fcra handbook
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AccountAid™ IndiaNew DelhiTRANSCRIPT
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(i)
About this book(front inside cover)
The AccountAble Handbook is a compilation ofthe individual issues of ‘AccountAble’, releasedby AccountAid India since 1994. These issueshave been designed and circulated on a monthlybasis primarily for the partners of our client Agen-cies.
‘AccountAble’ is circulated to about 1,200 per-sons, including Chartered Accountants. It is alsoavailable through e-mail, on a complimentarybasis. The present compilation brings all issuesof AccountAble related to FCRA together at oneplace.
While we have taken utmost care to make surethere are no mistakes, the handbook is designedto provide a general understanding only. We,therefore, suggest that you seek independentand responsible advice before taking any impor-tant decisions based on this material.
We trust the handbook will be of use to imple-menting NGOs in India, grant-making Agencies,consultants and auditors dealing with FCRA asalso to law-makers.
The law presented in this book is valid as of 30th
June 2002. It applies to India as well as to In-dian citizens wherever located.
AccountAble™ Handbook
FCRA
AccountAid™ IndiaNew Delhi
© AccountAid India 2002
All rights reserved.
No part of the publication may be reproduced or transmitted in any form or by any means, withoutprior permission of AccountAid India, in writing.
However, AccountAid India encourages reproduction or re-distribution of this material in work-shops or through non-profit / academic institution newsletters for non-commercial use, providedthe source is acknowledged. Your use must not affect our rights to the material adversely.
The source should be acknowledged as ‘Copyright material of AccountAid™ India. Used for non-commercial purposes under general permission’.
Price: Rs.75/-
Published by:
AccountAid India,55-B, Pocket C, Sidharth Extension,New Delhi – 110 014Ph.: 011-634 3128, 634 6111Fax: 011-634 3852e-mail: [email protected]
Typesetting, layout and printing by:
Chanakya Mudrak Pvt. Ltd.,C-16, DSIDC Packaging Complex,Kirti Nagar, New Delhi-110 015Telefax.: 5923947, 5923951
( i )
Preface
Foreign Contribution (Regulation) Act, 1976 is a curious piece of legislation. The Acthas only 31 sections: a very short and simple piece of law by any standard. It has alsobeen amended only once in the last 26 years. Very few cases have gone to courtunder FCRA.
The Act was essentially designed to prevent flow of foreign funds to political partiesin India. It was brought in after a big controversy erupted in 1967 over the possible useof foreign funds in parliamentary elections. By 2002, there were similar laws operatingin many countries across the world, including USA, UK, France, Japan, Germany,Canada, Russia, Malaysia, and Spain.
In 1984, the law was amended to regulate flow of funds to charitable organisationsmore closely, based on the Government’s perception that some of these organisationsmay be used to channelise funds to political parties. This has resulted in a lot ofpaper-work and confusion for non-profits working in India. Reflecting this confusion,one of our first issues on FCRA was titled ‘Mysteries of FCRA’!
With time, the mysteries have reduced somewhat. The FCRA Department has alsoadapted a citizen’s charter and has tried to streamline its working. However, muchremains to be done.
One peculiar implication of the 1984 amendment has been that FCRA is now commonlyperceived as a law focusing on the NGOs. While this was not the intention of the law,this is what may actually have happened, given the fact that most of the time FCRADepartment is dealing with NGOs (nearly 25,000 associations have FCRA registration).
The present handbook is designed primarily for use by NGOs, who often find themselveson the receiving end, so far as FCRA is concerned (no pun intended). Similarly,consultants and auditors, who have to advise NGOs on FCRA, would also find thebook useful. Some sections would be of interest to grant-making Agencies working inIndia, who sometimes find that their programs and projects fall foul of FCRA provisions.Many Agencies located abroad are not aware that such a law exists, and, therefore,sometimes find it difficult to understand why their projects are delayed. This handbookmay help give them an overview.
While we have tried to make sure that the book is free from errors, still the possibilityremains. We, therefore, welcome your comments and suggestions so that we cancorrect these in future editions. A copy of this book is also being put up on our web-site (www.AccountAid.net), where the information will be updated regularly.
For a compilation like this, acknowledging support can be a bewildering task. So manypeople have contributed to this, that it is difficult to decide who can be left out, giventhe constraints of space and reader’s attention span. In keeping with our own tradition,we can mention no individual names.
( ii )
However, the most important contribution has come from NGO functionaries andaccountants across India, who have shared their problems with us in confidence.Many people working in grant-making Agencies, have helped us add depth and insightto AccountAble, by attending our annual workshops and discussing their concerns.Then there are people who have encouraged us by visiting our web-site and sendingus their feedback and questions.
We would also like to thank our client Agencies, CRY and Ford Foundation, who havesupported research and publication of AccountAble through these years. The publicationof this handbook has been made possible under an agreement with Ford Foundationin India, whose people deserve a special word of thanks for their support,encouragement and the confidence they have shown in us.
We would also like to thank people at Chanakya Mudrak, who worked on this patiently,despite short notice and a difficult manuscript.
And finally, a special note of thanks to the members of our own team and to theirfamilies, who sacrificed many evenings and weekends to this book.
30th June 2002 AccountAid Team
( iii )
Topics at a Glance
Preface ................................................................................................... iDetailed Contents ............................................................................. v-xix
Section I: Funds, Sources & Receivers........................................................ 1Inflow of Foreign Contribution ................................................................. 3State-wise Distribution of Foreign Contribution ...................................... 9Non-Foreign Sources ........................................................................... 19Foreign Sources .................................................................................. 25Profiles of Top FC Donors .................................................................... 31Profiles of Top FC Receivers ............................................................... 44
Section II: Procedures ................................................................................. 55Prior Permission .................................................................................. 57FCRA Registration ............................................................................... 63Basics of FC-3 ..................................................................................... 70Intricacies of FC-3 ................................................................................ 75Maintaining Form FC-6 ........................................................................ 84FCRA Fellowships ............................................................................... 89FCRA Penalries ................................................................................... 93
Section III: Intricacies ................................................................................... 99Understanding FCRA ......................................................................... 101Mysteries of FCRA ............................................................................. 111Puzzles of FCRA ................................................................................ 115Fund-raising and FCRA ..................................................................... 120
Section IV: Forms ....................................................................................... 125Form FC-1A ....................................................................................... 127Form FC-3 ......................................................................................... 133Form FC-5 ......................................................................................... 147Form FC-6 ......................................................................................... 149Form FC-8 ......................................................................................... 150Form X: Declaration regarding newspaper / newsletter ....................... 155The Foreign Contribution (Regulation) Act, 1976................................. 156Foreign Contribution (Regulation) Rules, 1976 ................................... 169
( iv )
( v )
Detailed ContentsPreface ............................................................................................................. i
Topics at a Glance.............................................................................................. iii
Section I: Funds, Sources & Receivers....................................... 1Sources and Caution .......................................................................................... 1
Inflow of Foreign Contribution ....................................................................... 3How many are registered ................................................................................... 3
How many file FC-3 ............................................................................................ 3
How much did they receive ................................................................................ 3
What did they receive it for ................................................................................. 4
The FC-3 classification.............................................................................................. 4
Another perspective .................................................................................................. 4
Country of Origin ................................................................................................ 7
State-wise Distribution of Foreign Contribution ............................................ 9State Shares: 96-97 to 99-00 ............................................................................. 9
State Profiles: 96-97 to 99-00 ............................................................................. 9
Andaman & Nicobar (UT) .......................................................................................... 9
Andhra Pradesh ...................................................................................................... 10
Arunachal Pradesh ................................................................................................. 10
Assam .................................................................................................................... 10
Bihar .................................................................................................................... 10
Chandigrah (UT) .......................................................................................................11
Dadra & Nagar Haveli (UT) .......................................................................................11
Daman & Diu (UT) ....................................................................................................11
Delhi .....................................................................................................................11
Goa .....................................................................................................................11
Gujarat .................................................................................................................... 12
Haryana .................................................................................................................. 12
Himachal Pradesh .................................................................................................. 12
Jammu & Kashmir .................................................................................................. 12
Karnataka ............................................................................................................... 13
Kerala .................................................................................................................... 13
Lakshadweep (UT) .................................................................................................. 13
Madhya Pradesh ..................................................................................................... 13
( vi )
Maharashtra ............................................................................................................ 13
Manipur ................................................................................................................... 14
Meghalaya .............................................................................................................. 14
Mizoram ................................................................................................................. 14
Nagaland ................................................................................................................ 14
Orissa .................................................................................................................... 14
Pondicherry (UT) ..................................................................................................... 15
Punjab .................................................................................................................... 15
Rajasthan ............................................................................................................... 15
Sikkim .................................................................................................................... 15
Tamil Nadu .............................................................................................................. 16
Tripura .................................................................................................................... 16
Uttar Pradesh ......................................................................................................... 16
West Bengal ........................................................................................................... 16
State-wise distribution of FC funds: Basic data ................................................ 17
Non-Foreign Sources ................................................................................ 19Notified by the Government .............................................................................. 19
Other non-foreign sources ............................................................................... 23
Foreign Sources ........................................................................................ 25
Profiles of Top FC Donors ......................................................................... 31The problem of double counting ....................................................................... 31
1. Foster Parents Plan International ................................................................. 31
2. EZE .......................................................................................................... 32
3. Christian Children’s Fund.............................................................................. 32
4. Missio .......................................................................................................... 33
5. ACTIONAID ................................................................................................. 33
6. Maharishi Ayurved Trust .............................................................................. 33
7. Kinder Not Hilfe ............................................................................................. 34
8. World Vision International .............................................................................. 34
9. MISEREOR .................................................................................................. 34
10. Manos Unidas Committee .......................................................................... 35
11. Ford Foundation .......................................................................................... 35
12. Inter Church Coordination Committee ........................................................ 36
13. Oxfam (India) Trust ..................................................................................... 36
14. Christian Aid ............................................................................................... 37
( vii )
15. Age of Enlightenment Trust ......................................................................... 37
16. IPPF .......................................................................................................... 37
17. Foundation Vincent Ferrer .......................................................................... 38
18. Bilance ........................................................................................................ 38
19. USAID ........................................................................................................ 38
20. Christoffel Blinden Mission ......................................................................... 38
21. Gospel for Asia ........................................................................................... 39
22. Opere Don Bosco ....................................................................................... 39
23. Missio Prokur.............................................................................................. 39
24. The Leprosy Mission .................................................................................. 39
25. Bread for the World ..................................................................................... 40
26. Plan International ........................................................................................ 40
27. Children House International ...................................................................... 40
28. Manos Unidas Afonso TED ........................................................................ 41
29. Lutheran World Federation .......................................................................... 41
30. Maharishi Education Foundation................................................................. 41
31. Mata Amritanandmayi Centre ..................................................................... 41
32. HIVOS Foundation ...................................................................................... 42
33. The Save the Children Fund ....................................................................... 42
34. General Conf. of 7th day Adventists ........................................................... 42
35. SOS Kinderdorf International ...................................................................... 43
36. ZEH .......................................................................................................... 43
37. Zentralstelle Fur Entwickshilfe .................................................................... 43
38. Soka Gakkai International .......................................................................... 43
39. Bergita PIR ................................................................................................. 43
Profiles of Top FC Receivers .................................................................... 441. Maharishi Ved Vigyan…(MVVVV)................................................................. 44
2. Foster Parents Plan International ................................................................. 45
3. Sri Sathya Sai Central Trust .......................................................................... 45
4. World Vision of India ..................................................................................... 45
5. Mata Amritanandmayi Mission ...................................................................... 46
6. Actionaid ....................................................................................................... 46
7. CSI Council for Child Care ........................................................................... 46
8. SOS Children’s Village of India ..................................................................... 47
( viii )
9. CASA .......................................................................................................... 47
10. Tibetan Children’s Village............................................................................ 47
11. Oxfam (India) Trust ..................................................................................... 48
12. Missionaries of Charity ............................................................................... 48
13. Seventh Day Adventists .............................................................................. 48
14. Rural Development Trust ............................................................................ 48
15. Caritas India ............................................................................................... 49
16. IGSSS......................................................................................................... 49
17. Gospel for Asia ........................................................................................... 49
18. SIFPSA ....................................................................................................... 49
19. MYRADA ..................................................................................................... 49
20. FPAI .......................................................................................................... 50
21. Lilavati Kirtilal Mehta Medical Trust ............................................................. 50
22. SRM Foundation of India ............................................................................. 50
23. Leprosy Mission Trust of India .................................................................... 50
24. India Campus Crusade for Christ ............................................................... 51
25. Christian Children’s Fund ........................................................................... 51
26. BAPS .......................................................................................................... 51
27. Central Tibet Relief Committee .................................................................. 52
28. Lutheran World Service - India ................................................................... 52
29. AMG India International ............................................................................... 52
30. Maharishi Gandharvaved Vishwa Vidyapeetham (MGVV) ........................... 52
31. Community Aid Sponsorship Program ....................................................... 53
32. Bharat Soka Gakkai .................................................................................... 53
33. The Assemblies of God Church ................................................................. 53
34. Watchtower Bible Tract Society of India ..................................................... 53
35. ASSEFA...................................................................................................... 54
36. Holistic Child Development of India ............................................................ 54
37. Indian Society of Church of Jesus Christ ................................................... 54
38. Aga Khan Foundation ................................................................................. 54
Section II: Procedures ................................................................ 55Prior Permission ........................................................................................ 57
When do you need it? ............................................................................................. 57
( ix )
Procedure ......................................................................................................... 57Apply in FC-1A ....................................................................................................... 57
Field Inquiry ............................................................................................................ 57
Reply from FCRA .................................................................................................... 57
Appeal against rejection .......................................................................................... 57
Common doubts............................................................................................... 57More than once ....................................................................................................... 57
Tailor-made ............................................................................................................. 57
Joint grants ............................................................................................................. 58
Maximum Amount .................................................................................................. 58
How early ................................................................................................................ 58
Advance Credit ........................................................................................................ 58
Automatic permission? ........................................................................................... 58
Filing FC-3 .............................................................................................................. 58
Filling up FC-1A ................................................................................................ 581. Background ........................................................................................................ 58
2. Convictions ......................................................................................................... 59
3. Branch or Associate ........................................................................................... 59
4. FCRA Registration .............................................................................................. 59
5. Prior-permission .................................................................................................. 59
6. Newspapers ........................................................................................................ 60
7. Activities and Accounts ...................................................................................... 60
8 (i). How much ...................................................................................................... 60
8 (ii). Project Proposal and Budget .......................................................................... 60
9. Bank Account ..................................................................................................... 60
10. Details of foreign source .................................................................................... 60
10A. Recommendation Certificate ........................................................................... 61
11. Additional Information ........................................................................................ 61
Signing ................................................................................................................... 61
Check-list of Documents to be attached .......................................................... 61Copies .................................................................................................................... 61
Send it to FCRA ..................................................................................................... 62
FCRA Registration ..................................................................................... 63Can you lose your registration? ............................................................................... 63
How to register ................................................................................................. 63
FCRA Bank Account .............................................................................................. 63
( x )
Filing FC-8 .............................................................................................................. 63
Scrutiny .................................................................................................................. 63
Field Enquiry and Report ......................................................................................... 63
Acceptance ............................................................................................................ 63
Registration Certificate ............................................................................................ 63
Rejection ................................................................................................................ 64
Grounds for rejection ............................................................................................... 64
How long will all this take? ...................................................................................... 64
Appeal .................................................................................................................... 64
Can the courts help? ............................................................................................... 64
Common Problems .......................................................................................... 64Only registered NGOs............................................................................................. 64
Three years ............................................................................................................. 65
No foreigners........................................................................................................... 65
No time frame ......................................................................................................... 65
Reason for refusal? ................................................................................................. 65
Filling up FC-8 .................................................................................................. 651. Background ........................................................................................................ 65
2. Convictions ......................................................................................................... 66
3. Branch or Associate ........................................................................................... 66
4. Prior-permission .................................................................................................. 66
5. Newspapers ........................................................................................................ 66
6. Earlier applications ............................................................................................. 67
7. Activities and Area .............................................................................................. 67
8. Politics ............................................................................................................... 67
9. Bank Account ..................................................................................................... 67
9A. Recommendation Certificate ............................................................................. 67
10. Additional Information ........................................................................................ 68
Undertaking ...................................................................................................... 68Sign and Date ......................................................................................................... 68
Sending the form ..................................................................................................... 68
Check-list of Documents to be attached .......................................................... 69
Basics of FC-3 .......................................................................................... 70What is FC-3 .......................................................................................................... 70
Who should file FC-3 .............................................................................................. 70
Due Date ................................................................................................................ 70
( xi )
File it Each Year ..................................................................................................... 70
FC-3 Form revised (July 2001) ................................................................................. 70
Filling the Form ................................................................................................. 70
Year .......................................................................................................... 70
Heading 1: Association’s Details ................................................................. 70
Item (i): Name and Address ............................................................................... 70
Item (ii): FCRA Registration ............................................................................... 71
Item (iii): Prior Permission ................................................................................. 71
Item (iv): Nature of Association .......................................................................... 71
Item (v): Religious .............................................................................................. 71
Heading 1A: Interest, etc. ............................................................................ 71Item (i): Foreign contribution .............................................................................. 71
Item (ii)(a): Interest on FCRA bank account ....................................................... 71
Item (ii)(b): Other interest .................................................................................. 71
Heading 2: Purpose-wise Receipt and Utilisation ........................................ 71Column 2: Purpose............................................................................................ 72
Classifying your expenses ........................................................................... 72
Columns 3, 4: Previous Balance ........................................................................ 72
Columns 5 to 9: Receipts .................................................................................. 72
First Recipient ............................................................................................. 72
Second Recipient ........................................................................................ 72
Columns 5 and 7: Receipts in Cash ............................................................. 72
Columns 6 and 8: Receipts in Kind .............................................................. 72
Column 9: Total Receipts ............................................................................. 72
Columns 10 and 11: Amount Utilised ................................................................. 73
Columns 12 and 13: Balance............................................................................. 73
Add Up the Columns ......................................................................................... 73
Heading 3: Bank Details .............................................................................. 73
Heading 4: Donor Details ............................................................................ 73(i) Institutional Donors ....................................................................................... 73
Second Recipient ........................................................................................ 73
(ii) Large Individual Donors ................................................................................. 74
(iii) Small Individual Donors ................................................................................ 74
Heading 5: Country-wise Receipts .............................................................. 74
Declaration .................................................................................................. 74
CA Certificate .............................................................................................. 74
( xii )
FC-3 Annexures .......................................................................................... 74Intricacies of FC-3 ...................................................................................... 75
Opening Items .................................................................................................. 75
Address .................................................................................................................. 75
FCRA registration cancelled ................................................................................... 75
Summary of Interest ................................................................................................ 75
Table 2: Receipt and Utilisation ......................................................................... 75FCRA Loans ........................................................................................................... 75
Receipts in Kind ..................................................................................................... 75
Valuation ................................................................................................................. 76
FC-6 .......................................................................................................... 76
Materials not reported... .................................................................................... 76
Who should report? ........................................................................................... 76
Micro-credit / Revolving Fund .................................................................................. 76
‘56: Other Activities’ ................................................................................................ 76
Interest ................................................................................................................... 76
Bank Interest ..................................................................................................... 76
Revolving Fund Interest ...................................................................................... 77
Corpus Interest .................................................................................................. 77
Second Recipient .................................................................................................... 77
Non-earmarked Donations ....................................................................................... 77
Sale of Assets ........................................................................................................ 77
Transfers to Other NGOs ........................................................................................ 77
Level of Detail ......................................................................................................... 77
Unutilised balances .......................................................................................... 78In Cash ................................................................................................................... 78
In Kind .................................................................................................................... 78
Loan transactions with Indian Section .............................................................. 78For opening bank account ....................................................................................... 78
During the year ....................................................................................................... 78
Bank Details ..................................................................................................... 79
Table 4: Donor Details ...................................................................................... 79Box Collections ...................................................................................................... 79
Small Individual Donors ........................................................................................... 79
More on Individual Donors ....................................................................................... 80
Table 5: Country Chart ...................................................................................... 80
( xiii )
Country-wise Receipts ............................................................................................ 80
Donation Box Collections .................................................................................. 80
From Another Indian Agency ............................................................................. 80
Reconciliation ................................................................................................... 80Tables 2 and 4 ........................................................................................................ 80
Table 2: Cross-check Unutilised Balance in Cash ................................................... 80
Table 2: Cross-check Balance in Kind ..................................................................... 81
Closing Items ................................................................................................... 81Signing FCRA Accounts .......................................................................................... 81
1. Balance Sheet .............................................................................................. 81
2. Receipts and Payments ................................................................................ 81
CA Certificate .................................................................................................... 81
Accounting Standards ............................................................................................. 81
Proof of posting ....................................................................................................... 82
Copy to Donors ....................................................................................................... 82
Filing Nil FC-3 ......................................................................................................... 82
Penalty for not filing FC-3 ........................................................................................ 82
Concealing Information ............................................................................................ 83
Revising your FC-3 .................................................................................................. 83
Maintaining Form FC-6 ............................................................................... 84Foreign Contribution ......................................................................................... 84
What is FC-6 .......................................................................................................... 84
But our Donors maintain it… ................................................................................... 84
Ok, where can we get the form? .............................................................................. 84
How do we maintain it ...................................................................................... 84Only for non-cash stuff ............................................................................................ 84
One page for each item ........................................................................................... 84
What if some of the stuff has to be sold…............................................................... 85
Items less than Rs.1,000 ........................................................................................ 85
Where do we file FC-6 ..................................................................................... 85How long should we keep it ..................................................................................... 85
Step-by-step procedure .................................................................................... 85Description of Article ............................................................................................... 85
Receipts ................................................................................................................. 85
1. Date .............................................................................................................. 85
2. Donor ............................................................................................................ 85
( xiv )
3. Mode ............................................................................................................. 85
4. Purpose ........................................................................................................ 85
5. Quantity ........................................................................................................ 86
6. Approximate Value ........................................................................................ 86
7. Intimation ...................................................................................................... 86
Utilisation ................................................................................................................ 86
8. Date .............................................................................................................. 86
9. Beneficiary .................................................................................................... 87
10. Purpose ...................................................................................................... 87
11. Utilised by NGO .......................................................................................... 87
12. Sold off ........................................................................................................ 87
13. Transferred .................................................................................................. 87
14. Sale recovery .............................................................................................. 87
15. Entry reference ............................................................................................ 87
16. Closing Balance .......................................................................................... 87
Declaration and Signature ................................................................................ 88
Open a new account each year ....................................................................... 88
Auditing FC-6 .................................................................................................... 88
FCRA Fellowships ..................................................................................... 89Key features of a fellowship.............................................................................. 89
Valuing the Fellowship ...................................................................................... 89Splitting Hairs ......................................................................................................... 90
FCRA: Issues and Formalities ......................................................................... 90Routed fellowships .................................................................................................. 90
No permission or registration .................................................................................. 90
Prohibited ............................................................................................................... 90
Journalists .............................................................................................................. 91
Accounts and Income Tax ....................................................................................... 91
File Form FC-5 ........................................................................................................ 91
Who should file FC-5 .............................................................................................. 91
Filling up FC-5 ........................................................................................................ 91
When and Where .................................................................................................... 92
FCRA Penalties ......................................................................................... 93The Power of the Law ...................................................................................... 93
Offenses and Penalties: Ready-Reckoner ....................................................... 94
( xv )
Section III: Intricacies ................................................................. 99Understanding FCRA ............................................................................... 101
Foreign Source ............................................................................................... 101
1. Individuals ......................................................................................................... 101
a. Non-resident Indians (NRIs) ......................................................................... 101
b. Persons of Indian Origin (PIOs) ................................................................... 101
c. Dual Citizenship .......................................................................................... 102
2. Government ...................................................................................................... 102
3. International Agencies ....................................................................................... 102
4. Non-profit organisations .................................................................................... 102
a. Trusts .......................................................................................................... 103
b. Foundations ................................................................................................ 103
c. Society, clubs, etc. ..................................................................................... 103
d. Corporations ................................................................................................ 103
e. Trade Unions ............................................................................................... 103
5. Business Organisations .................................................................................... 104
a. Company .................................................................................................... 104
b. Subsidiary ................................................................................................... 104
c. Corporation.................................................................................................. 104
d. Multi-national Corporation (MNC) ................................................................. 104
Permitted institutions ............................................................................................ 104
FC Receivers ................................................................................................. 105
1. Political parties ................................................................................................. 105
2. Organisations of a political nature ..................................................................... 105
3. Individuals in public life ...................................................................................... 105
4. NGOs ............................................................................................................... 105
5. Private individuals .............................................................................................. 106
6. Business organisations ..................................................................................... 106
Business Transactions ................................................................................... 106
Organizations of a political nature .................................................................. 106
Mysteries of FCRA ................................................................................... 1111. Prior permission ..........................................................................................111
2. FCRA Number .............................................................................................111
3. Change of Bank Account .............................................................................111
4. More than one bank account ...................................................................... 112
( xvi )
5. Interest on FCRA Funds ............................................................................. 112
6. Revolving Fund ........................................................................................... 112
7. Income from FCRA IGP.............................................................................. 112
8. Sale of fixed assets .................................................................................... 112
9. Separate Cash Book and Ledger ............................................................... 113
10. Consolidated Balance Sheet .................................................................... 113
11. Disclosing non-cash grants in form FC-3 ................................................. 113
12. Don’t File form FC-6 ................................................................................. 113
13. Second or subsequent recipient ............................................................... 113
14. Revising form FC-3 .................................................................................. 113
15. Fellows: file form FC-5 ............................................................................. 113
16. Shadow lending ........................................................................................ 113
17. Funds to non-FCRA NGOs ...................................................................... 114
18. Governing Body ........................................................................................ 114
19. Funding Agencies ..................................................................................... 114
20. Form FC-3 in duplicate ............................................................................. 114
21. Elections ................................................................................................... 114
Puzzles of FCRA ...................................................................................... 1151. FCRA grants to individuals ......................................................................... 115
2. Business people/ professionals ................................................................. 115
3. Electronic media ......................................................................................... 115
4. Change of bank account number ............................................................... 115
5. Advances from FC funds............................................................................ 116
6. Loan between FC and Indian ...................................................................... 116
7. Mahila Mandals ........................................................................................... 116
8. Indian office of foreign Agency .................................................................... 117
9. Opening branch abroad .............................................................................. 117
10. Organisations of a political nature ............................................................ 117
11. Churches and Ashrams............................................................................ 117
12. Does second receiver need FCRA........................................................... 117
13. When do FC funds become Indian ........................................................... 117
14. Catalogue sponsorship............................................................................. 118
15. Souvenir Advertisements .......................................................................... 118
16. Relatives ................................................................................................... 118
( xvii )
17. Unrestricted FC funds .............................................................................. 118
18. Unrestricted FC funds – under Prior Permission ..................................... 119
19. FEMA and FCRA ...................................................................................... 119
Fund-raising and FCRA ........................................................................... 1201. Anonymous donations ................................................................................ 120
2. NRI donations ............................................................................................. 120
3. Charity events............................................................................................. 120
4. Raising funds abroad ................................................................................. 121
5. Consultancy income of NGO ...................................................................... 121
6. Sale of Publications .................................................................................... 121
7. Staff Recoveries ......................................................................................... 121
8. Hire Charges .............................................................................................. 122
9. Guest recoveries ........................................................................................ 122
10. Recoveries from Beneficiaries ................................................................. 122
11. Endowment Funds ................................................................................... 122
12. Endowment Investments .......................................................................... 122
13. Endowment Income ................................................................................. 122
14. How much ................................................................................................ 122
15. Exchange rate variations .......................................................................... 123
16. Unused prior-permission .......................................................................... 123
17. Foreign Volunteers .................................................................................... 123
18. Items less than thousand rupees ............................................................. 123
19. Old items in FC-6 and FC-3 ..................................................................... 123
20. PL-480 ...................................................................................................... 123
21. Bilateral funds ........................................................................................... 123
Section IV: Forms ..................................................................... 125Form FC-1A ................................................................................................... 127
Form FC-3 ...................................................................................................... 133
Form FC-5 ...................................................................................................... 147
Form FC-6 ...................................................................................................... 149
Form FC-8 ...................................................................................................... 150
Form X: Declaration regarding newspaper / newsletter ................................. 155
( xviii )
The Foreign Contribution (Regulation) Act, 1976 ....................................... 156Section 1. Short title, extent, application and commencement ................................... 156
Section 2. Definitions– ................................................................................................ 156
Section 3. Application of other laws not barred .......................................................... 158
Section 4. Candidate for election, etc. not to accept foreign contribution– ................. 159
Section 5. Organisation of a Political nature not to accept foreign contributionexcept with the prior permission of the Central Government .................................. 160
Section 6. Certain associations and persons receiving foreign contribution to giveintimation to the Central Government– .................................................................. 160
Section 7. Recipients of scholarships, etc. to give intimation to the Central Govt. ...... 161
Section 8. Persons to whom Section 4 shall not apply– ............................................ 161
Section 9. Restrictions on acceptance of foreign hospitality– .................................... 162
Section 10. Power of Central Government to prohibit receipt of foreign contribution,etc. in certain cases ............................................................................................. 162
Section 11. Application to be made in prescribed form for obtaining priorpermission to accept foreign contribution or hospitality– ....................................... 163
Section 12. Power to prohibit payment of currency received in contraventionof the Act– ............................................................................................................ 163
Section 13. Recipients of foreign contribution to maintain accounts, etc.– ................. 163
Section 14. Inspection of accounts or records– ......................................................... 164
Section 15. Seizure of accounts or records ............................................................... 164
Section 15 A. Audit of accounts– ............................................................................... 164
Section 16. Seizure of article or currency received received in contraventionof the Act ............................................................................................................. 164
Section 17. Seizure to be made in accordance with the Code of CriminalProcedure, 1973–.................................................................................................. 165
Section 18. Confiscation of article or currency obtained in contraventionof the Act .............................................................................................................. 165
Section 19. Adjudication of confiscation– .................................................................. 165
Section 20. Opportunity to be given before adjudication of confiscation– .................... 165
Section 21. Appeal– .................................................................................................. 165
Section 22. Penalty for article or currency obtained in contravention of Sec. 12 ......... 166
Section 23. Punishment for the contravention of any provision of the Act ................... 166
Section 24. Power to impose additional fine where article or currency is notavailable for confiscation– ..................................................................................... 166
Section 25. Penalty for offences where no separate punishment has beenprovided ................................................................................................................ 166
Section 25-A. Prohibition of acceptance of foreign contribution– ................................. 166
Section 26. Offences by companies– ........................................................................ 166
( xix )
Section 27. Bar to the prosecution of offences under the Act– ................................... 167
Section 28. Investigation into cases under the Act– ................................................... 167
Section 29. Protection of action taken in good faith– ................................................. 167
Section 30. Power to make rules– ............................................................................. 167
Section 31. Power to exempt–................................................................................... 168
Section 32. Act not to apply to Government transactions– ........................................ 168
Foreign Contribution (Regulation) Rules, 1976 .......................................... 169Rule 1. Short title and commencement– .................................................................... 169
Rule 2. Definitions– ................................................................................................... 169
Rule 3. Application for obtaining prior permission to receive foreign contributionor foreign hospitality– ............................................................................................ 169
Rule 3-A. application for registration– ......................................................................... 169
Rule 4. Intimation regarding receipt of foreign contribution or scholarship orstipend or any payment of a like nature or foreign hospitality ................................ 169
Rule 5. Intimation of receipt of scholarship, stipend or any payment of a likenature, when not necessary .................................................................................. 170
Rule 6. Authority to whom an application or intimation to be sent– ............................ 170
Rule 7. Manner of service of prohibitory order or any other order or direction .............. 170
Rule 8. Maintenance of Accounts– ............................................................................ 171
Rule 9. Limits up to which an officer, not below the rank of an AssistantSessions Judge may make adjudication of confiscation– ..................................... 171
1
Section I: Funds, Sources & ReceiversBefore we go into the technicalities of FCRA, we try to get an overview of the money involved:how much money is received each year, who gives this money, who receives, and what is itused for.
The data given in this section is mostly based on reliable sources (except the narratives in theprofiles). However, please keep in mind that this is not all the foreign aid that flows into India– aid received and redistributed by the Government is not included here. Similarly, aid receivedby NGOs from UN Organisations or the World Bank is not included in these figures.
This section includes the following chapters:
Inflow of Foreign Contribution 3
State-wise Distribution of Foreign Contribution 9
Non-Foreign Sources 19
Foreign Sources 25
Profiles of Top FC Donors 31
Profiles of Top FC Receivers 44
Sources and CautionBulk of the analysis presented in this section is based on the annual ‘Inflow of ForeignContribution Report’ prepared by the Ministry of Home Affairs. This report provides a lot ofvaluable data on foreign contribution. For this analysis, we have used the annual reports for1996-97, 97-98, 98-99, and 99-00. We would like to place on record our appreciation of the hardwork the FCRA Department puts in while compiling this information, despite limited personneland infrastructure.
There are some limitations on the present analysis. Some of the charts may be misinterpreted,if taken casually. You are, therefore, requested to carefully read the notes for each chart. Alsoin general:
! Foreign contribution in kind (material) is sometimes not valued or reported by receiving NGOs.The figures and analysis will be distorted accordingly.
! The data includes all money reported as received for educational, social, religious, cultural,or economic programs. ‘Social-change institutions’, development organisations, religiousbodies, universities, and hospitals may receive this money as also NGOs set up by theGovernment. For easier reading and in the absence of any definite classification, we haveused the term NGO for all these.
! The FCRA department actually makes no real distinction between grant making agenciesand NGOs. We have used the term Agency to indicate that an organisation is mainly involvedin making grants to other NGOs.
A crore means 10,000,000 or ten million. One crore of Indian Rupees is currently equal to about208,000 US Dollars. A lakh means 100,000.
Profiles of the donors given in this section have been compiled from various sources, includingthe Internet. We hold out no warranties for the accuracy or fairness of the information. Pleaseverify the information on your own before arriving at any decisions. We have also avoided theuse of religious honorifics. This is not intended as disrespect to the religious beliefs of anyperson.
FCRA means Foreign Contribution (Regulation) Act, 1976.
2
3
Inflow of Foreign Contribution1
How many are registered
Fresh Registrations and prior-permissionsIn 2000-012, about 1,680 associationswere given FCRA registration. Another638 were granted prior-permission toreceive foreign contribution. Fromthese figures, it seems that FCRADepartment has become more liberalin granting FCRA registration.
Present statusBy November 2001, a total of 24,204associations were registered withFCRA. Apart from these, about 1,500associations had prior-permission.Together, this comes to about 26,000associations.
How many file FC-3Not all. Only about 60-70% file FC-3 regularly.The number of associations filing FC-3 hasgrown at about 5% annually over the last 9years. This does not mean improvedcompliance. Why? Because number ofregistered associations has also grown overlast 9 years.
What about the restThe law requires that FC-3 must be filed3
even if no foreign contribution is received in a year. However, the balance 30-40% seems to bequite consistent in not filing their FC-3 in time!
FCRA Department then issues them a notice. If they ignore the notice, this leads to cancellationof FC registration. In the past, Government has cancelled FC registration of 203 organizationsin July-96 and another 497 in September 1997.
How much did they receiveGoing back to the ones who did file their FC-3, let’s see how much was received.
Foreign contribution has gone up from Rs.1,412 crores in 91-924 to Rs.3,925 crores in 99-00.
1 Based on AccountAble 63: Inflow of FC: 98-99/ 99-002 April through March3 By an FCRA registered association4 15 months: Jan ’91 to Mar ’92
How many filed their FC-3
9,01
291
-92
92-9
3
93-9
4
94-9
5
95-9
6
96-9
7
97-9
8
98-9
9
99-0
0
10,2
01
10,9
63
11,4
22
10,9
50
12,1
36
12,1
98
13,7
75
13,9
86
4
Religious
That means an annual growth rate of 13.63% over these nine years. The rate has been loweredsomewhat due to stagnation in 94-95.
If you look at the average fundsreceived per association, this hasalso gone up. In 92-93, the averagewas Rs.15.5 lakhs. In 99-00, it hadrisen to Rs.28.1 lakhs. This is anincrease of 9% per year per NGO.
What contributes to this rate ofgrowth? Firstly, there is inflation.Budgets have to increase every yearjust to remain at the same in realpurchasing power.
Secondly, Rupee has fallen quite abit over the last seven years. In 1992, a dollar would get you 28 Rupees. Today, it gets you48 Rupees. In some ways, this increases the ability of Agencies to fund programs in India.
Thirdly, program activities have also probably increased over the years.
What did they receive it forThe FC-3 classificationMany NGOs find it difficult to slot their funds into the categories set out in form FC-3. Also,quite often the purposes giving inFC-3 overlap.
There is also another category:“Other activities”. Around 30% ofthe funds are reported under this.While this makes analysis difficult,it also shows how difficult it is tocategorize NGOs’ work.
Another perspective…The table probably looks excitingto mathematicians. For simplehuman beings, it is not of muchuse. The chart here shows asimpler picture, with fewercategories. This is a percentagechart and does not give moneyfigures. Rather it shows the relativepercentage under a category ineach year.
91-9
2
92-9
3
93-9
4
94-9
5
95-9
6
96-9
7
97-9
8
98-9
9
99-0
0
5
Purpose of Receipt Amount in Crores
96-97 97-98 98-99 99-00
1. Health Care & Family Welfare 284.6 306.4 407.9 449.4
2. Sanitation 2.1 4.4 **** ****
3. Welfare of Women & Children **** **** 56.3 99.9
4. Help for Poor, Aged & Destitute 171.4 210.1 272.0 230.1
5. Care of Orphans 210.8 191.3 172.9 286.2
6. Construction/ Extension of School/ College Building 97.3 290.0 145.2 184.6
7. Repair/ Maintenance of School/ College Building 70.2 49.9 36.4 31.5
8. Construction/ Extension of other Building 143.0 115.4 185.2 255.8
9. Repair/ Maintenance of other Building 41.5 27.0 74.4 42.2
10. Housing 10.8 16.0 **** ****
11. Research 138.8 125.9 66.0 74.0
12. Stipends/ Scholarship 47.1 56.7 42.7 63.4
13. Vocational/ Technical Training **** **** 40.6 48.5
14. Education/ Literacy Programs **** **** 126.1 156.2
15. Seminars/ Conference/ Meetings **** **** 20.0 27.0
16. Construction/ Extension of places of Worship 41.9 39.9 91.1 99.5
17. Repairs/ Maintenance of places of Worship 69.2 40.9 31.7 24.6
18. Education of Priest & Preachers 53.7 47.7 60.6 76.1
19. Religious Functions 74.7 46.6 57.4 58.6
20. Publication of Religious Literature 20.2 11.4 23.5 24.6
21. Agricultural Activities 17.5 31.7 20.6 26.3
22. Animal Husbandry 9.0 5.1 5.0 8.6
23. Environmental Programs 3.5 7.7 16.9 18.9
24. Rural Development 274.2 279.9 380.3 522.9
25. Cultural Programs 4.2 3.6 **** ****
26. Theatre/ Films, etc. 11.7 3.6 6.9 5.5
27. Maint. of Places of Historical & Cultural Importance 0.1 0.6 1.5 4.7
28. Relief for Natural Calamities 25.1 36.8 49.2 163.3
29. Establishment Expenses **** **** 163.1 155.4
30. Welfare of other backward classes **** **** 2.5 2.4
31. Welfare of the Scheduled Tribes **** **** 9.5 10.2
32. Welfare of the Scheduled Castes **** **** 1.1 1.9
33. Other Activities 749.1 915.9 836.3 772.3
Total 2571.7 2864.5 3402.9 3924.6
**** Change in FC-3 classification. Therefore, data not reported under this category.
6
What do the table and the chart tell us?
" Money for purely religious activities remains more or less the same, around 10%. Of course,contrary to popular belief, this money is not for Christian missionaries alone. Money comesin for other religions also, including Hinduism.
" Welfare type activities5 continue to be important, taking up as much 25% of the total flow.
" Very little money has been reported for environment – rising from a mere Rs.3.54 crores(0.14%) in 96-97 to 18.9 crores (0.48%) in 99-00. This is contrary to the reality in the field.Numerous NGOs have spent large sums on environmental programs such as watersheddevelopment, soil and water conservation, forestry, pollution, and other similar issues.
" Similarly, the amount for disaster relief has been low over this period. A total of Rs.111.07crores was received from 96-97 to 98-99. These were also years when there was no majorearthquake or cyclone. Tragically, these figures jumped to 163.33 crores in 99-00, with theOrissa cyclone in Oct-99.
" Though India is a land of history, very little is received by NGOs for maintenance of historicaland cultural places. From 96-97 to 99-00, this came to just Rs.6.95 crores! Partly, this is dueto the sprawling presence of ASI6 . Then again, this work is probably low priority for mostinternational agencies except UNESCO. And UNESCO funds will not be reported underFCRA.
