FCRA 2010: ISSUES AND CHALLENGES

INDIVIDUALS

Individuals now covered by FCRA

Scholarships exempt

Need FCRA registration / permission for:

Program Activities

Non-academic Fellowships

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FELLOWSHIP

Difference between scholarship and fellowship

Prior-permission for fellowship

Consultancy fees?

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ELECTRONIC MEDIA

Prohibition on media expanded to include:

Organization producing or broadcasting news / current affairs programs through any electronic mode (audio/ video)

Use of Internet as a mode of transmission

Other modes of mass communication

Individuals not covered, except as owners of the organization

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PANCHAYATS

Panchayats defined as legislature

Not eligible to receive foreign funds

Members / candidates

Can not accept foreign funds

Need permission for foreign hospitality etc.

Form FC-9

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POLITICAL ACTIVITIES

Wider coverage of organizational forms

Wider definition of ‘political activity’ …steps towards advancement of larger socio-

economic or political interests of the organisation

…habitually engages itself in , …political action like bandh, hartal, rasta roko, rail roko…in support of public causes

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ADMINISTRATIVE EXPENSES

Capped at 50% of total foreign contribution received in a year

Includes:

Salaries, Fees, Travel

Rent and other Overheads

Excludes:

Salary of field researchers, Doctors, teachers etc.

Direct program expenses(?)

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SPECULATIVE INVESTMENTS

Restrictive definition of ‘speculative activities’

…has an element of risk of appreciation/ depreciation…linked to market forces, incl. investment in mutual funds…

…any scheme that promise high returns like investment in chits, land etc….not directly linked with declared aims…

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INTERESTS OF THE STATE

Registration cannot be granted if it might affect:

the security, strategic, scientific or economic interest of the State Not defined in law

Might include: Nuclear energy Work in border states Internal unrest Defense expenditure / strategy Displacement issues

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SECONDARY GRANTS

Secondary transfer of FC to non-FCRA NGOs:

10% of total FC received

Prior-permission needed

Secondary transfer of FC to FCRA NGOs

Validate FCRA registration of receiver

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RENEWAL

Renewal required every five years

Old registrations valid till 30-Apr-2016

Apply 6-12 months prior to expiry

Delayed application allowed Registration frozen in the meanwhile

Can lapse if no activity for two years

Renewal of FCRA Registration: FC-5

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See page 110 of AccountAble Handbook: FCRA 2010 for more.

FURTHER READING

AccountAble 35: FCRA Fellowships

AccountAble 84: ‘Foreign Source’ in FCRA 2010

AccountAble 96: Introduction to FCRA 2010

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