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Foreign donations

Foreign donations
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Nearly 6,000 NGOs could lose their licence to receive foreign donations with the home ministry serving them show cause notices for not filing annual...

Nearly 6,000 NGOs could lose their licence to receive foreign donations with the home ministry serving them show cause notices for not filing annual income and expenditure records for five consecutive years.

In May this year, 18,523 NGOs were given a one-time opportunity by the home ministry to give details of their income and expenses by June 14. These NGOs, registered under the Foreign Contribution (Regulation) Act, or FCRA, that allows them to receive foreign donations, were told to submit their annual returns for five years - 2010-11 to 2014-15.

FCRA-2010 has been enacted by the Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.

Associations registered or granted prior permission under FCRA, 2010 should ensure that they received foreign contribution only for a legitimate source and for activities as prescribed under the Act. Speculative investment activities have been defined in Rule 4 of FCRR–2011 (Foreign Contribution (Regulation) Rules 2011).

The Rule 13(a) of FCRA-2011 prescribes that a person who has been granted a certificate of registration or prior permission shall place the audited statement of accounts on receipts and utilisation of foreign contribution, including income and expenditure statement, receipt and payment account and balance sheet for every financial year beginning on the first of April within 9 months of the closure of financial year on its official website or on the website as specified by the Central government.

Further, the Rule 139 (b) of FCRR-2011 requires that a person receiving foreign contribution in a quarter of a financial year shall place details of foreign contribution received on its official website or on the website as specified by the Central government, within 15 days following the last day of the quarter in which it has been received. It shall mention clearly details of donors, amount received and date of receipt.

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