" Quite a bit comes in for building construction, though:
And then some money isspent on repairs andmaintenance. Over the lastfour years, this amounted toRs.539.49 crores.
How many are Religious…The break-up given here is as perdetails furnished so far to FCRA7. We estimate that this information isprobably available for around 15,000associations only. The balance 8,000or so associations (55% of 15,000)are likely to be non-religious.
5 This includes money spent on health education also.6 Archaeological Survey of India. Foreign funds received by ASI will not be reported under FCRA.7 Rajya Sabha unstarred question no. 1231 for 7-Mar-01
Religion Numbers
Buddhist 70Christian 5,100Hindu 321Muslim 205Sikh 10Other religions 963
Total Religious associations 6,669
96-97 97-98 98-99 99-00
School/ colleges 97.31 290.01 145.19 184.64
Other buildings 143.03 115.43 185.25 255.79
Religious buildings 41.88 39.88 91.07 99.49
Total (Rs. Cr.) 282.22 445.32 421.51 539.92
Percent of total FC 11% 15.5% 12.4% 13.8%
7
96-97 97-98 98-99 99-00 Total
How many received a crore andabove…With the continuing erosion of Rupee, acrore8 today is not what it used to be.In 91-92, just 249 associations receivedover a crore. By 99-00, this had risen to684 associations.
And the top 5 were…If you add upthe fundsreceived overlast nineyears9 , whoreceived themost? Thereport names
Maharishi Ved Vigyan Vishwa Vidyapeetham.
The top five and their inflow is given below:
Name (Rs. Cr.)
1. Maharishi Ved Vigyan Vishwa Vidyapeetham, Andhra Pradesh 346
2. Foster Parents Plan International, New Delhi 317
3. World Vision of India, Tamil Nadu 290
4. Sri Sathya Sai Central Trust, Andhra Pradesh 278
5. CSI10 Council for Child Care, Karnataka 220
Country of Origin…Where does all this money come from? The MHA reports for last four years (1996-97 to 1999-00) list about 178 countries, ranging from USA (Rs.1,086.32 crores) to Macau, Laos, Sudan(Rs.1,000 each!). Then there are smaller donors who are not listed individually – this adds upto around Rs.57, 52, 37 and 29 crores in 96-97, 97-98, 98-99, and 99-00 respectively.
The following table summarizes contribution of top sixteen donor countries who have contributedat least Rs.100 crores over last four years (1996-97 to 1999-00):
Amount in Rupees Crores AnnualCountry Growth
rate in %
1. United States of America 582.22 731.07 892.43 1,086.32 3,292.04 23
2. Germany 548.87 577.08 626.44 650.73 2,403.11 6
43
6069
28
24
232027
21
1915
1317
19
50
3735
31
430 53
6
540 581
>10 crores
5-10 crores1-5 crores
8 10 million9 From 91-92 to 99-0010 Church of South India
8
96-97 97-98 98-99 99-00 Total
Amount in Rupees Crores AnnualCountry Growth
rate in %
3. United Kingdom 302.35 376.47 480.26 662.73 1,821.82 30
4. Italy 196.55 198.47 240.14 261.58 896.75 10
5. Netherlands 185.58 169.66 194.99 224.88 775.12 7
6. Switzerland 132.89 140.62 167.12 188.07 628.70 12
7. Spain 62.46 78.83 137.95 153.80 433.05 35
8. Canada 66.73 69.49 79.17 93.45 308.83 12
9. France 59.56 58.70 78.23 73.54 270.03 7
10. Belgium 49.19 50.21 75.18 73.69 248.27 14
11. Australia 40.20 63.62 42.92 43.41 190.15 3
12. Austria 39.68 28.41 46.38 47.03 161.50 6
13. Sweden 32.62 27.88 30.03 32.83 123.37 0.2
14. Norway 20.63 30.72 35.52 33.82 120.69 18
15. Japan 20.05 38.16 28.67 27.69 114.57 11
16. Denmark 24.50 21.33 26.17 33.68 105.67 11
Flow of funds from Spain, UK and USA is rising faster than other countries. For example, fundfrom Spain have grown annually at a compounded rate of 35%. In the case of UK, the rateof growth is 30%. Growth rate in the case of USA is also higher than the rest at 23% per year.
9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
96-97 97-98 98-99 99-00
Others
Manipur
W. Bengal
Orissa
Bihar
Uttar Pradesh
Himachal
Rajasthan
Madhya Pradesh
Maharashtra
Karnataka
Andhra
Kerala
Tamilnadu
Andaman & Nicobar
1.57
0.91
96-97 97-98 98-99 99-00
0.23
1.37
State-wise Distribution of Foreign Contribution11
This analysis provides information on how the foreign contribution is distributed across thecountry – which areas receive more funds, which do not. It is hoped that this will provide usefuldata for people working with NGOs and Agencies.
State Shares: 96-97 to 99-00Which state gets how muchattention from theAgencies? This is not easyto work out. FCRAauthorities treat NGO andAgency on the samefooting. This means that ifa state is hosting anAgency’s office (forexample, Delhi orKarnataka), then itsreceipts will appear higher.But much of this may betransferred by the Agencyto other states. Secondly,as there are many states,we look only at selectedstates in the chart.
State Profiles: 96-97 to 99-00Correlating the state-wisedata helps us understandmore about how FCRA registered NGOs and funds are spread across the country. Remember,however, that some of the averages related to funds may be distorted due to inclusion of grant-making Agencies in the FC data. Some NGOs may be working in multiple states, thoughheadquartered in a particular state. Also simple averages like these are not really suitable forgauging an activity as complex as development or social work.
In the following paragraphs, we look more closely at each of the states, from an FCRA angle.Keep in mind that population data is from 2001 census. Secondly, we are talking only aboutthose organizations, which received foreign funds and filed an FC-3. Union Territories are markedwith the abbreviation UT. Some of this data is given in a table at the end of the state profiles.
Andaman & Nicobar (UT)" Received Rs.1.37 crores, 1.57 crores, 0.91 crores and 0.23 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 44.83 %" Population (2001) 3.56 lakhs " Land area (Sq. K.M.) 8,249
Seven organisations received Rs.0.23 crores in 99-00, or an averageof Rs.3.34 lakhs each. Average funds per person came to Rs.6.56.Average population per organisation was 50,895 people. Average
11 Based on AccountAble 64, 65: Profiles of Top FC Receivers
10
Assam
14.8
8
17.3
2 22.9
8
24.3
5
96-97 97-98 98-99 99-00
Arunachal
0
0.28
0.51
0.64
96-97 97-98 98-99 99-00
Andhra
96-97 97-98 98-99 99-00
352.
72
398.
08 487.
29
536.
99
area under each organisation (in sq. k.m.) was 1,178 (an area approx. 34 kms. wide and 34.5kms. long).
Andhra Pradesh" Received Rs.352.72 crores, 398.08 crores, 487.29 crores and 536.99crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 15.04%" Population (2001) 757.28 lakhs " Land area (Sq. K.M.) 275,068
1,616 organisations received Rs.536.99 crores in 99-00, or an averageof Rs.33.23 lakhs each. Average funds per person came to Rs.70.91.Average population per organisation was 46,861 people. Averagearea under each organisation (in sq. k.m.) was 170 (an area approx.13 kms. wide and 13 kms. long).
Arunachal Pradesh" Received Rs.0.28 crores, 0.51 crores and 0.64 crores in 97-98, 98-99, 99-00 " Annual growth rate: 51.19% " Population (2001) 10.91lakhs " Land area (Sq. K.M.) 84,743
Six organisations received Rs.63.66 lakhs in 99-00, or an averageof Rs.10.61 lakhs each. Average funds per person came to Rs.5.83.Average population per organisation was 181,853 people. Averagearea under each organisation (in sq. k.m.) was 14,124 (an areaapprox. 118 kms. wide and 119 kms. long).
Assam" Received Rs.14.88 crores, 17.32 crores, 22.98 crores and 24.35crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 17.84 %" Population (2001) 266.38 lakhs " Land area (Sq. K.M.) 78,438
163 organisations received Rs.24.35 crores in 99-00, or an averageof Rs.14.94 lakhs each. Average funds per person came toRs.9.14. Average population per organisation was 163,426 people.Average area under each organisation (in sq. k.m.) was 481 (anarea approx. 22 kms. wide and 22 kms. long). Assam is classifiedas a sensitive area in the report.
Bihar" Received Rs.84.02 crores, 83.24 crores, 100.6 crores and 104.75crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 7.62 %" Population (2001) 1,097.88 lakhs (incl. Jharkhand) " Land area (Sq.K.M.) 173,877
723 organisations received Rs104.75 crores in 99-00, or an averageof Rs.14.49 lakhs each. Average funds per person came to Rs.9.54.Average population per organisation was 151,851 people. Averagearea under each organisation (in Sq. K.M.) was 240 (an area approx.15 kms. wide and 16 kms. long).
Bihar
84.0
2
83.2
4
100.
6
104.
75
96-97 97-98 98-99 99-00
11
Goa
13.2
8
12.9
3
96-97 97-98 98-99 99-00
13.2
9
13.8
1
Delhi
346.
35
418.
52
487.
28 636.
11
96-97 97-98 98-99 99-00
Dadra Nagar Haveli
0.72
0.71
0.4
0.26
96-97 97-98 98-99 99-00
96-97 97-98 98-99 99-00
Chandigarh
1.87 2.
28 2.62
1.4
Chandigrah (UT)" Received Rs.1.87 crores, 1.4 crores, 2.28 crores and 2.62 crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 11.9 % " Population(2001) 9.01 lakhs " Land area (Sq. K.M.) 114
17 organisations received Rs.2.62 crores in 99-00, or an average ofRs.15.39 lakhs each. Average funds per person came to Rs.29.03.Average population per organisation was 52,995 people. Averagearea under each organisation (in sq. k.m.) was 7 (an area approx.2 kms. wide and 3.5 kms. long).
Dadra & Nagar Haveli (UT)" Received Rs.0.72 crores, 0.4 crores, 0.71 crores and 0.26 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 28.79 %" Population (2001) 2.2 lakhs " Land area (Sq. K.M.) 491
12 organisations received Rs.0.26 crores in 99-00, or an averageof Rs.2.2 lakhs each. Average funds per person came to Rs.11.99.Average population per organisation was 18,371 people. Averagearea under each organisation (in sq. k.m.) was 41 (an area approx.6 kms. wide and 7 kms. long).
Dadra & Nagar Haveli is classified as a predominantly tribal Union Territory in the report.
Daman & Diu (UT)" Received Rs.0.006 crores in 96-97. Other years’ data not available. For 99-00, data combined withGoa. " Population (2001) 1.58 lakhs " Land area (Sq. K.M.) 112
No foreign contribution was reported by 3 organisations from Daman and Diu Islands.
Delhi" Received Rs.346.35 crores, 418.52 crores, 487.28 crores and 636.11crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 22.46 %" Population (2001) 137.83 lakhs " Land area (Sq. K.M.) 1,483
735 organisations received Rs.636.11 crores in 99-00, or an averageof Rs.86.55 lakhs each. Average funds per person came toRs.461.52. Average population per organisation was 18,752 people.Average area under each organisation (in sq. k.m.) was 2 (anarea approx. 1 km. wide and 2 kms. long).
Goa" Received Rs.13.28 crores, 12.93 crores, 13.29 crores and 13.81 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 1.3 % " Population(2001) 13.44 lakhs " Land area (Sq. K.M.) 3,702
104 organisations received Rs.13.81 crores in 99-00, or an averageof Rs.13.27 lakhs each. Average funds per person came toRs.102.72. Average population per organisation was 12,923 people.Average area under each organisation (in sq. k.m.) was 36 (an areaapprox. 6 kms. wide and 6 kms. long).
12
J & K
9.93
2.26
14.8
9
13.6
4
96-97 97-98 98-99 99-00
Haryana
6.71
5.93
5.38 6.
7
96-97 97-98 98-99 99-00
Gujarat
80.2
5
71.9
6
102.
09 126.
95
96-97 97-98 98-99 99-00
Gujarat" Received Rs.80.25 crores, 71.96 crores, 102.09 crores and 126.95crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 16.52 %" Population (2001) 505.97 lakhs " Land area (Sq. K.M.) 196,024
551 organisations received Rs.126.95 crores in 99-00, or an averageof Rs.23.04 lakhs each. Average funds per person came toRs.25.09. Average population per organisation was 91,828 people.Average area under each organisation (in sq. k.m.) was 356 (anarea approx. 18 kms. wide and 20 kms. long).
Haryana" Received Rs.6.71 crores, 5.93 crores, 5.38 crores and 6.70 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 0.05 % " Population(2001) 210.83 lakhs " Land area (Sq. K.M.) 44,212
74 organisations received Rs.6.70 crores in 99-00, or an averageof Rs.9.06 lakhs each. Average funds per person came to Rs.3.18.Average population per organisation was 284,905 people. Averagearea under each organisation (in sq. k.m.) was 597 (an area approx.24 kms. wide and 25 kms. long).
Himachal Pradesh" Received Rs.40.16 crores, 44.50 crores, 64.32 crores and 68.20 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 19.31 % " Population(2001) 60.77 lakhs " Land area (Sq. K.M.) 55,673
77 organisations received Rs.68.20 crores in 99-00, or an averageof Rs.88.57 lakhs each. Average funds per person came toRs.112.22. Average population per organisation was 78,925 people.Average area under each organisation (in sq. k.m.) was 723 (anarea approx. 27 kms. wide and 27 kms. long).
Jammu & Kashmir" Received Rs.9.93 crores, 2.60 crores, 14.89 crores and 13.64 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 11.16 %" Population (2001) 100.7 lakhs " Land area (Sq. K.M.) 101,387
34 organisations received Rs.13.64 crores in 99-00, or an averageof Rs.40.12 lakhs each. Average funds per person came to Rs.13.55.Average population per organisation was 296,174 people. Averagearea under each organisation (in sq. k.m.) was 2,982 (an areaapprox. 54 kms. wide and 55 kms. long).
J & K is classified as a sensitive area in the report.
Himachal40
.16
64.3
2
68.2
96-97 97-98 98-99 99-00
44.5
13
Maharashtra
274.
91
323.
52
322.
61
350.
23
96-97 97-98 98-99 99-00
M. P.
57.8
1
60.3
5 80.6
7
84.5
7
96-97 97-98 98-99 99-00
Kerala
242.
3
255.
38
322.
42
361.
7
96-97 97-98 98-99 99-00
96-97 97-98 98-99 99-00
Karnataka
274.
16
315.
88
354.
73 411.
34
Karnataka" Received Rs.274.16 crores, 315.88 crores, 354.73 crores and 411.34crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 14.48 %" Population (2001) 527.34 lakhs " Land area (Sq. K.M.) 191,791
1,154 organisations received Rs.411.34 crores in 99-00, or an averageof Rs.35.64 lakhs each. Average funds per person came to Rs.78.Average population per organisation was 45,697 people. Averagearea under each organisation (in sq. k.m.) was 166 (an area approx.13 kms. wide and 13 kms. long).
Kerala" Received Rs.242.30 crores, 255.38 crores, 322.42 crores and 361.70crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 14.29 %" Population (2001) 318.39 lakhs " Land area (Sq. K.M.) 38,863
1,483 organisations received Rs.361.70 crores in 99-00, or an averageof Rs.24.39 lakhs each. Average funds per person came toRs.113.60. Average population per organisation was 21,469 people.Average area under each organisation (in sq. k.m.) was 26 (an areaapprox. 5 kms. wide and 5 kms. long).
Lakshadweep (UT)" Population (2001) 0.61 lakhs " Land area (Sq. K.M.) 32
No foreign contribution was reported from Lakshadweep and Minicoy Islands.
Madhya Pradesh" Received Rs.57.81 crores, 60.35 crores, 80.67 crores and 84.57crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 13.52 %" Population (2001) 811.81 lakhs (incl. Chhattisgarh) " Land area(Sq. K.M.) 443,446
432 organisations received Rs.84.57 crores in 99-00, or an averageof Rs.19.58 lakhs each. Average funds per person came toRs.10.42. Average population per organisation was 187,919 people.Average area under each organisation (in sq. k.m.) was 1,026 (anarea approx. 32 kms. wide and 32 kms. long).
Maharashtra" Received Rs.274.91 crores, 323.52 crores, 322.61 crores and 350.23crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 8.41 %" Population (2001) 967.52 lakhs " Land area (Sq. K.M.) 307,713
1,198 organisations received Rs.350.23 crores in 99-00, or an averageof Rs.29.23 lakhs each. Average funds per person came to Rs.36.20.Average population per organisation was 80,761 people. Averagearea under each organisation (in sq. k.m.) was 257 (an area approx.16 kms. wide and 16 kms. long).
14
Orissa
56.0
5
56.9
5 68.5
2 111.
65
96-97 97-98 98-99 99-00
Nagaland
4.35 5.
25
6.62 7.
59
96-97 97-98 98-99 99-00
Mizoram
0.8 1.06
1.57
0.51
96-97 97-98 98-99 99-00
Meghalaya
20.7
8
24.0
8
26.2
9
29.4
4
96-97 97-98 98-99 99-00
Manipur
10.1
8
8.74 11
.73
9.93
96-97 97-98 98-99 99-00
Manipur" Received Rs.10.18 crores, 8.74 crores, 11.73 crores and 9.93 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 0.83 % " Population(2001) 23.89 lakhs " Land area (Sq. K.M.) 22,327
218 organisations received Rs.9.93 crores in 99-00, or an averageof Rs.4.55 lakhs each. Average funds per person came to Rs.41.56.Average population per organisation was 10,957 people. Averagearea under each organisation (in sq. k.m.) was 102 (an area approx.10 kms. wide and 10 kms. long).
Meghalaya" Received Rs.20.78 crores, 24.08 crores, 26.29 crores and 29.44 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 12.32 % " Population(2001) 23.06 lakhs " Land area (Sq. K.M.) 22,429
99 organisations received Rs.29.44 crores in 99-00, or an averageof Rs.29.73 lakhs each. Average funds per person came toRs.127.65. Average population per organisation was 23,294 people.Average area under each organisation (in sq. k.m.) was 227 (anarea approx. 15 kms. wide and 15 kms. long).
Mizoram" Received Rs.0.80 crores, 1.06 crores, 1.57 crores and 0.51 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 13.93 % " Population(2001) 8.91 lakhs " Land area (Sq. K.M.) 21,081
12 organisations received Rs.0.51 crores in 99-00, or an averageof Rs.4.23 lakhs each. Average funds per person came to Rs.5.70.Average population per organisation was 74,255 people. Averagearea under each organisation (in sq. k.m.) was 1,757 (an areaapprox. 42 kms. wide and 42 kms. long).
Nagaland" Received Rs.4.35 crores, 5.25 crores, 6.62 crores and 7.59 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: 20.39 %" Population (2001) 19.89 lakhs " Land area (Sq. K.M.) 16,579
42 organisations received Rs.7.59 crores in 99-00, or an average ofRs.18.06 lakhs each. Average funds per person came to Rs.38.15.Average population per organisation was 47,348 people. Averagearea under each organisation (in sq. k.m.) was 395 (an area approx.18 kms. wide and 22 kms. long).
Orissa" Received Rs.56.05 crores, 56.95 crores, 68.52 crores and 111.65crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 25.83 %" Population (2001) 367.07 lakhs " Land area (Sq. K.M.) 155,707
714 organisations received Rs.111.65 crores in 99-00, or an averageof Rs.15.64 lakhs each. Average funds per person came to Rs.30.42.Average population per organisation was 51,410 people. Averagearea under each organisation (in sq. k.m.) was 218 (an area approx.13 kms. wide and 17 kms. long).
15
Sikkim
1.26
0.31
0.83
1.15
Rajasthan18
.02 22
.97 30
.47 37
.26
96-97 97-98 98-99 99-00
Punjab
14.9
8
5.82
23.8
3
35.2
2
96-97 97-98 98-99 99-00
Pondicherry
9.2 10
.67
11.6
2
12.4
9
96-97 97-98 98-99 99-00
Pondicherry (UT)" Received Rs.9.20 crores, 10.67 crores, 11.62 crores and 12.49 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 10.73 % " Population(2001) 9.74 lakhs " Land area (Sq. K.M.) 492
50 organisations received Rs.12.49 crores in 99-00, or an averageof Rs.24.98 lakhs each. Average funds per person came to Rs.128.26.Average population per organisation was 19,477 people. Averagearea under each organisation (in sq. k.m.) was 10 (an area approx.2 kms. wide and 5 kms. long).
Punjab" Received Rs.14.98 crores, 5.82 crores, 23.83 crores and 35.22crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 32.97 %" Population (2001) 242.89 lakhs " Land area (Sq. K.M.) 50,362
70 organisations received Rs.35.22 crores in 99-00, or an averageof Rs.50.32 lakhs each. Average funds per person came toRs.14.50. Average population per organisation was 346,990people. Average area under each organisation (in sq. k.m.) was719 (an area approx. 24 kms. wide and 30 kms. long).
Rajasthan" Received Rs.18.02 crores, 22.97 crores, 30.47 crores and 37.26crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 27.40 %" Population (2001) 564.73 lakhs " Land area (Sq. K.M.) 342,239
220 organisations received Rs.37.26 crores in 99-00, or an averageof Rs.16.94 lakhs each. Average funds per person came to Rs.6.60.Average population per organisation was 256,696 people. Averagearea under each organisation (in sq. k.m.) was 1,556 (an areaapprox. 39 kms. wide and 40 kms. long).
Sikkim" Received Rs.1.26 crores, 0.31 crores, 0.83 crores and 1.15 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 3 %" Population (2001) 5.4 lakhs " Land area (Sq. K.M.) 7,096
Four organisations received Rs.1.15 crores in 99-00, or an averageof Rs.28.63 lakhs each. Average funds per person came toRs.21.18. Average population per organisation was 135,123 people.Average area under each organisation (in sq. k.m.) was 1,774 (anarea approx. 37 kms. wide and 48 kms. long).
16
W. Bengal
158.
28
168.
88 216.
42
233.
99
96-97 97-98 98-99 99-00
U.P.
128.
25
133.
87
128.
1
70.1
6
96-97 97-98 98-99 99-00
Tripura
96-97 97-98 98-99 99-00
1.22 1.04
1.81
1.71
Tamil Nadu" Received Rs.404.98 crores, 416.64 crores, 486.36 crores and 572.51crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 12.23 %" Population (2001) 621.11 lakhs " Land area (Sq. K.M.) 130,058
2,143 organisations received Rs.572.51 crores in 99-00, or anaverage of Rs.26.72 lakhs each. Average funds per person cameto Rs.92.18. Average population per organisation was 28,983 people.Average area under each organisation (in sq. k.m.) was 61 (anarea approx. 7 kms. wide and 9 kms. long).
Tripura" Received Rs.1.22 crores, 1.04 crores, 1.81 crores and 1.71 crores in96-97, 97-98, 98-99, 99-00 " Annual growth rate: 11.91 %" Population (2001) 31.91 lakhs " Land area (Sq. K.M.) 10,492
11 organisations received Rs.1.71 crores in 99-00, or an averageof Rs.15.58 lakhs each. Average funds per person came to Rs.5.37.Average population per organisation was 290,106 people. Averagearea under each organisation (in sq. k.m.) was 954 (an area approx.29 kms. wide and 33 kms. long).
Uttar Pradesh" Received Rs.70.16 crores, 128.25 crores, 133.87 crores and 128.10crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 22.22 %" Population (2001) 1,745.32 lakhs (incl. Uttaranchal) " Land area(Sq. K.M.) 294,411
802 organisations received Rs.128.10 crores in 99-00, or anaverage of Rs.15.97 lakhs each. Average funds per person cameto Rs.7.34. Average population per organisation was 217,621people. Average area under each organisation (in sq. k.m.) was367 (an area approx. 16 kms. wide and 23 kms. long).
West Bengal" Received Rs.158.28 crores, 168.88 crores, 216.42 crores and 233.99crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 13.92 %" Population (2001) 802.21 lakhs " Land area (Sq. K.M.) 88,752
1,212 organisations received Rs.233.99 crores in 99-00, or anaverage of Rs.19.31 lakhs each. Average funds per person cameto Rs.29.17. Average population per organisation was 66,189people. Average area under each organisation (in sq. k.m.) was 73(an area approx. 8 kms. wide and 9 kms. long).
Tamilnadu
404.
98
416.
64
486.
36
572.
51
96-97 97-98 98-99 99-00
17
State-wise distribution of FC funds: Basic dataReceived in 1996-97 Received in 1997-98 Received in 1998-99 Received in 1999-00
State Total # of Av. per Total # of Av. per Total # of Av. per Total # of Av. per(Rs. Associa Org. (Rs. Associa Org. (Rs. Associ- Org. (Rs. Associ- Org.
Lakhs) tions (Lakhs) Lakhs) tions (Lakhs) Lakhs) ations (Lakhs) Lakhs) tions (Lakhs)
Andaman & Nicobar 136.95 8 17.12 157.13 8 19.64 91.07 7 13.01 23.36 7 3.34
Chandigrah 187.35 14 13.38 140.13 12 11.68 227.6 15 15.17 261.56 17 15.39
Dadra & Nagar Haveli 71.92 9 7.99 40.13 9 4.46 70.79 11 6.44 26.43 12 2.20
Daman & Diu 0.66 3 0.22 — — — 0.00 3 0.00 0.00 3 0.00
Pondicherry 919.77 57 16.14 1,066.87 54 19.76 1,161.89 55 21.13 1,249.05 50 24.98
Andhra Pradesh 35,272.21 1,226 28.77 39,808.09 1,256 31.69 48,729.40 1,539 31.66 53,698.97 1,616 33.23
Arunachal 0.00 4 0.00 27.85 6 4.64 51.03 7 7.29 63.66 6 10.61
Assam 1,488.45 158 9.42 1,732.40 145 11.95 2,298.16 158 14.55 2,435.17 163 14.94
Bihar 8,402.37 539 15.59 8,324.16 598 13.92 10,060.40 698 14.41 10,474.67 723 14.49
Delhi 34,635.05 602 57.53 41,852.15 624 67.07 48,728.40 695 70.11 63,610.70 735 86.55
Goa 1,328.02 109 12.18 1,293.29 103 12.56 1,329.45 104 12.78 1,380.52 104 13.27
Gujarat 8,025.17 484 16.58 7,196.03 477 15.09 10,208.73 556 18.36 12,695.42 551 23.04
Haryana 670.75 64 10.48 593.43 57 10.41 538.26 72 7.48 670.46 74 9.06
Himachal Pradesh 4,015.62 70 57.37 4,449.54 66 67.42 6,431.59 77 83.53 6,819.71 77 88.57
J & K* 993.24 24 41.39 259.73 24 10.82 1,489.31 35 42.55 1,364.01 34 40.12
Karnataka 27,415.77 1,029 26.64 31,588.15 1,012 31.21 35,472.54 1,143 31.03 41,133.73 1,154 35.64
18
Received in 1996-97 Received in 1997-98 Received in 1998-99 Received in 1999-00
State Total # of Av. per Total # of Av. per Total # of Av. per Total # of Av. per(Rs. Associa Org. (Rs. Associa Org. (Rs. Associ- Org. (Rs. Associ- Org.
Lakhs) tions (Lakhs) Lakhs) tions (Lakhs) Lakhs) ations (Lakhs) Lakhs) tions (Lakhs)
Kerala 24,229.57 1,450 16.71 25,537.91 1,419 18.00 32,241.89 1,591 20.27 36,169.54 1,483 24.39
Madhya Pradesh 5,781.07 378 15.29 6,034.80 379 15.92 8,066.95 425 18.98 8,457.44 432 19.58
Maharashtra 27,491.46 941 29.22 32,351.76 1,031 31.38 32,261.45 1,183 27.27 35,022.68 1,198 29.23
Manipur 1,017.95 202 5.04 874.28 200 4.37 1,172.98 216 5.43 992.81 218 4.55
Meghalaya 2,077.64 94 22.10 2,407.72 91 26.46 2,628.76 92 28.57 2,943.76 99 29.73
Mizoram 79.79 11 7.25 105.59 9 11.73 157.04 14 11.22 50.76 12 4.23
Nagaland 435.08 40 10.88 524.95 35 15.00 661.87 43 15.39 758.68 42 18.06
Orissa 5,604.82 504 11.12 5,694.88 534 10.66 6,851.87 652 10.51 11,165.34 714 15.64
Punjab 1,498.34 72 20.81 581.77 70 8.31 2,382.91 90 26.48 3,522.23 70 50.32
Rajasthan 1,801.52 154 11.70 2,297.46 166 13.84 3,046.97 200 15.23 3,725.91 220 16.94
Sikkim 125.54 4 31.39 30.79 3 10.26 82.75 5 16.55 114.50 4 28.63
Tamilnadu 40,498.42 2,016 20.09 41,663.74 1,991 20.93 48,635.51 2,044 23.79 57,250.88 2,143 26.72
Tripura 121.76 9 13.53 104.27 9 11.59 180.69 10 18.07 171.37 11 15.58
Uttar Pradesh 7,015.57 708 9.91 12,824.64 686 18.69 13,387.43 806 16.61 12,810.46 802 15.97
West Bengal 15,827.56 1,153 13.73 16,887.79 1,124 15.02 21,641.83 1,229 17.61 23,398.74 1,212 19.31
All India 257,169.39 12,136 21.19 286,451.43 12,198 23.48 340,289.52 13,775 24.70 392,462.52 13,986 28.06
*Actual area of Jammu & Kashmir is 2,22,236 sq. kms. However, for this analysis, 1,20,849 sq. kms. illegally occupied by Pakistan and China has been excluded.Population data is from 2001 census. Land area has been taken from “India 1998”, published by Information & Broadcasting Ministry of Government of India.
19
Non-Foreign Sources12
Every dollar that comes into India as a grant does not automatically become foreign. There arenumerous exceptions to this. For example, funds received from UN bodies or from Indiancitizens living abroad are not covered by FCRA13 .
Notified by the GovernmentFollowing organisations are not a ‘foreign source’ for purposes of FCRA. Funds from them canbe taken without FCRA approval. This listing is based on the latest notification14 by Ministryof Home Affairs:
1. AARRO – Afro - Asian Rural Reconstruction Organisation, New Delhi
2. ADB – African Development Bank, Abidjan
3. ADB – Asian Development Bank, Manila
4. APAARI – The Asia Pacific Association of Agricultural Research Institution, Bangkok
5. APCTT – Asia And Pacific Centre of Transfer of Technology, New Delhi
6. ACCU – Asia / Pacific Cultural Centre for UNESCO, Japan
7. Asian African Legal Consultative Committee, New Delhi
8. Asian and Pacific Development Administration, Kualalumpur
9. Asian Productivity Organisation, Tokyo
10. Bureau (Secretariat) of the Convention on Wetlands (Ramsar), Gland, Switzerland
11. CABI – Commonwealth Agricultural Bureaux International, UK
12. CBD – Secretariat of the Convention on Biological Diversity, Montreal
13. CCD – Secretariat of the United Nations Convention to Combat Desertification in CountriesExperiencing Serious Drought / or Desertification, Especially in Africa, Bonn
14. CDB – Caribbean Development Bank, St. Michael, Barbados
15. CGIAR – Consultative Group on International Agricultural Research, Washington D.C.
16. CGPRT Centre – The Regional Co-ordination Centre for Research and Development of coarseGrains, Pulses, Roots, and Tuber crops in the Humid Tropics of Asia and the Pacific, Indonesia
17. CGRFA – Commission on Genetic Resources for Food and Agriculture, Rome
18. CIAT – International Centre for Tropical Agriculture, Columbia
19. CIFOR – Centre for International Forestry Research, Indonesia
20. CIMMYT – International Wheat and Maize Improvement Centre, Mexico
21. CIRDAP – Centre on Integrated Rural Development for Asia and the Pacific, Dhaka
12 Based on AccountAble 40: Non-foreign Sources13 Foreign contribution (Regulation) Act, 1976. Applicable in India14 S.O. 1014 (E). Published in Part 2, Sec. 3, sub-section (ii) of Gazette of India – Extraordinary, dated 13-Nov-2000.
20
22. CITES – Secretariat of the Convention on International Trade in Endangered Species of WildFauna and Flora, Geneva
23. Commission on the Limit of the Continental Shelf, United Nations Divisions for Ocean Affairsand the Law of the Sea, New York
24. Commonwealth Secretariat, London
25. Department for Disarmament Affairs, New York
26. Department for General Assembly Affairs and Conference Services, New York
27. Department of Economic and Social Affairs, New York
28. Department of Management, New York
29. Department of Peacekeeping Operations, New York
30. Department of Political Affairs, New York
31. Department of Public Information, New York
32. ECA – Economic Commission for Africa, Addis Ababa, Ethiopia.
33. ECE – Economic Commission for Europe, Geneva
34. ECLAC – Economic Commission for Latin America and the Caribbean, Santiago, Chile.
35. ESCAP – Economic Commission for Asia and the Pacific, Bangkok, Thailand
36. ESCWA – Economic Commission for Western Asia, Beirut, Lebanon
37. European Community (EC)
38. FAO – Food and Agriculture Organisation, Rome
39. Global Environment Facility, Washington D.C.
40. IAEA – International Atomic Energy Agency, Vienna
41. IBRD15 – International Bank for Reconstruction and Development, Washington D.C.
42. ICAO – International Civil Aviation Organisation, Montreal
43. ICARDA – International Centre for Agricultural Research in Dry Areas, Syria
44. ICGEB – International Centre for Genetic Engineering and Bio - Technology, New Delhi
45. ICGFI – International Consultative Group on Food Irradiation, Vienna
46. ICLARM – International Centre for Living Aquatic Resource Management, Philippines
47. ICRAF – International Centre of Research in Agro-forestry, Nairobi
48. ICRISAT – International Crops Research Institute for Semi-Arid Tropics, Hyderabad
49. ICSID – International Centre for the Settlement of Investment Disputes, Washington D.C.
50. IDA – International Development Association, Washington D.C.
51. IDB – Inter-American Development Bank, Washington D.C.
52. IFAD – International Fund for Agricultural Development, Rome
15 Commonly known as “The World Bank”.
21
53. IFC – International Finance Cooperation, Washington D.C.
54. IFPRI – International Food Policy Research Institute, Washington D.C.
55. IIMI – International Irrigation Management Institute, Colombo
56. IITA – International Institute of Tropical Agriculture, Nigeria
57. ILO – International Labour Organisation, Geneva
58. ILRI – International Livestock Research Institute, Nairobi
59. IMF – International Monetary Fund, Washington D.C.
60. IMI – International Water Management Institute, Srilanka
61. IMO – International Maritime Organisation, London
62. INCB – International Narcotics Control Board, Vienna
63. INSTRAW – International Research and Training Institute for Advancement of Women, SantoDomingo, Dominican Republic
64. International Potato Centre, Peru
65. International Rice Research Institute, Manila, Philippines
66. International Seabed Authority, Kingston
67. International Sugar Organisation, London
68. International Tribunal for the Law of the Sea, Hamburg
69. IPCC – Intergovernmental Panel on Climate Change, Geneva
70. IPGRI – International Plant Genetic Resource Institute, Rome
71. ISNAR – International Service of National Agricultural Research, The Netherlands
72. ISTA – The International Seeds Testing Association, Zurich
73. ITC – International Trade Centre (UNCTAD/ WTO), Geneva
74. ITU – International Telecommunication Union, Geneva
75. MIGA – Multilateral Investment Guarantee Agency, Washington D.C.
76. NAM S&T Centre – Centre for Science and Technology of the Non - Aligned and otherDeveloping Countries, New Delhi
77. Office for Coordination of Humanitarian Affairs, New York
78. Office of Internal Oversight Services, New York
79. Office of Legal Affairs, New York
80. OHCHR – Office of the UN High Commissioner for Human Rights, Geneva
81. OPCW – Organisation for the Prohibition of Chemical Weapons, The Hague
82. Ozone Secretariat to the Vienna Convention for the Protection of the Ozone Layer and theMontreal Protocol on Substances that Deplete the Ozone Layer, Nairobi
83. PTS for CTBTO – Provisional Technical Secretariat for the Comprehensive Nuclear Test BanTreaty Organisation, Vienna
22
84. RNAM – The Regional Network for Agriculture Machinery, Bangkok
85. Secretariat of the Basel Convention on the Control of Trans-boundary Movements of HazardousWastes and their Disposal, Geneva
86. UNAIDS – Joint United Nations Programme on HIV / AIDS, Geneva
87. UNCDF – United Nations Capital Development Fund, New York
88. UNCTAD – United Nations Conference on Trade and Development, Geneva
89. UNDCP – United Nations International Drug Control Programme, Vienna.
90. UNDP – United Nations Development Programme, New York.
91. UNEP – United Nations Environment Programme, Nairobi.
92. UNEP / CMS Secretariat of the Convention on the Conservation of Migratory Species ofWild Animals (CMS or Bonn Convention), Bonn
93. UNESCO – United Nations Educational, Scientific and Cultural Organisation, Paris
94. UNFCCC – Secretariat of the United Nations Framework Convention on Climate Change,Bonn
95. UNFPA – United Nations Population Fund, New York.
96. UNHCHR – Office of the UN High Commissioner for Human Rights, Geneva
97. UNHCR – Office of the UN High Commissioner for Refugees, Geneva
98. UNICEF – United Nations Children’s Fund, New York.
99. UNICRI – United Nations Interregional Crime and Justice Research Institute, Rome
100. UNIDIR – United Nations Institute for Disarmament Research, Geneva
101. UNIDO – United Nations Industrial Development Organisation, Vienna
102. UNIFEM – United Nations Development Fund for Women, New York
103. UNITAR – United Nations Institute for Training and Research, Geneva.
104. United Nations Office at Geneva
105. United Nations Office at Nairobi
106. United Nations Office at Vienna
107. United Nations Outer Space Committee
108. UNOPS – United Nations Office for Project Services, New York
109. UNRISD – United Nations Research Institute for Social Development, Geneva.
110. UNRWA – United Nations Relief and work Agency for Palestine Refugees in the Near East,Ghaza And Aman.
111. UNSCO – United Nations Statistical Office
112. UNSDRI – United Nations Social Defence Research Institute
113. UNU – United Nations University, Tokyo
114. UNV – United Nations Volunteers, Bonn.
23
115. UPO16 – Universal Postal Union, Berne, Switzerland
116. UPOV – International Union for the Protection of New Varieties of Plants, Geneva
117. WARDA – West Africa Development Association, Abidjan
118. WFC – World Food Council
119. WFP – World Food Programme, Rome
120. WHO – World Health Organisation, Geneva
121. WIPO – World Intellectual Property Organisation, Geneva
122. WMO – World Metrological Organisation, Geneva
123. WTO / OMT – World Tourism Organisation, Madrid
Other non-foreign sourcesThe MHA notification has been issued under section 2(1)(e)(ii). It includes 123 organisations,both from the UN system as also other international organisations.
This raises a question. What about those UN organisations which are not listed in the notification?Do these become foreign sources?
We don’t think so. Apparently, UN and its specialized agencies are automatically excluded fromthe definition of ‘foreign source’. Under section 2(1)(e)(ii), the Central Government is required tonotify only ‘other agencies’ as non-foreign.
Following is a list of UN offices and its agencies which are not included in the MHA notification.Please confirm their status with MHA before treating these as non-foreign.
1. ACABQ – Advisory Committee on Administrative and Budgetary Questions, New York (note 2)
2. Ad Hoc Inter – agency Meeting on Women – New York (note 3)
3. Administrative Committee on Coordination (ACC17) - New York (note 3)
4. CCAQ (FB) – Consultative Committee on Administrative Questions (Financial and BudgetaryQuestions) - Geneva (note 3)
5. CCAQ (PER) – Consultative Committee on Administrative Questions (Personnel and GeneralAdministrative Questions) - Geneva (note 3)
6. CCPOQ – Consultative Committee on Programme and Operational Questions - Geneva(note 3)
7. EDI – Economic Development Institute, Washington (note 4)
8. IACSD – Inter - agency Committee on Sustainable Development - New York (note 3)
9. IAMLADP – Inter - agency Meeting on Language Arrangements, Documentation andPublications, New York (note 3)
10. IBE – International Bureau of Education - Geneva (note 1)
11. ICC – International Computing Centre - Geneva (note 3)
16 As Notified. Nomally called UPU.17 It has several sub-committees also, such as on drug control, oceans and coastel areas, rural development,statistical activities, water resources, nutrition, etc.
