1. Why in news?
1.1. licenses of 13 NGOs suspended under the act
1.1.1. bank accounts of these NGOs frozen
1.1.2. By Ministry of Home Affairs
1.1.3. Why?
1.1.3.1. Working of some NGOs suspicious in tribal areas
2. What is it?
2.1. Enacted in
2.1.1. 1976
2.2. amended
2.2.1. 2010
2.3. Aim
2.3.1. regulates foreign donations
2.3.2. ensures donations donot affect internal security
3. Applicable to
3.1. Associations,NGOs
3.1.1. which intend to receive foreign donations
4. Whats mandatory?
4.1. mandatory to register under FCRA
4.1.1. For NGOs and Associations who want to receive foreign funding
4.1.2. registrations valid for 5 years
4.1.3. registered associations benefit
4.1.3.1. can receive foreign funding for
4.1.3.1.1. social purposes
4.1.3.1.2. economic purposes
4.1.3.1.3. religious purposes
4.1.3.1.4. education purposes
4.1.3.1.5. cultural purposes
4.2. Filling of annual returns
4.3. undertaking by NGOs
4.3.1. funds received
4.3.1.1. will not affect sovereignty and integrity
4.3.1.2. will not impact relations with any foreign state
4.3.1.3. will not disrupt communal harmony
4.4. accounts of NGOs to be operated in
4.4.1. National Banks
4.4.2. or private banks
4.4.2.1. having core banking facility
5. Who cannot receieve foreign donations?
5.1. government officials
5.2. judges
5.3. media persons
5.4. members of legislature and political parties
5.4.1. exception
5.4.1.1. political parties can receive funds from the Indian subsidiary of a foreign company or a foreign company in which an indian holds 50% or more shares
6. Other route to receive foreign funding
6.1. applying for prior permission
6.1.1. granted for
6.1.1.1. receipt of a specific amount from a specific donor for carrying out specific activties or projects
6.1.1.1.1. letter of committment from the foreign donor specifying the amount and purpose also required
6.1.1.2. associations should be registered under one of these
6.1.1.2.1. Societies registration act 1860
6.1.1.2.2. Indian Trusts Act 1882
6.1.1.2.3. Section 25 of Companies Act 1956
7. why in news again
7.1. the Ministry of Home Affairs declined to renew the registration of Missionaries of Charity under the Foreign Contribution (Regulation) Act.
7.1.1. Missionaries of Charity
7.1.1.1. Set up by Mother Teresa
7.1.1.1.1. Was awarded the nobel peace prize in 1979
7.1.2. why
7.1.2.1. it did not meet eligibility conditions after “some adverse inputs” were received acc to MHA
7.1.2.2. mentioned audit irregularities.
7.1.3. The registration under FCRA was valid up to October 31, 2021, but had been extended till December 31, 2021.
7.1.3.1. What is the December 31 deadline?
7.1.3.1.1. The registration of thousands of NGOs is due for renewal in 2020-2021.
8. What are the added compliance requirements for NGOs?
8.1. FCRA amended in September 2020 inserted a new provision
8.1.1. makes it mandatory for all NGOs to receive foreign funds in a designated bank account at SBI’s New Delhi branch
8.1.1.1. Any other bank account can be linked to the main account but all foreign donations should be received in the SBI account.
8.1.2. The Act also made Aadhaar a mandatory identification document for all the office-bearers, directors and other key functionaries of an NGO
8.1.3. capped the administrative expenses at 20% of the total foreign funds received –
8.1.3.1. earlier, the upper limit was 50%
8.1.4. The amendment also barred sub-granting by NGOs to smaller NGOs who work at the grass roots level
9. When is the registration suspended or cancelled?
9.1. on inspection of accounts
9.2. on receiving adverse input
9.2.1. against functioning of an association
9.3. Initially done for 180 days
9.4. Until decision of suspension or cancellation is taken
9.4.1. association cant receive fresh donations
9.4.2. association cant utilize more than 25% of amount available in the designated bank account
9.4.2.1. without permission of Ministry of Home Affairs
9.5. If cancelled
9.5.1. organization will not be eligible for
9.5.1.1. registration or grant of prior permission
9.5.1.1.1. from 3 years from the date of cancellation
9.6. How many suspensions so far?
9.6.1. registrations of 20664 associations cancelled
9.6.1.1. since 2011
9.6.1.2. Why ?
9.6.1.2.1. misutilization of foreign contributions
9.6.1.2.2. Non submission of mandatory annual returns
9.6.1.2.3. diversion of funds for other purposes
10. Any Crackdown on International donors?
10.1. Compassion International
10.1.1. US based