FCRA Registration

• The organisation must have been registered and in existence for at least 3 years
• Must have undertaken charitable/development activities during those 3 years with a minimum expenditure of ₹15 lakh on such activities (excluding administrative expenses) during the 3-year period
• Must have a definite programme for utilisation of foreign funds
• Must have audited accounts for the past 3 years
• New organisations (less than 3 years old) can apply for "prior permission" (one-time approval for one specific project)

FCRA Application Process

• Apply online on fcraonline.nic.in in Form FC-3A
• Attach: Registration certificate, MOA/AOA, trust deed, annual reports for 3 years, audited financials, list of members/trustees, activity report
• Pay application fee (₹2,000 for registration)
• MHA (Ministry of Home Affairs) processes — may seek clarification or conduct background check
• Registration is granted for 5 years — must be renewed before expiry

FCRA Bank Account — Mandatory SBI New Delhi

• All FCRA-registered organisations must maintain a designated FCRA account with State Bank of India, New Delhi Main Branch
• All foreign contributions must be received in this FCRA-designated SBI account only
• Funds can be transferred to utilisation accounts in other banks for actual project use

Annual Compliance

• File Form FC-4 (Annual Return) online by 31 December of each year — showing foreign contributions received and utilised
• Maintain FCRA funds in a separate bank account — cannot mix with domestic funds
• Administrative expenses from FCRA funds cannot exceed 20% of total FCRA receipts

Conclusion

FCRA registration unlocks foreign funding for NGOs — but comes with strict compliance requirements on banking, fund utilisation and annual reporting. SPOTON provides FCRA registration, renewal and annual compliance services for NGOs and charitable organisations across Kerala. Contact us for expert FCRA compliance services.