24
12. ICJ – International Court of Justice - The Hague (note 2)
13. ICS – International Centre for Science and High Technology - Trieste, Italy (note 1)
14. ICSC – International Civil Service Commission - New York (note 2)
15. ILO / ITC – International Training Centre - Turin, Italy (note 1)
16. IMF Institute [part of IMF; exempt u/s 2(e)(ii)]
17. ISCC – Information Systems Coordination Committee - Geneva (note 3)
18. JIAMCATT – Joint Inter - agency Meeting on Computer - assisted Translation and Terminology- Geneva (note 3)
19. JIU – Joint Inspection Unit - Geneva (note 2)
20. JUNIC – Joint United Nations Information Committee - New York (note 3)
21. OOSA – Office for Outer Space Affairs - Vienna (note 2)
22. Organisational Committee of ACC - New York (note 3)
23. UNCC – United Nations Compensation Commission - Geneva (note 2)
24. UNCHS (Habitat) – United Nations Centre for Human Settlements - Nairobi (note 2)
25. UNCITRAL – United Nations Commission on International Trade Law - Vienna (note 2)
26. United Nations Board of Auditors - New York (note 2)
27. UNJSPF – United Nations Joint Staff Pension Fund - New York, USA (note 2)
28. UNSC – United Nations Staff College - Turin, Italy (note 2)
Notes:1. Specialized Agency of UN [sec. 2(e)(ii)]2. Part of UN: a Program [sec. 2(e)(ii)]3. Part of UN (Inter - Agency Coordination) [sec. 2(e)(ii)]
4. Part of World Bank [sec. 2(e)(ii)]
25
Foreign Sources18
There are agencies which have names similar to UN agencies. This sometimes causes confusion.The list provided here includes some names of such organizations. It also includes names ofother NGOs / agencies which would be treated as a foreign source under FCRA.
This is merely an illustrative list. There are probably hundreds of other sources which would allbe foreign.
Also remember that some of the grants from Indian Agencies such as CAPART, Concern IndiaFoundation, National Foundation for India, CRY – Child Relief & You, IGSSS, etc. may becovered under FCRA.
1. Academic Council on the United Nations System (note 5)
2. Action Aid, UK (note 6)
3. Advocates for Youth, USA (note 3)
4. Aga Khan Foundation, New Delhi / Switzerland (note 2)
5. ALM International, USA (note 3)
6. Asia Foundation, USA (note 3)
7. Asia Society, USA (note 3)
8. Asian Relief, USA (note 3)
9. BRAC, Dhaka (note 3)
10. British Airways (note 4)
11. Business Council for the U.N., USA (note 3)
12. Canadian International Development Agency – CIDA (note 2)
13. CARE International, USA (note 5)
14. Caritas Internationalis (International Confederation of Catholic Charities) (note 6)
15. Catalyst for Women, USA (note 3)
16. Catholic Relief Services - United States Catholic Conference, Inc. (note 6)
17. Childhelp USA, USA (note 3)
18. Childreach, USA (note 3)
19. Children Incorporated, USA (note 3)
20. Children International, USA (note 2)
21. Children’s Aid International, USA (note 2)
22. Children’s Critical Care Alliance, USA (note 3)
23. Children’s Defense Fund, USA (note 3)
24. Children’s Mercy Fund, USA (note 3)
25. Children’s Survival Fund, USA (note 3)
18 Based on AccountAble 41: Foreign Sources
26
26. Children’s Wish Foundation Intl., USA (note 3)
27. Christian Aid (note 2)
28. Christian Children’s Fund, Inc. (note 6)
29. Christian Record Services, USA (note 3)
30. Christian Relief Services, USA (note 2)
31. Church World Service, Inc. (note 6)
32. Commonwealth Human Ecology Council (CHEC) (note 6)
33. Community Aid Abroad (CAA), Australia (note 2)
34. Compassion International, USA (note 2)
35. Concern Worldwide (U.S.), Inc., USA (note 3)
36. Conservation International Fdn., USA (note 3)
37. Council of Europe (note 7)
38. DANIDA, New Delhi / Denmark (note 2)
39. David Livingstone Missionary Fdn., USA (note 3)
40. Defenders of Wildlife, USA (note 3)
41. DFID (earlier called ODA), UK (note 2)
42. Diakonia, Sweden (note 2)
43. Direct Relief International, USA (note 2)
44. Earth Island Institute, USA (note 3)
45. Earthjustice Legal Defense Fund, USA (note 3)
46. Environmental Action Foundation, USA (note 3)
47. European Commission (Directorate-General XIII) (note 7)
48. European Union (note 7)
49. EZE, Germany (note 2)
50. Families International, USA (note 3)
51. Food for the Hungry, USA (note 3)
52. Ford Foundation, USA (note 2)
53. Foreign Embassies, all
54. Foreigners (whether living in India or abroad)
55. Foundation for the Support of the United Nations, Inc. (note 5)
56. Freedom From Hunger, USA (note 2)
57. Friends of the Earth, USA (note 3)
58. Fund for an Open Society, USA (note 3)
59. Fund for Animals, USA (note 3)
27
60. Fund for Peace, USA (note 3)
61. G7 Support Implementation Group - Moscow, Russia (note 7)
62. Gifts In Kind International, USA (note 2)
63. Global 2000 (note 5)
64. Global Fund for Women (note 6)
65. Greenpeace Fund, USA (note 3)
66. Habitat for Humanity International, USA (note 3)
67. Heifer Project International, USA (note 2)
68. Helen Keller International, USA (note 3)
69. HelpAge International (note 5)
70. Heritage Foundation, USA (note 3)
71. Hewlett Packard (note 4)
72. Hunger Project, USA (note 3)
73. IBM (note 4)
74. Institute of International Education, USA (note 3)
75. InterAction: American Council for Voluntary International Action, USA (note 3)
76. INTERMON (note 6)
77. International Air Transport Association (IATA) - Geneva, Switzerland and Montreal, Canada(note 3)
78. International Christian Aid (note 2)
79. International Committee of the Red Cross (ICRC) - Geneva, Switzerland (note 3)
80. International Cooperative Alliance (note 5)
81. International Council for Adult Education (ICAE) (note 5)
82. International Council of Voluntary Agencies (ICVA) (note 5)
83. International Council of Women (note 5)
84. International Council on Social Welfare (note 5)
85. International Federation of Associations of the Elderly (FIAPA) (note 5)
86. International Federation of Business and Professional Women (note 5)
87. International Federation of the Red Cross and Red Crescent Societies - Geneva, Switzerland(note 3)
88. International Federation Terre Des Hommes (note 6)
89. International Finance Corporation (IFC), Washington (note 1)
90. International Fund for Animal Welfare, USA (note 3)
91. International Institute for the Unification of Private Law (Unidroit) Rome, Italy (note 7)
92. International Institute of Rural Reconstruction, USA (note 3)
28
93. International Movement ATD Fourth World (note 5)
94. International Organization for Migration (IOM) - Geneva, Switzerland (note 7)
95. International Organization for Standardization (ISO) - Geneva, (note 5)
96. International Organization of Employers (note 5)
97. International Save the Children Alliance (note 5)
98. International Social Security Association (ISSA) (note 5)
99. International Youth and Student Movement for the United Nations (ISMUN) (note 5)
100. Inter-parliamentary Union - Geneva, Switzerland (note 7)
101. Just Say No International, USA (note 3)
102. Local Initiatives Support Corporation, USA (note 3)
103. Lutheran World Federation (note 6)
104. MacArthur Foundation (note 2)
105. Make-A-Wish Fdn. of America, USA (note 2)
106. MAP International (note 3)
107. Microsoft (note 4)
108. Miserior (note 2)
109. Motorola (note 4)
110. Muslim World League (note 5)
111. Netherlands Organization for International Development Cooperation (note 6)
112. Nippon International Cooperation for Community Development (note 6)
113. NORAD (note 2)
114. NOVIB (note 2)
115. Organisation for Economic Co-operation and Development (OECD) – Paris, France (note 7)
116. Organization for International Economic Relations (IER) (note 6)
117. Organizations and Women’s Groups of German Associations, E.V. (note 6)
118. Overseas Development Council, USA (note 3)
119. Oxfam (America), Boston (note 6)
120. Oxfam (United Kingdom and Ireland) (note 6)
121. Oxfam Hongkong (note 2)
122. Partners of the Americas, USA (note 3)
123. Pathfinder International, USA (note 3)
124. Pearl S. Buck Foundation, USA (note 3)
125. People-to-People International, USA (note 3)
126. PLAN International, USA (note 2)
29
127. Population Action International, USA (note 2)
128. Priority One International (note 3)
129. Project Concern International, USA (note 3)
130. Project Cure, USA (note 3)
131. Project Hope, USA (note 3)
132. Resources for the Future, USA (note 3)
133. Save the Children Federation, USA (note 2)
134. SOS – Kinderdorf International (note 6)
135. SOS Drugs International (note 6)
136. Swedish International Development Agency (Sida) (note 2)
137. Swiss Aid (note 2)
138. Swiss Agency for Development and Cooperation (note 2)
139. Terre Des Hommes (note 2)
140. U.S. Committee for Refugees, USA (note 3)
141. U.S. Committee for UNICEF, USA (note 3)
142. U.S. Olympic Committee, USA (note 3)
143. UN Association of the U.S.A., USA (note 3)
144. Unitarian Universalist Service Committee, USA (note 2)
145. United Children’s Fund, USA (note 3)
146. United Way of America, USA (note 3)
147. USAID, USA (note 2)
148. USO (United Service Organizations), USA (note 3)
149. Wildlife Preservation Trust Intl., USA (note 3)
150. Women’s International Democratic Federation (note 5)
151. World Assembly of Youth (WAY) (note 5)
152. World Concern, USA (note 3)
153. World Education, USA (note 3)
154. World Emergency Relief, USA (note 3)
155. World Federation of UNESCO Clubs, Centres and Associations (note 6)
156. World Federation of United Nations Associations (WFUNA) (note 5)
157. World Learning Inc., USA (note 3)
158. World Mercy Fund, USA (note 3)
159. World Neighbors, USA (note 3)
160. World Resources Institute, USA (note 3)
30
161. World Trade Organization (WTO) - Geneva, Switzerland (note 7)
162. World University Service (note 6)
163. World Vision International (note 6)
164. World Wide Fund for Nature International (note 5)
165. World Young Women’s Christian Association (note 6)
166. Worldwide Network - Women in Development and Environment (note 5)
Notes:1. IFC is legally independent of the World Bank, and therefore, not exempt from FCRA2. International NGO / Funding Agency3. Foreign NGO/ Agency4. Multinational Corporation5. International NGO / Funding Agency; has General Consultative status with UNO6. International NGO / Funding Agency; has Special Consultative status with UNO7. International organization with member states
31
70.7
8
96-97 97-98 98-99 99-00
55.4
5
43.1
9 70.7
6FPPI
Profiles of Top FC Donors19
The yearly MHA (Ministry of Home Affairs) report on foreign contribution gives a list of the top25 donors. It also gives the amount given by them. If you combine these for last four years(96-97 to 99-00), total of 39 such names emerge.
Who are these people? What kind of work do they support? The MHA report does not sayanything on this. Therefore, a brief profile of each agency has been prepared from varioussources.
The problem of double countingIn some cases, the amounts disbursed by parent Agency do not apparently match thosereported by the Indian branch. What could be the reason for this? We believe that some of theNGO partners show the grant as ‘first receiver’ in their FC-3. The Indian branch of the Agencyalso reports this amount independently in its FC-3. This results in double counting. This problemcan be solved if the NGO partners report these amounts as ‘second or subsequent receiver’.
Please also read “Souces and Caution” on page 1. It provides a summary of the limitations onthis analysis.
1. Foster Parents Plan International" Based in Warwick, Rhodes Island, USA " Founded in 1937 " Grants to Indian NGOs: Rs.70.78crores, 55.45 crores, 43.19 crores, 70.76 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annualgrowth in India disbursement: – 0.01 % " www.plan-international.org " www.childreach.org
The international network of Foster Parents Plan InternationalInc. (FPPI) has 13 member organisations in Australia, Belgium,Canada, Denmark, Finland, France, Germany, Japan, Korea,Netherlands, Norway, Sweden, UK, and USA. The USA memberis also called Childreach.
FPPI is commonly known as PLAN International20 . It is aninternational humanitarian, child-focused development organisation.It attempts to link people21 in the US with needy children, familiesand communities in about 40 developing countries in Africa,
Asia, South America and Central America, including the Caribbean.
Programme focus is on health, education, livelihood and environment. As of June 1999, the totalnumber of children being assisted worldwide was 11.6 lakhs. Out of these, about 90,000 childrenare supported by US sponsors and donors. Specific assistance to individuals22 in 98-99 cameto US$ 140 million (Rs.588 Crores).
Indian counterpart – Foster Parents Plan International23 is registered in New Delhi and Indiandisbursement is mainly routed through this.
19 Based on AccountAble 68, 74, 75: Profiles of Top FC Donors20 FPPI’s US member is also named Plan International USA Inc. d.b.a. Childreach. ‘d.b.a.’ means ‘doingbusiness as’.21 Called sponsors22 This represents assistance released directly by FPPI (source: IRS form 990 for year ending June ’99).23 Also see ‘2. Foster Parents Plan International’ on page 45
32
CCF
24 EZE and three other German protestant organisations (SO – Service Overseas, KED – ChurchesDevelopment Service, FMS – Federation of Missionary Societies in Germany) have recently merged intoa new organisation called EED – Evangelische Entwicklungs Dienst (Church Development Service). Thefifth protestant organisation, BFW – Bread for the World, did not merge into EED.25 Literally, ‘Evangelist Central Office for Development Assistance’. The German abbreviation ‘e.v.’ standsfor ‘eingetragener verein’, i.e. registered association.26 In Germany (and five other OECD countries), the Government collects a special tax called ‘Church Tax’along with income tax. In Germany, this tax (called Kirchensteuer) comes to about 8-9% of the income tax.It is collected only from tax-payers registered with one of the main churches (such as Catholics, Lutheransor Protestants). These funds are used for charitable and religious activities across the world. In 1999, thechurch tax came to about DM 17 billion (~Rs. 39,100 crores).27 China
2. EZE" Registered in Bonn, Germany " Founded in 1962 " Grantsto Indian NGOs: Rs.49.36 crores, 59.03 crores, 55.03 crores, 49.50crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growthin India disbursement: 0.09% " www.ekd.de/agked/ezee.html
EZE24 stands for Evangelische Zentralstelle fur Entwicklungshilfee.v.25 . It means Protestant Association for Cooperation inDevelopment. It supports development projects carried out bychurches, church related and non-governmental organisationsin Africa, Asia, and Latin America.
EZE is currently working in the field of Integrated RuralDevelopment, People’s Organisation and Education, Environment, Gender equity, etc. with mainfocus on Tribals, Dalits and Women.
Its funds come from German Government26, Churches Development Service and EuropeanUnion. In 1999, the total international disbursement was approx. DM 159 Million (Rs.365 Crores)and the ratio from these sources was 91:8:1.
EZE has disbursed approximately DM 4.2 billion to more than 7,500 projects in 80 countriesfrom 1962 to 1999. Disbursement to India is approx. 13 to 15% of total funding. It is one ofthe largest FC donors in India.
3. Christian Children’s Fund" Registered in Richmond in the state of Virginia, USA " Foundedin 1938 " Grants to Indian NGOs: Rs.56.52 crores, 64.78 crores,42.67 crores, 44.30 crores in 96-97, 97-98, 98-99, 99-00respectively " Annual growth in India disbursement: – 7.8%" www.christianchildrensfund.org
Christian Children’s Fund was started to help the orphans of theSino27 -Japanese War. It is working for nearly 25 lacs children inUS and 31 countries of Africa, Asia, Eastern and Central Europe,Latin America and Caribbean.
It provides long-term sustainable assistance to poor children around the world regardless ofrace, creed, nationality or gender. Funds are raised through sponsorship of children from USA(75%) and other countries (25%).
Total international programme grants were $ 93.9 million (Rs.394 crores) for the year 1998. Outof this, around 10 to 15% is disbursed to India.
CCF’s Indian branch – Christian Children’s Fund Inc. is registered under FCRA in Bangalore andin New Delhi.
33
ActionAid
31.4
2
96-97 97-98 98-99 99-00
42.4
7
48.0
5 58.8
1
35.1
4
43.7
8
48.9
3
Missio
58.6
6
28 Missio is a Latin word which means ‘mission’.29 The web-site provides a sampling of three projects in Lunglei (Mizoram), Wayanad (Kerala), andJalpaiguri (West Bengal).30 Formelry part of Indonesia. Now separated after a civil war.31 Actionaid India, based in Bangalore. See ‘6. Actionaid’ on page 4632 Charity Commission for England and Wales maintains a register for charitable and voluntary organisationsin UK. We could not find an exact match for Maharishi Ayurved Trust in this register. The register does showan organisation with a similar name: “The Maharishi Ayurved Disease-Free Society Trust”, based inBedfordshire, UK.33 Also see ‘1. Maharishi Ved Vigyan…(MVVVV)’ on page no.44
4. Missio" Based in Germany " Grants to Indian NGOs: Rs.58.66 crores, 48.93crores, 43.78 crores, 35.14 crores in 96-97, 97-98, 98-99, 99-00respectively " Annual growth in India disbursement: – 15.7%" www.missio-aachen.de/
Missio28 is a Catholic missionary organisation. Its formal name isInternational Katholische Missionswerk missio e.v. It works mainlywith Church organisations in India29 , Pakistan, East Timor30 , China,Philippines, Liberia, Ghana, Tanzania, Sudan and Rwanda.
Its international network has members in Aachen and München(Germany), Australia, Belgium, Brazil, Frankreich (France), Netherlands, Poland, Québec, Spain,Toronto (Canada), Uruguay, USA and Venezuela.
5. ACTIONAID" Based in London, UK " Registered as Company limited by guarantee" Also registered with Charity Commission for England and Wales" Grants to Indian NGOs: Rs.31.42 crores, 42.47 crores, 48.05 crores,58.81 in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth inIndia disbursement: 23.24% " www.actionaid.org
It is operating in 20 countries of Asia, Africa, South and CentralAmerica. Total disbursement in these areas in 1999 was about £33million (Rs.221 crores).
Out of this around 15 to 20% is disbursed to India. Most of theIndian disbursement is routed through its Indian branch31. Actionaid
mainly works directly in field, except in India, where it provides grants to other NGOs.
Main programme emphasis is on improving quality of life of children, families and poor communities.The approach is integrated development of community.
6. Maharishi Ayurved Trust32
" Based in UK " Grants to Indian NGOs: Rs.32.09 crores, 31.42crores, 51.82 crores, 60.06 crores in 96-97, 97-98, 98-99, 99-00respectively " Annual growth in India disbursement: 23.24%" www.maharishi-india.org/
Maharishi Ayurved Trust is part of a global group of institutionsassociated with Maharishi Mahesh Yogi. The group focuses onapplying Vedic Technologies in the field of education, health,management, architecture, agriculture and construction in projectsaround the world.
Indian counterpart – Maharishi Ved Vigyan Vishwa Vidyapeetham33 is registered in AndhraPradesh.
34
7. Kinder Not Hilfe" Based in Germany " Founded in 1959 " Registered charitableassociation " Member of the Diaconic Services of the EvangelicalChurch in the Rhineland, Germany " Grants to Indian NGOs: Rs.40.02crores, 46.31 crores, 33.43 crores, 43.76 crores in 96-97, 97-98, 98-99,99-00 respectively " Annual growth in India disbursement: 3.02 %" www.kindernothilfe.de
Kinder Not Hilfe means ‘help for children in need’. Main area ofemphasis is basic education, vocational training, nutrition, clothingand medical care to children. It also supports parents of thesechildren. It supports about 1,20,000 children in 25 countries mainlyin India, Philippines, Brazil, Chile, Ethiopia and South Africa. Its partners are mainly Churches,congregations or Christian organisations.
The donation income of Kinder Not Hilfe in Germany was about DM 82.9 million (Rs.190 crores)in the year 1999.
8. World Vision International" Based at Monrovia in California, USA " Founded in 1950 " Grants to Indian NGOs: Rs.35.04crores, 37.55 crores, 38.83 crores, 51.93 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annualgrowth in India disbursement: 14.01% " www.wvi.org " www.worldvision.org
World Vision International is a Christian ministry. It has fund raisingoffices in 12 countries in North America, Europe and the Far East.Funds are raised mainly through child-sponsorship.
It supports 4,500 projects in 94 countries across the world. Itsprogrammes include transformational development, emergency relief,promotion of justice, public awareness and witness to Jesus Christ.It views itself as working with the poor and oppressed to promotehuman transformation, seek justice and bear witness to the goodnews of the kingdom of God. Christian education is included in
project activities whenever appropriate and desired by the community.
Total worldwide programme grants in 1997-98 and 1998-99 were $350 million (Rs.1,470 crores)and $397 million (Rs.1,707 crores). Grants to India34 came to about 3%.
Indian counterpart – World Vision of India35 is registered in Tamil Nadu and Indian disbursementis mainly routed through this.
9. MISEREOR" Based in Aachen, Germany " Founded in 1958 " Grants toIndian NGOs: Rs.38.64 crores, 39.76 crores, 35.52 crores, 34.31 croresin 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in Indiadisbursement: – 3.88% " www.misereor.org (International)" www.misereor.de (Germany)
34 World Vision International receives funds from World Vision Inc. (Federal Way, Washington, USA),among others. These funds are then passed on to counterparts such as in India. In 98-99 (Oct- Sep), WorldVision International disbursed $11.22 million (~Rs.48 crores) to India (source: IRS form 990).35 Also see ‘4. World Vision of India’ on page 45
35
MISEREOR36 works in cooperation with KZE37 , under the direction and responsibility of theGerman Catholic Bishops’ Conference. It supports development projects based on the principleof “help towards self-help”, regardless of ethnicity, gender, creed or nationality.
MISEREOR raises funds in three main ways : direct donations, from the German Dioceses, andfrom the German Government through KZE38. Together these came to about DM 297 million. Outof this, it donated DM 280 million (Rs.641 crores) to various projects.
MISEREOR receives about 4,000 applications a year. In 1999, it supported 1,699 developmentprojects in over 100 countries of Africa, Asia and Latin America. Out of this India received DM30 million (Rs.69 crores39).
Main partners in India are IGSSS40 and Caritas India41 . These agencies in turn make grants forsmall-scale projects.
10. Manos Unidas Committee" Based in Barcelona, Spain " Grants to Indian NGOs: Rs.19.72 crores, 19.89 crores, 41.49 crores,49.54 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in India disbursement: 35.94%" www.manosunidas.org
Manos Unidas is a Catholic non-governmental organisation formedin 1960 to fight against poverty, hunger, disease, andunderdevlopment. In 1978, it acquired full legal and canonicalpersonality and came to be known as ‘Manos Unidas’42.
Manos appears to be an important agency in Spain, as it takesup almost 32% of Spain’s total contribution to India. India is alsoan important area for Manos Unidas, as it supports 223 projectsin India out of a total of 271 projects in Asia. Worldwide, itsupported 947 projects in 64 countries in year 2000. In the year2000, its total funding to projects across the world came to~Rs.185 crores (6,406 million pesetas). In 2001, this rose to~Rs.195 crores (6,772 million pesetas). These funds were raised from a variety of sources,including individuals, parishes, as also the SECIPI43 and the City Councils.
11. Ford Foundation" Established in 1936 " Based in New York, USA " Grants to Indian NGOs: Rs.19.77 crores, 26.49crores, 26.59 crores, 48.12 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in Indiadisbursement: 34.52% " www.fordfound.org
The Ford Foundation is a private, non-profit, philanthropic organisation. Its funds are derived frominvestment portfolio gifted by Henry and Edsel Ford (Ford Motor Company). The Foundation’s
36 Full name in German is ‘Bischöfliches Hilfswerk MISEREOR e.V.’. It means ‘The German CatholicBishops’ Organisation for Development Cooperation’.37 Full name in German is ‘Katholische Zentralstelle für Entwicklungshilfe e.V.’. It means ‘The GermanCatholic Central Agency for Development Aid’.38 DM 124 million, DM 25 million, DM 148 million respectively. KZE funds come from the German Churchtax.39 Figures taken from Misereor Annual Report for 1999 on its web-site. These may not tie up with FC fundsreported as received in India due to a variety of reasons. For example, some NGOs may report funds asreceived directly from KZE.40 Also see ‘16. IGSSS ‘ on page 4941 Also see ‘15. Caritas India ‘ on page 4942 A Spanish phrase meaning ‘United Hands’43 Spanish official agency
36
investment portfolio was valued at $11.8 billion (~Rs.51,000 crores)at the end of fiscal year 1999.
It has provided slightly more than $10 billion (Rs.47,000 crores44 )in grants and loans over the years. Funds allocated to programmeactivities45 in 1998 and 1999 were $517 million (Rs.2,170 crores)and $578 million (Rs.2,500 crores) respectively.
Ford Foundation operates in Africa, the Middle East, Asia, LatinAmerica and Russia through 15 overseas offices. It has beenworking in India since 1952 from the South Asia regional officein New Delhi.
Ford has wide-ranging programme interests including community development, asset building,peace, social justice and education, media, arts, culture and encouragement of philanthropy.
12. Inter Church Coordination Committee" Based in Netherlands " Founded in 1964 " Grants to Indian NGOs: Rs.25.30 crores, 23.02crores, 25.86 crores, 29.36 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in Indiadisbursement: 5.09% " www.icco.nl " www.antenna.nl/icco
ICCO is one of four co-financing organisations in the Netherlands.Main source of ICCO funds is NEDA (Netherlands DevelopmentAssistance). It also receives some funds from European union andprivate sources. ICCO works on behalf of a large number ofProtestant churches46 , which are also represented on its board.
It supports programme in about 69 countries in Africa and theMiddle East, Asia and the Pacific, Latin America and the Caribbean,Central and Eastern Europe. Annual disbursement in year 1999was NLG 184 million (Rs.368 crores), for over 800 projects. Itsmain emphasis is on poverty related programmes (62%).
ICCO works through church and non-church organisations in these countries. Its grants rangefrom Rs.60,000 to Rs.10 crores.
13. Oxfam (India) Trust" Based in Oxford, UK " Registered with Charity Commission forEngland & Wales " Grants to Indian program: Rs.20.30 crores,20.38 crores, 18.72 crores, 39.17 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in India disbursement: 24.5%" www.oneworld.org/oxfam
Basic objective is to provide relief of poverty, sickness anddistress in any part of world, with a primary focus on India.
Also see Oxfam (India) Trust in ‘Profiles of Top FC Receivers’on page 48.
44 At current exchange rates45 Primarily grants to organizations and individuals, direct charitable activities and programme support46 ICCO’s cooperation partners are MDO/Churches in Action; Woord en Daad; OREON; ZOA Refugeecare;TEAR fund; Protestant Christian Churches; Young Management; Doe Wel (“Do Good”, deaconry of theReformed Congregations in the Netherlands); ICS; ZZG; Interservice Netherlands; Aids Fonds; Foundationfor Christian Education; Passage; Fund for Hope for Children
37
14. Christian Aid" Based in London, UK " Founded in 1945 " Registered with CharityCommission for England and Wales " Grants to Indian NGOs: Rs.20.33crores, 19.47 crores, 22.31 crores, 35.41 crores in 96-97, 97-98, 98-99,99-00 respectively " Annual growth in India disbursement: 20.32%" www.Christian-aid.org.uk
Christian Aid started in 1945 as ‘Christian Reconciliation in Europe’.In 1949 it became an integral part of the British Council of Churches.In 1964 the organisation changed its name to Christian Aid after itsbest-known source of income, Christian Aid Week, which began in 1957. Since the reorganisationof the Council of Churches in 1991, Christian Aid has been a separate legal entity, but remainsin close relationship with it.
It is mainly funded by churches and government agencies of UK and Ireland. Total donationincome in 1999-2000 came to £41.4 million (~Rs. 290 Crores). It operates in 60 countriesthrough 16 overseas offices including India. Main emphasis is on empowering people anderadication of poverty.
15. Age of Enlightenment Trust" Based in UK " Grants to Indian NGOs: Rs.27.68 crores, 40.43crores, 26.46 crores in 97-98, 98-99, 99-00 respectively. Figures for 96-97 not available " Annual growth in India disbursement: – 2.23%
No specific information found on the internet.
16. IPPF" Based in London, UK " Founded in Bombay in 1952 " Registeredwith Charity Commission for England and Wales " Grants to IndianNGOs: Rs.22.13 crores, 21.45 crores, 20.98 crores, 18.07 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in Indiadisbursement: – 6.53% " www.ippf.org
IPPF (International Planned Parenthood Federation) was foundedby the volunteer leaders of national family planning associationsof eight countries - India, Germany, Hong Kong, the Netherlands,Singapore, Sweden, the United Kingdom, and the United Statesof America.
IPPF now links national autonomous Family Planning Associations (FPAs) in over 180 countriesworldwide. These associations are committed to promote the family planning and reproductivehealth, irrespective of race, creed, political belief, gender, or age.
IPPF also campaigns locally, regionally and internationally, through policy makers, opinionleaders, professionals and the media to increase support for above.
Indian counterpart – Family Planning Association of India (FPAI) is registered in Mumbai, andIndian disbursement is mainly routed through this.
38
97-98
97-98
17. Foundation Vincent Ferrer" Based in Spain " Grants to Indian NGOs: Rs.34.60 and 45.54crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 notavailable
No specific information found on the internet.
18. Bilance" Based in Netherlands " Grants to Indian NGOs: Rs.15.23 crores,18.77 crores, 23.46 crores, 20.96 crores in 96-97, 97-98, 98-99, 99-00respectively " Annual growth in India disbursement: 11.23% " http://antenna.nl/bilance " www.cordaid.nl
A Catholic development organisation, it was earlier called Cebemoand was renamed in 1996 as Bilance. Main source of funds is thegovernment of the Netherlands, the European Union and privatefundraising in the Netherlands. Bilance has supported communitiesin more than forty countries in Africa, Asia, Latin America, andCentral and Eastern Europe.
In January 2000, Bilance, Memisa, Caritas the Netherlands andVastenaktie merged into ‘Cordaid’, which brings all aspects ofdevelopment cooperation under one roof. Major areas where Cordaidplans to work are emergency aid, poverty alleviation and healthcare in developing countries.
19. USAID" Based in USA " Founded in 1961 " Grants to Indian NGOs:Rs.42.79 crores, 27.21 crores in 97-98, 98-99 respectively. Figures for 96-97 and 99-00 not available " www.usaid.gov
USAID is an acronym for The U.S. Agency for InternationalDevelopment. This is an Independent US Federal GovernmentAgency that handles foreign assistance and humanitarian aid toadvance the political and economic interests of the United States.Programmes include environmental and sustainable economic growthin developing countries.
In 99-00, USAID received 6,720 million US$ in budget support anddonations. This is equivalent to around Rs.30,250 crore.
20. Christoffel Blinden Mission" Based in Bensheim, Germany " Grants to India program: Rs.21.62 crores, 20.53 crores, 18.91crores in 96-97, 97-98, 99-00 respectively. Figures for 98-99 not available " Annual growth in India
disbursement: – 4.37% " www.cbmi.de
CBM has completed 90 years of services and is now called CBMInternational. Its member associations are in Austria, Australia,Belgium, Canada, Germany, Switzerland, UK, and USA.
It is working mainly for blind and eye patients and otherwisedisabled people in 109 developing countries through 1095 projects.Total international project budget in 1998 was DM 7.22 Cr. Of this,India received DM 91 lakhs.
Indian counterpart – Christoffel Blinden Mission is registered inKarnataka and Indian disbursement is mainly routed through this.
39
Leprosy Mission
22.1
9 28.2
8
97-98
21. Gospel for Asia" Based in USA " Grants to India program: Rs.26.93 crores, 32.62crores in 96-97, 99-00 respectively. Figures for 97-98 and 98-99 notavailable " Annual growth in India disbursement: 6.6% " www.gfa.org
Gospel for Asia is a Christian missionary organisation registered inUSA. The mission of Gospel for Asia is “to reach the un-reachedof Asia with the Gospel of Jesus Christ and fulfill the GreatCommission through recruiting, training, sending and assistingqualified laborers to win the lost and to plant local churches inpartnership with the body of Christ”.
Indian counterpart – Gospel for Asia is registered in Kerala and Indian disbursement is mainlyrouted through this.
22. Opere Don Bosco" Based in Italy " Grants to Indian NGOs: Rs.19.02 crores, 19.91crores, 19.22 crores in 96-97, 97-98, 99-00 respectively. Figures for 98-99not available " Annual growth in India disbursement: 0.35%" www.donbosco.de
John Bosco (1815-88) from Italy, commonly known as “Don Bosco”,is a Christian Saint and founder. He made young people thepsychological, spiritual and organisational center of his life andactivity. Don Bosco’s example and educative method has inspireda gospel lifestyle among many.
The organisation supports various schools, oratories and youth centers, technical and professionaltraining centers, parishes, foreign missions, and activities in the realm of mass media and socialcommunications.
23. Missio Prokur" Based in Germany " Grants to Indian NGOs: Rs.15.33 crores, 17.19crores, 20.36 crores in 97-98, 98-99, 99-00 respectively. Figures for 96-97 not available " Annual growth in India disbursement: 15.24%
No specific information available on the internet.
24. The Leprosy Mission" Based in UK " Grants to India program: Rs.22.19 crores, 28.28crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 notavailable " www.leprosymission.org
The Leprosy Mission is a part of International Christian Charity,UK. It runs clinics, hospitals and community based programs.
Indian counterpart – Leprosy Mission Trust is registered in NewDelhi and Indian disbursement is mainly routed through this.
40
22.3
7
20.1
CHI
18.3
7 26.2
9
Plan Intl.
97-98
25. Bread for the World" Based in Germany " Grants to Indian NGOs: Rs.18.45 crores,16.04 crores, 13.57 crores in 96-97, 97-98, 99-00 respectively. Figuresfor 98-99 not available " Annual growth in India disbursement: – 9.73%" www.breadworld.com (USA) " www.brotfuerdiewelt.de (Germany)
Bread for the World is a Christian organisation, and is legally apart of the “Diakonisches Werk der EKD” in Germany. Bread forthe World supports church-related and non-confessional NGOs inpoor countries. It also serves as their advocate in Germany andother industrialized countries.
Bread for the World and its partners in poor countries encourage the empowerment of the poorthrough more than 2,000 projects and programs per year.
26. Plan International" Founded in 1937 as Foster Parents Plan for Children in Spain. Renamed as Plan International in1950 " Based in London, UK " Registered with Charity Commission for England & Wales " Grantsto India Program: Rs.18.37 crores, 26.29 crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-
98 not available " www.plan-international.org
Plan International is an International network with 13 memberorganizations in Australia, Belgium, Canada, Denmark, Finland,France, Germany, Japan, Korea, Netherlands, Norway, Sweden,UK, and USA. The international head office is in UK.
Plan International aims at bringing constructive lasting change tothe lives of children in need all over the world. Today it operatesin 42 countries for benefit of over 10 lakhs foster children. Sourcesof its funds are sponsorship, official funding (DFID, European
Commission, etc.), and individual donations and legacies. Total disbursement in 1999 was £1.36Cr. – of this around 15 to 20% is disbursed to India.
27. Children House International" Based in the State of Utah, USA " Founded in 1975 " Grants to Indian NGOs: Rs.22.37 crores,20.1 crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 not available" www.childrenshouseinternational.com
Children House International (CHI) specializes in internationaladoption. It makes the adoption process as “pain free” and asunderstandable as possible.
CHI provides help for adoption through each step of the paperwork,immigration and naturalization process, state requirements,country legalization requirements, and ultimately, country of choicerequirements. It has agents in each country who provide supportthrough the entire process.
It has been working in India for last 20 years and hundreds of children have been placed withadaptive families. CHI is also working in Russia, Romania, Moldova, Bulgaria, China, Bolivia,Guatemala, Peru, the Marshall Islands, and Vietnam.
41
22.7
1
15.3
4
Amritanandmayi
28. Manos Unidas Afonso TED" Based in Madrid, Spain " Grant made Rs.16.77 crores, 22.75 croresin 96-97, 97-98 respectively. Figures for 98-99 and 99-00 not available" www.manosunidas.org " www.mansunides.org
No definite information available on the web. May be associatedwith Manos Unidas Committee, discussed on page 35.
29. Lutheran World Federation" Based in Geneva, Switzerland " Founded in 1947 " Grants to India program: Rs.17.46 crores,21.06 crores in 96-97, 99-00 respectively. Figures for 97-98 and 98-99 not available " Annual growth inIndia disbursement: 6.45% " www.lutheranworld.org
Lutheran World Federation (LWF) is a global union of Christianchurches of Lutherans. LWF has about 131 member Lutheranchurches in nearly 72 countries.
LWF is involved in activities that promote Christian unity andharmony. It also provides humanitarian support and grants toactivities like environment, landmines, human rights, refugees, andactivities like development & education. About $8 Crores aredisbursed in these countries annually, for implementing variousprojects and relief work.
Indian counterpart – Lutheran World Service-India is registered in West Bengal (Kolkata) andIndian disbursement is mainly routed through this.
30. Maharishi Education Foundation" Based in U.K. " Grants to India program: Rs.38.22 crores in 99-00. Figures for 96-97, 97-98, 98-99 not available
Maharishi Education Foundation is part of a global group of institutions associated with MaharishiMahesh Yogi.
No specific information found on the internet.
31. Mata Amritanandmayi Centre" Based in San Roman in the state of California, USA " Grants toIndia program: Rs.22.71 crores, 15.34 crores in 98-99, 99-00respectively. Figures for 96-97 and 97-98 not available" www.ammachi.org
Mata Amritanandmayi Centre is associated with MataAmritanandmayi Devi47 . In the USA, it is classified as a ‘church’48
and hence exempt from filing annual return with IRS (Form 990).
16.7
7 22.7
5
Manos Unidas Afonso
47 See ‘5. Mata Amritanandmayi Mission’ on page 4648 Any place of worship is technically called a church under US Tax law.
42
17.4
4 20.5
7HIVOS
Its Indian parent – Mata Amritanandmayi Mission is registered in Kerala and funds are mainlyrouted through the parent body.
32. HIVOS Foundation" Based in Netherlands " Grants to India program: Rs.17.44crores, 20.57 crores in 98-99, 99-00 respectively. Figures for 96-97and 97-98 not available " www.hivos.nl/Engels/index.htm
Hivos operates through three regional offices at Harare (Zimbabwe),San Jose (Costa Rica), and Bangalore (India) to serve SouthernAfrica, Central America, and South Asia. Main emphasis of itsprogram is on economic self-reliance, culture, arts, gender, womenand development, sustainable development, human rights, andAIDS.
Majority of Hivos funds come from Dutch Govt. In 1998 Hivos provided financial aid to over 750partner organisations (1997: over 700) in Africa, Asia and Latin America. Hivos spent 106.8million guilders on their initiatives (compared with 98.5 million in 1997).
Hivos is also a member of Eurostep, an alliance of 23 European development agencies with asecular background.
Indian counterpart – HIVOS is registered in Karnataka and Indian disbursement is mainly routedthrough this.
33. The Save the Children Fund" Based in London, UK " Company limited by guarantee " Registered with Charity Commissionfor England & Wales " Grants to India program: Rs.16.77 crores, 17.26 crores in 96-97, 99-00respectively. Figures for 97-98 and 98-99 not available " Annual growth in India disbursement: 0.96%
" www.savethechildren.net/ " www.oneworld.org/scf" www.scfuk.org
The Save the Children Fund is a secular organisation, mainlyworking for welfare of children in about 60 countries. Annual programbudget was about £5.7 Cr. in 1997 and £5.6 Cr. in 1998.
It is also a member of the International Save the Children Alliance(ISCA), an association of autonomous, non-profit, non-sectarian,voluntary organisations working throughout the world for thebetterment of children, their families and their environment. It hasabout 30 member countries like Australia, Canada, France, Italy,Japan, Netherlands, Sweden, USA, etc.
Indian counterpart – The Save the Children Fund is registered in New Delhi and Indian disbursementis mainly routed through this.
34. General Conf. of 7th day Adventists" Based in USA " Grants to India program: Rs.17.89 crores, 15.43crores in 96-97, 99-00 respectively. Figures for 97-98, 98-99 not available" Annual growth in India disbursement: – 4.81% " www.adventist.org
Seventh Day Adventist Church (SDA) is a 140-year-old ProtestantChristian denomination. Its members believe that Christ will returnsoon in person. Their mission is to proclaim the gospel to all people.They pursue this mission worldwide through preaching and teachingthe message of the Bible.
43
In 1999, SDA World Church raised $1,606 million49 as tithe and offerings. It gave away $159million to 3,615 projects in 124 countries through its donor agency, ADRA50 . It also added 1.09million members, or a new member every 29 seconds. A new church was organised every 5hours51 . It ran 166 hospitals, 5,846 normal schools and 1,10,229 Sabbath schools52 worldwide.
Indian counterpart – Services Association of Seventh Day Adventists Pvt. Ltd. is registered inTamil Nadu as a company and Indian disbursement is mainly routed through this. By 30-Jun-01, SDA had 1,397 churches and 5.21 lakh members in India.
35. SOS Kinderdorf International" Based in Austria " Grants to India program: Rs.23.55 crores in 99-00. Figures for 96-97, 97-98, 98-99 not available " http://www.sos-childrensvillages.org " www.sos-kd.org
Started in 1949 by Hermann Gmeiner. He built the first SOS Children’s Village in Imst, Austriaand named it the “House of Peace” 53. By 2002, SOS Villages was operating in 131 countries.
In 1999, SOS raised € 180 million. This is equivalent to about Rs.864 crores. Its Indian memberassociation is SOS Children’s Village of India in New Delhi. Indian disbursement is mainlyrouted through this.
36. ZEH" Based in Germany " Grants to Indian NGOs: Rs.21.12 crores in 99-00. Figures for 96-97, 97-98, 98-99 not available
No specific information found on the internet.
37. Zentralstelle Fur Entwickshilfe" Based in Germany " Grants to Indian NGOs: Rs.19.14 crores in 97-98. Figures for 96-97, 98-99 notavailable
No specific information found on the internet.
38. Soka Gakkai International" Formed in 1975 " Based in Japan " Grants to India program: Rs.18.05 crores in 97-98. Figuresfor 96-97, 98-99, 99-00 not available " www.sgi.org
Soka Gakkai International (SGI) began in 1930 as an educators group, called the Soka KyoikuGakkai (Value Creating Education Society). It is an international Buddhist association with over12 million members from 76 constituent organisations in 181 countries and territories. SGI’shumanitarian assistance efforts are based on the long-standing principles of Nichiren Buddhism.
Its Indian counterpart – Bharat Soka Gakkai is registered in New Delhi and the Indian disbursementis mainly routed through this.
39. Bergita PIR" Based in Austria " Grants to Indian NGOs: Rs.16.86 crores in 96-97. Figures for 97-98, 98-99 and99-00 not available
No specific information found on the internet.
49 About Rs.7,226 crores50 Adventist Development and Relief Agency International51 www.adventist.org/worldchurch/factsandfigures.html52 Religious schools53 Original goal of Hermann Gmeiner was to provide a family, a house, a village to the orphans of war andabandoned children.
44
MVVVV
40.3
96-97 97-98 98-99 99-00
56.5 64
.4 68.1
Profiles of Top FC Receivers54
The yearly MHA55 report on foreign contribution gives a list of top 25 receivers. It also gives theamounts received by them. If you combine the lists for last four56 years, 38 such names emerge.
Who are these people? What kind of work do they carry out? The MHA report does not sayanything on this. Therefore, a brief profile of each organization has been prepared from othersources. However, there are two important points regarding this:
1. Identity: Multiple FCRA registrations may exist due to various reasons. These organisationsmay be totally independent, part of the same group or branches of the same organisation.Society Registrars do not verify whether organisations with similar names exist in otherstates before registering a society. It is not necessary that each of the branches will receiveFC funds independently. Often, the funds are received centrally and then passed on tobranches.
2. Caution: Profiles of the receivers have been compiled from various sources, including theInternet. We hold out no warranties for the accuracy or fairness of the information. Pleaseverify the information on your own before arriving at any decisions. We have also avoidedthe use of religious honorifics. This is not intended as disrespect to the religious beliefs ofany person.
1. Maharishi Ved Vigyan…(MVVVV)" Registered in Andhra Pradesh " Received Rs.40.3 crores, 56.5crores, 64.4 crores and 68.1 crores in 96-97, 97-98, 98-99, 99-00" Annual growth rate: 19.1% " www.maharishi-india.org
This is part of a global network of institutions working on MaharishiMahesh Yogi’s vision. The group is mainly working on health,spiritual, educational matters based on Hindu Vedic culture.
MVVVV (Maharishi Ved Vigyan Vishwa Vidyapeetham) runs acollege in NOIDA, near Delhi. Another member of the network isthe Maharishi Ayurved Trust, UK. Then again, there is the Maharishi Global Development Fundin New York. The Fund raised Rs.63 crores in 1998. On 31st December 1998, its assets (mainlyinvestments, pledges and bank balances) were valued at Rs.2,400 crores.
In 96-97, four FC-3 were filed with similar names:
1. Maharishi Veda V V V Peetham, Andhra Pradesh
2. Maharishi Ayurveda Prathisthana, Delhi
3. Maharishi Gandharva Ved Vishwa Vidyapeth, Delhi
4. Maharishi Mahila Education Society, Delhi
Of these four, the first one’s receipts are included in top 25 category.
54 Based on AccountAble 64, 65: Profiles of Top FC Receivers55 Ministry of Home Affairs56 96-97 to 99-00
45
World Vision
33.9 35
.2 39.9 55
.1
SSSCT
47.7
42.9
39.8 50
.2
FPPI
35.9 44
.3 42.9
63.7
2. Foster Parents Plan International" Registered in Delhi " Received Rs.35.9 crores, 44.3 crores, 42.9crores and 63.7 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 21.1% " www.plan-internaional.org/international/about/where/india.html
Commonly known as Plan International. It started in UK in 1937.Working in India since 1979. The International network raisesfunds in USA, Canada, Europe, UK and Australia. Plan is asecular grant-making agency with a focus on deprived children.It raises funds through sponsorship but works with the communityas well. It works with 16 NGOs in 17 states and nearly 80,000children in India benefit directly.
3. Sri Sathya Sai Central Trust" Registered in Andhra Pradesh " Received Rs.47.7 crores, 42.9crores, 39.8 crores and 50.2 crores in 96-97, 97-98, 98-99, 99-00" Annual growth rate: 1.7% " www.sathysai.org " http://saionline.org/service_projects/sathya_sai_central_trust.html
Hindu religious-spiritual organisation built around Sri Sathya SaiBaba. Is involved in social and charitable work, mainly aroundPuttaparthi ashram in Andhra Pradesh.
In 96-97, six FC-3 were filed with similar names:
1. Sri Sathya Sai Central Trust, Andhra Pradesh
2. Shri Sathya Sai Health, Karnataka
3. Shri Sathya Sai Trust, Karnataka
4. Sri Sathya Sai Books & Publication Trust, Andhra Pradesh
5. Sri Sathya Sai Institute of Higher Learning, Andhra Pradesh
6. Sri Sathya Sai Medical Trust, Andhra Pradesh
Of these six, the first one’s receipts are included in top 25 category.
4. World Vision of India" Registered in Tamilnadu " Received Rs.33.9 crores, 35.2 crores,39.9 crores and 55.1 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 17.5% " www.worldvisionindia.org " www.worldvision.org
World Vision India is a Christian humanitarian organisation. Itworks throughout India on relief, rehabilitation and developmentprograms. It is part of the World Vision International, which startedin 1950.
The Indian organisation was started in 1976. Main source of fundsis World Vision, USA. In recent years, the Indian office has alsostarted raising funds in India.
In 96-97, seven FC-3 were filed with similar names:
1. World Vision of India, Tamilnadu
2. World Vision of India, Andhra Pradesh
3. World Vision of India, Maharashtra
4. World Vision of India, Meghalaya
46
CSI
23.3
24.7
22.2 29
.4
ActionAid
24.8 32
36.4 39.2
Amritanandmayi
34.3
51.6
53.1
5. World Vision of India, Nagaland
6. World Vision of India, Orissa
7. World Vision of India Delhi Branch, Delhi
Of these seven, the first one’s receipts are included in top 25 category.
5. Mata Amritanandmayi Mission" Registered in Kerala " Received Rs.34.3 crores, 51.6 croresand 53.1 crores in 97-98, 98-99, 99-00. Figure for 96-97 not available" Annual growth rate: 24.4% " www.ammachi.org
The mission was started in Kollam in 1979. It is associated withMata Amritanandamayi Devi, who is a Hindu Satguru57 . Themission is mainly involved in spreading her teachings but hasalso undertaken several charitable and educational projects,including an orphanage, colleges, hospitals, housing for widows,etc.
In 98-99, two FC-3 were filed with similar names:
1. Mata Amritanandamayi Mission, Kerala
2. Mata Amritnandmayi Math, Maharashtra
Of these two, the first one’s receipts are included in top 25 category.
6. Actionaid" Registered in Karnataka " Received Rs.24.8 crores, 32 crores,36.4 crores and 39.2 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 16.5% " http://actionaidindia.org/
Actionaid is a secular grant-making Agency. It started working inIndia in 1972. It is registered as the branch office of ActionaidUK58 . It raises funds in UK and other European countries throughsponsorship of children. However, the program approach isintegrated development of the community. In India, it has alsoinitiated other efforts such as Books for Change, Praxis and Partners
in Change.
In 98-99, two FC-3 were filed with similar names:
1. Action Aid, Karnataka
2. Action Aid Karnataka Project, Karnataka
Of these two, the first one’s receipts are included in top 25 category.
7. CSI Council for Child Care" Registered in Karnataka " Received Rs.23.3 crores, 24.7 crores,22.2 crores and 29.4 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 8%
CSI59 Council for Child Care is involved in supervision of hostels,orphanages, schools and centers for the handicapped. Main officeis in Bangalore.
57 Spiritual teacher58 A foreign company limited by guarantee59 Church of South India
47
18.9
27.4
26.5
16
CASA
17.3 20
.1 24.3
34.1
SOS Children Village
16.9 20
.3
28
31.7
8. SOS Children’s Village of India" Registered in Delhi " Received Rs.16.9 crores, 20.3 crores, 28crores and 31.7 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 23.3% " www.soscvindia.org
This is a secular organisation providing shelter and care to childrenall over India. Working in India since 1964. It runs 32 ‘villages’,which are communities for orphaned or abandoned children. Alsodoes fund-raising in India. It is a member of SOS KinderdorfInternational.
In 96-97, five FC-3 were filed with similar names:
1. SOS Children’s Village of India, Delhi
2. SOS Balgram Village, Delhi
3. SOS Children Village of India, Tamil Nadu
4. SOS Children’s Village Association, Haryana
5. SOS Children’s Village Jaipur, Rajasthan
Of these five, the first one’s receipts are included in top 25 category.
9. CASA" Registered in Delhi " Received Rs.17.3 crores, 20.1 crores, 24.3crores and 34.1 crores in 96-97, 97-98, 98-99, 99-00 " Annual growthrate: 25.4%
Churches’ Auxiliary for Social Action is a Christian grant-makingagency, but also carries out direct programs such as Food forWork. It receives food material under PL-480 from USAID for thiswork.
10. Tibetan Children’s Village" Registered in Himachal Pradesh " Received Rs.18.9 crores, 16 crores, 27.4 crores and 26.5 croresin 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 11.9% " www.tibetfund.org/" http://members.trivergent.net/~mepstein/tcvhome/
Tibetan Children’s Village was registered as a society in 1972.It is an integrated educational community for destitute Tibetanchildren in exile. It has established six branches in India extendingfrom Ladakh in the North to Bylakuppe in South, with over14,000 children under its care. It is also a full member of SOSKinderdorf International.
In 96-97, five FC-3 were filed with similar names:
1. Tibetian Children Village, H.P
2. Tibetan SOS Children’s Village, J & K
3. Tibetian Children Edn. & Welfare Fund, H.P
4. Tibetan Children’s Welfare Association, Karnataka
5. SOS Tibetan Children Village, Karnataka
Of these five, the first one’s receipts are included in top 25 category.
48
RDT
34.2
45.4
7th Day Adventists
19.6
27.5 33
Missionaries of Charity
14.8 17.3
29.2
20.1
Oxfam (I) Trust
15.3 15.9
34.6
21.9
96-97 97-98 98-99 99-00
11. Oxfam (India) Trust" Registered in Delhi " Received Rs.15.3 crores, 15.9 crores,21.9 crores and 34.6 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 31.2% " www.netecho.com/oxfam/" www.oneworld.org/oxfam/
Oxfam India Trust is the program arm of Oxfam, Great Britain.It is a secular grant-making agency, working in India for severaldecades. Also involved in advocacy and disaster relief. It hasseveral offices all over India.
12. Missionaries of Charity" Registered in Kolkata " Received Rs.14.8 crores, 17.3 crores,29.2 crores and 20.1 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 10.7% " www.tisv.be/mt/indmt.htm
Founded by Late Mother Teresa in 1950. A Christian missionaryorganization focusing on relief work with the sick, poor, childrenand women. Branches all over the world and in India. Noinformation available on global fund-raising, though an article inSTERN60 speculates that this may be Rs.450 crores annually.
In 96-97 and 97-98 two FC-3 were filed with similar names:
1. Missionaries Of Charity, West Bengal
2. Missionary Of Charity, West Bengal
In 98-99, two FC-3 were filed with similar names:
3. Missionaries Of Charity, West Bengal
4. Missionary of Charity Brothers, West Bengal
Of these four, the first one’s receipts are included in top 25 category.
13. Seventh Day Adventists" Registered in Tamil Nadu " Received Rs.19.6 crores, 27.5crores and 33 crores in 96-97, 98-99 and 99-00. Figure for 97-98 notavailable " Annual growth rate: 18.9%
Registered as a company called Services Association of SeventhDay Adventists Pvt. Ltd. Seventh Day Adventists are a 200-year-old Christian group who believe that Christ will return inperson. Please also see ‘34. General Conference of 7th dayAdventists’ on page 42 for more informations.
14. Rural Development Trust" Registered in Andhra Pradesh " Received Rs.34.2 crores and45.4 crores in 98-99 and 99-00. Figures for 97-98 and 98-99 notavailable.
Based in Ananthapur. Headed by Fr. Vincent Ferrer. Establishedin 1969. Funded by religious funding agencies and others (seewww.indiangos.com/rdt).
60 Issue dated 10th September 1998
49
IGSSS
14.8 17
18.8 23
96-97 97-98 98-99 99-00
42.8
27.1
26.1
14.4
32.3
96-97 97-98 98-99 99-00
Caritas
14.7 15.5 16
.8
31.8
15. Caritas India" Registered in Delhi " Received Rs.14.7 crores, 15.5 crores,16.8 crores and 31.8 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 29.3% " www.caritasindia.org
Set up by the Catholic Bishops Conference of India. ‘Caritas’means charity. It has twelve regional offices in India. It is part ofthe Caritas International (www.caritas.org). Caritas views itself asa socio-pastoral expression of the Church and is engaged infighting poverty and for the rights of the poor.
16. IGSSS" Registered in Delhi " Received Rs.14.8 crores, 17 crores, 18.8crores and 23 crores in 96-97, 97-98, 98-99, 99-00 " Annual growthrate: 15.8%
IGSSS stands for Indo-German Social Service Society. This is asociety established in India in 1961. It has regional and branchoffices throughout the country. Receives funds mainly fromMisereor, Germany. Working on tribal development and genderissues. Makes grants to NGOs across India.
17. Gospel for Asia" Registered in Kerala " Received Rs.26.1 crores, 14.4 crores and32.3 crores in 96-97, 97-98 and 99-00. Figures for 98-99 not available" Annual growth rate: 7.4% " www.gfa.org
Gospel for Asia is a Christian missionary organisation based inUSA. It was founded in 1979. Its aim is to spread the teachingsof Jesus Christ. It also trains and supports missionaries andsets up churches. In 1999, it raised Rs.70 crores. Of this, aboutRs.52 crores was spent on direct program.
The Indian branch receives around ¼ of the total budget. Pleasealso see ‘21.Gospel for Asia’ on page 39.
18. SIFPSA" Registered in Uttar Pradesh " Received Rs.42.8 crores and 27.1crores in 97-98 and 98-99. No FC-3 filed in 96-97. Figure for 99-00 notavailable " Annual growth rate: –37% " www.sifpsa.org (underconstruction)
SIFPSA stands for State Innovations in Family Planning ServicesAgency. It has been working since 1994 in Uttar Pradesh on familywelfare and population control. It isworking in 15 districts and has funded
over 80 NGOs. It was set up and is mainly funded by USAID.
19. MYRADA" Registered in Karnataka " Received Rs.17.2 crores, 15.6 crores,15.2 crores and 19.4 crores in 96-97, 97-98, 98-99, 99-00 " Annualgrowth rate: 4.1% " www.myrada.org
17.2
15.6
15.2 19
.4
50
23.7 26
Leprosy Mission
16.9
33.2
SRM Foundation
14.7 17
.1
LKMMT
22.2
FPAI
21.6
21.2
MYRADA (Mysore Resettlement and Development Agency) is supported by 37 donors includingPlan International, SDC, NOVIB, CHF, EZE and the Government. It is based in Bangalore andworks mainly in Karnataka, Andhra Pradesh and Tamilnadu. It is involved in many activities,including micro-credit, watershed and education.
20. FPAI" Registered in Mumbai " Received Rs.22.2 crores, 21.6 croresand 21.2 crores in 96-97, 97-98, 98-99. Figure for 99-00 not available" Annual growth rate: – 2.3% " www.fpaindia.com
Family Planning Association of India was founded in 1949. It has39 branches and works all over India. Its main area of work isfamily planning and reproductive health. It is also involved in policy-making in these matters. It is a Founder Member of theInternational Planned Parenthood Federation, UK.
21. Lilavati Kirtilal Mehta Medical Trust" Registered in Maharashtra " Received Rs.14.7 crores and 17.1crores in 96-97 and 98-99. Figures for 97-98, 99-00 not available" Annual growth rate: 7.8% " www.lilavatihospital.com/about.htm
Has set up and runs the multi-super specialty Lilavati Hospital inMumbai with 300 beds. Also has an outreach program.
22. SRM Foundation of India" Registered in Delhi " Received Rs.16.9 crores and 33.2 crores in98-99, 99-00. Figures for 96-97 and 97-98 not available.
SRM Foundation was founded in 1978 by Maharishi Mahesh Yogi.The abbreviation SRM stands for ‘Spiritual Regeneration Movement’.
23. Leprosy Mission Trust of India" Registered in Delhi " Received Rs.23.7 crores and 26 crores in 98-99, 99-00. Figures for 96-97and 97-98 not available " www.leprosymission.org/india.htm
Part of The Leprosy Mission, which is an international Christiancharity started in 1874 and based in UK. Runs clinics, hospitalsand community-support programs.
In 96-97, 19 FC-3 were filed with similar names:
1. Leprosy Mission Trust India, Delhi
2. Leprosy Mission Health Edn. Trg. Centre, West Bengal
3. Leprosy Mission Hospital, Andhra Pradesh
4. Leprosy Mission Hospital, Delhi
5. Leprosy Mission, Uttar Pradesh
6. Leprosy Mission, West Bengal
51
22.2 24.2
CCF
12.3 15
.9
20
Campus Crusade
7. The Leprosy Mission Comprehensive H C U, Andhra Pradesh
8. The Leprosy Mission Home And Hospital, Punjab9. The Leprosy Mission Hospital, Andhra Pradesh
10. The Leprosy Mission Hospital, Andhra Pradesh11. The Leprosy Mission Hospital, Bihar
12. The Leprosy Mission Hospital, Uttar Pradesh13. The Leprosy Mission Incorporation With…, Andhra Pradesh
14. The Leprosy Mission Of India, Delhi15. The Leprosy Mission Purulia, West Bengal
16. The Leprosy Mission, Bihar17. The Leprosy Mission, Uttar Pradesh
18. The Leprosy Mission, Uttar Pradesh19. The Leprosy Mission, West Bengal
Of these 19, the first one’s receipts are included in top 25 category.
24. India Campus Crusade for Christ" Registered in Karnataka " Received Rs.12.3 crores, 15.9 croresand 20 crores in 97-98, 98-99, 99-00. Figures for 96-97 not available" Annual growth rate: 27.5% " www.ccci.org
Indian associate of Campus Crusade for Christ, Inc., which isbased in Orlando, USA. In 98-99, the US office raised aroundRs.1,600 crores through several affiliated organisations. It is anevangelistic organisation, working to promote Christianity in variousways, including through sports (Athletes in Action).
25. Christian Children’s Fund" Registered in Bangalore " Received Rs.22.2 crores and 24.2crores in 96-97 and 97-98. Figures for 98-99, 99-00 not available" www.christianchildrensfund.org
A secular grant-making agency with 114 projects in India. Partof an international network, with main fund-raising in USA. Fundsare raised through sponsorship of children, though work extendsto the entire community.
In 96-97, two FC-3 were filed with similar names:
1. Christian Children Fund Inc., Karnataka
2. Christian Children Fund Inc., Delhi
Of these two, the first one’s receipts are included in top 25 category.
26. BAPS" Registered in Gujarat " Received Rs.16.5 crores and 28.3crores in 96-97 and 99-00. Figures for 97-98 and 98-99 not available" Annual growth rate: 19.7% " www.swaminarayan.org/
Bochasanwasi Akshar Purusottam Sanstha (BAPS) is a Hindureligious organisation and part of the Swaminarayan sect. Alsoinvolved in charitable work.
52
AMG Int.
14.9
19.3
CTRC27. Central Tibet Relief Committee" Registered in Himachal Pradesh " Received Rs.14.9 crores and19.3 in 98-99 and 99-00. Figures for 96-97 and 97-98 not available" www.tibet.com/Paljor/ctrc.html
Headed by the Dalai Lama. CTRC (HH Dalai Lama Central TibetanRelief Committee) was registered as a society in 1981. It servesas the relief and development wing of the Central Tibetanadministration. It provides relief, rehabilitation as also social, culturaland economic support to the Tibetan refugees.
In 96-97, three FC-3 were filed with similar names:
1. H H Dalai Lama Central Tibetan Relief Committee, Himachal Pradesh
2. H.H. The Dalai Lama (H.P.) Foundation, Himachal Pradesh
3. His Holiness The Dalai Lamas Charitable…, Himachal Pradesh
Of these three, the first one’s receipts are included in top 25 category.
28. Lutheran World Service - India" Registered in West Bengal " Received Rs.13.6 crores and 18.8crores in 96-97 and 99-00. Figures for 97-98 and 98-99 not available." Annual growth rate: 11.4%
Based in Kolkata. Works directly in the field. Linked to Departmentof World Service of the Lutheran World Federation (LWF) inGeneva (www.lutheranworld.org). LWF represents about 6 croreLutherans, who make up the largest evangelical ProtestantChurch. It spends about Rs.360 crores annually on relief andwelfare in 70 countries.
29. AMG India International" Registered in Andhra Pradesh " Received Rs.14.3 crores and17.7 crores in 96-97 and 97-98. Figures for 98-99, 99-00 not available" www.gospelcom.net/amg/
Part of AMG International, an American organization, which wasestablished in 1942. It started work in Greece; now works in 60countries.
AMG originally meant ‘American Mission to the Greeks’. In 1974,this was reworded as ‘Advancing the Ministries of Gospel’. AMGis involved in evangelization61 . At one point of time, it was accusedof proselytism62 in Greece.
The Indian branch was set up in 1970. It works mainly with leprosy patients and has alsoestablished an eye-hospital in Rajahmundry.
30. Maharishi Gandharvaved Vishwa Vidyapeetham (MGVV)" Registered in Uttar Pradesh " Received Rs.24.1 crores in 99-00. Figures for other years notavailable.
MGVV (Maharishi Gandharvaved Vishwa Vidyapeetham) is part of a network of institutionsinvolved in promoting the ideas of Maharishi Mahesh Yogi, a Hindu spiritual leader.
61 Spreading Jesus Christ’s teachings; converting to Christianity by preaching62 Religious conversion, often by inducement
53
31. Community Aid Sponsorship Program" Registered in Maharashtra " Received Rs.20.1 crores, in 96-97. Figures for other years notavailable.
One of the first partners of Plan International, with partnership dating back to 1980s. Alsoknown as CASP-PLAN. Also supported by USAID.
32. Bharat Soka Gakkai" Registered in Delhi " Received Rs.17.4 crores in 97-98. Figures for other years not available" www.sgi.org
Part of Soka Gakkai International. This is a religious association based in Japan, which iscommitted to spreading the values of Nichiren Buddhism.
33. The Assemblies of God Church" Registered in Kolkata " Received Rs.15.1 crores in 98-99. Figures for other years not available" www.missionofmercy.org " www.hillcrestchapel.com/missions/buntain/
Runs Churches, Hospital, 77 schools (sponsored by Mission of Mercy63 ) and Bible schools.Serves eleven states including the Northeast. ‘Assemblies of God’ is the largest PentecostalChurch and is viewed as a fundamentalist Protestant group. Active in evangelism. Headed byHuldah Buntain, an American missionary working in India since 1954. She is also co-founderof ‘Mission of Mercy International’.
In 98-99, eight FC-3 were filed with similar names:
1. The Assemblies of God Church, West Bengal
2. The Assembly of God Church, West Bengal
3. Assembly of God Church School (Hindi…), West Bengal
4. The Assembly of God Church School, West Bengal
5. The Assembly of God of North India, West Bengal
6. Assembly of God Hospital and Research Centre, West Bengal
7. Assembly of God Church Vocational School, West Bengal
8. Assembly of God Church Vernacular School, West Bengal
Of these eight, the first one’s receipts are included in top 25 category.
34. Watchtower Bible Tract Society of India" Registered in Maharashtra " Received Rs.14.6 crores in 97-98. Figures for other years notavailable " www.watchtower.org
Based in Lonavala, Pune. It is linked to The Watchtower Bible and Tract Society of New York,Inc. This is a legal organization in use by Jehovah’s Witnesses (www.jw-media.org).
Jehovah’s Witnesses is an evangelical organisation. Its members are probably best known fortheir person-to-person ministry. Each congregation tries to reach all the people in its neighborhoodwith a brief Bible message at least once a year. This is usually done by Witnesses visitingfrom door to door. Witnesses also talk to people on the streets, in parks and in other publicplaces – wherever someone can be found who has a spiritual interest and a few minutes to
63 A part of Bethesda Ministries of Colorado Springs, Colorado, USA
54
talk. If a Witness finds someone who is interested in learning more about the Bible, furtherdiscussions are arranged, or an appointment for a weekly home Bible study is made.
Since 1926, Jehovah’s Witnesses have printed 10 crore copies of the Bible in 34 languages.
35. ASSEFA" Registered in Tamilnadu " Received Rs.12.9 crores in 96-97. Figures for other years not available" www.gdrc.org/icm/assefa.html
Called Association for Sarva Seva Farms. Based in Chennai. Formed in 1969 as an agency tohelp people who received land under ‘Bhoodan’. Now works in six states on multiple issuesincluding credit, child labor, education, health, environment, etc.
36. Holistic Child Development of India" Registered in Delhi " Received Rs.12.7 crores in 97-98. Figures for other years not available.
Offices in Pune and Delhi. Involved in residential child care and community based programsfor children. Makes grants to other NGOs working on these issues. Programs mainly in NorthIndia.
Holistic Child Development of India was earlier a part of CNI64 Council for Child Care.
37. Indian Society of Church of Jesus Christ" Registered in Delhi " Received Rs.12.6 crores in 97-98. Figures for other years not available.
No specific information found on the internet.
38. Aga Khan Foundation" Registered in Delhi " Received Rs.11.2 crores in 96-97. Figures for other years not available" www.partnershipwalk.com/akf/akdn.htm
Established by Prince Aga Khan (49th Imam of Ismaili Muslims) in 1967. AKF is the Indianoffice of the main foundation, based in Geneva, Switzerland. It is also part of Aga KhanDevelopment Network. Provides grants and supports various development projects on health,education, rural development and enhancement of NGOs.
In 96-97, four FC-3 were filed with similar names:
1. Aga Khan Foundation, Delhi
2. Aga Khan Education Service India, Maharashtra
3. Aga Khan Health Service India, Maharashtra
4. Aga Khan Rural Support Programme (India), Gujarat
Of these four, the first one’s receipts are included in top 25 category.
64 Church of North India
Section II: ProceduresAll NGOs need either prior-permission or FCRA registration before they can accept foreigncontribution. However, getting this permission or registration is not so simple as it sounds. Andgetting FCRA registration may be the beginning of your problems, rather than the end.
In this section, we try to take you through the simple-complex procedures of FCRA. Simple-complex? Well, simple for those of you who have dealt with company law and exchange
ions, but extremely complex for most NGO people, whose only brush with bureaucracyave been the issue of a driving license!
ction includes the following chapters:
Prior Permission 57
FCRA Registration 63
regulatmay h
This se
55
Basics of FC-3 70
Intricacies of FC-3 75
Maintaining form FC-6 84
FCRA Fellowships 89
FCRA Penalties 93
‘Prior-permission’ is what you need, if you are an NGO (or a non-profit like a Hospital or aUniversity), want to accept foreign funds. However, if you are going to receive foreign fundsregularly, you should get ‘FCRA Registration’, so that you don’t have to apply for permissionagain and again.
Either way, you need to fill up form FC-3 each year, when you receive foreign funds. And if youhave FCRA registration, you have to file this form, even if you haven’t received any!
Filling up FC-3 can sometimes become quite complicated – this is dealt with under ‘Intricaciesof FC-3’. Then sometimes, you have to maintain a stock ledger in form FC-6. This happens ifyou have received foreign contribution in kind (blankets, rations, etc.).
You should read ‘FCRA Fellowships’, if you are a scholar and are receiving any stipend orscholarships from foreigners. You may also want to read this if you are not a scholar, but aregoing abroad for training or a study tour.
What happens if you fall foul of FCRA? Read all about it in a pleasant chapter titled ‘FCRAPenalties’. If that doesn’t sound very pleasant, then read AND follow all the other chapters…
56
57
Prior Permission1
Prior-permission is given to NGOs by FCRA department to accept foreign contribution on acase-by-case basis. This permission should be obtained before accepting the contribution.
When do you need it?An NGO would need prior permission in the following four situations:
" The NGO does not have an FCRA number (permanent FCRA registration);
" The FCRA number has been cancelled by the Government;
" The NGO has been asked to get prior-permission under section 10(b);
" The FCRA number is ‘frozen’ due to change in Governing Body2 .
ProcedureApply in FC-1AFor getting prior-permission, you have to file form FC-1A along with required documents.
Field InquiryIf your documents are complete, some one from the Intelligence Bureau will visit your mainoffice.
He may look at your accounts and ask questions from you and your neighbours. He may alsoinquire at the local Police Station or visit the field area.
He will then send a confidential report to FCRA Department at Delhi.
Reply from FCRABased on the report and other factors, the Department will either send you the permission letteror a rejection in 90 days. They may also ask for another 30 days’ time. The reply comes byregistered post.
Appeal against rejectionIf your application is rejected, try to identify the reasons for rejection. You can apply again also.
If you wish, you can also file an appeal against the rejection in the High Court within 60 daysof date of letter [sec. 21].
Common doubtsMore than onceYou can get prior-permission more than once. In fact, you can have two or more projects runningside-by-side under prior-permission.
Tailor-madeEach prior-permission is tailor-made. This means you can not use it for a different project orsame project under a different agency.
1 Based on AccountAble 33: Prior Permission2 See ‘Changes in office bearers’ on page 68
58
Joint grantsIf your project is being funded jointly by two or more Agencies, you can apply for both on oneform only. You will then get a prior-permission, which covers both.
Maximum AmountThere is no minimum or maximum limit for prior-permission. For example, there are cases whereprior-permission has been given for Rs.1 crore also.
However, FCRA Department is also generally reluctant to give large approvals under prior-permission. The bigger your proposal, the higher it will go for approval.
How earlyPrior permission can be obtained in the first year itself, even before the first year’s accountsare finalised. But this will happen only if the Department is fully satisfied about your credibilityand accountability.
Advance CreditIf you have already received the funds in your account by bank transfer, do not spend the moneytill you receive permission. If your application is rejected, you will have to return the funds.
Automatic permission?Many people think that permission is automatically granted if you don’t get a reply in 90 or 120days. This is not correct!
The Act says that your application must be disposed within 90 or 120 days. This means adecision must be taken within that time.
The Act does not say that this decision must be communicated within 90 or 120 days to theapplicant.
As a matter of practice, the Department always sends a reply. If you don’t get a reply, it maymerely mean that it has been returned undelivered, delayed in post or wrongly delivered. Pleasecheck with them.
Filing FC-3You have to file FC-3 at the end of each financial year (by 31st July). This will continue yearafter year till the time the FCRA funds you received are exhausted.
Filling up FC-1AIn form FC-1A3 there are 11 main items of information. Fill up the entire form in CAPITAL lettersonly.
1. BackgroundApplicant: Start with writing the Chief Functionary’s name in the blank space (‘I,……..’). Thismeans the person who is directly responsible for day to day running of the NGO.
A different person can also make this application. This person has to be an office bearer andshould have been authorized through a resolution of the Governing body.
(i) Name and address: Give the name and postal address of the NGO. The SIB officers willvisit this office to make inquiries. This may be different from your registered office.
3 See page 127 for form FC-1A
59
(ii) Registration details: Give details of your registration as a Society or a Trust here. Non-profit companies also need to give these details.
(iii) Nature of Association: This depends on the work you plan to do. If your main work isdevelopment, then you can just tick ‘social’.
Do not tick Hindu, Christian, Muslim, etc. unless yours is a religious association.
(iv) Aims and objects: This heading has two parts. First you should give all the main aimsand objects of the NGO. Secondly, give the objects and specific programs for which foreigncontribution is to be accepted and used (See ‘aims and objectives’ under ‘FCRA Registration’on page 65 for more on this).
(v) Governing Body: Details of all members of the Governing Body or Executive Council, etc.should be given in the table.
The table has eight columns. In column 3, give the name of father / husband. If the memberis an office bearer (President, Secretary, etc.), then say this in column 6. If one of the membersis related to an office-bearer, then say this (brother, husband, wife of...) in column 7.
2. ConvictionsHere the NGO has to provide details of convictions, etc. These should relate to one of themembers of Governing body listed in the previous table. Moreover, these convictions should berelated to their official duties or on a criminal charge. This means that if a person is convictedfor a traffic offense while going for a wedding, it need not be listed here.
This information is to be given where:
" A conviction has been made by a court;
" A conviction has not been made, but prosecution for some legal case has been launched; or
" The person has diverted or mis-utilised funds of this NGO or of any other NGO in the past.
3. Branch or AssociateSometimes foreign NGOs or Agencies set up a branch office in India. Clause (a) asks fordetails of their parent organization. Similarly, your NGO may have a sister NGO that alreadyhas FCRA registration. If yes, then you should give details of such sister NGO here.
Clause (b) applies if your NGO had FCRA registration earlier but this has been canceled dueto some violation.
Clause (c) applies if your NGO has been asked [under section 10(b)] to get prior- permissionfor each grant.
4. FCRA RegistrationThere are two clauses here. You may have applied earlier for FCRA registration. Give informationabout this under clause (i).
Clause (ii) is a little more complicated. Your NGO may have close links with another NGO (orits branch / unit), which has been refused FCRA registration. Or worse still, that NGO may havebeen prohibited from accepting foreign funds. You are asked to give this information here.
5. Prior-permissionPast Record: You may have received foreign contribution earlier under prior permission. Detailsof this should be given under 5(i)(a). Also give the date when you submitted the related FC-3 and accounts.
60
Amount Utilised: If you have already received funds under prior-permission this year, then youmay not have filed FC-3 so far. You should then prepare a report showing amount received,utilised (head-wise) and the unspent balance. This should be attached to form FC-1A.
Previous Violations: On the other hand, you may have accepted foreign contribution earlierwithout legal permission (by channeling, shadow-lending, legal holder, etc.). If you have, thengive full details here.
Remember that under the law you can get up to five years in prison for this!
6. NewspapersIs your NGO bringing out a newsletter? If yes, check whether it has been registered underPress and Registration of Books Act, 1867 (PRBA). If yes, then see whether it is registeredas a ‘newspaper’. If it is registered as a ‘newspaper’, then give details of registration here. Formore on this, see ‘Newspapers’ under ‘FCRA Registration’ on page 66.
7. Activities and AccountsActivities: You have to give a detailed report on the activities carried out in past three yearsby your NGO. Instead of this, you can also enclose a copy of your annual reports.
Often annual reports contain statement of thanks to individuals and collaborating NGOs. Someof these may mislead the FCRA department into thinking that you have received foreigncontribution illegally. Therefore, review the report carefully, and clarify this where necessary.
Accounts: A copy of the audited Balance Sheet, Income and Expenditure, and Receipts andPayments Account should also be given for last three years.
8 (i). How muchGive the nature (money, material, shares, etc.) and value of foreign contribution, which you willbe receiving. The donor’s consent letter should be attached to Form FC-1A.
How will you use this money or materials? Give the purpose and the geographical area as well.Please be specific as to the districts to be covered. This is important if you are working in asensitive area.
8 (ii). Project Proposal and BudgetA copy of the detailed proposal, which has been approved by the Agency, should be given. Alsoattach a copy of the approved budget. The budget should be reasonably detailed.
Sometimes, a nodal agency or network makes the grant. In such case, you will be getting themoney from another FCRA holder. This information, if required, should be given at 8(iii). In thiscase also, a copy of proposal and budget for your grant should be attached.
9. Bank AccountYou have to open and use a bank account exclusively for foreign funds. Give details of thisFCRA bank account here. These details include account number, name and address of thebank.
10. Details of foreign sourceWho will give you the grant? Where is their Head Office? Who is their chief functionary? Whoare their office bearers? All this information is to be given under 10(b). Avoid guesswork on this.Ask the donor agency for this information.
61
In case you are receiving the money from another FCRA holder in India, give information relatedto that NGO only. There is no need to give details of the ultimate source.
If you are getting the money from an embassy or Government agency (e.g. USAID), then thisshould be clarified under 10(c).
10A. Recommendation CertificateA recommendation certificate should be attached to the application. The format is given at theend of form FC-1A.
This certificate confirms that the NGO has been formed and registered. It also says that theorganisation is genuine and there is nothing against them. The area where the proposed projectwill be implemented is also required.
The total recommended budget of the project and the name of the donor is also to be givenin the certificate.
The District Collector of the area can issue this certificate. Alternatively, you can get it fromthe concerned Department of the State or Central Government.
11. Additional InformationYou can give any additional relevant information here. For example, if the money has beencredited in advance to your account, this must be stated here.
SigningThe person whose name was given as applicant on first page4 should sign the application form.This could be the chief functionary or an authorised office bearer. The rubber stamp of theassociation must be put when you sign.
The form has to be signed at two places, both on the last page. Date of the form is to be givenat two places: on first page and again on the last page.
Check-list of Documents to be attachedBefore you file the form, check whether the following have been attached:
! Recommendation certificate (see 10A above)
! Project proposal approved by the donor
! Budget approved by the donor
! Approval letter of the donor
! Activity report for past three years (or less if registered recently)
! Audited Accounts (Audit Report, Balance Sheet, Receipt and Payment Account, Incomeand Expenditure Statement) for past three years (or less if registered recently)
! Details of foreign contribution received and utilised this year5 .
CopiesYou should make two complete sets. But only one has to be sent to the FCRA. The othershould be kept on your office files.
4 See ‘Applicant’ on page 585 See ‘Amount Utilised’ on page 60
62
Send it to FCRAYou have to then send these to the Home Ministry at the following address:
The Secretary, Government of India,Ministry of Home Affairs,FCRA Division,9th Floor, Lok Nayak Bhawan,Near Khan Market, New DelhiPhone (Reception): 469 7018
You should send your papers by ‘Registered Post - Acknowledgement Due’. Retain the proof ofposting and acknowledgement card (when received back) carefully.
If you are having the form delivered by hand, make sure you get an acknowledgement, withrubber stamp, date and signatures.
63
FCRA Registration6
FCRA Registration means registration under Foreign Contribution (Regulation) Act, 1976. Thisis necessary, if an NGO wants to receive any funds, material, etc. from a ‘foreign source’.
Can you lose your registration?Yes. You may lose your FCRA registration in several ways. For example:
" FC-3 is not filed or gives false information;
" FCRA funds are passed on to another NGO which does not have FCRA registration orprior permission;
" FCRA funds are used for political or anti-national activities.
In such a case, the Government will issue a notification in the official Gazette. After that youwill be allowed to receive foreign contribution only through prior permission.
How to registerIn simple English, ‘registration’ means that your name is put on a list or a register. However,FCRA registration is a little more complicated.
FCRA Bank AccountFor receiving foreign funds, you should first open a separate, new bank account (savings orcurrent). The account can be opened with Indian funds7 . After this, make sure that you use thisaccount exclusively for foreign contribution (fresh or recycled).
Filing FC-8You should then fill up and file an application in form FC-8. Along with this form, you will haveto give several documents8 .
ScrutinyThe FCRA Department will review your application. If it is complete and satisfactory, FCRA willask the IB (Intelligence Bureau) for a report. Otherwise, they may ask you for additional details.
Field Enquiry and ReportSomeone from the LIB or SIB (Local or Subsidiary Intelligence Bureau) will visit your office andwork area and make inquiries. They may check to see how long you have been working,whether you have an office, and may also look at your account books. They will then submita report to the FCRA Department.
AcceptanceIf the report is satisfactory, your application will be accepted and you will be issued a registrationcertificate.
Registration CertificateThe certificate will show your FCRA registration number. Read the certificate carefully. It alsoincludes other important information regarding FCRA. A copy of the certificate also goes to yourbank.
6 Based on AccountAble 42: FCRA Registration7 Open the account with minimum deposit (normally Rs.500). This money will remain in the account till thebank account is kept open.8 See ‘Form FC-8’ on page 150
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Keep the certificate carefully. Laminate it if you wish. Also make extra xerox copies for donoragencies, which ask for it.
RejectionYour application can also be rejected under section 10. In that case, you will be asked to applyfor prior permission on a case-by-case basis.
Grounds for rejectionFor rejecting an application, the government has to be satisfied that the registration will be badfor any of the following:
" the sovereignty and integrity of India; or," the public interest; or," freedom or fairness of elections; or," relations with a friendly country; or," social or religious harmony.
How long will all this take?In the last two years, the procedure has been streamlined a little. In normal cases, theapplication is processed within four months to one year. Still, there are people who say that theyhave waited for 3-4 years without getting a reply.
AppealIf your application is rejected, you can either decide to settle for prior-permission on a case-by-case basis9 . Or you can appeal to the High Court in your state within 60 days [section 21(2)].For counting sixty days, start from the date of the order, not the date on which you receivedit.
Can the courts help?We do not have systematic information on how many cases of rejection have gone to courtand what happened then. However, some of the cases which have come up to court are listedbelow:
" CROSS, Hyderabad vs. Union of India (1987)
" AVARD vs. Union of India (1990)
" MARPU, Hyderabad vs. Union of India and others (1991)
" CISRS vs. Union of India (1994)
Common ProblemsFCRA registration is a long-drawn process. As there is only one central office at Delhi, follow-up is quite a problem for most NGOs. Reportedly, there are some practical problems whichpeople face in getting FCRA registration.
Only registered NGOsFCRA applies to unregistered organizations also. However, unregistered organizations (societies,trusts, etc.) are not given FCRA registration.
9 See ‘Appeal against rejection’ under ‘Prior Permission’ on page 57.
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Three yearsThe NGO should have been registered for at least three years before FCRA people will considertheir application.
No foreignersIf there are any foreigners on your Governing Board, your application is likely to be rejected.
No time frameThere is no time limit under the law on how long FCRA will take to process or register an NGOunder FCRA.
Reason for refusal?As discussed earlier, the FCRA Department can refuse registration on any one of the groundsgiven in section 10.
However, FCRA does not explain the reason for refusal of registration to the concerned NGO.The NGO therefore remains in the dark.
Filling up FC-8Form FC-8 has ten main headings and an undertaking. The entire form should be filled up inCAPITAL letters:
1. BackgroundStart with writing the Chief Functionary’s name in the blank space (‘I,……..’). This means theperson who is directly responsible for day to day running of the NGO.
(i) Name and address: Give the name and postal address of the NGO. The LIB10 officers willvisit this office to make inquiries. This may be different from your registered office.
(ii) Registration details: Give details of your registration as a Society or a Trust here. Non-profit companies also need to give these details. Unregistered NGOs can also apply but are notlikely to get FCRA registration.
(iii) Nature of Association: This depends on the work you plan to do. If your main work isdevelopment, then you can just tick ‘social’.
Do not tick Hindu, Christian, Muslim, etc. unless yours is a religious association.
(iv) Aims and objects: This heading has two parts. First you should give all the main aims andobjects of the NGO. Secondly, you have to give the objects and specific programs for whichforeign contribution is to be accepted and used.
Under the first sub-heading, summarize the main objectives of your association. These can betaken from the objects clause of your Memorandum of Association. A copy of the Memorandumand Bylaws of Society should be attached.
Filling up the second part of this clause is not easy. It is difficult to say which specific programyou will be running 10 years from now. This becomes tricky because each year you have toconfirm (in form FC-3) that you have spent the foreign contribution only for the purpose for whichit was registered under FCRA.
(v) Governing Body: The Governing Body normally has two types of members. Some hold anoffice (President, Secretary, etc.). These are called ‘office bearers’. Others do not hold any officebut are plain members of the Governing Body. Trustees are treated as office bearers.
10 Local Intelligence Bureau
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Details of all the members of the Governing Body or Executive Council, etc. should be givenin the table. The table has eight columns. In column 3, give the name of father / husband. Ifthe member is an office bearer (President, Secretary, etc.), then say this in column 6. If oneof the members is related to an office-bearer, then say this (brother, husband, wife of…) incolumn 7.
If the member is related to another member, then apparently there is no need to specify this– though of course you may, if you wish.
2. ConvictionsThese convictions may relate to any of the members of Governing body listed in the previoustable. Moreover, these convictions should be connected to the performance of their officialduties or for any criminal offence.
This information is to be given where:
" A conviction has been made by a court;
" A conviction has not been made, but prosecution for some legal case has been launched;or
" The person has diverted or mis-utilised funds of this NGO or of any other NGO in the past.
3. Branch or AssociateSometimes foreign NGOs or Agencies set up a branch office in India. This clause asks fordetails of their parent organization.
Similarly, your NGO may have a sister NGO that already has FCRA registration. If yes, thenyou should give details of such sister NGO here.
4. Prior-permissionPast Record: You may have received foreign contribution earlier under prior permission. Detailsof this should be given under 4(i)(a). You should also give information on when you submittedthe related FC-3 and accounts.
Previous Violations: On the other hand, you may have accepted foreign contribution earlierwithout legal permission (by channeling, shadow-lending, legal holder, etc.). If you have, thengive full details here.
Remember that under the law you can get up to five years in prison for this!
5. NewspapersIs your NGO bringing out a newsletter? If yes, check whether it has been registered underPress and Registration of Books Act, 1867 (PRBA). If yes, then whether it is registered as a‘newspaper’. If it is registered as a ‘newspaper’, then give details of registration here.
Normally anyone who brings out a registered newspaper can not receive any foreign contribution[section 4(1)(b)]. However, in 1987, the Government issued a notification relaxing this rule [F.# 11/ 21022/ 14(5)87-FCRA-1 dtd. 4.8.87].
According to this notification, even NGOs who bring out publications that look like newspaperscan receive foreign contribution. In some cases, NGOs which have registered their publicationas ‘newspaper’, may also receive foreign contribution. There are two conditions for this exemption.
Firstly, the publication should not be a newspaper as defined in section 1(1) of the PRBA.According to this, ‘a “newspaper” means any printed periodical work containing public news orcomments on public news’. This also means that under the law it should not be necessary to
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register it under chapter VA of the PRBA. If this is true, then it does not matter that thepublication has already been registered as a ‘newspaper’ under PRBA.
To prove this, you have to get a certificate from the Registrar saying that the publication fallsin ‘category B’.
Secondly, you also need to give a declaration to the FCRA department signed by the chieffunctionary. This declaration will have to be given each year (January-December), by 31stJanuary.
6. Earlier applicationsIf your NGO had applied earlier also for FCRA registration, then you should give the detailshere. These would include date on which your application was filed and reference of the lastletter you received from FCRA.
If you have not received any letter or the application is still pending, then say this at 6(d). Butif you were refused registration earlier, then say so at 6(c).
7. Activities and AreaActivities: You have to give a detailed report on the activities carried out in past three yearsby your NGO. Instead of this, you can also enclose a copy of your annual report.
Often annual reports contain statement of thanks to individuals and collaborating NGOs. Someof these may mislead the FCRA into thinking that you have received foreign contributionillegally. Therefore, review the report carefully, and clarify this where necessary.
Accounts: A copy of the audited Balance Sheet, Income and Expenditure, and Receipts andPayments Account should also be given for last three years.
Area of Operation: This should preferably include names of states covered by you. If you areoperating in a large state or in a region which is politically disturbed, specify the districts youare working in.
If you want, you can also give a note on socio-economic background of the region andparticularly the beneficiaries you are covering.
8. PoliticsIs your NGO politically active or connected with a political party? Then the Government mayhave issued a notification in the official gazette. This notification may say that your NGO isan organization of a political nature, even though it is not a political party.
If this has happened, then give details of the notification here. Under section 5, such NGOscan not be registered under FCRA but are given prior-permission on case by case basis.
9. Bank AccountGive details of the FCRA bank account here (see ‘FCRA Bank Account’ on page 63). Thesedetails include account number, name and address of the bank.
9A. Recommendation CertificateA recommendation certificate should be attached to the application. The certificate looks at thehistory of the organisation.
The Collector (or concerned Department of the State Government or Government of India)should certify that the NGO has been working in the area for past several years. The natureof their work should be mentioned. Finally, the certificate should also show how much moneyhas been spent on program activities in last three years. Administrative expenditure should notbe included.
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10. Additional InformationYou can give any additional relevant information here.
UndertakingThe revised undertaking is relevant only for those NGOs, which apply for FCRA registration inthe new form FC-8. It will not apply to those who had used the old form FC-8 (before 27-Dec-1996) while registering.
There are three items here which you need to understand before signing the form:
(i) Changes in society: If you change the name, address, registration, nature, aims or objectsof the association at any time, you have to inform the FCRA within 30 days.
(ii) Changes in office bearers: The office bearers of the NGO specified in form FC-8 become‘frozen’. This means that more than 50% of these office bearers11 should continue in office.
What happens if 50% or more of the office bearers change? You have to apply to FCRA forapproving the changes. This approval process may take 3-4 months or longer.
In the meanwhile, your FCRA registration will be suspended. You can not receive any foreigncontribution till the change is approved. For each grant you will have to apply for prior permission.
This clause has been introduced to prevent ‘sale’ of FCRA registered NGOs. However, it maycause problems for other NGOs also.
To reduce the nuisance, try to expand your Governing Body before applying for FCRA. Considerincreasing the number of office bearers to 10 or 12. After all, cabinets often have more than50 ministers!
(iii) Change in bank: If you change the FCRA bank or branch, you will have to apply to FCRAfor permission. This can be done on your letterhead. You will also need to give satisfactoryreasons for this change.
Sign and DateThe form has to be signed at two places by the Chief Functionary. Date of the form is to begiven on the first page itself.
However, before this is done, get all the necessary documents together. Some documents maynot be available readily and may take time.
Sending the formYou can send the completed form, along with all the documents and annexures to this addressby registered post (acknowledgement due). Only one copy is to be sent:
The Secretary, Government of India,Ministry of Home Affairs – FCRA Division,9th Floor, Lok Nayak Bhawan,Near Khan Market,New DelhiPhone (Reception): 469 7018
If you want to deliver the form personally, make sure you take an acknowledgement (with rubberstamp and date) at the counter. Also phone up to check the visiting hours, which may changefrom time to time.
11 For more on office-bearers see ‘Governing Body’ on page 65
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Check-list of Documents to be attachedThis form has been revised by Ministry of Home Affairs vide notification no. GSR 63 (E) andpublished in The Gazette of India – dated 24th January 2000. This revision provides forattaching a recommendation certificate with this form. All applications for registration filed after24-1-2000 should be in this form. Attach the following documents (one copy each) to yourapplication in form FC-8:
! Certificate from concerned District Collector/ Department of State Government/ Ministryor Department of Central Government
! Activity report for past three years (or annual reports for three years)
! Audited Statements of Account for past three years (Balance Sheet, Income andExpenditure, Receipts and Payments Account along with audit report)
! List of states or districts you will be working in
! Note on socio-economic background of the beneficiaries and of the region to be covered
If your NGO is a society, then also attach:! Certified copy of Registration Certificate issued by the Registrar of Societies
! Certified copy of Registration Certificate issued by the Charity Commissioner (in Gujaratand Maharashtra)
If your NGO is a Trust, then also attach:! Certified copy of registered Trust Deed
! Certified copy of Registration Certificate issued by the Charity Commissioner (in Gujaratand Maharashtra)
If your NGO is a non-profit company, then also attach:! Certified copy of Memorandum and Articles of Association
! Certified copy of the registration certificate issued by the Registrar of Companies
! Certified copy of the section 25 license issued by the Regional Director, Department ofCompany Affairs
If you are bringing out a ‘registered newspaper’ (meaning that you have registeredyour newsletter as a ‘newspaper’), then also attach:
! ‘Category B’ certificate issued by the Registrar of Newspapers
! Declaration12 in ‘Form X’ regarding newsletter
! A copy of the three latest issues of the newsletter
12 See ‘Declaration regarding newspaper/ newsletter’ on page 155
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Basics of FC-313
What is FC-3The Annual Return of Foreign Contribution
If a foreigner or foreign agency gives you any funds or material (including assets) as a grant,it is known as ‘foreign contribution’.
Form FC-3 is a disclosure of all such grants. It also gives details of utilisation of such funds.
Who should file FC-3FC-3 should be filed by organisations that are registered under FCRA or have obtained priorpermission to receive foreign funds. The form should be sent by registered post to:
The Secretary, Government of India,Ministry of Home Affairs,(Internal Security Wing, FCRA),9th Floor, Lok Nayak Bhawan,New Delhi (Phone: 469 7018)
Due DateEach year the form should be prepared for the period beginning 1st April to 31st March offollowing year. The form should be posted early to reach FCRA Department by 31st July.
File it Each YearIf you are registered under FCRA, you should file this form every year – whether you havereceived any funds that year or not. If you have not received or utilised any contribution, yourFC-3 will be filed as ‘Nil Return’.
If you have received foreign funds after getting prior permission, you should continue filing FC-3 till these funds are fully utilised.
FC-3 Form revised (July 2001)Form FC-3 has been revised four times since March ‘91. The latest revision was done in July2001 [MHA notification # G.S.R. 557(E) dated 26-Jul-01].
Filling the FormFill form FC-3 in triplicate at least. Two copies are for dispatch to FCRA and the third is for officerecord. Extra photocopies should be made later for dispatch to the funding agencies.
YearOn top of the form, give the year for which the form is being filled. For example, in case ofyear 2001-02, you will write “Account of foreign contribution of the year ending on 31st March2002”.
Heading 1: Association’s DetailsItem (i): Name and AddressFill the name and registered address of the association in block letters (CAPITALS).
13 Based on AccountAble 20: Filling Up Form FC-3 – Basics
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Item (ii): FCRA RegistrationFill the FCRA registration number and the date of registration at the top. This information istaken from the FCRA registration certificate.
Item (iii): Prior PermissionYou have to fill this if you are not registered under FCRA, but have taken specific priorpermission from FCRA for receiving foreign contribution.
Give the number and date of FCRA’s prior permission letter for this grant. If you have receivedmore than one grant during the year under two separate prior permission letters, give referenceof both the letters.
Item (iv): Nature of AssociationHere you should normally tick in front of ‘social’ or ‘educational’. If your association is any ofthe other, you should tick ‘Cultural’, ‘Economic’ or ‘Religious’, as the case may be.
Item (v): ReligiousIf you ticked ‘religious’ in item (iv), here you should also tick whether the association is ‘Hindu’,‘Muslim’, ‘Christian’, etc. Again, you should tick in front of the relevant option. If you tick‘others’, then you should write which religion (Bahai, Parsi, etc.)
Heading 1A: Interest, etc.Item (i): Foreign contributionShow total foreign contribution received during this year.
Item (ii)(a): Interest on FCRA bank accountShow interest credited by bank on the FCRA bank account here.
Item (ii)(b): Other interestShow interest on investments here. This includes fixed deposit receipts also.
Heading 2: Purpose-wise Receipt and UtilisationThis is the most important heading of form FC-3. Information to be provided under this headinghas been split into two heads: one for Cash and another for Kind14 .
All the information of previous balance available, receipts during the year, funds utilised andbalances at the end have to be segregated into cash and kind.
The table given under this heading has five main sections (columns):
! Purpose (column 2)
! Previous Balance (columns 3 – 4)
! Details of Receipts (columns 5 – 9)
! Utilisation (columns 10 – 11)
! Unspent Balance (columns 12 – 13)
14 Physical items or material
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Column 2: PurposeThis column gives a list of 56 ‘purposes’ for which the money may have been received andutilised. The last purpose (56th) is for activities, which may not be covered by the other 55.
Classifying your expensesSome objects in form FC-3 overlap each other. Still, this table helps FCRA Department analysethe flow of foreign funds into India. You should, therefore, try and choose the most specific itemwherever possible. For example, if you are providing some technical training to the villagers, thenthis should be classified under ‘Vocational/ technical training’ and not under ‘rural development’.
Also keep a copy of the worksheet showing how you have grouped your ledger heads to arriveat the figures in FC-3.
Columns 3, 4: Previous BalanceThe ‘previous year balance’ column is sub-divided into two: one shows the balance in cash andthe other shows balance in kind. In this column you have to show the closing balances (unspentbalances) brought forward from the previous year.
You will find these balances in your FC-3 of the previous year. If you do not have any openingbalance under a particular item, just say ‘Nil’.
Columns 5 to 9: ReceiptsThis section has several columns. There are three main sub-sections: ‘As first recipient’, ‘Assecond / subsequent recipient’ and ‘Total’.
First RecipientFor each receipt, check whether you have received it directly from the foreign donor or not. Ifyes, you will be known as ‘first recipient’. You will then show the particular receipt in the ‘firstrecipient’ columns.
Second RecipientIf you have received your funds through another FCRA registered NGO, then you become a‘second / subsequent recipient’. You should then show this receipt in the columns for ‘secondrecipient’.
Columns 5 and 7: Receipts in CashMost grants come in by cheque. However, some small donations may be in the form of currencyor coins. All such grants or donations should be shown in the ‘cash’ column (either column 5or column 7). Take the figure of receipt from your FCRA Receipts and Payments Account.
Columns 6 and 8: Receipts in KindSometimes donors give material or assets instead of funds. These are also foreign contribution.Such items may be vehicles, blankets, food, oil, medicine, computers, etc.
All such receipts have to be reported here at estimated value.
Column 9: Total ReceiptsThis column is a total of columns 5, 6, 7, and 8. Remember not to add up column 3 and 4 whenyou write the total here.
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Columns 10 and 11: Amount UtilisedThe funds utilised during the year should be shown in column 10. Pick up the figures from yourFCRA Receipts and Payments Account.
If you have received materials15 also, show the utilisation of these items in column 11 as utilisedin kind.
Columns 12 and 13: BalanceShow the unutilised balance for each item. This should be shown separately for cash and forkind.
Add Up the ColumnsNow add up each column and write the total of the column in the last row. The total of lasttwo columns (12 and 13) will give you the Total Unutilised Balance with you at the year-end.
Heading 3: Bank DetailsUnder FCRA rules16 , you can receive FCRA funds and keep them only in one separate bankaccount. This bank account number is also given in your FCRA registration certificate. This rulealso applies to prior-permission cases.
You should give your FCRA bank account17 number, name of the bank and address with PINcode (of the branch) here.
Heading 4: Donor DetailsGive the details of the donors (who have given foreign funds or materials) here. Donors are sub-divided into three categories:
(i) Institutional DonorsAll grant-making agencies (and other organisations, such as companies) fall into the categoryof Institutional Donors.
All grants, whether large or small, from such donors should be included here. Examples of suchdonors are Actionaid, Diakonia, CRS, CCF, Ford Foundation, Oxfam, SDC, Sida, etc.
Some Indian Agencies like CAPART or CRY may also give you funds from their FCRA account.In such a case, their grant should also be listed here.
Name and address of the donor should be written in column 3. Purpose of each grant is to begiven in column 4.
Each installment from the donor agency is to be listed separately along with purpose, date andamount.
Second RecipientIf you received funds as second recipient, these grants also have to be listed here. In sucha case, give the name and address of the Indian agency / NGO through whom you havereceived the funds. Particulars of the original donor do not have to be given.
15 You have to maintain FC-6 for these. See ‘Maintaining Form FC-6’ on page 84.16 Section 6 (1)(b), rule 8(1)(b)17 For practical reasons, you may need to open another bank account in the field area (and transfer FCRAfunds) for use over there. FCRA law does not allow this. However, in practice, sometimes FCRA authoritiesdo not object to this if the reasons are genuine.
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(ii) Large Individual DonorsIf you have received funds/ material which add up to more than Rs.1 Lakh in a year from anindividual (person) donor, then you should list such donors here. Name and address of suchdonors should be given in column 3.
In this case also, all installments should be listed separately. Give purpose, date and amountunder columns 4, 5 and 6.
(iii) Small Individual DonorsIf grants from an individual (person) donor add up to less than Rs.1 lakh in a year, the donoris known as ‘small individual donor’. Such donations should be shown here.
Heading 5: Country-wise ReceiptsAt the end, give a summary of the foreign contribution country-wise. Each country should beshown in a separate line. If you have received the funds from a foreign agency’s Indian Office,show the country where the Head Office is situated18 .
DeclarationThe form has to be signed only at one place (i.e. under the declaration statement) by the ChiefFunctionary. The seal (rubber stamp) of the NGO should also be put.
CA CertificateThis certificate should be given by a Chartered Accountant (preferably your auditor). He/sheshould indicate his/her name, address and registration number. He/she should also put the sealof his/her firm on the form. The same person should also sign the FCRA Receipts and PaymentsAccount and FCRA Balance Sheet in the same manner.
FC-3 AnnexuresUnder rule 8 (2), the two accounting statements should be annexed to the form FC-3. Theseare: FCRA Receipts and Payments Account, and the FCRA Balance Sheet. Again at least threecopies should be obtained – two for dispatch to the FCRA authorities along with FC-3, and onefor the office record. Make extra photocopies for dispatch to the funding agencies.
18 Only if the Indian office of the Donor is not registered under FCRA
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Intricacies of FC-319
Opening ItemsAddressIn most cases, you should give the address of your registered office in FC-3. This should bedone even if the registered office is merely an address of convenience and the main office iselse where in the city/ state.
However, in some cases, the FCRA account is transferred to another state. For example, yourregistered office may be in Delhi and your FCRA account may have been shifted to Orissa20 .In such a case, you should give the address that is given in the revised FC-821 .
Similarly, if you have shifted your office within the city or state, you would have sent a letterto FCRA department regarding the new address22. When filling up FC-3, you should use thisnew address only.
FCRA registration cancelledIn some cases, an NGO’s FCRA registration may be cancelled. Such NGOs can not acceptany more funds without prior permission. However, in many cases, they are allowed to use upthe existing FC balance with them. Such NGO should also file FC-3 till the time any balanceof FC contribution remains with them.
Summary of InterestUnder this head, all interest earned through the FCRA Balance Sheet should be shown. Thisinterest income should be taken into FCRA Receipts and Payments Account. Interest earnedon endowments, corpus, micro-credit loans, fixed deposits, savings bank account, etc. can alsobe shown here.
Remember, that this is merely a summary of the interest earned. The receipt and utilization ofinterest should also be shown in table 2 and again in tables 423 and 524 .
Table 2: Receipt and UtilisationFCRA LoansLoans taken from a foreign source should be deposited in FCRA bank account and reportedin FCRA Receipts and Payments Account. These loans should also be reported in FC-3 asreceipt of foreign contribution25.
Repayment of FCRA loan is treated as utilisation of FC funds.
Receipts in Kind‘Receipts in kind’ are different from assets purchased by your organisation out of foreign funds.These are items (goods, materials, etc.) donated or given at a nominal price by a foreignsource. These are treated as foreign contribution26. These should be reported in columns 6 or8 of table 2.
19 Based on AccountAble 72-73: Intricacies of FC-320 This is done after approval by FCRA authorities and filling of fresh FC-821 Filed with FCRA department at the time of shifting of FCRA account22 See ‘Undertaking’ in form FC-823. Donor-wise Receipt of foreign contribution24 Country-wise Receipt of foreign contribution25 Section 2(1)(c) does not make any distinction between grant and loans funds – both are treated asforeign contribution26 Section 2(1)(c)(i)
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ValuationHow should these be valued? The valuation does not have to be very accurate. You can giveestimated values, which are reasonably fair. You can also talk to the donor and find outapproximate landed price in India. Or you can find out the value from insurance documents. Insome cases, you may have received a Proforma invoice also.
FC-6The items and figures (for materials) that you report in the FC-3 should tie up with your FC-6 as well. Remember that FC-6 is like a stock record and this should not be filed with theFCRA27 .
Materials not reported...Some NGOs have not been reporting material received and distributed by them under various‘food-for-work’ type schemes. This is sometimes due to lack of clarity on part of the variousagencies involved. Sometimes these are reported at the regional level – further distribution isreflected as having been done by the regional agency. However, in reality the distribution is doneby village or block level NGOs.
Who should report?If you are distributing food/ material received in your custody, then you should report it to FCRA.The primary responsibility of fulfilling FCRA formalities will always remain with the receiver. Youcan not avoid this liability by entering into an agreement with the Donor Agency.
Micro-credit / Revolving FundThis topic has been discussed in detail under the heading ‘Micro-Credit Revolving Funds’ in theAccountAble Handbook on ‘NGO Accounting and Regulation’. A separate item (item 10: Micro-finance projects, including setting up banking co-operative and self-help groups) is now providedin form FC-3 for this.
‘56: Other Activities’Any items of receipt or expenditure, which do not fit any of the specific items, should be givenhere. You may have to attach an annexure giving summary listing of the items of expenditure.Expenditure out of FCRA interest, small donations, etc. can be shown here.
InterestBank InterestSome donor agencies ask for accounting of interest earned on their funds lying in the bankaccount. Such interest can be shown as addition to their funds in column seven of the relevantrow. This refers to the row where their main project funds are shown such as ‘rural development’or ‘animal husbandry’, etc.
However, some agencies do not insist on allocation of interest to their project. Some bankinterest, therefore, remain surplus. Such unallocated28 bank interest can be shown under item‘56: Other Activities’.
27 See ‘Maintaining form FC-6’ on page 84 for more on this.28 Interest that has not been allocated to particular grant making agency.
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Revolving Fund InterestThis includes interest and service charges, etc. on micro–credit loans. This income can beshown under item ‘56: Other Activities’, under the sub heading ‘interest / service charges onrevolving fund’. You can use column seven for this.
Any interest paid out on revolving fund capital can be shown in the column ten (utilisation) ofthe same row.
Corpus InterestThis interest income would come from investments made out of Corpus/ Endowment Fund. Thiscan be shown in column seven item 55 (i) (a) ‘Establishment of Corpus Fund’.
Alternatively, you can show this income under item ‘56: Other Activities’ as ‘interest on corpus/ endowment investments’.
It will be useful to give a footnote showing the nature of this income in the FC-3.
Second RecipientIn some cases, the funding agency’s Indian office may be registered in India under FCRA (e.g.Actionaid). You should then show receipts from such agencies in the ‘second recipient’ columns(7 and 8).
Non-earmarked DonationsAny foreign donations that are received in cash should also be shown here. Such donations areoften not earmarked by the donor for any particular activity. These should be shown under‘miscellaneous’ category (item ‘56: Other Activities’).
Sale of AssetsWith the donor’s consent, you can sell FCRA assets to any one (whether they have FCRA ornot).
If you sell off any asset (purchased earlier with foreign funds), then show the amount receivedas sale price here. This can be shown under the activity for which the asset was originallyreceived (such as ‘rural development’).
Transfers to Other NGOsAny amounts given to another association out of FCRA funds for carrying out a program orunder direction of Funding Agency should be shown against item ’56: Other Activities’. TheFCRA number (or prior permission reference), name and address of the second recipientsshould be given as a footnote.
Level of DetailHow much detail should be given in FC-3 or FCRA Receipts and Payments Account? Thisdepends on the amount of total funds involved and the nature of programmes. For instance,if utilisation of a crore of Rupees is shown in one line as ‘rural development’, then the purposeof reporting is not met29 .
Your auditors should be able to guide in this. However, in general you should try to break downthe figures so that each line item is not more than 5% of total receipts or Rs.1 lakh, whicheveris higher.
29 In such cases, FCRA department often issues show cause notice or makes a field visit.
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For example, if your total receipts are Rs.10 lakhs, then you should try to break down individualline items to Rs.1 lakh or lower. However, if your total receipts are Rs.2 crores, then you canshow individual line items up to ten lakhs each.
Unutilised balancesIn CashFor working out the unutilised cash balance, look at the chart below:
3 5 7 10 12
Previous + Received as first + Received as second – Utilised in = BalanceBalance in cash receiver in cash receiver in cash cash in cash
In KindSimilarly for working out the balances in kind, add up column 4, column 6 and column 8. Fromthis deduct column 11.
4 6 8 11 13
Previous + Received as first + Received as second – Utilised in = BalanceBalance in kind receiver in kind receiver in kind kind in kind
You have to do the above exercise for each row and write the figures in the last column (column12 or 13: Balance in cash or kind, as the case may be).
Loan transactions with Indian SectionFor opening bank accountWhen you opened the FCRA bank account,you would have deposited a small amountin this account from Indian funds. Thismoney remains in the bank account. Itcan be shown in the partial FCRA balancesheet here. Note that the FCRA bankaccount balance of Rs.20,500/- includesRs.500 which was deposited initially to open the account.
During the yearCan you have loan transactions with the Indian section of your account books? FCRA regulationsprohibit any mixing of Indian and FCRA funds. However, as we have seen above, the FCRAaccount itself is opened with Indian funds. Does this not result in mixing of funds? The FCRAlaw is silent on this.
Clearly the intention of FCRA law is to avoid mixing of funds. Following this opening, manyNGOs frequently borrow / lend money to the Indian section. This happens when FCRA fundsare delayed but the project has to continue.
Whether this is legal or not is separate issue. Our suggestion here is limited only to theaccounting and disclosure aspects. Such loans can be shown in the Receipts and Payments
FCRA Balance Sheet (partial)Liabilities Assets
Loan from Indian FCRA Banksection 500 Account 20,500
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Account and Balance Sheet as below:
Bank DetailsFor practical reasons, you may need to open another bank account in the field area (andtransfer FCRA funds) for use over there. The position regarding this practice is not very clear.Sometimes FCRA authorities do not object to this if the reasons are genuine.
Table 4: Donor DetailsBox CollectionsIf you are keeping donation boxes at airports, shopping centres, etc. you may receive foreigndonations also. Such donations may be in Rupees or in foreign currencies.
There is no way of making out how much of the collection is from foreign donors and how muchfrom Indian. Indians settled abroad might drop dollar notes into the box; foreign tourists maydrop surplus Rupee notes in the box.
In such a situation, the only practical solution is to treat all foreign exchange collection asforeign contribution. This should be deposited into the FCRA bank.
In case of Rupee collections, you can think of treating 50% as foreign contribution and balance50% as Indian. While there is no circular or guideline on this, this appears to be the only logicaloption.
All foreign collections should be lumped together and shown as one entry in the table under‘individual donors below 1 lakh’. In such case the purpose shown (in column 4) can be yourorganisation’s main purpose (e.g. ‘18. Help for poor, aged or destitute’ or ‘24. Welfare of womenand children’).
Small Individual DonorsDonations below one lakh, from an individual donor, are known as small donations. There is noneed to give name of each donor. Date and month of receipt also should not be filled in thiscase.
However, if you want, you can summarise these donations according to the purpose of thedonation. Such a summary may look like the following:
FCRA Receipts and Payments Account (partial)
Receipts Payments
Grant received 90,000 Project Expenditure 92,000
Loan from Ind- Loan returned toian section 10,000 Indian section 6,000
FCRA Balance Sheet (partial)
Liabilities AssetsLoan from Grant receivable 2,000
Indian section 4,500 FCRA bankAccount 22,500
Sl. No. Institutional/ Name and Address Purpose Date and Month AmountIndividual/ of Receipt in Rs.
Other Donors
1 – – Schools – 3,25,251
2 – – Gaushala – 2,67,762
3 – – Corpus – 1,50,675
Total 7,43,688
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More on Individual DonorsThese donors may be sending you money by cheque or in cash (when they visit you). Youshould note down their names and addresses while issuing a receipt. If possible (and withoutoffending the donor), also take down the passport number, country of issue30 and expiry date.
Table 5: Country ChartCountry-wise ReceiptsDonation Box CollectionsIn case of donation box collections, show the country as ‘not known’. In case of bank interest,revolving fund recoveries, etc., show the country as ‘India’.
From Another Indian AgencyWhere you have received the funds from another Indian agency / NGO as second recipient,show the country as ‘India’. In brackets, you can say ‘second recipient status’.
ReconciliationTables 2 and 4Add up all the cash and cheque grants / donations listed in Table 4. These should be the sameas grant receipts (in money terms) shown in the FCRA Receipts and Payments Account.Crosscheck the total receipts (including materials grants, with the total receipts shown incolumn 9 of Table 2 also).
However, you may find a small difference in these two figures. This may be because someinflows can not be classified under any of the three donor categories. The earlier category of‘others’ has now been deleted.
Table 2: Cross-check Unutilised Balance in CashThe unutilised amount (total of column 12) should be cross-checked with the FCRA BalanceSheet also, as shown below:
Start with FCRA Bank Balance
Add: Cash in hand .................................................
Add: Fixed Deposits .................................................
Add: Advance to staff / Imprest .................................................
Add: Advances to suppliers .................................................
Add: Any loan to Indian section .................................................
Less: Loans taken from others .................................................
Less: Loan from Indian section
Should be equal to total of column 12
The resulting figure should tally with the un-utilised amount in column 12. If you wish you canattach a copy of this calculation to your FC-3.
30 Needed to fill up the country chart
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Table 2: Cross-check Balance in KindSimilarly the unutilised balance in kind (total of column 13) should be cross-checked with thetotal balances shown in FC-6 register.
For this, prepare a summary of FC-6 sheets showing the balance on 31st March. Add this up.This should tally with total of column 13.
Closing ItemsSigning FCRA AccountsThe FCRA Receipts and Payment Account and Balance Sheet have to be attached to FC-3.
1. Balance SheetThis should show position of accounts as at 31st March. It should be prepared from accountsmaintained for FCRA.
2. Receipts and PaymentsThe Statement of Receipts and Payments should reflect all receipts of foreign grants / FCRAreceipts (cash/ cheque). The payments side would reflect all payments made out of FCRA funds(including purchase of assets, creation of revolving funds, loans, advances, etc.).
A practising Chartered Accountant should sign both. He / she would put the firm’s seal, nameand signatures under a suitable audit statement. Normally, the audit statement would be “Asper our separate report of even date in Form FC-3 attached”.
Chief Functionary should also sign both the Annexures.
CA CertificateThe auditor also has to certify the figures of opening balance, receipts during the year andclosing balances. These figures appear in the certificate at end of form FC-3. The openingbalance should be taken from the previous FC-3. Receipts during the year include currency31
as well as material32 . These three figures should also match table 2 as follows:
FC Figure in certificate Should match with Table 2
Brought forward – at the beginning of the year Total of columns three and four
Received during the year Total of column 9
Unutilised balance at the end of the year Total of columns 12 and 13
The certificate can be typed on plain paper. However, it would be better, if the certificate isissued by the auditor on their firm’s letterhead. The auditor is also free to give any clarificatorynotes or qualification in the certificate.
Accounting StandardsIf the NGO has any income generation project33 , then the following Accounting Standardsshould be considered when preparing FCRA accounts34:
31 Taken from Receipts & Payments Account32 Taken from FC-633 Refer ICAI clarification titled ‘Accounting Standards for NGOs’; The Chartered Accountant, Sep-95,Page 79.34 Receipts & Payments Account and Balance Sheet
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AS Title Effective Date
AS-1 Disclosure of Accounting Policies 1-Apr-93
AS-2 Valuation of Inventories 1-Apr-99
AS-3 Cash Flow Statements 1-Apr-01
AS-4 Contingencies and events occurring after the Balance Sheet Date 1-Apr-95
AS-5 Net Profit or Loss for the period, Prior Period Items and changesin Accounting Policies 1-Apr-96
AS-6 Depreciation Accounting 1-Apr-95
AS-7 Accounting for Construction Contracts 1-Apr-93
AS-8 Accounting for Research and Development 1-Apr-93
AS-9 Revenue Recognition 1-Apr-93
AS-10 Accounting for Fixed Assets 1-Apr-93
AS-13 Accounting for Investments 1-Apr-95
AS-15 Accounting for retirement benefits in the FinancialStatements of Employers 1-Apr-95
AS-18 Related Party Disclosures 1-Apr-01
AS-19 Leases 1-Apr-01
Proof of postingKeep the proof of posting (Post Office receipt) carefully on file. This comes in useful if youreceive a letter from FCRA for non-filing of return.
Copy to DonorsAfter filing the form FC-3, send a copy (with Balance Sheet and Receipts and Payments andother Annexures) to your Funding Agency’s local office, according to their reporting requirements.
Filing Nil FC-3You are required to file the FC-3 even if you have not received any foreign contribution duringthe year. In such cases also, the Balance Sheet and Receipts and Payments Account shouldbe attached to the FC-3.
Penalty for not filing FC-3What happens if you do not file FC-3? The law on this is fairly strict: your FCRA registrationcan be cancelled, you can be fined and you can also be sent to prison35 .
However, in practice, the FCRA department treats these cases rather benevolently36 . The NGOin default is given several chances to file the FC-3. If there is no response from the NGOdespite follow-up, then the department proceeds to cancel the FCRA registration.
35 See item 8 under heading ‘Offenses and Penalties: Ready-Reckoner’ on page 95.36 Only about 70% NGOs file FC-3 regularly.
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Concealing InformationFCRA department has now added a warning at the end of the table in Heading 2. Read thiscarefully before you sign the form FC-3 – any concealment or falsification may prompt theDepartment to initiate ‘appropriate action’.
While the Department does not say here what ‘appropriate action’ can be taken, this includessuspension / cancellation of registration, fine and jail37 .
Revising your FC-3If you make a mistake in your FC-3, then you can revise it and file it on your own38. Send acovering letter with the revised FC-3 explaining the reason for revision.
37 See item 9 under heading ‘Offenses and Penalties: Ready-Reckoner’ on page 9538 Balance Sheet and Receipts & Payments Account should also be attached.
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Maintaining Form FC-639
Foreign ContributionForeign contribution can be in cash or cheque. For this, you maintain a cash book and ledger.
Foreign contribution can also be given as physical articles40 . This is known as ‘foreign contributionin kind’. Examples are blankets, food, boats, plastic sheets, etc. You can not record these incash book or ledger. Therefore, FCRA rules say that you should maintain a separate stockregister for these [rule 8(1)(a)].
What is FC-6The format for this stock register is called FC-6. This shows all foreign contribution receivedas articles and distributed by an NGO.
But our Donors maintain it…Some people think that it is enough if form FC-6 is maintained by the donor agency or firstreceiver. This is not correct.
Every NGO that receives and handles foreign contribution in kind should maintain form FC-6.
Ok, where can we get the form?The form is given on page 149. It is also available in FCRA Rules and on the AccountAid website (www.AccountAid.net).
You will have to xerox or print 50-200 copies of the form. After this, the sheets can be boundto make a register.
How do we maintain itThe step-by-step procedure is given on page 85. But first let us understand some main issues:
Only for non-cash stuffFC-6 is used only when an item is received as foreign contribution. It should not be used whenyou use foreign funds to buy an item. This is slightly tricky. So let’s look at an example:
" The Donor gives you Rs.300,000 as a grant. Out of this you buy a motor-cycle. This costyou Rs.40,000. Will you enter this in FC-6? No. You will enter it in your FCRA cash book /bank book.
" Now suppose the Donor gives you only Rs.260,000 as grant. In addition, they purchase amotorcycle for you and send it to you. Will you enter this in FC-6? Yes. Will you also enterit in your FCRA cash book? No.
One page for each itemFC-6 is just like a stock register. So you have to open a separate page for each article. Thisalso means that if you regularly receive two sizes of blankets, then you should open separatesheets for each.
What happens if you receive a lot of assorted material? For example, these may be used toys,shoes, shirts, etc. Well, you should probably have these sorted and open one sheet for eachcategory.
39 Based on AccountAble 58: Maintaining FC-640 Section 2(1)(c)(i)
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What if some of the stuff has to be sold…Sometimes the material can not be used by the people directly. In such case, the NGO maysell the material. The money collected from the sale becomes FCRA money. This sale shouldbe recorded in FC-6.
Items less than Rs.1,000Items less than Rs.1,000 are also foreign contribution, if these are received by an NGO.
It is only personal gifts below Rs.1,000 each that fall under exemption of section 2(1)(c)(i).
Where do we file FC-6You do not have to file FC-6 with the FCRA Department. This is like your stock register – youshould keep it with you.
Only the information extracted from this should be entered in FC-3. The FC-3 is later filed withthe FCRA Department.
How long should we keep itFCRA Act and rules are silent on this. Still, to be on the safe side, keep the register for 10years.
Step-by-step procedureThe following explains how stock register in form FC-6 should be maintained:
Description of ArticleStart with a fresh sheet for each type of item. Remember to open different sheets for differentsize / packing of the same item.
Write the name of the article on top. For example, ‘Blankets – large size’ or ‘Cooking Oil – 200ml. Tins’. If you also receive Cooking oil in 500 ml tins, open a separate account for these.
ReceiptsNumbers refer to column numbers in the form. Enter each transaction separately, in separatelines.
1. DateDate on which you received the consignment.
2. DonorWho sent you these items? Give the name and address of the donor here. If you received theitems through another NGO, just give the name and address of that NGO.
3. ModeHow did the items reach you? This could be by road, rail or in some cases by air. Write themode here – also give truck / train number, if feasible. In case of some small items, the donormay have just given these to you by hand also. In this case, the mode will be ‘by hand’.
4. PurposeWhy have these items been sent to you? For distribution among people? For use at your office(e.g. a vehicle). Write the purpose of this donation here.
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5. QuantityThe number of units (tins, blankets, etc.) received. If you received 200 tins of 200 ml. each,write 200 tins. Do not write 40 litres.
This can be tricky. For example, you have received 4 truck-loads of wheat. Each truck had 1tonne of wheat. That means 4,000 Kgs of wheat. You are going to give each family 1 kilogram(kg). What should you do?
In this case, you should keep the unit as KGs. Say this on top, where you write descriptionof the item. Then write 4,000 in the quantity column (column # 5).
6. Approximate ValueHere you have to write the value of the items received. This does not have to be accurate –a near-about value is good enough.
You can get this from the documents (Bill of lading, shipping declaration, insurance papers,etc.). Or you could ask the donor to give you a rough figure. If it is an item available in thelocal market, you can also use this price as the basis.
7. IntimationThis column is slightly confusing. No separate intimation should be sent to the Government.What you have to give is the date of mailing FC-3.
However, the FC-3 will be filed after the end of the year. So leave the column blank now. Fillit up after you have sent the FC-3 to the FCRA Department.
UtilisationEach issue of items should be recorded in a separate line.
8. DateDate of issue should be given here.
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9. BeneficiaryWho received the items that were issued? In most cases, this would be a beneficiary. His /her name and address should be given. Each beneficiary should be listed separately, in onerow.
Sometimes, the items are issued to another NGO. This NGO will then distribute the items intheir area. If so, give the name and address of the NGO here.
In some cases, the items are sold. In such a case, write the name and address of the personwho bought these items.
10. PurposeIf the items are sold, then there is no need to write any purpose. In other cases, you shouldgive the purpose. In case of food items, the purpose will mostly be ‘relief’. In case of constructionitems, it could be ‘rehabilitation’.
If the items were issued to another NGO, the purpose could be redistribution.
11. Utilised by NGOBeneficiaries: Quantity distributed to beneficiaries should be entered here. Make sure that youare using the correct unit (see comment on column 5).
Damages: If some of the items were damaged or pilfered, then these should also be enteredhere.
Totals: At the end of the year, total up column 11. Work out a rupee value for this. Use thesame basis for valuation as in column 6.
Linking to FC-3: Enter the final value in column 11 of FC-3. You will need to select a suitablepurpose in FC-3. For example, this could be ‘5. Rural Development’ or ‘23. Relief for naturalcalamities’.
If the items were used for mixed purposes, you can split the value and show it in severaldifferent rows in form FC-3.
12. Sold offIf the goods were sold, enter the quantity here. The value of sales will be shown as receipt inform FC-3 in column 7. At the same time, the value of sale will also be shown in column 11of FC-3.
13. TransferredIf these were returned to donor or given to another NGO, enter the quantity in this column.
14. Sale recoveryIn case the items were sold, enter the value (in Rupees) of sale here.
15. Entry referenceThis applies only if items were sold and money was recovered for these.
Here you have to give reference of the FCRA cash book page and date on which this recoveryis shown.
16. Closing BalanceThis should be recalculated whenever you make an entry for receipt or for issue.
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Declaration and SignatureEach filled up sheet of form FC-6 should be signed at the end of the year. However, the rulesdo not say who should sign the declaration. Therefore, the chief functionary or an equallyresponsible person can sign it.
Open a new account each yearFinancial year for FCRA ends on 31st March. When you start the register for next year, openup a fresh sheet for each item. This is just like opening new ledger accounts.
The closing balance of the previous year should be brought forward to the new year as openingbalance.
Auditing FC-6Should the auditors check FC-6 also? Yes:
" Clause (iv) of the certificate given by the auditors covers all records maintained under rule8(1) of FCRA. These include the FCRA cash book, ledger, and registers in form FC-6 andform FC-741.
" The figures of foreign contribution (received and utilised) also include value of FC-6 items.
41 Used to maintain records of foreign contribution recieved in the form of foreign secuities (shares, bonds,debentures, etc.)
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FCRA Fellowships42
Fellowships are common in the development sector. Quite often these are funded from FCRAgrants. However, in most cases, the Agencies and the individuals concerned are not aware thatcertain FCRA formalities are required. Here we deal with the FCRA implications of a fellowshipgrant.
In the development sector, fellowship generally means a regular payment to an individual forsome research or study. The topic of the study is clearly defined. Some sort of output (a reportor a book) is also expected at the end of the study. Normally, the work is that it can be doneby one person — an organization is not required for the work.
Key features of a fellowshipIf you want to check whether a payment is fellowship or not, use the following checklist:
! Payment is made to an individual.
! The person is qualified to do the research.
! The money is deposited in the individual’s personal bank account.
! The individual pays income tax on the payment, if it exceeds taxable limit.
! The objective of the exercise is research/ study or development of a new concept.
! A report or a thesis will be available at the end of the exercise.
! The work does not involve active use of an organization.
! The amount is reasonable for a fellowship or research grant.
It is difficult to work out a similar checklist for scholarship or stipend payments. These are notcommon.
However, requirements of FCRA apply equally to all similar payments (made to an Indiancitizen), including scholarships and stipend.
Valuing the FellowshipIf you get a fellowship out of FCRA funds, the following are included in the fellowship:
! the basic amount of fellowship
! the amount received for purchase of books, clothing, equipment, etc.
! the amount received for sight-seeing in a foreign country
! Air (or other) travel expenses within India
Following are excluded:
! Amount spent by the Agency on Air fare (economy or tourist class) to and from the foreigncountry
! Amount spent by the agency on tuition fees and other similar fees
If the air travel is by a higher class (first or executive), then:
42 Based on AccountAble 35: FCRA Fellowships
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! either the entire air fare may be included in the fellowship; or,
! the net difference between economy and first class may be added.
This will depend on the facts of the case and the person interpreting the law.
Splitting HairsThe word ‘fellowship’ has not been defined or used in FCRA, which uses the words ‘scholarship’or ‘stipend’. Even these two words have not been defined in the Act.
Commonly, these words mean the following:
Fellowship: Webster 4.a: the position of a fellow (as of a university) b: the funds granted toa fellow; Oxford 3: income of a fellow of a college or society.
Scholarship: Webster 1: the financial aid given to a student (as by a college or foundation) toassist in the cost of education; Oxford 2: financial award for a student, etc. given for scholarlyachievement.
Stipend: Webster: a fixed sum of money paid periodically for services or to defray expenses;Oxford: salary, especially of a clergyman.
FCRA: Issues and FormalitiesRouted fellowshipsRemember that foreign contribution can never be converted into Indian funds43 [explanation tosection 2(1)(c)].
If your fellowship originated with a foreign agency but has been routed through one or moreIndian agencies, it will still remain FCRA fellowship.
An Indian Agency or NGO, which does not have FCRA or prior permission, should not receiveor disburse any FCRA amount for fellowship.
No permission or registrationNo FCRA registration or prior permission is required for giving or accepting a fellowship,scholarship or stipend to an individual. However, if this provision is wrongly interpreted to makeprogram grants to an organization as fellowship payments to its workers, you may attractprosecution.
ProhibitedFellowship, scholarship or stipend can not be paid from FCRA funds (section 4) to:
! Election candidates
! Employees of a Government corporation or Government Company
! Accredited journalists
! MPs, MLAs, etc.
! Judges
! Office bearers of political parties
! Government servants
43 See ‘13. When do FC funds become Indian’ on page 117.
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Some exceptions to this are provided in section 10. These cover ordinary business paymentsreceived by newspapers, etc. from foreign sources. These exceptions should be interpreted verycarefully.
JournalistsIf you are making any payments to a journalist, check whether the person works with aregistered newspaper. If yes, it would be better to avoid the payment. Freelance journalists arenot covered by the prohibition, so long as they do not write a regular column or have correspondentstatus for a registered newspaper or magazine.
Accounts and Income TaxYou don’t need to keep accounts or get an audit done for FCRA. However, you may have topay income tax, depending on the amount of fellowship.
File Form FC-5If the fellowship is paid from FCRA funds, form FC-5 should be filed with the Home Ministry.Again this is required when the fellowship exceeds Rs.36,00044 in an academic year.
Academic year is not defined in the Act. This will vary from one university to another. In othercases, the period of fellowship is specified in the sanction letter and this may be treated asan academic year.
Who should file FC-5Form FC-5 has to be filed by the receiver. The granting Agency does not have to file any form.If the granting Agency is registered under FCRA, then the fellowship should be reflected in itsFC-3 as expenditure.
Filling up FC-5Personal details (1-7): Give your (receiver’s) personal details here. These include your passportparticulars (number, date and place of issue, valid till), if you have one. Also give details ofyour occupation or profession.
Agency details (8): Give the particulars of the granting Agency here. When finalizing yourfellowship, make sure you have obtained information required for completing this item.
Fellowship details (9-11): Full particulars of the fellowship (amount, break-up, etc.) as alsomode or channel (cash, bank, etc.) should be given here. If the fellowship will be received inequal installments, give the amount of installment and the frequency.
You also need to clearly state the purpose of the fellowship. Try to be as specific as possible.If you will be attending any courses, then specify these also.
If you will have to go abroad as part of fellowship, then give the duration and dates of yourstay abroad.
Other information (12): If there is any special information, then it should be given here.Otherwise it is not necessary to fill up this column.
44 See ‘Valuing the Fellowship’ on page 89.
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When and WhereFC-5 should be filed within 30 days of receiving the payment. If the receiver is staying abroad,this limit is extended to 60 days.
If the fellowship payments are going to be in equal installments (monthly, quarterly, etc.), thenyou need to file the form FC-5 once only. Simply specify the frequency and amount of installments.
Send your FC-5 by registered post to:
The Secretary, Government of India,Ministry of Home Affairs,Internal Security Wing, (FCRA),9th Floor, Lok Nayak Bhawan,New Delhi(Phone: 469 7018)
Retain a copy of FC-5 and the proof of posting.
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FCRA Penalties45
Most of us violate some law or the other at some point of time. We may do this knowingly orunknowingly. But ignorance of law is not an excuse.
FCRA contains many penalties. We have ignored these all along because very few people havebeen penalized under FCRA. Our thinking on this may be similar to those company directorswho had to go behind the bars under FERA in late 90’s.
This is a small attempt to identify the many landmines that are hidden in FCRA. Walk with carelest you step on one.
The Power of the LawBefore we go deeper into this, we must be clear about one thing. The law, by and large, isbenevolent. During enforcement, various positive factors are also considered. The authorities tryto follow the spirit of the law, to the extent possible.
Yet the letter of the law remains important. We need to know what is the worst that can happen.Another thing to remember is that FCRA (Foreign Contribution Regulation Act, 1976) is not afiscal act. It is an Act to preserve internal security. This means that the style and procedureof enforcement is different.
Various offenses and their penalties are listed in a ready-reckoner on next three pages. It maybe good idea to check the ready-reckoner before embarking on an adventure with FCRA.
Some of the other implications are discussed below:
1. Appeal against confiscation: You can appeal within one month of receiving the confiscationorder in the sessions court or High Court [sec. 21].
2. Appeal against prohibition or refusal: If you are prohibited from receiving foreign contributionor permission/ registration is refused, you can appeal within sixty days of order date. The appealhas to be made to the High Court [sec. 21].
3. Chief Functionaries: Assume that the violation is done by a company or society. Who willbe penalized? Firstly the company/ society itself will be penalized. Secondly, anyone who wasin charge of the company / society (Chief Functionary/ director, etc.). However, if this personcan show that he did not know about this or it happened despite his best effort, then he / shewill not be penalized [sec. 26].
4. Governing body: In 3 above, can anyone else be penalized? Any director, member ofGoverning body, manager, secretary or other officer can also be penalized. However, in this case,it must be shown that there was neglect or connivance or consent of such person [sec. 26].
5. Advisers and Funding Agencies: The Government can prosecute any one who assists anorganization in receiving foreign contribution (in violation of FCRA). This may include GoverningBody members, advisers, consultants, funding agency officers, etc. if their role is proven [sec.23].
6. Government’s sanction: No one can be punished or fined under FCRA unless the Governmentfirst sanctions prosecution. This means that there can not be any public-interest petition underFCRA [sec. 27].
7. Investigative powers: The Government may authorize a person or department to investigatesome offense under FCRA. Such a person will then have powers similar to a police-station in-charge [sec. 28].
45 Based on AccountAble 29: FCRA Penalties
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8. Honest mistake: When the Government is acting under FCRA, it may make an honestmistake and cause loss or damage. For this loss or damage, no one can prosecute theGovernment [sec. 29].
Offenses and Penalties: Ready-Reckoner
Offense Who may be penalized Penalty
1. Politician/ journalist/ judge/ " Person who " Seizure and confiscationGovernment servant/ public accepted the of foreign contribution [sec. 16, 18]sector employee accepts foreign contribution " Additional fine (upto five times inforeign contribution " Person who assisted value) if original foreign contribution (section 4) spent [sec. 24]
" Imprisonment upto five years and/or fine [sec. 23]
2. Political organization " Person who assisted " Seizure and confiscationaccepts foreign contribution of foreign contribution [sec. 16, 18]without Government’s prior " Additional fine (upto five times inpermission (section 5) value) if original foreign contribution
spent [sec. 24]" Imprisonment upto five years and/
or fine [sec. 23]
3. Indian resident or Indian " Indian resident or " Seizure and confiscation ofCitizen accepts foreign contri- Indian Citizen who foreign contribution [sec. 16, 18]bution (currency) for above accepted " Additional fine (upto five times inpersons (section 4, 5) " Person who assisted value) if original foreign contribution
spent [sec. 24]" Imprisonment upto five years and/
or fine [sec. 23]
4. Indian resident or Indian " Indian resident or " Seizure and confiscation of foreignCitizen is involved in deliv- Indian Citizen who contribution [sec. 16, 18]ery of foreign contribution was involved in " Additional fine (upto five times in(currency) to above persons delivery value) if original foreign contribution(section 4, 5) " Person who assisted spent [sec. 24]
" Imprisonment upto five years and/or fine [sec. 23, 25]
5. Person after receiving " Person who received " Seizure and confiscation offoreign contribution the currency foreign contribution [sec. 16, 18](currency) for one " Person who assisted " Additional fine (upto five times inassociation delivers value) if original foreign contributionit to different association spent [sec. 24](section 4) " Imprisonment upto five years and/
or fine [sec. 23, 25]
6. Association accepts foreign " Association " Seizure and confiscation of foreigncontribution without registration" Chief Functionary, etc. contribution [sec. 16, 18]or prior permission (section 6) " Governing Body " Additional fine (upto five times in
members value) if original foreign contribution" Other officers spent [sec. 24]" Person who assisted " Imprisonment upto five years and/
or fine [sec. 23]
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7. Association having FCRA " Association " Compulsory prior permissionregistration receives foreign " Chief Functionary, etc. [section 6]contribution in different bank " Governing Body " Inspection and seizure of accounts,account (section 6) members and records [sec. 14, 15]
" Other officers " Seizure and confiscation of foreigncontribution [sec. 16, 18]
" Additional fine (upto five timesin value) if original foreigncontribution spent [sec. 24]
8. Association having FCRA " Association " Compulsory prior permissionregistration does not file " Chief Functionary, etc. [section 6]FC-3 in time (section 6) " Governing Body " Inspection and seizure of accounts
members and records [sec. 14, 15]" Other officers " Seizure and confiscation of foreign
contribution [sec. 16, 18]" Additional fine (upto five times in
value) if original foreign contributionspent [sec. 24]
" Imprisonment upto one year and/ or fine upto Rs.1,000 [sec. 25]
9. Association having FCRA " Association " Compulsory prior permissionregistration files FC-3 with " Chief Functionary, etc. [section 6]false information (section 6) " Governing Body " Inspection and seizure of
members accounts and records [sec. 14, 15]" Other officers " Seizure and confiscation of for
eign contribution [sec. 16, 18]" Additional fine (upto five times in
value) if original foreign contributionspent [sec. 24]
" Imprisonment upto one year and/ or fine upto Rs.1,000 [sec. 25]
10. Person nominated for election " Concerned person " Seizure and confiscation ofwithin 180 days of accepting foreign contribution [sec. 16, 18]foreign contribution fails to " Additional fine (upto five times inintimate Central Government value) if original foreign contribution(section 6) spent [sec. 24]
" Imprisonment upto one year and/ or fine upto Rs.1,000 [sec. 25]
11. Indian citizen receiving " Concerned person " Seizure and confiscation ofscholarship, stipend or similar foreign contribution [sec. 16, 18]payment (exceeding Rs.36,000 " Additional fine (upto five times inin academic year) fails to file value) if original foreign contributionform FC-5 spent [sec. 24]
" Imprisonment upto one year and /or fine upto Rs.1,000 [sec. 25]
12. Politician/ journalist/ judge/ " Person who accepted " Seizure and confiscation of foreignGovernment servant/ public the gift contribution [sec. 16, 18]sector employee accepted " Additional fine (upto five times in
Offense Who may be penalized Penalty
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Offense Who may be penalized Penalty
foreign contribution exceeding value) if original foreign contributionRs.8,000 (as gift) from spent [sec. 24]relative without prior - " Imprisonment upto five years and/permission (section 8) or fine [sec. 23]
13. Politician/ journalist/ judge/ " Person who accepted " Seizure and confiscation of foreignGovernment servant/ public the gift contribution [sec. 16, 18]sector employee who " Additional fine (upto five times inaccepted foreign contribution value) if original foreign contributionupto Rs.8,000 (as gift) from spent [sec. 24]relative and did not give intim- " Imprisonment upto one year and /ation to Government or fine upto Rs.1,000 [sec. 25](section 8)
14. Politician/ journalist/ judge/ " Person who accepted " Imprisonment upto three years and/Government servant/ public the foreign hospitality or fine [sec. 23]sector employee accepts foreign hospitality withoutmedical emergency[sec. 9]
15. Politician/ journalist/ judge/ " Person who accepted " Imprisonment upto one year andGovernment servant/ public the foreign hospitality / or fine upto Rs.1,000 [sec. 25]sector employee acceptsforeign hospitality in medicalemergency and does notgive intimation in 30 days[sec. 9]
16. Association with FCRA " Association " Inspection and seizure of accountsregistration or prior perm- " Chief Functionary, etc. and records [sec. 14, 15]ission does not maintain " Governing Body " Seizure and confiscation of foreignprescribed records and members contribution [sec. 16, 18]accounts [section 13] " Other officers " Additional fine (upto five times in
value) if original foreign contributionspent [sec. 24]
" Imprisonment upto one year and /or fine upto Rs.1,000 [sec. 25]
17. Person transfers/ deals with " Person who transf- " Seizure and confiscation of foreignforeign contribution despite erred or dealt contribution [sec. 16, 18]prohibitive order under " Person who assisted " Additional fine (upto five times insection 12 [sec. 22] value) if original foreign contribution
spent [sec. 24]" Imprisonment upto three years and/
or fine upto market value of foreigncontribution [sec. 22]
18. Accepting or assisting ano- " Person who accepts " Seizure and confiscation of forther person to accept " Person who assists eign contribution [sec. 16, 18]foreign contribution in another to accept " Imprisonment upto five years and/violation of FCRA [sec. 23] or fine [sec. 23]
97
" Additional fine (upto five times invalue) if original foreign contributionspent [sec. 24]
19. A person is convicted second " Association " Prohibition on accepting foreigntime for offense under sec. 23 " Person contribution for three years(1) or 25 [sec. 25 A] [sec. 25 A]
Offense Who may be penalized Penalty
98
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Section III: IntricaciesThe word ‘intricate’ comes from the English word ‘trick’. Intricacies are, therefore, the tricks thatthe law plays on you. Of course, the law itself becomes trickier as time passes, learninglessons from all the tricks that we play on it!
This section is for advanced readers. It tries to go into the nitty-gritty of the law as alsounderstanding the intention of the law. As the overall design of the Act becomes clearer, it maybe easier for us to see whether a particular way of looking at it may be right or not.
This section is divided into following chapters:
Understanding FCRA 101
Mysteries of FCRA 111
Puzzles of FCRA 115
Fund-raising and FCRA 120
The first chapter offers an overview of sorts. The next three deal with specific points on whichconfusion exists or where a provision of the Act causes difficulties. There is a general expectationthat a new FCRA law will be passed soon – let us see whether the new Act will resolve theseissues or cause further complications.
At this point, it is also worthwhile to quote from Khalil Gibran’s ‘The Prophet’:
“Then a lawyer said, But what of our Laws, Master?
And he answered:
You delight in laying down laws,
Yet you delight more in breaking them.
Like children playing by the ocean who build sand-towers withconstancy and then destroy them with laughter.
But while you build your sand-towers, the ocean brings more sandto the shore,
And when you destroy them the ocean laughs with you.
Verily the ocean laughs always with innocent.
But what of those to whom life is rock, and the law a chisel withwhich they would carve it in their own likeness?…
What of the ox who loves his yoke and deems the elk and deer ofthe forest stray and vagrant things?…
And of him who comes early to the wedding-feast, and when over-fed and tired goes his way saying that all feasts are violation andall feasters law-breakers?…
What shall I say of these save that they too stand in the sunlight,but with their backs to the sun?
They see only their shadows, and their shadows are their laws….”
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101
Understanding FCRAForeign Contribution (Regulation) Act, 1976 is a very short Act. However, there is an enormousamount of confusion about its provisions. Also, there is very little literature on the law itself.Most of the available material relates to practical procedures only.
In these paragraphs, we have tried to put down some of the understanding of FCRA law thatwe have gained over the years.
Foreign SourceForeign source is defined in section 2(1)(e). However, the definition is an ‘inclusive’ definition1 .This means that the list provided in section 2(1)(e) is not complete or exhaustive.
This is a very important feature. Suppose there is a source ‘xyz’ which appears to be foreign,based on common sense. However, it is not listed in section 2(1)(e). How will ‘xyz’ be treated?It will be treated as a foreign source. Why? Because the definition is not exhaustive. It allowsthe courts to treat other sources also as foreign.
There are five main categories listed in the ten clauses of this section. Going through these,you get the sense that anything under foreign control may be a foreign source. These categoriesare discussed below:
1. IndividualsHow do you know whether a person is foreign or not? This is based on his or her citizenship2 .The country of stay is not important.
This means that a foreigner staying in India, working in India, earning money in India, will stillremain a foreign source. On the other hand, an Indian working abroad, getting salary from aforeign company, will not be a foreign source. An example of this category is Mr. Amartya Sen.
On the other hand, if a foreigner acquires Indian citizenship, then he or she will become anIndian source. Similarly, if an Indian becomes a foreign citizen, then he or she will become aforeign source.
A common area of doubt is NRIs and PIOs:
a. Non-resident Indians (NRIs)Are NRIs a foreign source or Indian source? In general, NRIs are not a foreign source. Theyare settled abroad but are still Indian citizens.
However, the term NRI is sometimes used very casually. Therefore, it is best to confirm thisby asking whether the person has become a foreign citizen. If the answer is ‘no’, then the fundswill be treated as Indian.
b. Persons of Indian Origin (PIOs)Who are persons of Indian origin? One example is Shri V. S. Naipaul, nobel laureate. Hisgrandfather left India to settle in Trinidad. Both his father and Shri Naipaul were born in Trinidad.Later, he became a British citizen.
1 It uses the word ‘includes’ instead of ‘means’.2 Sec. 2(1)(e)(x). India does not recognize dual citizenship. An Indian who acquires foreign citizenshippromptly loses his or her Indian citizenship.
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Shri Naipaul is eligible to apply under the Indian Government’s PIO Card scheme. If he appliesand gets this card3, then he will get some extra facilities, such as visa-free travel to India.However, he will not get any political rights, such as right to vote in India.
Persons of Indian origin are treated as a foreign source. It does not matter whether they holdthe PIO card or not.
c. Dual CitizenshipThe Government is now also seriously talking about dual-citizenship. This means that an Indiancan remain an Indian citizen, even though he or she becomes a foreign citizen.
Will this make a difference so far as FCRA is concerned? Surprisingly, the answer is ‘no’.Section 2(1)(e)(x) says clearly that a citizen of a foreign country is a foreign source. In the caseof dual-citizenship, a person will be an Indian citizen but will also be a foreign citizen. Thus,he or she will attract clause (x) and will be treated as a foreign source!
2. GovernmentGovernment of a foreign country or territory is a foreign source4. When does a group becomegovernment of a foreign country? When the Indian Government recognizes it. For example, Indiadid not recognize Taliban as government of Afghanistan5 during the years it was administeringlarge parts of Afghanistan.
This distinction is more important for diplomatic relations than for FCRA. So far as FCRA isconcerned, both (recognized Government and unrecognized one) will be treated as a foreignsource.
Agencies of a foreign government are also treated as a foreign source.
3. International AgenciesAll international agencies are a foreign source. However, multilateral agencies such as UNO, itsspecialized agencies, IMF, World Bank are not treated as a foreign source. Apart from these,Government can also exempt other international organizations from the definition6 .
Why this ‘discrimination’? Well, the reason appears to be that multilateral agencies such as UN,etc. are not under control of a single nation or group. It is assumed, therefore, that their fundscan not be used to subvert Indian institutions.
But what is an international agency? The Act does not say anything on this. In common usage,‘agency’ means an organization providing a public service. In some cases, agency may alsomean a special Government Department (e.g. USAID) concerned with a specific field. Whensuch an organization operates on an international scale, it is called an ‘international agency’.
4. Non-profit organisationsForeign trusts, foundations, societies, clubs and other associations also are foreign sources.These are discussed on next page in more detail:
3 The PIO card fees is US$ 1,000.4 Sec. 2(1)(e)(i)5 This merely means that Taliban will be categorized as a non-governmental foreign source.6 At present more than 104 organisations are exempt from this definition. S.O. 1014(E) dated 13-Nov-00.Gazette of India, Extraordinary. Part 2, sec. 3, sub-section (ii)
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a. TrustsWhat is a foreign trust? The Act does not say about this. However, normally a trust7 formedabroad would be a foreign trust. Also, a trust formed in India by a foreigner could be a foreigntrust. Foreign trusts are a foreign source8 .
b. FoundationsFoundations are also like trusts, though sometimes the term is also applied to other type oforganisations. The section talks about two types of foreign foundations:
a. a foreign foundation which is in the nature of a trust; and,
b. a foreign foundation which is mainly financed by a foreign country is a foreign source9 .
Now a doubt arises. What would be the status of a foreign foundation, which is not in the natureof a trust, and is not supported by a foreign country? It is possible that such a foundation willnot fall within this clause10.
c. Society, clubs, etc.In the case of societies11 , the Act is clearer. Societies, etc. formed or registered outside Indiaare treated as foreign source12 . What if the society was formed by Indians living abroad? Thesociety will still be treated as a foreign source.
What about a society formed in India by foreigners? This is also not clear from the Act.
d. CorporationsIn some countries, non-profit organizations are registered as charitable corporations. These arealso treated as foreign source13 .
e. Trade UnionsA trade union formed or operating in a foreign country (or territory) is a foreign source14 . It doesnot matter whether it is registered there or not.
What is a trade union? Trade Union is defined in sec. 2(k) of the FCRA. However, this definitionis relevant for Unions registered in India only. It is, therefore, not valid for interpreting sec.2(1)(e)(vii). FCRA provides another definition in sec. 2(1)(k). This one refers to unions registeredunder Trade Unions Act, 1926. Therefore, even this does not appear to be relevant for foreigntrade unions discussed in section 2(1)(e)(vii).
The definition of a Trade Union will vary from country to country. For example, the standardreference Black’s Law Dictionary15 defines it as ‘a union composed of workers of the same orof several allied trades’. This may perhaps be relevant in some Western countries. But whatabout a Trade Union formed and registered in an Arabian country? Or in Russia?
This is an issue which the Government may perhaps rectify when it next amends the FCRA.
7 A trust is formed by attaching a legal obligation to a property. This is done by the owner of the propertywho makes a Trust Deed. Trustees are also nominated and are responsible for fulfilling the legal obligation.8 Sec. 2(1)(e)(viii)9 Sec. 2(1)(e)(viii)10 However, it may be that it will be caught by another clause because it’s registered as a corporation,society or a company. If everything fails, then it will be probably be netted by the fact that the definition insection 2(1)(e) is merely an inclusive one!11 Also clubs or other associations of individuals12 Sec. 2(1)(e)(ix)13 Sec. 2(1)(e)(iv)14 Sec. 2(1)(e)(vii)15 7th Edition, 1999. p.1532
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5. Business OrganisationsFive types of business organizations are listed: 1. a foreign company, 2. subsidiary of a foreigncompany, 3. a foreign corporation, 4. a multi-national corporation, and 5. a company controlledby foreigners. All five are treated as foreign source.
a. CompanyWhat is a foreign company? It is defined in section 591 of the Companies Act, 1956. Anycompany incorporated16 outside India is a foreign company17 .
b. SubsidiaryAny subsidiary18 of a foreign company is also treated as a foreign company. It does not matterif the subsidiary is formed in India.
c. CorporationAs discussed above, a corporation formed in a foreign country is a foreign corporation. Whatis a corporation? It has four key features19 :
(i) It is an entity recognized by law;(ii) It has a personality of its own, distinct from the persons who formed it;(iii) It has only those powers which its constitution gives it;(iv) It has perpetual succession.
Sounds complicated? Well, a company and a society are both examples of corporations.
d. Multi-national Corporation (MNC)MNCs20 are treated as a foreign source. However, the term MNC has a special meaning underFCRA.
The definition21 of an MNC has two parts. First, that the corporation should have an office orbusiness in two or more countries. Second, the corporation should have been formed in aforeign country.
What does this mean? If an Indian corporation22 starts operating in a foreign country, it will notbecome an MNC for the purpose of FCRA.
Permitted institutionsThe last para of section 2(1)(e) provides a special exemption. Any foreign institutions permittedto work in India by Indian Government are not a foreign source.
What does this mean? There are many foreign organizations working in India. The Governmentmay have a special agreement with some of them. Others may have been given permissionby RBI or other Government agencies. Are these a foreign source or not?
16 Formed17 There is a quirk in the definition given in section 591: the company should have an office in India. If weinterpret this literally, it may appear that a company registered in Belgium will not be a foreign company,if it does not set up an office in India!18 When does company A become a subsidiary of company B? There are four ways: (i) B controls the boardof A; (ii) B controls more than 50% of the voting power (in general meetings) in A; (iii) B holds more than50% of the equity shares in A; (iv) B is a subsidiary of A under the laws of B’s home country (the countrywhere B was formed).19 Based on Black’s Law Dictionary, 1999, p.34120 Multi-national corporation21 Explanation to section 2(1)22 or company
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Such permissions or agreements mean nothing for FCRA. This exemption is available only ifthe Government has issued a notification in the official Gazette permitting the organization towork in India.
FC ReceiversThere are six categories of receivers under FCRA:
1. Political parties‘Political party’ is defined in section 2(1)(g) of FCRA. Political parties can not receive foreigncontribution under any circumstances. There is no case by case prior permission or exemptionfrom this rule.
2. Organisations of a political nature‘Organisations of political nature’ are defined in explanation to section 5(1). These can not getFCRA Registration. However, these organisations can receive foreign contribution on a case bycase basis after getting prior-permission23 . The central government issues notifications fromtime to time naming such organisations24 .
3. Individuals in public lifeThese are listed in section 4(1) as follows:
1. Election candidates25
2. Employees of a Government corporation or Government Company
3. Accredited Journalists i.e. correspondent, columnist, cartoonist, editor, owner, printeror publisher of a registered newspaper.
4. MPs, MLAs, etc.
5. Judges
6. Office bearers of political parties
7. Government servants
In general, none of these can get foreign contribution. However, the restriction does not applyto journalist working with electronic media including TV news channels26. Other exceptions aregiven in section 8 (salary, business receipts, personal gifts from relatives, etc.).
4. NGOsThe Act regulates receipt of foreign contribution by any association27 which has definite program28.Such organisations are commonly refered as NGOs29 , NPOs30 , PBOs31, or DevelopmentOrganisations. These organisations can get foreign contribution after registration under FCRAor getting prior permission on a case by case basis. Mostly, this foreign contribution is exemptfrom income tax.
23 Form FC-124 See Table ‘Organisations of a Political Nature’ on page 10625 ‘Candidate for election’ has been defined in section 2(1)(b). Election means election to a ‘legislature’The word ‘legislature’ itself has been defined in section 2(1)(f)].26 Electronic media was under government control till early 90’s, and the Act has not been amended since1985.27 Defined in section 2(1)(a)28 See section 6(1)29 Non-governmental Organisations30 Non-profit Organisations31 Public Benefit Organisations
106
5. Private individualsPrivate individuals can get foreign contribution freely. However, this is subject to applicabletaxation laws. Private individuals must report receipt of foreign contribution in the nature ofscholarship or stipend, etc. if it exceeds Rs.36,000/- per year.
6. Business organisationsBusiness organisations can get foreign contribution32 freely without any registration or reporting.This is subject to normal taxation laws.
Business TransactionsAre business transactions of NGOs outside FCRA? Section 2 defines ‘foreign contribution’ usingthe words ‘donation, delivery or transfer’. Some people argue that the word ‘donation’ definesthe types of delivery or transfer that law-makers had in mind. If this is correct, then businesstransactions of NGOs would not be covered.
Before concluding this, let’s look at sections 4 and 8 also. Section 4 says that politicians,journalists, etc. will not accept foreign contribution at all. However, section 8 says that thesepeople are allowed to accept some types of foreign contribution. The section gives a list, whichincludes salary, wages, ordinary business remittances, some gifts, etc.
If this argument is correct, then what was the need for section 8?
Therefore, our view is that to begin with foreign contribution includes practically every remittancefrom a foreign source. Even ordinary business remittances to business houses are foreigncontribution. However, the Act does not restrict acceptance of foreign contribution by businesshouses. Restrictions are placed only on people in sensitive positions (political parties, politicians,journalists, etc.) and NGOs.
Organizations of a political nature[As per notifications issued by Government of India under section 5 of the Foreign Contribution(Regulation) Act, 1976]
Name Address
A.K. Gopalan Bhavan Trust 27-29, Bhai Veer Singh Marg, Gole MarketNew Delhi
Akhand Kirtni Jatha
Akhil Bhartiya Vidyarthi Parishad Mumbai
All Assam Students Union Gauhati University Campus, Jhalukhari,Gauhati, Kamrup District, Assam
All India Agricultural Workers Union 12-B, Feroze Shah Road, New Delhi
All India Bank Employees Federation Delhi
All India Confederation of Bank Officer Pandyan House, Ferere Road, Mumbai-38Organisations
All India Defence Employees Federation Pune
32 ‘Foreign contribution’ as defined in section 2(1)(c) includes both commercial as well ascharitable transactions.
107
Name Address
All India Democratic Student Organisation 48, Lenin Sarani, Kolkata
All India Democratic Women’s Association
All India Democratic Women’s Association 23, Vithal Bhai Patel House, Rafi Marg,New Delhi
All India Federation of Electricity Employees Residency Road, Sadar, Nagpur
All India Federation of University & collegeTeachers Organisations Kolkata
All India Insurance Employees Association Kolkata
All India Kisan Sabha 4, Windsor Place, New Delhi
All India Kishan Sabha 4, Ashoka Road, New Delhi
All India LIC Employees Federation Mumbai
All India Loco Running Staff Association Lumding, Assam
All India Mazdoor Sangh Mumbai
All India Milli Council 161/32, Joga Bhai, Jamia Nagar,New Delhi-25
All India Muslim Majlis-e-Musharat E-3, Abul Fazal Enclave, Okhla,New Delhi
All India National Life Insurance EmployeesFederation MumbaiAll India Peace and Solidarity Organisation K-1/16, Chitaranjan Park, Main Road, New
Delhi
All India Railway Employee Confederation 26/12, Railway Colony, Kisanganj, Delhi-7
All India Railway Worker’s Federation New Delhi
All India Railwaymen’s Federation New Delhi
All India Sikh Students Federation Amritsar
All India State Government EmployeesFederation Hyderabad
All India Student Federation New Delhi
All India Trade Union Congress New Delhi
All India Youth Federation Delhi
All India Youth League 62, North Avenue, New Delhi
All Indo Korean Friendship Association New Delhi
Anand Marg Kolkata
Anand Marg Universal Relief Team Kolkata
Anjuman Nasrat-UI- Islam Srinagar
Anna Thozhir Sangha Peravani Madras
Assam Jatiyatabadi Yuba Chhatra Parishad Silpukuri, Gauhati, Assam
Awami Action Committee J & K
108
Name Address
Bharatiya Khet Mazdoor Union 4, Windsor Place, New Delhi
Bharatiya Mozdoor Sangh Ram Naresh Bhawan, Pahargunj, New Delhi
Bhartiya Kamagar Sena Mumbai
Centre for Indian Trade Unions 15, Talkatora Road, New Delhi
Citizen’s for Democracy New Delhi
Comsomal Kolkata
Dal Khalsa Chandigarh
Dalit Panthara Bhawani Path, Pune
Dalit Panthers Wadala, Mumbai
Damdami Taksal Gurudarshan Prakash Mehta Chowk, NewDelhi
Delhi Gurudwara Prabhandhak Committee Mata Sundri Lane, New Delhi
Democratic Youth Federation of India 11, Windsor Place, New Delhi
Dennai Talimi Council Lucknow
Dravida Kazhagam Periyar Thaidal, 50, EVK, Sampath Road,Madras-7
Education Relief And Welfare Sector Panditya Road, Kolkata
Hind Mazdoor Sabha Mumbai
India Society for Cultural Co-operation and 1, Lady Hardinge Road, Opp. Marina Hotel,Friendship Connaught Place, New Delhi
Indian National Plantation Workers Federation Dibrugarh, Assam
Indian national Plantation Workers Federation Suite 125, 25-A, Parl Street, Kolkata-16
Indian National Trade Union Congress 4, Bhai Veer Singh Marg, New Delhi
Indian Youth Congress (I) New Delhi
Indo - China Friendship Association New Delhi
Institute of Indian Labour Kolkata
Iqbal Memorial Trust Bemina, Srinagar, Kashmir
Iranian Students Islamic Association or Unionof Iranian Students Islamic Association Bangalore
Ishaat-e-Islam Trust 1353, Chitli Qabar, Delhi
Islamic Study Circle Red Cross Road, Opp. Hazi Masjid,Maisuma, Srinagar
Islamic Welfare Trust PO Omessary, via Kottuwalli, Calicut Distt.
J & K People’s League Srinagar
Jamat Ahle Hadis or All India Ahle Hadis 4116, Ahle Hadis Manzil, Urdu bazaar, Delhi
Jamat-e-Islami Hind Dawat Nagar Abul Fazal Enclave, Okhla,New Delhi
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Name Address
Jammat Ahle-e-Hadis J&K
Jammat-e-Islami Bulbul Bagullah
Jammu & Kashmir Muslim Augaf Trust Zero Brigade, Srinagar
Jammu & Kashmir Muslim Auqaf Trust Srinagar
Janta Yuva Morcha New Delhi
Kerala Trade Union Front Chettiangadi, Trichur
Kisan Seva Samiti Chhatarpur, M.P
Labour Progressive Federation Arivagam, Rayapuram, Madras
Maharashtra Ekikaran Samiti Sahar Samiti Karyalya, Jalti math, NearKapil Theatre, Kirloskar Road, Bangalore
Mahase-e-Azadi J&K
Marathwada Janta Vikas Parishad Saraswati Bhavan, Sikshan PrasarakMandal College, Aurangpura, Aurangabad
Nag Vidharbha Andolan Samiti Nagpur
National Federation of Indian Railwaymen New Delhi
National Federation of Indian Women New Delhi
National Federation Of Post & TelegraphEmployees (K.L. Moja Group) New Delhi
National Federation of Posts & Telegraph(Shashi Bhushan Group) New Delhi
National Federation of Progressive Writers 11, Kansal Bhawan, K.G. Marg. New Delhi
National Front Indian Trade Unions 10, Government Place East, Ezra Mansion,Kolkata
National Labour Co-ordination Council Kolkata
National Labour Organisation Ahmedabad
National Students Union of India (I) 5, Raisina Road, New Delhi
Nikhil Banga Mahila Sangha Kolkata
Orissa Gramin Mazdoor Sangh Santapur, Bhubaneswar, Orissa
People’s Union For Civil Liberties 8, Sahayog Apartments, Mayur Vihar,Phase-I, New Delhi
People’s Union For Democratic Right Quarter No. 4, IP College, Delhi University,Delhi
Progressive Democratic Students Union Hyderabad
Progressive Labour Union Durgapur, West Bengal
Progressive Student Union Kolkata
Proutist Universal New Delhi
Punjab Student Union
Radical Student Union Hyderabad
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Name Address
Rashtra Sevika Samiti Wardha, Maharashtra
Rashtriya Swayam Sewak Sangh Hedgewar Bhavan, Nagpur
Revolutionary Youth Front 124/C, Lenin Sarani, Kolkata
Sarva Shramik Sangh Mumbai
Seva Dharam Mission Varanasi, U.P.
Shiromani Gurudwara Prabhandak Committee Golden Temple, Amritsar
State Central Labour Union Srinagar
Student Federation of India 11, Windsor Place, New Delhi
Student Islamic Movement in India 151-C, Zakir Nagar, New Delhi
Student Islamic Movement in India Aligarh
Swantantra Thozilai Union, State MuslimLeague office Calicut
Swantantra Thozilali Union Mavoor, Calicut
Tabligh Jammat Bangle Wali Masjid, Nizammudin Basti,New Delhi
Tamilnadu Toilers Progressive Party Madras
Tamir-e- Millat Hyderabad
The Kannada Paksha 31, Nanje Gowda Road, Mavalli, Bangalore
The Neelchakra Dolamundai, Cuttak
Trade Union coordination Centre 28,Gurudwara Rakabganj Road, New Delhi
Tribal Front Agartala
United Trade Union Congress Bipin Behari Ganguly Street, Kolkata
United Trade Union Congress Lenin Sarani, Kolkata
Universal Proutists Student Federation New Delhi
Vishwa Hindu Parishad Mumbai
Volunteer Social Service Allahabad
West Bengal Chhatra Parishad Kolkata
William Carey Study & Research Centre Kolkata
Yuva Janta New Delhi
Yuva Lok Dal 3, Pt. Pant Marg, New Delhi
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Mysteries of FCRA33
For the voluntary sector, FCRA remains the most mysterious piece of law. Partly this is dueto the manner in which it has been interpreted at different times and partly it is due to thesecrecy surrounding its implementation.
The work of many Indian NGOs is dependent on foreign funds. And they live under a constantfear of FCRA — for they do not know when their FCRA number may be snatched away.
Curiously enough, in actual practice, most NGOs lose their FCRA registration because of dis-use and not because of mis-use. Mostly these are organisations which are not active and donot file their annual FCRA return despite follow-up by FCRA Department.
As on 7th August ‘01, only 12 NGOs had lost their FCRA registration for reasons such asmisuse of funds or anti-national activities (list at www.AccountAid.net).
1. Prior permissionIf you have applied for prior permission, then your application should be processed within 90days [section 11(2)]. The period of 90 days starts from the date when the application is receivedat FCRA Department.
The Ministry may also write to you, asking you to wait for another 30 days. In such case, thetotal period will go up to 120 days [proviso to section 11].
In all cases, the Ministry sends a reply, whether yes or no. Please do not assume that if youhaven’t received a reply within 120 days then your application is approved. Your reply may havebeen lost in the post.
2. FCRA NumberRefusal: FCRA Department sometimes refuses permanent registration to NGO’s (section 10).If you wish, you can appeal against this in the High court within 60 days of the date of theorder [section 21(2)].
Cancellation: If your FCRA registration is canceled, don’t panic. File an appeal in the HighCourt within 60 days of order date [section 21(2)]. If the cancellation is unjustified, the courtwill restore your registration.
3. Change of Bank AccountIf you have moved your main office or for some other reasons you want to shift your FCRAbank account, you can do so. The procedure is different for older NGOs (registered under FCRAprior to 27th December 1996) and for new NGOs:
Older NGOs: First open the new bank account, which you want to use as FCRA Account. Thenapply (clause 3 of your original application in form FC-8) to FCRA Department in Form FC-8,explaining the reasons for shifting the bank account. The application should be supported bya resolution of the Governing Body.
New NGOs: If you had applied for FCRA registration after 27th December 1996, in the revisedFC-8, then you can change bank accounts by applying on plain paper (undertaking in youroriginal application in form FC-8).
33 Based on AccountAble 22: Mysteries of FCRA
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4. More than one bank accountYou can receive and keep your FCRA funds only in one bank account [section 6; rule 8(1)(b)].This bank account number is mentioned on your copy of the FCRA registration certificate.
However, once the money has been received in the FCRA bank account, some NGOs transferfunds to other locations / bank accounts for operational reasons. This includes bank accountsfor field offices as also fixed deposit accounts.
There is no bar on keeping FCRA funds in fixed deposit accounts, where necessary. However,please note that as per the existing law, NGOs can not open more than one bank account forFCRA funds. Further, the Ministry of Home Affairs has not granted any official sanction permittingthis widespread practice.
Still, if you are maintaining bank accounts in the field for FCRA funds, you should take thefollowing precautions:
i Open such accounts only when absolutely necessary, and justified for operationalreasons.
ii Use these accounts exclusively for keeping FCRA funds.
iii Do not ever deposit FCRA funds directly into such accounts. The funds must firstbe deposited in the designated FCRA bank account.
iv When transferring funds between these accounts, use only account payee chequeor draft, wherever possible.
5. Interest on FCRA FundsThere is no bar on earning interest on FCRA funds. However, all such interest should beaccounted for as FCRA funds and disclosed in FC-3 under heading 1A and FCRA Receipts andPayments Account.
While this is not clear from the FCRA Act itself, the FCRA Department has taken this view.The recent changes in form FC-3 (26-July-2001) includes reporting of interest on FCRA Funds.
6. Revolving FundIf you are giving recoverable loans to beneficiaries out of FCRA funds, you should show theseloans as assets in the FCRA Balance Sheet. However, these can be treated as utilization ofFCRA funds in FC-3.
When these loans are recovered you should show the money received in FCRA Receipts andPayments Account and FC-3.
When loans are given out again (out of recovered funds), you should continue to show thesein the same manner in the FCRA Balance Sheet and Receipts and Payments Account.
7. Income from FCRA IGPAccording to the FCRA Department, income earned from an Income Generation Project fundedor set up out of FCRA funds should be shown as FCRA receipts in FC-3.
8. Sale of fixed assetsWhen fixed assets (or raw material, stocks, etc.) are purchased out of FCRA funds, theseshould be shown in the FCRA Balance Sheet. The funds spent on this can be shown as utilizedin the FC-3.
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If later on any of these assets are sold off, then the amount recovered should be again shownas receipt in FC-3. If you make a profit or gain in selling the asset, this also should be shownin FC-3.
If the asset (for example, land) was funded partially out of FCRA and partly out of Indian funds,the profit should be proportionately accounted in FCRA and Indian funds.
9. Separate Cash Book and LedgerSome NGO’s are not aware that it is absolutely essential for a separate Cash Book and Ledgerto be maintained for FCRA transactions [rule 8(1)(b)].
10. Consolidated Balance SheetYou should only file the FCRA Balance Sheet and Receipts and Payments Account with yourFC-3. Please do not file the consolidated Balance Sheet.
11. Disclosing non-cash grants in form FC-3All FCRA grants in kind (blankets, shares, securities, vehicles, food, etc.) should also bedisclosed in the FC-3. Both the receipt of such grants as also the utilization should be shown.
12. Don’t File form FC-6Record of grants received in kind should be kept in FC-6 in your office [rule 8(1)(a)]. However,this form should not be filed with the FCRA Department. Such contribution should be reportedin FC-3.
13. Second or subsequent recipientIf you receive your FCRA funds from another organization which is already registered underFCRA (e.g. CRY), then such funds should be shown as ‘Funds received as second or subsequentrecipient’. For this purpose, it is irrelevant whether the funds are in Rupees or disbursed by theIndia office of a foreign funding agency.
14. Revising form FC-3If you have made a mistake in the FC-3 for any reason, you can revise it within a reasonableperiod, say two years. Along with the revised FC-3, file a letter explaining the reasons forrevising the FC-3.
15. Fellows: file form FC-5Individuals receiving Fellowship (exceeding Rs.36,000 p.a.) out of FCRA funds should file formFC-5 within 30 days of receipt of the fellowship funds.
16. Shadow lendingSometimes NGOs with FCRA registration lend their ‘shadows’ to other NGOs. The funds arereceived in the name of FCRA registered NGO (first NGO) but are spent by the other NGO(second NGO). The vouchers are in the name of first NGO and accounting is also done there.Sometimes this is done by calling the second NGO a program unit and calling the first NGOas legal project holder.
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Whether the second NGO is an NGO registered under Societies Act or not, this type ofarrangement is illegal and strictly prohibited. In case this comes to the notice of FCRA Departmentthen they will go behind the accounts and vouchers and will discover the real arrangement(section 28). The penalty for this is laid down in section 23 and includes imprisonment.
17. Funds to non-FCRA NGOsIt is clearly mentioned in the FCRA registration letter that you should not give FCRA funds toNGOs which do not have FCRA registration or prior-permission. If you do this, your registrationmay be canceled and you may be penalized [section 23].
18. Governing BodyIf a society, etc. commits an offense, then Governing Body members may also be punished.This may be done if it is found they had helped or they had been negligent (section 26).
19. Funding AgenciesIf a funding agency or its officers ‘assist’ an NGO in getting foreign funds without FCRApermission or registration, then the funding agency and its officers can also be penalized[section 23(1)].
20. Form FC-3 in duplicateForm FC-3 should be filed with FCRA in duplicate.
21. ElectionsNGOs registering with FCRA now (after 27th December 1996) will need FCRA approval if 50%or more office bearers get changed in elections (see undertaking in form FC-8).
Till the time they get the approval, they will not be able to accept funds without prior permissionfor each grant.
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Puzzles of FCRA34
A strict interpretation of FCRA [Foreign Contribution (Regulation) Act, 1976] gives you strangeresults. Consider the following common situations:
1. A student from Ghana registers at an Indian University and pays the course fees. Theuniversity is violating FCRA if it admits him without having an FCRA number.
2. A well know educational trust runs schools all over India. One of the schools brings out asouvenir. The mother of one of the students works for an International Bank. They insertan advertisement in the souvenir. Is this a violation of FCRA?
3. The Ambassador of Zenda visits the shop of an NGO at Dilli Haat and buys two hand-knitshawls. The NGO should deposit this in their FCRA account or lose their registration.
4. An NGO gives a revolving fund grant to Kalyani Mahila Mandal. The grant is given from FCfunds. The Mahila Mandal is functioning as an unregistered society and does not haveFCRA. Both the NGO as also the Mahila Mandal are in deep trouble.
5. A foreign relief Agency ties up with an NGO in Puri to help them distribute polythenesheets. The NGO receives and stocks these in their office. But they do not have FCRA.Both the Agency and NGO have violated FCRA.
Is there a solution to this? As the conditions in society change, laws need to change. The FCRAcompleted silver jubilee on 5th August 2001. It is unlikely that the Government will repeal it innear future. But, there is a need for review so that there can be reasonable compliance. Wediscuss here 19 puzzles of FCRA. Section references are to Foreign Contribution (Regulation)Act, 1976.
1. FCRA grants to individualsCan you make FCRA grants to individuals? Apparently, yes. They do not need FCRA permissionor registration for this.
But, there is one very important condition. The individual must work totally on his/ her own. Heor she should not employ people or tie up with others. In legal terms, he / she must not forman association of individuals or an organisation [Section 2(1)(a)].
2. Business people/ professionalsProfit-oriented organisations are not covered by FCRA. These people can receive paymentsfrom foreign agencies or out of FCRA funds. They do not need FCRA registration for this. Thisexemption is not available to NGOs doing consultancy.
3. Electronic mediaFCRA covers print-media. But it does not cover electronic media (radio and TV). Why?
Back in 1976, Government ran the entire electronic media. Secondly, the main Act has not beenamended since 1985. Electronic media was opened up to private sector much later.
4. Change of bank account numberMany banks are computerising their accounts now. Your bank may also give you a new numberfor your FCRA bank account.
34 Based on AccountAble 55: Puzzles of FCRA
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This does not mean that you have changed your bank account. Just write a letter to the FCRADepartment explaining this. Attach a copy of the bank’s letter showing change of accountnumber.
5. Advances from FC fundsAdvances from FC funds cannot be given to NGOs that do not have FCRA registration. Thereason is that section 2(1)(c) covers ‘donation, delivery or transfer’ of funds. Advances obviouslyinvolve either transfer or delivery.
The same reasoning applies to loans from FCRA funds.
6. Loan between FC and IndianFCRA does not allow mixing up of Indian funds and FCRA funds. This means you should keeptrack of both funds separately.
However, the Act does not prohibit taking or giving loans to the Indian section. The mostobvious example is money required to open the FCRA bank account. This money is always aloan from the Indian section.
In recent years, FCRA Department has felt that this facility is being used carelessly. As aresult, they often take up glaring cases with the concerned NGOs.
7. Mahila MandalsDo Mahila Mandals need FCRA to receive loans or grants from FC-funded NGOs?
This is a very complex question. To understand this, Mahila Mandals can be categorised intofive stages of evolution:
Stage Association35 Program36
1 People just meet every week. No program. Just a common interest.No formal leadership.
2 Meetings continue. A name is given No program. Just a common interest into the Mandal. Leaders start emerging. savings and credit.
3 Group becomes more organised. Objectives of the group are widened andA membership register is started. put down in writing.Office bearers are appointed.
4 Memorandum of Association is signed. Memorandum of Association serves asSociety is not yet registered. a definite program.
5 Society is formally registered. Definite program continues to exist.
What happens if these groups want to receive FC funds?
" Groups at stages 1 and 2 do not need FCRA registration or prior permission.
" Groups at stage 3 may or may not need FCRA.
" Groups at stages 4 and 5 definitely need FCRA.
35 Section 2(1)(a)36 Section 6(1)
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8. Indian office of foreign AgencyIf a foreign donor agency opens a branch or liaison office in India, the Indian office needs FCRAregistration or prior permission. This applies even if the branch office is only receivingadministrative funds and not grants.
9. Opening branch abroadFCRA is totally silent on this. However, it appears that:
" An NGO can work abroad or set up an office, if its Memorandum allows it.
" The foreign contribution should be first received in India, in the FCRA bank account [section6(1)(b)].
" It can then be transferred to the bank account of foreign branch. For this, you will needMHA permission under rule 8(1)(b). This permission should be taken before transferringFC funds to foreign account.
10. Organisations of a political natureCan NGOs get involved in political activities? Yes – but at the risk of losing their FCRAregistration.
The Central Government can name an NGO as organisation of a political nature [Section 5(1)and its explanation]. Before doing this, the Government will look at the following:
" Activities or program of the NGO
" Ideology being spread by the NGO
" Its involvement in activities of a political party.
The Government will then publish an order in the Gazette saying that the NGO is an ‘organisationof a political nature’. This will mean that the NGO cannot accept foreign contribution withoutspecific prior-permission on case-by-case basis.
11. Churches and AshramsSome organisations set up additional organisations to carry out some of their work. Each ofthese bodies may specialise in one aspect of the work or be run independently. This is commonin the case of religious groups such as ashrams and churches (diocese).
Can the organisations under the main umbrella use the FCRA of the parent body?
No. Under FCRA, each of these NGOs is a separate entity and needs independent FCRAregistration or prior-permission. This concept also applies to Federations.
12. Does second receiver need FCRAYes. The second, third, fourth, fifth and all the subsequent receivers need FCRA registrationor prior-permission.
13. When do FC funds become IndianNever, so far as NGOs are concerned. FC funds do not become Indian merely by changinghands. It is believed that funds of foreign origin can not cleanse themselves even if they wereto take a dozen dips in the most sacred river Ganga!
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When these are spent or given to individual beneficiaries, the funds become Indian. However,if these people give it back to the NGO (for example, repayment of a loan), they again becomeFCRA [explanation to section 2(1)(c)].
14. Catalogue sponsorshipAn International Bank or MNC sponsors your catalogue or souvenir. They pay the printersdirectly. The printers deliver the booklets to you. What happens now?
The catalogues or booklets are now foreign contribution. You should enter these into FC-6. Youshould also report this in FC-3.
15. Souvenir AdvertisementsYour NGO brings out a souvenir. An MNC agrees to insert a full-page advertisement. What doyou do with the money?
FCRA says that you should deposit this money in the FCRA account. If you don’t have FCRAregistration, too bad. Just refuse the advertisement or run it free of cost.
16. RelativesTill death do us part… holy vows of matrimony notwithstanding, it is not a good idea to keepyour spouse on the board.
Nowadays, FCRA people get alarmed when they find assorted sons, parents, in-laws and otherfamily members on the board of an applicant NGO. This often results in rejection of the NGO’sapplication for FC registration or prior-permission.
17. Unrestricted FC fundsAny income generated from FC funds or assets is kept in FCRA account. Examples are surpluson sale of assets, interest on FCRA bank account. What should you do with this? There arethree possibilities:
What are unrestricted funds? These are similar to General Fund in the Indian section. We usea different name for clarity. You can use these funds to maintain your buildings, meet otherinstitutional expenses or add to your corpus.
You can also use it for any other purpose for which the organisation has been registered withFCRA. How do you find that out? Read the objective clause of your Memorandum of Association.
Whatever you do, remember that you should not move these funds into the Indian section. Theymust remain in FCRA account. You must also follow all other normal precautions related toFCRA funds.
Possibility Treatment
1. Donor Agency has asked you to use Use it according to Agency’s directions.this income in a certain manner.
2. Agency is not interested in how you Treat it as unrestricted funds.use this income.
3. The income cannot be linked to any Treat it as unrestricted funds. Agency.
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18. Unrestricted FC funds – under Prior PermissionSuppose you do not have FCRA registration. You have been working under prior-permission.Then you can use the unrestricted funds only for the approved project. You cannot use thesefor general organisational purposes.
19. FEMA and FCRAFERA37 has been replaced by FEMA38 . When will they replace FCRA with FCMA?
Not in the near future. The purpose of these two laws is different. FERA / FEMA is a financiallaw. FCRA is an internal security law. FCRA, therefore, has nothing to do with economicliberalisation.
This is also the reason why the Government cannot move FCRA from Ministry of Home Affairsto Ministry of Finance.
37 Foreign Exchange Regulation Act, 197338 Foreign Exchange Management Act, 1999
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Fund-raising and FCRA39
FCRA was passed during the Emergency days (5th August 1976). Initially, it only asked NGOsto report how much foreign contribution they receive and spend. The purpose of the Act wasto gather information. You did not need FCRA registration or even prior-permission to receiveforeign contribution.
This ‘genial’ regime lasted for a little over eight years. In 1985, compulsory FCRA registrationwas introduced. You could not receive foreign funds if you did not have FCRA registration orprior-permission. However, registration was very easy in those days. People who were alreadygetting foreign funds were sent registration certificates automatically. These days things are alittle different.
The main point is that FCRA was originally designed only for gathering information. The provisionsfor compulsory registration were grafted on later. This has produced some strange results.
Consider this fictitious dramatization: There is an NGO running an old age home in Delhi. Aforeigner, who has been living in Delhi for several years, drops by one day. She likes the place.So, next time she brings along some old warm clothes. The secretary is delighted and thanksher profusely. The next day, both are arrested and put into jail. Why? The NGO did not haveFCRA registration!
Fortunately, FCRA is implemented in spirit and not by the letter of the law. The Departmentunderstands that a rigorous interpretation or implementation will cause injustice. So the abovestory will probably not become news. Nevertheless, the point remains. The law exists and canbe misused. Therefore, it needs to be redesigned.
The provisions discussed here are based largely on the existing law. Some of the provisionsmay seem ridiculous or unnecessarily harsh. Therefore, keep the above in mind: FCRA peopleare not planning to put you in jail just because you accepted an old shirt from a well-wisher!
The following issues / comments are mainly related to raising of funds. Sections refer to FCRA[Foreign Contribution (Regulation) Act, 1976].
1. Anonymous donationsElectronic banking and Internet fund-raising is here. You suddenly receive a credit of Rs.1.3lakhs in your bank account. The donor does not tell you his or her name. What do you do?
Ask your bank to trace back the donation. If it came from an overseas account, transfer it toyour FCRA account. Then report it in FC-3 as ‘Anonymous Donation’. Attach a copy of FIRC(Foreign Inward Remittance Certificate) from the bank.
2. NRI donationsNRI donations to an Indian NGO may be Indian funds or FC funds. If the NRI holds an Indianpassport, then the donation will be Indian funds. If not, then these will be FC funds.
The type of bank account or currency does not matter.
3. Charity eventsNGOs sometimes organise cultural events for raising funds. At these events, they sell donorpasses. These passes are priced high, to generate a surplus. For example, a ticket for a moviemay normally be priced at Rs.100. If it is organised as a charity event, donor pass may be for
39 Based on AccountAble 54: Fund-raising & FCRA
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Rs.500 or more. What are the FCRA implications of this?
There can be two situations, depending on how the event was funded:
Separating guests into Indian and foreigners will not be easy. Therefore, implement this only tothe extent it is practical. For example, do not bother to segregate counter sales, when receivedin Indian currency.
4. Raising funds abroadFCRA authorities cannot allow multiple accounts for receiving funds [section 6(1)(b)]. Therefore,you cannot open an account abroad in your NGO’s name for raising funds. You then have twooptions:
1. Set up an independent sister concern abroad. They will raise funds for you and transferthese to you.
2. Make an arrangement with a fund-raising group / attorney abroad. They will raise funds onyour behalf and transfer these to you. Check the local fund-raising laws before you do this.This arrangement should be cleared with RBI and FCRA Department.
5. Consultancy income of NGONGOs cannot receive consultancy payments from foreign sources without FCRA registration /prior-permission. Such income is treated as FC income. It should be reported in form FC-3[section 2(1)(c) and section 6].
6. Sale of PublicationsIf the book has been published with FCRA funds, then the sale recoveries (often termed‘contribution’ or ‘sahyog rashi’) should be kept in FC accounts.
7. Staff RecoveriesNGOs sometimes make recoveries for STD calls, room rent, etc. from staff. Where should theserecoveries go?
If the related expenditure (phone bill, office rent, etc.) is booked in FCRA, then the recoveriesshould also be credited to FCRA.
Funded with Foreign Contribution Implications
FC funds 1. All proceeds from tickets or donor passes are FC funds. It isimmaterial whether guest is Indian or foreign.
Indian funds 1. Proceeds from Indian guests are Indian funds.
2. Proceeds from foreign guests are FC funds.
3. Sponsorship proceeds from MNCs are FC funds.
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Ideally, these recoveries should be credited to the concerned Agency’s project accounts. If thisis not required, then these can be taken to FCRA unrestricted funds40.
8. Hire ChargesIf you recover hire charges for an asset from a project, where should the income be shown?
If the asset is in FC Balance Sheet, then the income should go to FCRA account. These canbe shown there as unrestricted funds (similar to General Fund).
9. Guest recoveriesIf your NGO is not registered under FCRA, do not accept any payments (for food, etc.) fromforeign volunteers who stay. You will be violating FCRA!
If you do have FCRA registration, credit these recoveries to the FCRA accounts.
10. Recoveries from BeneficiariesNGOs sometimes make full or nominal recoveries from beneficiaries. These may be for itemsdistributed (food, blankets, medicines, etc.). Or these may be for services provided (schoolfees, workshop fees, medical services, etc.). How should these be shown?
If the recovery is against items purchased from FC funds, then the recovery is FC money. Ifthe recovery is for FC-6 items, then also it is FC money.
In case of services, you should see how the related expenses are met. If the clinic or workshopis funded by FC funds, then the recoveries must be reported in FC-3.
11. Endowment FundsIf you receive money for an endowment or corpus from foreign source, it will remain FCRAfunds. Take it into your FC Receipts and Payments Account and report it in FC-3 under headingpurpose, item no. 55 (i)(a). Also show it on the Liabilities side of FC Balance Sheet as‘Endowment Fund41 ’.
12. Endowment InvestmentsYou are free to make investments out of Endowment Funds in the normal way. These can bereported as utilization in FC-3. But you must show these on the assets side of FC BalanceSheet as ‘Endowment Investments42 ’.
13. Endowment IncomeWhen you receive interest or dividend on your endowment investments, report these in FC-3under heading 1A (ii)(b).
When you make a ‘profit’ by sale of investments (capital appreciation), show the entire salerealization as ‘receipt’ in FC-3.
14. How muchIn case of prior-permission, you can receive amounts up to the limit given in prior-permissionletter.
For example, if the permission is in dollars, you can receive that many dollars or equivalentIndian Rupees.
40 Funds that can be spent at NGO’s discretion. See ‘17. Unrestricted FC funds’ on page 118 for moredetails.41 For example: ‘Ford Endowment Fund’42 For convenience, you can group these together as, for example: ‘Ford Endowment Investments’
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15. Exchange rate variationsAlso, in prior-permission cases, you may sometimes receive a little more due to exchange ratevariations.
Don’t worry43. Just report the actual amounts received. Also give a note in FC-3 saying ‘excessreceived due to change in Exchange Rate’.
16. Unused prior-permissionSuppose FCRA gave you prior-permission for $ 10,000 for a project. But the donor Agencycould not give you the funds at that time. Can you now re-use it for another project?
No. Prior-permission is linked to the project and the donor Agency. You can use it only for theapproved project. Also, the donor Agency must remain the same.
17. Foreign VolunteersA foreigner can come and work in your NGO without any salary. This is not considered asforeign contribution.
18. Items less than thousand rupeesMany people believe that gifts below Rs.1,000 each are not foreign contribution. This is not quitecorrect. This exemption applies when the gift is given to an individual. Secondly, the gift mustbe for his/ her personal use, such as a shirt or a watch.
Therefore, if a foreigner gives your NGO a wall clock worth Rs.800, you should record it in FC-6 and report it in FC-3.
19. Old items in FC-6 and FC-3Sometimes foreign Agencies give away old items to NGOs. Examples are vehicles, refrigerators,computers, fax machines, typewriters, filing cabinets, etc. The Agencies do not charge anymoney for this.
These items are foreign contribution. You must record these in FC-6. Later you must reportthese in FC-3 also.
20. PL-480PL-480 means Public Law number 480. It was passed a long time ago in United States ofAmerica. Indian NGOs have been receiving bulgur, oil and milk powder under PL-480. This isdistributed to beneficiaries.
These items are received under an agreement between Indian Government and US Government.However, these are routed through USAID and one or more American donor agencies.
When received in India, these are foreign contribution. The NGO receiving and distributing thesemust maintain an FC-6 and report these in FC-3. The NGO must also have FCRA or priorpermission to handle these items.
21. Bilateral fundsIndian Government negotiates bilateral funding with other countries. Such funds are received bythe Central Government. These are then transferred to states, funding bodies or NGOs. FCRAact does not apply to these [section 32].
However if you receive funds directly from a bilateral Agency, then these will be FCRA funds.
43 This is not a problem for those who have FCRA registration.
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Section IV: FormsWhether you believe it or not, forms were invented to make your life simple! However, as timepassed, people must have found this unsatisfactory and must have started making simplethings complicated.
FCRA forms, by and large, are not very complicated. However, there have been frequentchanges in the forms in the last few years. The last change that took place was on 26th July2001, when form FC-3 was revised.
In this section, we have included the following forms:
Form FC-1A For getting FCRA prior-permission 127
Form FC-3 Annual return of funds and material 133received and used
Form FC-5 Intimation about foreign fellowship 147
Form FC-6 Stock register for foreign contributionin kind 149
Form FC-8 For getting FCRA registration 150
Form X Needed if you are publishing a news-letterregistered under Press and Registrationof Books Act, 1867 155
The text of the Act and the rules is also given for your convenience.
The Foreign Contribution (Regulation) Act, 1976 156
Foreign Contribution (Regulation) Rules, 1976 169
Please note that this does not purport to be the authorized or correct text of the Act or theRules, for which you must refer to the text published in the Gazette of the Government of India.
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127
Form FC-1A1
[See Rule 3 (aa)]
Form of application for seeking prior permission from the Central Government under theForeign Contribution (Regulation) Act, 1976 (hereinafter referred to as the Act) for the
acceptance of foreign contribution by an Association having a definite cultural, economic,educational, religious or social programme.
No.___________________ Date____________________
To,
The Secretary to the Government of India,Ministry of Home Affairs, Lok Nayak Bhawan, Khan Market,New Delhi – 110 003
Subject: Application for seeking the prior permission of the Central Government under theForeign Contribution (Regulation) Act, 1976 for acceptance of foreign contribution.
Sir,
I, ……………………………………………….. , on behalf of the Association named hereafter, herebyapply for seeking prior permission of the Central Government for the acceptance of foreigncontribution under proviso to sub-section (1) of section 6 or under sub-section (1A) of that sectionor clause (b) of section 10 of the Act.
1. (i) Name of the Association and its complete postal address:
Name:
Address:
Town/City: District:
State: Pin Code:
(ii) If the Association is a registered trust or society please indicate its–
(a) registration number ……………………………………………………………………
(b) place of registration……………………………………………………………………
(c) date of registration ……………………………………………………………………
(certified copy of the registration certificate to be attached).
(iii) Nature of Association:
(a) Religious $ (c) Economic $ (e) Social $
(b) Cultural $ (d) Educational $
Note: If a religious Association, state whether:
(a) Hindu $ (c) Muslim $ (e) Buddhist $
(b) Sikh $ (d) Christian $ (f) Others $
1 Revised Form FC-1A (w.e.f. 24-Jan-2000)
128
(iv) Please indicate the main aim(s) and object(s) of the Association (enclose a copy ofMemorandum of Association and/or the Articles of Association, if applicable).
(v) Please furnish the names and address of the members of the Executive Committee/GoverningCouncil, etc. of the Association, including the Chief Functionary, in the following manner:
S. Name Name of Nationa- Occupat- Office held Relation with AddressNo. Father / lity ion in the other office
Husband Association, bearer, ifif any any
1 2 3 4 5 6 7 8
1.
2.
3.
4.
5.
6.
7.
2. Please indicate whether any member of the Executive Committee/Governing Council, etc.of the Association, including the Chief Functionary has in the discharge of his/her officialfunctions –
(a) been convicted by any court of law;
(b) a prosecution for any offence pendingagainst him/her;
(c) been found guilty of diversion ormisutilisation of funds of theAssociation or any other associationin the past.
3. Please indicate whether the applicantAssociation –
(a) is a branch/unit/associate of foreignbased organisation or anotherassociation already registered underthe Act. If so, name and address ofthe parent organisation should befurnished;
(b) has been directed by the CentralGovernment in terms of the provisoto sub-section (1) of section 6 (1) ofthe Act to seek prior permission. Ifso, the number and date of therelevant order should be furnished;
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(c) has been directed by the CentralGovernment in terms of section 10of the Act to seek prior permission. Ifso, the number and date of therelevant order should be furnished.
4. Please indicate–
(i) whether the Association ever applied for registration under the Act in the past, if so,
(a) the date of submission of applicationfor registration;
(b) the number and date of last ofreference, if any, received from theMinistry;
(c) whether registration was refused;
(d) whether the application forregistration is still pending.
(ii) whether the Association has close links with another association, or its unit or branch whichhas been–
(a) refused registration under the Act,
(b) prohibited from accepting foreigncontribution.
5. Please indicate,–
(i) whether the Association was,–(a) granted prior permission to receive
foreign contribution under the Act in thepast. If so, the number and date of theletter granting prior permission shouldbe furnished;
(b) whether the account of the receiptand utilisation of the foreigncontribution received above was sentto the Central Government in theprescribed form. If so, the date ofsubmission of the accounts shouldbe furnished:
(c) if the prior permission was granted inthe current year, details of the foreigncontribution received and utilised,purpose-wise, showing the unspentbalance should be annexed.
(ii) whether the Association has received foreign contribution without the prior permission of theCentral Government, in the past. If so,–
(a) full particulars of the foreigncontribution received, address of thebranch of the bank and account numberin which deposited should befurnished;
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(b) whether the said violation has beencondoned by the Central Government;
(c) whether the Association has beenprohibited from accepting foreigncontribution under the Act.
6. Please indicate whether the Associationis owner/printer/ publisher, editor of apublication which is a “registerednewspaper” under the Press andRegistration of Books Act, 1867.
7. Please furnish–
(i) Details of the activities of theAssociation during the past threeyears;
(ii) Copies of the audited statement ofaccounts of the Association for thepast three years.
8. (i) Please indicate the–
(a) nature and value of foreigncontribution to be received (a copyof the latest commitment letter fromthe donor should be furnished);
(b) the purpose for which the foreigncontribution is proposed to bereceived and utilised indicating alsothe geographical area(s) to becovered.
(ii) A copy of the proposal/project whichhas been approved by the foreignsource for funding, including projectedoutlays/budget breakup, should beenclosed.
(iii) A copy of the proposal/project whichhas been approved for funding out ofthe foreign contribution should beenclosed (This column applies onlyto sub-sequent recipients).
9. Please indicate–
(i) the name of the bank and address ofthe branch through which foreigncontribution is proposed to bereceived;
(ii) the account number in the said branchof the bank.
10. Please indicate the particulars of the foreign source or the sources* from which the foreign
131
contribution* is proposed to be received:–
(a) If an individual, his personalparticulars including name, presentaddress, permanent address,nationality, profession;
(b) If an Organisation/ Institution/Association/ Trust/ Trade Union, etc.,full particulars thereof, including –
(i) Full name and completeaddress.
(ii) Address of Head Office/Principal Office.
(iii) Particulars of ChiefFunctionary and importantoffice bearers.
(c) Please indicate whether the foreignsource is a government of a foreigncountry or agency thereof.
10 A. Whether a recommendation certificate from the competent authority is attached (Yes/No).
11. Any other information which the Association may like to furnish.
Yours faithfully,
Signature of the Applicant
[Name of the Chief Functionary or authorised office-bearer (with seal of the Association)]
DeclarationI hereby declare that the above particulars furnished by me are true and correct.
Place:
Date:
Signature of the Applicant[Name of the Chief Functionary or authorised office-bearer (with seal of the Association)]
* If the foreign contribution, whether currency or article is to be received from any person orassociation who has received the same as first, second or subsequent recipient, particulars ofsuch person or association should be given against column 10 above.
Note:
1. An incomplete application i.e. without necessary documents/details/explanations is likelyto be rejected summarily.
2. In case the space against any column is insufficient, separate annexure should be attached.3. Please use CAPITAL LETTERS.4. The application should be signed by the Chief Functionary or authorised office-bearer of
the Association.
132
“CERTIFICATE”(To be submitted alongwith the application)
This is to certify that the …………………………………….............……………......… (name of theassociation) having its registered office at ……………….........….…….........…………………(address) has been formed for undertaking activities in its chosen ……….....………………………(Economic, Educational, Cultural, Religious and Social*) field of activity. The antecedents of theorganization have been verified and there is nothing adverse against them.
2. Its proposed project shall be undertaken in the ………………………………. (District)of……………....………. (State). The said project will be beneficial to the people living in the area.
3. The grant of prior permission to the aforementioned association to accept foreign contributionamounting to…..….....……………...(Currency/ Amount) from ……………...….……….. (Name andaddress of foreign donor) under the Foreign Contribution (Regulation) Act, 1976 for the said projectis recommended.
(Recommending Authority)**(With Seal)
* Strike out whichever is not applicable
** Any concerned –
(1) Collector of District
(2) Department of the State Government
(3) Ministry or Department of the Government of India
133
Form FC-32
See Rule 4(a)
Account of Foreign Contribution of the year ending on 31st March _______
1. Association’s details(i) Name and address (in capital letters) (ii) Registration No. and Date ....................................
[under FC(R) Act 1976]:
(iii) Prior Permission No. and date ............................
if not registered:(iv) Nature of Association:
1. $ Cultural 2. $ Economic 3. $ Educational
4. $ Religious 5. $ Social
(v) Denomination in case of religious Association:
(a) Hindu (b) Sikh (c) Muslim
(d) Christian (e) Buddhist (f) Others
1A. (i) Total amount of foreign contribution received during the year: ..........................................................
(ii) Interest earned on the foreign contribution during the year, –
(a) In the designated bank account: ..........................................................
(b) On investments made (Fixed Deposit Receipt etc) during the year or in the preceding years: ..........................................................
2 Revised Form FC-3 (w.e.f. 26-Jul-2001)
134
2. Purpose(s) for which foreign contribution has been received and utilised:
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
1. Celebration ofnational events(Independence /Republic day) /festivals, etc.
2. Theatre / Films.
3. Maintenance ofplaces of historicaland culturalimportance.
4. Preservation ofancient /tribal art forms.
5. Research.
6. Cultural shows.
7. Setting up andrunning handicraftcentre / cottageand Khadi industry/ social forestryprojects.
135
8. Animal husbandryprojects.
9. Income generationprojects / schemes.
10. Micro-financeprojects, includingsetting up bankingco-operative andself-help groups.
11. Agriculturalactivity.
12. Rural Development.
13. Construction andmaintenance ofschool / college.
14. Construction andrunning of hostelfor poor students.
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
136
15. Grant of stipend /scholarship / assis-tance in cash andkind to poor / dese-rving children.
16. Purchase andsupply of educatio-nal material – books,notebooks, etc.
17. Conducting adultliteracy programs.
18. Education / Schoolsfor the mentallychallenged.
19. Non-formal educa-tion projects / coaching classes.
20. Construction / Rep-airs / Maintenanceof places of worship.
21. Religious schools /education of priests and preachers.
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
137
22. Publication and dis-tribution of religious literature.
23. Religious functions.
24. Maintenance of pri-ests / preachers / other religious fun-ctionaries.
25. Construction / Running of Hospital / dispensary / clinic.Construction of co-mmunity halls, etc.
27. Construction andManagement of oldage home.
28. Welfare of the aged / widows.
29. Construction andManagement ofOrphanage.
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
138
30. Welfare of theorphans.
31. Construction andManagement of dharamshala /shelter.
32. Holding of free med-ical / health / family welfare / immunis-ation camps.
33. Supply of free med-icine, and medical aid, including hear-ing aids, visual aids,family planning aids, etc.
34. Provision of aids such as Tricycles, callipers, etc. tothe handicapped.
35. Treatment / Rehab-ilitation of persons
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
139
suffering from lep-rosy.
36. Treatment / Rehab-ilitation of drugaddicts.
37. Welfare / Empowe-rment of women.
38. Welfare of children.
39. Provision of freeclothing / food tothe poor, needyand destitute.
40. Relief / Rehabili-tation of victims ofnatural calamities.
41. Help to the victimsof riots/ other distu-rbances.
42. Digging of bore wells.
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
140
43. Sanitation includ-ing community to-ilets, etc.
44. Vocational training– tailoring, motor- repairs, compute-rs, etc.
45. Awareness Camp /Seminar / Works-hop / Meeting / Con-ference.
46. Providing freelegal aid / Runn-ing legal aid centre.
47. Holding sports meet.
48. Awareness aboutAcquired ImmuneDeficiency Synd-rome (AIDS) / Trea-tment and rehabil-itation of personsaffected by AIDS.
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
141
49. Welfare of the phy-sically and menta-lly challenged.
50. Welfare of the Sch-eduled Castes.
51. Welfare of the Sch-eduled Tribes.
52. Welfare of theOther BackwardClasses.
53. Environmentalprograms.
54. Survey for socio-economic and otherwelfare programs.
55. Establishment expenses, –(i) Asset building: (a) Establishment of Corpus Fund,
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
142
and (b) Purchase of land;
(ii) Construction /Extension / Mainte-nance of office, ad-ministrative and ot-her buildings;
(iii) Payment of sa-laries / honorarium;
(iv) Publication ofnewsletter / litera-ture / books, etc.
(v) Other expenses.
56. Activities other thanthose mentionedabove (Furnishdetails).
TOTAL
CAUTION:– Submission of false information or concealment of material facts shall attract the relevant provision of the Foreign Contribution (Regulation) Act, 1976warranting appropriate action.
Sl. Purpose Previous Balance R e c e i p t d u r i n g t h e y e a r Utilised Balance
No. As first recipient As 2nd / subsequent Totalrecipient
In cash In kind In cash In kind In cash In kind (5+6+7+8) In cash In kind In cash In kind(value) (value) (value) (value) (value)
1 2 3 4 5 6 7 8 9 10 11. 12. 13
143
A/c No. ……………………………………………………………………..
Bank………………………………….……………………………………
Branch:…………………………………………………………………….
Address:…………………………………………………………………………..……………………………………….…………………………..….PIN………………………...…………………….
4. Donor-wise Receipts of foreign contribution (in Rupees)Sl. Institutional / Individual / Name(s) and address(es) Purpose(s) Date and month AmountNo. Other Donors of receipt
1 2 3 4 5 6(i) Institutional Donors
3. Name and address of the designated branch of the Bank and account number (as specifiedin the application for registration/ prior permis-sion or permitted by the Central Government)
144
Sl. Institutional / Individual / Name(s) and address(es) Purpose(s) Date and month AmountNo. Other Donors of receipt
1 2 3 4 5 6
(ii) Individual Donors above Rs. One lakh
(iii) Individual Donors below Rs.One lakh (only columns 4 and 6 need to be filled)
Total
145
5. Country-wise Receipts of foreign contribution (in Rupees)S. No. Name of the country Amount
1 2 3
1.
2.
3.
4.
5.
Total:
DECLARATIONI hereby declare that the above particulars furnished by me are true and correct. I also affirm that the foreign contribution has been utilised for thepurpose(s) for which the Association has been registered/ prior permission obtained. To the best of my knowledge, I have not concealed or suppressedany fact.
Place: Signature of the Chief Functionary
Date:
(Name of the Chief Functionary and seal of the Association)
146
Certificate To Be Given By Chartered AccountantI/ We have audited the accounts of ...........................…………………………………………………………………………………………………………...............................................................................................................................................…………………………………………………………………………………...…….(nameof Association and its full address including State and pin code, if registered society, its registration number and State of registration), for the year ending 31stMarch ….....….... and examined all relevant books and vouchers and certify that according to the audited accounts:
(i) the brought forward foreign contribution at the beginning of the year was Rs. ……………………..…........
(ii) foreign contribution of / worth Rs. ………………..………............. was received by the Association during the year ……………..………………….……….......
(iii) the balance of unutilised foreign contribution with the Association at the end of the year …………………..….. was Rs …………..……………………………
(iv) Certified that the Association has maintained the accounts of foreign contribution and records relating thereto in the manner specified in section 13 of theForeign Contribution (Regulation) Act, 1976 read with Rule 8(1) of the Foreign Contribution (Regulation) Rules, 1976.
(v) The information furnished in this certificate and in the enclosed Balance Sheet and Statement of Receipt and payment is correct as checked by me/us.
Place _______________
Date ________________
Signature of Chartered Accountant
with seal, address and Registration number
147
Form FC-5[See Rule 4(c)]
Intimation to the Central Government of receipt of scholarship, stipend or anypayment of a like nature from a foreign source
[Sections 7(1) and 7(2) of the Foreign Contribution (Regulation) Act, 1976]
1. Name in full (in block letters)
2. Date of birth
3. Name of father
4. Present Address
5. Permanent Address
6. Passport particulars
7. Specific details of occupation/profession
8. Particulars of the foreign sourcefrom whom scholarships, stipend orpayment of a like nature wasreceived:
(a) If an individual, his personalparticulars including name,present address, permanentaddress, nationality, profession
(b) If an Organisation/ Institution/Association/ Trust/ Foundation/Trade Union, etc. full particularsthereof including:
(i) Full name and completeaddress
(ii) Address of Head Office/Principal Office
148
(iii) Aims and Objects
(iv) Particulars of important office-bearers
9. Nature and full details ofscholarship, stipend, or anypayment of a like nature receivedfrom foreign source, indicating:
(a) total amount and its break-up undervarious heads like cost of journey,equipment, clothing, maintenance,tuition fees, residence fees, books,etc. and
(b) mode/channel of receipt.
10. Purpose of scholarship, stipend orany payment of a like nature withspecific details of courses attended/to be attended.
11. Duration of stay abroad with dates
12. Any other information of significance,which the applicant may like tofurnish.
DeclarationI hereby declare that the above particulars furnished by me are true and correct.
Place: _________,
Date: __________
_________________
Signature of applicant
149
Q U A N T I T Y Q T Y.
Form FC-6[See Rule 8(a)]
FOREIGN CONTRIBUTION (ARTICLES) ACCOUNTS
DESCRIPTION OF THE ARTICLE: __________________________________
RECEIPT UTILISATION / DISPOSAL
Date Name and Mode of Purpose Quantity Approx. Date of Date Name and Purposeaddress of Receipt of receipt received value of intimation sent address of for which Utilised by Sold Otherwise If sold, Reference to Balance inthe person of Articles to the Central the person issued or the organi- transferred the amount entry in the stockfrom whom received Government to whom otherwise sation for which Foreign Con-received issued, sold transferred sold tribution
or otherwise (Currency)transferred Account
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
DECLARATIONI hereby declare that the above particulars furnished by me are true and correct.
Signature
150
Form FC-83
(See Rule 3-A)
Form of application for seeking registration with the Central Government under theForeign Contribution (Regulation) Act, 1976 (hereinafter referred to as the Act) for the
acceptance of foreign contribution by an Association having a definite cultural, economic,educational, religious or social programme.
No.______ Date____________
To,
The Secretary to the Government of India,Ministry of Home Affairs, Lok Nayak Bhawan,Khan Market, New Delhi – 110 003
Subject: Application for registration under the Foreign Contribution (Regulation) Act, 1976 for theacceptance of foreign contribution
Sir,
I, ………………………………………….…………….., on behalf of the Association named hereafter,apply for registration of the Association under clause (a) of sub-section (1) of section 6 of the Actfor the acceptance of foreign contribution.
1. (i) Name of the Association and its complete postal address :
Name:
Address:
Town/City: District:
State: Pin Code:
(ii) If the Association is a registered trust or Society, please indicate its:–
(1) Registration Number:
(2) Place of Registration:
(3) Date of Registration:(Certified copy of the Registration Certificate to be attached).
(iii) Nature of the Association:
(a) Religious $ (c) Economic $
(b) Cultural $ (d) Educational $ (e) Social $
Note: If a religious Association, state whether:
(a) Hindu $ (c) Muslim $ (e) Buddhist $
(b) Sikh $ (d) Christian $ (f) Others $
3 Revised Form FC-8 (w.e.f.24-Jan-2000)
151
(iv) Please indicate –
(a) the main aim(s) and object(s) of theAssociation (enclose a copy ofMemorandum of Association and/or theArticles of Association, if applicable);
(b) the main object(s) and definiteprogramme(s) for which the foreigncontribution is to be accepted/ utilised.
(v) Please furnish the names and addresses of the members of the Executive Committee/Governing Council, etc. of the Association, including the Chief functionary in the followingmanner:
S. Name Name of Nationa- Occupat- Office held Relation with AddressNo. Father / lity ion in the other office
Husband Association, bearer, ifif any any
1 2 3 4 5 6 7 8
1.
2.
3.
4.
5.
6.
7.
2. Please indicate whether any member of the Executive Committee/Governing Council, etc.of the Association, including the Chief Functionary has in the discharge of his/her officialfunctions–
(a) been convicted by any court of law;
(b) a prosecution for any offence pendingagainst him/her;
(c) been found guilty of diversion ormisutilisation of funds of theAssociation or any other association inthe past.
3. Please indicate whether the applicantAssociation is a branch/ unit/ associateof foreign based organisation or anotherassociation already registered under theAct. If so, name and address of the parentorganisation.
152
4. Please indicate,–
(i) whether the Association was,–
(a) granted prior permission to receiveforeign contribution under the Act in thepast. If so, the number and date of theletter granting prior permission shouldbe furnished;
(b) whether the account of the receipt andutilisation of the foreign contributionreceived above was sent to the CentralGovernment in the prescribed form. Ifso, the date of submission of theaccounts should be furnished.
(ii) whether the,–
(a) Association has received foreigncontribution without the prior permissionunder Act in the past. If so, fullparticulars of the foreign contributionreceived along with complete addressof the bank branch and bank accountnumber in which deposited should befurnished;
(b) said violation has been condoned bythe Central Government;
(c) Association has been prohibited fromaccepting foreign contribution under theAct.
5. Please indicate whether the Associationis functioning as editor, owner, printer orpublisher of a publication required to beregistered as “newspaper” under thePress and Registration of Books Act,1867. If so, the details thereof.
6. Please indicate,–
(i) whether the Association ever applied for registration under the Foreign Contribution(Regulation) Act, 1976, if so,–
(a) the date of submission of applicationfor registration;
(b) the number and date of the lastcommunication, if any, received fromthe Ministry;
(c) whether registration was refused;
(d) whether application for registration isstill pending.
153
(ii) whether the Association has close links with another association, or its unit or branchwhich has been–
(a) refused registration under the Act;
(b) prohibited from accepting ForeignContribution.
7. Please furnish,–
(i) details of the activities of theAssociation during the past three years.
(ii) copies of the audited statements ofaccounts of the Association for the pastthree years.
(iii) details of the area(s) of operation.
8. Please indicate whether the Associationhas been specified as an organisation ofa political nature, not being a politicalparty, under Section 5 of the Act. If so,the details of the notification should befurnished.
9. Please indicate,–
(i) the name and address of the branch ofthe bank through which the foreigncontribution shall be received;
(ii) please specify the account number inthe said branch of the bank.
9A. whether a recommendation certificatefrom the competent authority is attached(Yes/No).
10. Any other information which the Association may like to furnish
Yours faithfully,
(Chief Functionary)for and on behalf of Association
(Name of Association)
154
Declaration and undertakingThe Association named here-in-above affirms that the information furnished above is correctand undertakes:–
(i) to inform the Central Government (Ministry of Home Affairs) within thirty days if any changetakes place in regard to the name of the Association, its address, its registration, its nature,its aims and objects with documentary evidence effecting the change;
(ii) to obtain prior permission for change of office-bearer(s), if, at any point of time such changecauses replacement of 50% or more of the office-bearers as were mentioned in the applicationfor registration under Foreign Contribution (Regulation) Act, 1976 and undertakes further notto accept any foreign contribution, except with prior permission, till the permission to replacethe office-bearer(s) has been granted;
(iii) not to change the bank or branch of the bank without prior permission of the CentralGovernment. The reason for change of bank or branch of the bank shall have to be relevantand justifiable; and
(iv) not to accept any foreign contribution, unless it has obtained either the registration number,as applied for hereinabove, or prior permission of the Central Government under sub-section(1A) of section 6 of the Foreign Contribution (Regulation) Act, 1976.
(Chief Functionary)for and on behalf of Association
(Name of Association)Note:
(i) The receipt of application for registration is not a commitment for grant of registration by theCentral Government;
(ii) An incomplete application i.e. without required documents/details/explanations is likely to berejected summarily; and
(iii) In case the space against any column is insufficient separate sheets should be attached.(iv) Please use CAPITAL Letters.
CERTIFICATE(To be submitted alongwith the application)
This is to certify that the ………………………………..........……...………..(name of the associa-tion) having its registered office at ………………………………...…………………….…. (address)has been engaged in Economic, Educational, Cultural, Religious and Social* activities in the………..…….…..……… (District) of ………...…………… (State) for the last ……………… years.
(2) It has undertaken welfare activities in the area and has incurred expenditure (excludingadministrative expenditure) amounting to ………………….. (Amount in Rupees) during the lastthree years on its chosen (Economic, Educational, Cultural, Religious and Social) field of activity.
(3) The antecedents of the organisation have been verified and there is nothing adverse againstthem.
(4) The grant of registration to the aforesaid association to accept foreign contribution under theForeign Contribution (Regulation) Act, 1976 is recommended.
(Recommending Authority)**
(With Seal)* Strike out whatever is not applicable** Any concerned –
(1) Collector of District(2) Department of the State Government(3) Ministry/ Department of the Government of India
155
Declaration regarding newspaper/ newsletterForm X
Declaration
I, …………………………………………. on behalf of the association named hereafter declarethat the printed work/ publication of which the association is the owner/ editor/ printer/ publisherand whose details have been furnished hereinafter, is not a ‘Newspaper’ as per definition ofSection 1(1) of Press and Registration of Books Act, 1867 and/ or is not required to beregistered under part 6(a) of the said Act (a copy of certificate issued by Registrar of Newspapersfor India to the effect that the said printed work falls within the category ‘B’ of publications asper classifications made by Registrar of Newspapers for India to be attached).
(i) Name of the Association
(ii) Address of the Association
(iii) (a) Whether required to obtain PriorPermission. If so, Ministry of HomeAffairs Order No. and date.
(b) Whether prohibited fromacceptance of any foreigncontribution. If so, Ministry ofHome Affairs Order No. and date.
(iv) Title of publication
(v) Periodicity of the publication
(vi) If registered under the Press &Registration of Books Act, 1867,Registration No.
(vii) Date of first publication
I further undertake to abide by the following conditions in respect of the above printed work/publication:
1) That it does not and shall not in future contain any political news, views or commentsthereon and will be absolutely non-political.
2) That it does not and shall not in future contain any article or reference criticizing or commentingon any religion, faith, ritual, practice which may hurt the sentiments of the particular religiousgroup or sect directly or indirectly.
3) That it does not and shall not in future contain any objectionable material to affect prejudicially:-
a) the sovereignty and integrity of India; orb) the public interest; orc) freedom or fairness of election to any Legislature; ord) friendly relations with any foreign State; ore) harmony between religious, racial, linguistic or regional groups, castes or
communities.
SignaturePlace: (Chief Functionary)
Date: Name:(Seal of the Association)
156
The Foreign Contribution (Regulation) Act, 1976An act to regulate the acceptance and utilisation of foreign contribution or foreign hospitality bycertain persons or associations, with a view to ensuring that parliamentary institutions, politicalassociations and academic and other voluntary organisations as well as individuals working inthe important areas of national life may function in a manner consistent with the values ofsovereign democratic republic, and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Twenty-seventh Year of the Republic of India as follows:
CHAPTER IPRELIMINARY
Section 1. Short title, extent, application and commencement(1) This Act may be called the Foreign Contribution (Regulation) Act, 1976.
(2) It extends to the whole of India, and it shall also apply to-
(a) citizens of India outside India; and
(b) associates, branches of subsidiaries outside India, of companies or bodies corporate,registered or incorporated in India.
(3) It shall come into force on such date4 as the Central Government may, by notification in theOfficial Gazette, appoint.
Section 2. Definitions–(1) In this Act, unless the context otherwise requires,–
(a) “association” means an association of individuals, whether incorporated or not, havingan office in India and includes a society, whether registered under the SocietiesRegistration Act, 1860 (21 of 1860), or not, and any other organisation, by whatevername called;
(b) “candidate for election” means a person who has been duly nominated as a candidatefor election to any Legislature;
(c) “foreign contribution” means the donation, delivery or transfer made by any foreignsource,-
(i) of any article, not being an article given to a person as a gift for his personal use,if the market value, in India, of such article, on the date of such gift, does notexceed one thousand rupees;
(ii) of any currency, whether Indian or foreign;
(iii) of any foreign security as defined in clause (i) of section 2 of the Foreign ExchangeRegulation Act, 1973 (46 of 1973);
5[Explanation– A donation, delivery or transfer of any article, currency or foreign securityreferred to in this clause by any person who has received it from any foreign source, eitherdirectly or through one or more persons, shall also be deemed to be foreign contribution withinthe meaning of this clause;]
(d) “foreign hospitality” means any offer, not being a purely casual one, made by a foreign
4 August 5, 1976 vide GSR 775 (E), Dt. 5 – 8 – 19765 Ins. by Act 1 of 1985, S. 2 (w.e.f. 20 – 10 – 1984).
157
source for providing a person with the costs of travel to any foreign country or territoryor with free board, lodging, transport or medical treatment;
(e) “foreign source” includes–
(i) the Government of any foreign country or territory and any agency of suchGovernment,
(ii) any international agency, not being the United Nations or any of its specialisedagencies, the World Bank, International Monetary Fund or such other agency asthe Central Government may, by notification in the official Gazette, specify in thisbehalf,
(iii) a foreign company within the meaning of the section 591 of the Companies Act,1956 (1 of 1956), and also includes-
(a) a company which is a subsidiary of a foreign company, and
(b) a multi-national corporation within the meaning of this Act,
(iv) a corporation, not being a foreign company, incorporated in a foreign country orterritory,
(v) a multinational corporation within the meaning of this Act,
(vi) a company within the meaning of the Companies Act, 1956 (1 of 1956), if morethan one-half of the nominal value of its share capital is held, either singly or inthe aggregate, by one or more of the following, namely:
(a) Government of a foreign country or territory,
(b) citizens of a foreign country or territory,
(c) corporations incorporated in a foreign country or territory,
(d) trusts, societies or other associations of individuals (whether incorporated ornot), formed or registered in a foreign country or territory,
(vii) a trade union in any foreign country or territory, whether or not registered in suchforeign country or territory,
(viii) a foreign trust by whatever name called, or a foreign foundation which is either inthe nature of trust or is mainly financed by a foreign country or territory,
(ix) a society, club or other association of individuals formed or registered outsideIndia,
(x) a citizen of a foreign country,
but does not include any foreign institution, which has been permitted by the Central Governmentby notification in the Official Gazette, to carry on its activities in India;
(f) “legislature” means-
(i) either House of Parliament,
(ii) the Legislative Assembly of a State, or in the case of a State having a LegislativeCouncil, either House of the Legislature of that State,
(iii) Legislative assembly of a Union territory constituted under the Government ofUnion Territories Act, 1963 (20 of 1963),
(iv) the Metropolitan Council of Delhi constituted under Section 3 of the Delhi
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Administration Act, 1966 (19 of 1966),
(v) Municipal Corporations in metropolitan areas as defined in the Code of CriminalProcedure, 1973 (2 of 1974),
(vi) District Councils and Regional Councils in the States of Assam and Meghalayaand in the Union Territory of Mizoram as provided in the sixth Schedule to theConstitution, or
(vii) Any other elective body as may be notified by the Central Government,
as the case may be;6[(g) “political party” means–
(i) an association or body of the individual citizens of India-
(1) which is, or is deemed to be, registered with the Election Commission ofIndia as a political party under the Election Symbols (Reservation andAllotment) Order, 1968, as in force the time being; or
(2) which has set up candidates for election to any Legislature, but is not soregistered or deemed to be registered under the Election Symbols (Reservationand Allotment) Order, 1968;
(ii) a political party mentioned in Column 1 of table I to the notification of the ElectionCommission of India No. 56\J&K\ 84, dated the 27th September, 1984, as inforce for the time being;]
(h) “prescribed” means prescribed by rules made under this Act;
(i) “registered newspaper” means a newspaper registered under the Press and Registrationof Books Act, 1867 (25 of 1867);
(j) “subsidiary” and “associate” have the meanings respectively, assigned to them in theCompanies Act, 1956 (1 of 1956);
(k) “trade Union” means a trade union registered under the Trade Unions Act, 1926 (16 of1926).
Explanation– for the purposes of this Act, a corporation incorporated in a foreign country orterritory shall be deemed to be a multi-national corporation if such corporation–
(a) has a subsidiary or a branch or a place of business in two or more countries or territories;or
(b) carries on business, or otherwise operates, in two or more countries or territories.
(2) Words and expressions used herein and not defined in the Foreign Exchange RegulationAct, 1973 (46 of 1973), have the meanings respectively assigned to them in that Act.
(3) Words and Expressions used herein and not defined in this Act or in the Foreign ExchangeRegulation Act, 1973 (46 of 1973), but defined in the Representation of the People Act, 1950(43 of 1950) or the Representation of the People Act, 1951 (43 of 1951), have the meaningsrespectively assigned to them in such Act.
Section 3. Application of other laws not barredThe provisions of this Act shall be in addition to, and not in derogation of, any other law forthe time being in force.
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CHAPTER IIREGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY
Section 4. Candidate for election, etc. not to accept foreign contribution–(1) No foreign contribution shall be accepted by any —
(a) candidate for election,
(b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registerednewspaper,
(c) 7[Judge], Government servant or employee of any corporation,
(d) member of any legislature,
(e) political party or office-bearer thereof.
Explanation– In clause (c) and in section 9, “corporation” means a corporation owned orcontrolled by government and includes a Government company as defined in Section 617 ofthe Companies Act, 1956 (1 of 1956).
(2) (a) No person, resident in India, and no citizen of India resident outside India shall acceptany foreign contribution, or acquire or agree to acquire any currency from a foreignsource, on behalf of any political party, or any person referred to in sub-section (1), orboth.
(b) No person, resident in India, shall deliver any currency, whether Indian or foreign,which has been accepted from any foreign source, to any person if he knows or hasreasonable cause to believe that such other person intends, or is likely, to deliver suchcurrency to any political party or any person referred to in sub-section (1), or both.
(c) No citizen of India, resident outside India shall deliver any currency, whether Indian orforeign which has been accepted from any foreign source, to–
(i) any political party or any person referred to in sub-section (1), or both, or
(ii) any other person, if he knows or has reasonable cause to believe that such otherperson intends, or is likely, to deliver such currency to a political party or to anyperson referred to in sub-section (1), or both.
(3) No person receiving any currency, whether Indian or foreign, from a foreign source on behalfof any association, referred to in sub-section (1) of Section 6, shall deliver such currency–
(i) to any association or organisation other than the association for which it wasreceived, or
(ii) to any other person, if he knows or has reasonable cause to believe that suchother person intends, or is likely, to deliver such currency to an association otherthan the association for which such currency was received.
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Section 5. Organisation of a Political nature not to accept foreign contribution exceptwith the prior permission of the Central Government(1) No organisation of a political nature, not being a political party, shall, accept any foreign
contribution except with the prior permission of the Central Government.
Explanation– For the purposes of this section, “organisation of a political nature, not being apolitical party” means such organisation as the central Government may, having regard to theactivities of the organisation or the ideology propagated by the organisation or the programmeof the organisation or the association of the organisation with the activities of any political party,by an order published in the official Gazette, specify in this behalf.
(2) (a) Except with the prior permission of the Central Government, no person, resident inIndia, and no citizen of India, resident outside India, shall accept any foreign contribution,or acquire or agree to acquire any foreign currency, on behalf of an organisation referredto in sub-section (1).
(b) Except with the prior permission of the Central Government, no person, resident inIndia, shall deliver any foreign currency to any person if he knows or has reasonablecause to believe that such other person intends, or is likely to deliver such currency toan organisation referred to in sub-section (1).
(c) Except with the prior approval of the Central Government, no citizen of India, residentoutside India, shall deliver any currency, whether Indian or foreign, which has beenaccepted from any foreign source, to–
(i) any organisation referred to in sub-section (1), or
(ii) any person, if he knows or has reasonable cause to believe that such personintends, or is likely, to deliver such currency to an organisation referred to in sub-section (1).
Section 6. Certain associations and persons receiving foreign contribution to giveintimation to the Central Government–
8[(1) No association {other than an organisation referred to in sub-section (1) of section 5}having a definite cultural, economic, educational, religious or social programme shall acceptforeign contribution unless such association,–
(a) registers itself with the Central Government in accordance with the rules made underthis Act; and
(b) agrees to receive such foreign contributions only through such one of the branches ofa bank as it may specify in its application for such registration, and every associationso registered shall give, within such time and in such manner as may be prescribed, anintimation to the Central Government as to the amount of each foreign contributionreceived by it, the source from which and the manner in which such foreign contributionwas received and the purposes for which and the manner in which, such foreigncontribution was utilised by it:
Provided that where such association obtains any foreign contribution through any branch otherthan such branch of the bank through which it has agreed to receive foreign contribution or failsto give such intimation within the prescribed time or in the prescribed manner, or gives anyintimation which is false, the Central Government may, by notification in the Official Gazette,direct that such association shall not, after the date of issue of such notification, accept anyforeign contribution without the prior permission of the Central Government.
8 Subs. for sub-section (1) by act 1 of 1985, S. 4 w.e.f. 1 – 1 – 1985
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(1-A) Every association referred to in sub-section (1) may, if it is not registered with theCentral Government under that sub-section, accept any foreign contribution only afterobtaining the prior permission of the Central Government and shall also give, withinsuch time and in such manner as may be prescribed, an intimation to the CentralGovernment as to the amount of foreign contribution received by it, the source fromwhich and the manner in which such foreign contribution was received and the purposesfor which and the manner in which such foreign contribution was utilised by it.]
(2) Every candidate for election, who had received any foreign contribution, at any timewithin one hundred and eighty days immediately preceding the date on which he is dulynominated as such candidate, shall give, within such time and in such manner as maybe prescribed, an intimation to the Central Government as to the amount of foreigncontribution received by him, the source from which and the manner in which suchforeign contribution was received and the porposes for which and the manner in whichsuch foreign contribution was utilised by him.
Section 7. Recipients of scholarships, etc. to give intimation to the CentralGovernment
(1) Every citizen of India receiving any scholarship, stipend or any payment of a likenature from any foreign source shall give, within such time and in such manner as maybe prescribed, an intimation to the Central Government as to the amount of thescholarship, stipend or other payment received by him and the foreign source fromwhich, and the purpose for which, such scholarship, stipend or other payment hasbeen, or is being, received by him.
(2) Where any recurring payments are being received by any citizen of India from anyforeign source by way of scholarship, stipend or other payment, it shall be sufficient ifthe intimation referred to in sub-section (1) includes a precise information as to theinterval at which, and the purpose for which, such recurring payments will be receivedby such citizen of India.
(3) It shall not be necessary to give such intimation as referred to in sub-section (1) orsub-section (2) in relation to scholarships, stipends or payments of a like nature, if theannual value of such scholarships, stipends or other payments does not exceed suchlimits as the Central Government may, by rules made under this Act, specify in thisbehalf.
Section 8. Persons to whom Section 4 shall not apply–Nothing contained in section 4 shall apply to the acceptance, by any person specified in thatsection, of any foreign contribution, where such contribution is accepted by him, subject tothe provisions of section 10–
(a) by way of salary, wages or other remuneration due to him or to any group of personsworking under him, from any foreign source or by way of payment in the ordinarycourse of business transacted in India by such foreign source; or
(b) by way of payment in the course of international trade or commerce, or in the ordinarycourse of business transacted by him outside India; or
(c) as an agent of a foreign source in relation to any transaction made by such foreignsource with Government; or
(d) by way of a gift or presentation made to him as a member of any Indian delegation,provided that such gift or present was accepted in accordance with the regulationsmade by the Central Government with regard to the acceptance or retention of suchgift or presentation; or
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(e) from his relative when such foreign contribution has been received with the previouspermission of the Central Government:
Provided that no such permission shall be required if the amount of foreign contributionreceived by him from his relative does not exceed, in value, eight thousand rupees perannum and an intimation is given by him to the Central Government as to the amountreceived, the source from which and the manner in which it was received and the purposefor which and the manner in which it was utilised by him;
(f) by way of remittance received, in the ordinary course of business, through any officialchannel, post office, or any authorised dealer in foreign exchange under the ForeignExchange Regulation Act, 1973 (46 of 1973).
Explanation– In this Act, the expression ‘relative’ has the meaning assigned to it in theCompanies Act, 1956 (1 of 1956).
Section 9. Restrictions on acceptance of foreign hospitality–No member of a Legislature, office - bearer of a political party, 9(Judge), Government servantor employee of any corporation shall, while visiting any country or territory outside India,accept except with the prior permission of the Central Government, any foreign hospitality:
Provided that it shall not be necessary to obtain any such permission for an emergent medical aidneeded on account of sudden illness contracted during a visit outside India, but, where suchforeign hospitality has been received, the person receiving such hospitality shall give, within onemonth from the date of receipt of such hospitality, an intimation to the Central Government as tothe receipt of such hospitality and the source from which, and the manner in which, such hospitalitywas received by him.
Section 10. Power of Central Government to prohibit receipt of foreign contribution,etc. in certain cases
The Central Government may–
(a) prohibit any association, not specified in section 4, or any person, from accepting anyforeign contribution;
(b) 10[without prejudice to the provisions of sub-section (1) of section 6, require anyassociation specified in that sub-section], to obtain prior permission of the CentralGovernment before accepting any foreign contribution;
(c) require any person or class of persons or any association, not being an associationspecified in section 6, to furnish intimation within such time and in such manner asmay be prescribed as to the amount of any foreign contribution received by suchperson or class of persons or association, as the case may be, and the source fromwhich and the manner in which such contribution was received and the purpose forwhich and the manner in which such foreign contribution was utilised;
(d) require any person or class of persons, not specified in section 9, to obtain priorpermission of the Central Government before accepting any foreign hospitality;
(e) require any person or class of persons, not specified in section 9, to furnish intimation,within such time and in such manner as may be prescribed, as to the receipt of anyforeign hospitality, the source from which and the manner in which such hospitalitywas received:
9 Subs. by Act 1 of 1985, S. 5 w.e.f. 20 – 10 – 198410 Subs. by Act 1 of 1985, S. 6 w.e.f. 1 – 1 – 1985
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Provided that no such prohibition or requirement shall be made unless the Central Government issatisfied that the acceptance of foreign contribution by such association or person or class ofpersons, as the case may be, the acceptance of foreign hospitality by such person, is likely toaffect prejudicially–
(i) the sovereignty and integrity of India; or
(ii) the public interest; or
(iii) freedom or fairness of election to any legislature; or
(iv) friendly relation with any foreign State; or
(v) harmony between religious, racial, linguistic or regional groups, castes or communities.
Section 11. Application to be made in prescribed form for obtaining priorpermission to accept foreign contribution or hospitality–
(1) Every individual, association, organisation or other person, who is required by or underthis Act to obtain the prior permission of the Central Government to accept any foreigncontribution or foreign hospitality, shall, before the acceptance of any such contributionor hospitality, make an application for such permission to the Central Government insuch form and in such manner as may be prescribed.
(2) If an application referred to in sub-section (1) is not disposed of within ninety days fromthe date of receipt of such application, the permission prayed for in such applicationshall, on expiry of the said period of ninety days, be deemed to have been granted bythe Central Government:
Provided that, where, in relation to an application, the Central Government has informed theapplicant the special difficulties by reason of which his application cannot be disposed of withinthe said period of ninety days, such application shall not, until the expiry of a further periodof thirty days, be deemed to have been granted by the Central Government.
CHAPTER IIIMISCELLANEOUS
Section 12. Power to prohibit payment of currency received in contravention ofthe Act–
Where the Central Government is satisfied, after making such inquiry as it may deem fit thatany person has in his custody or control any article or currency, whether Indian or foreign,which has been accepted by such person in contravention of any of the provisions of thisAct, it may be, by order in writing, prohibit such person from paying, delivering transferringor otherwise dealing with, in any manner whatsoever, such article or currency save inaccordance with the written orders of the Central Government and a copy of such order shallbe served upon the person so prohibited in the prescribed manner, and thereupon the provisionsof sub-sections (2), (3), (4) and (5) of section 7 of the Unlawful Activities (Prevention) Act,1967 (37 of 1967) shall, so far as may be, apply to, or in relation to, such article or currencyand references in the said sub-sections to moneys, securities or credits shall be construedas references to such article or currency.
Section 13. Recipients of foreign contribution to maintain accounts, etc.–Every association, referred to in section 6, shall maintain, in such form and in such manneras may be prescribed,-
(a) an account of any foreign contribution received by it, and
(b) a record as to the manner in which such contribution has been utilised by it.
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Section 14. Inspection of accounts or records–If the Central Government has, for any reason, to be recorded in writing, any ground tosuspect that any provision of this Act has been, or is being, contravened by–
(a) any political party, or
(b) any person, or
(c) any organisation, or
(d) any association,
it may, by general or special order, authorise such gazetted officer, holding a 11[Group Apost], as it may think fit (hereinafter referred to as the authorised officer), to inspect anyaccount or record maintained by such political party, person, organisation or association, asthe case may be, and thereupon every such authorised officer shall have the right to enterin or upon any premises at any reasonable hour, before sunset and after sunrise, for thepurpose of inspecting the said account or record:
Provided that no gazetted officer shall be authorised to inspect the account or record maintainedby political party, unless he has been holding a 11[Group A Post] in connection with the affairs ofthe Union, or a State, for not less than ten years.
Section 15. Seizure of accounts or recordsIf, after inspection of an account or record referred to in section 14, the authorised officerhas any reasonable cause to believe that any provision of this Act or of any other lawrelating to foreign exchange has been, or is being, contravened, he may seize such accountor record and produce the same before the court in which any proceeding is brought for suchcontravention:
Provided that the authorised officer shall return such account or record to the person fromwhom it was seized if no proceeding is brought within six months from the date of suchseizure for the contravention disclosed by such account or record.
12[Section 15 A. Audit of accounts–where any organisation or association fails to furnish any returns under this Act within thetime specified therefor or the returns so furnished are not in accordance with law or if, afterinspection of such returns, the Central Government has any reasonable cause to believethat any provision of this Act has been, or is being, contravened, that Government may, bygeneral or special order, authorise such gazetted officer, holding a Group A post, as it maythink fit, to audit any books of account kept or maintained by such organisation or association,as the case may be, and thereupon every such officer shall have the right to enter in or uponany premises at any reasonable hour, before sunset and after sunrise for the purpose ofauditing the said books of account:
Provided that any information obtained from such audit shall be kept confidential and shallnot be disclosed except for the purposes of this Act.]
Section 16. Seizure of article or currency received in contravention of the Act–If any gazetted officer, authorised in this behalf by the Central Government, by general orspecial order, has any reason to believe that any person has in his possession or controlany article exceeding rupees one thousand in value, or currency, whether Indian or foreign,in relation to which any provision of this Act has been, or is being, contravened, he mayseize such article or currency.
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Section 17. Seizure to be made in accordance with the Code of CriminalProcedure, 1973–
Every seizure made under this Act shall be made in accordance with the provision of section100 of the Code of Criminal Procedure, 1973 (2 of 1974).
Section 18. Confiscation of article or currency obtained in contravention of theAct–
Any article or currency, which is seized under section 16, shall be liable to confiscation ifsuch article or currency has been adjudged under section 19 to have been received orobtained in contravention of this Act.
Section 19. Adjudication of confiscation–Any confiscation referred to in section 18 may be adjudged–
(a) without limit, by the Court of Session within the local limits of whose jurisdictionthe seizure was made; and
(b) subject to such limits as may be prescribed, by such officer, not below the rank ofan Assistant Sessions Judge, as the Central Government may, by notification inthe Official Gazette, specify in this behalf.
Section 20. Opportunity to be given before adjudication of confiscation–No order of adjudication of confiscation shall be made unless a reasonable opportunity ofmaking a representation against such confiscation has been given to the person from whomany article or currency has been seized.
Section 21. Appeal–(1) Any person aggrieved by any order made under Section 19 may prefer an appeal–
(a) where the order has been made by the Court of Session, to the High Court towhich such Court is subordinate; or
(b) where the order has been made by any officer specified under clause (b) of section19, or to the Court of Session within the local limits of whose jurisdiction suchorder of adjudication of confiscation was made, within one month from the dateof communication to such person of the order:
Provided that the appellant court may, if it is satisfied that the appellant was prevented by sufficientcause from preferring the appeal within the said period of one month, allow such appeal to bepreferred within a further period of one month, but not thereafter.
(2) Any organisation referred to in section 5, or any person or association referred to insection 9, or section 10, aggrieved by an order made in pursuance of the explanation tosub-section (1) of section 5 or by an order of the Central Government refusing to givepermission, or by an order made by the Central Government, under section 5 or section9 or section 10, as the case may be, may within sixty days from the date of such orderprefer an appeal against such order to the High Court within the local limits of whosejurisdiction the appellant ordinarily resides or carries on business or personally worksfor gain, or where the appellant is an organisation or association, the principal office ofsuch organisation or association is located.
(3) Every appeal preferred under this section shall be deemed to be an appeal from anoriginal decree and the provisions of Order XLI of the First Schedule to the Code ofCivil Procedure, 1908 (5 of 1908) shall, as far as may be, apply thereto as they applyto an appeal from an original decree.
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Section 22. Penalty for article or currency obtained in contravention of Section 12–If any person, on whom any prohibitory order has been served under Section 12, pays delivers,transfers or otherwise deals with, in any manner whatsoever any article or currency, whetherIndian or foreign, in contravention of such prohibitory order, he shall be punished withimprisonment for a term which may extend to three years, or with fine, or with both; andnotwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), thecourt trying such contravention may also impose on the person convicted an additional fineequivalent to the market value of the article or the amount of the currency in respect ofwhich the prohibitory order has been contravened by him or such part thereof as the courtmay deem fit.
Section 23. Punishment for the contravention of any provision of the Act–(1) Whoever accepts, or assists any person, political party or organisation in accepting,
any foreign contribution or any currency from a foreign source, in contravention of anyprovision of this Act or any rule made thereunder, shall be punished with imprisonmentfor a term which may extend to five years, or with fine, or with both.
(2) Whoever accepts any foreign hospitality in contravention of any provision of this Act orany rule made thereunder, shall be punished with imprisonment for a term which mayextend to three years, or with fine, or with both.
Section 24. Power to impose additional fine where article or currency is notavailable for confiscation–
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), thecourt trying a person who, in relation to any article or currency, whether Indian or foreign,does or omits to do any act which act or omission would render such article or currencyliable to confiscation under this Act, may, in the event of the conviction of such person forthe act or omission aforesaid, impose on such person a fine not exceeding five times thevalue of the article or currency or one thousand rupees, whichever is more, if such article orcurrency is not available for confiscation, and the fine so imposed shall be in addition to anyother fine which may be imposed on such person under this Act.
Section 25. Penalty for offences where no separate punishment has beenprovided
Whoever fails to comply with any provision of this Act for which no separate penalty hasbeen provided in this Act shall be punished with the imprisonment for a term which mayextend to one year, or with fine not exceeding one thousand rupees, or with both.
13[Section 25-A. Prohibition of acceptance of foreign contribution–Notwithstanding anything contained in this Act, whoever, having been convicted of anyoffence under sub-section (1) of section 23 or section 25, in so far such offence relates tothe acceptance or utilisation of foreign contribution, is again convicted of such offence shallnot accept any foreign contribution for a period of three years from the date of the subsequentconviction.]
Section 26. Offences by companies–(1) Where an offence under this act or any rule made thereunder has been committed by
a company, every person who, at the time the offence was committed, was in chargeof, and was responsible to, the company for the conduct of the business of the company,
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as well as the company, shall be deemed to be guilty of the offence and shall be liableto be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render such person liable to any punishmentif he proves that the offence was committed without his knowledge or that he had exercised all duediligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Actor any rule made thereunder has been committed by a company and it is proved thatthe offence has been committed with the consent or connivance of, or is attributable toany neglect on the part of, any director, manager, secretary or other officer of thecompany, such director, manger, secretary or other officer shall also be deemed to beproceeded against and punished accordingly.
Explanation– For the purposes of this section,–
(a) “company” means any body corporate and includes a firm, society, trade union or otherassociation of individuals; and
(b) “director”, in relation to a firm, society, trade union or other association of individuals,means a partner in the firm or a member of the governing body of such society, tradeunion or other association of individuals.
Section 27. Bar to the prosecution of offences under the Act–No court shall take cognisance of an offence under this Act, except with the previoussanction of the Central Government or any officer authorised by the Government in thisbehalf.
Section 28. Investigation into cases under the Act–Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),any offence punishable under this Act may also be investigated into by such authority asthe Central Government may specify in this behalf and the authority so specified shall haveall the powers which an officer-in-charge of a police station has while making an investigationinto a cognisable offence.
Section 29. Protection of action taken in good faith–No suit or other legal proceedings shall lie against the Central Government in respect of anyloss or damage caused or likely to be caused by anything which is in good faith done orintended to be done in pursuance of the provisions of this Act, or any rule or order madethereunder.
Section 30. Power to make rules–(1) The Central Government may, by notification in the Official Gazette make rules for
carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rulesmay provide for all or any of the following matters, namely–
(a) the time within which, and the manner in which, intimation is to be given by anassociation referred to in section 6, with regard to the foreign contributions receivedby it;
(b) the limits up to which receipt of scholarships, stipends or payments of a likenature need not be intimated to the Central Government;
(c) the time within which, and the manner in which, intimation is to be given by thepersons receiving any scholarship, stipend or any payment of a like nature from a
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foreign source;
(d) the time within which, and the manner in which, a candidate for election shouldgive intimation as to the amount of foreign contribution received by him at anytime within one hundred and eighty days from the date when he became suchcandidate;
(e) the form and the manner in which an application shall be made for obtaining priorpermission of the Central Government to receive foreign contribution or foreignhospitality;
(f) the manner of service of the prohibitory order made under section 12;
(g) the form and manner in which account or record referred to in section 13 shall bemaintained;
(h) the limits up to which an officer, not below the rank of an Assistant SessionsJudge, may adjudication of confiscation;
(i) any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon asmay be after it is made, before each House of Parliament while it is in session for atotal period of thirty days which may be comprised in one session or in two or moresuccessive sessions, and if, before the expiry of the session immediately followingthe session or the successive sessions aforesaid, both Houses agree in making anymodification in the rule or both Houses agree that the rule should not be made, the ruleshall thereafter have effect only in such modified form or be of on effect, as the casemay be; so, however that any such modification or annulment shall be without prejudiceto the validity of anything previously done under that rule.
Section 31. Power to exempt–If the central Government is of the opinion that it is necessary or expedient in the interestsof the general public so to do, it may, by order and subject to such conditions as may bespecified in the order, exempt any association (not being a political party), organisation orany individual (not being a candidate for election) from the operation of all or any of theprovisions of this Act and may, as often as may be necessary, revoke or modify such order.
Section 32. Act not to apply to Government transactions–Nothing contained in this Act shall apply to any transaction between the Government ofIndia and the Government of any foreign country or territory.
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Foreign Contribution (Regulation) Rules, 1976(Forms not included)
In exercise of the powers conferred by section 30 of the Foreign Contribution (Regulation) Act,1976 (49 of 1976), the Central Government hereby makes the following rules, namely-
Rule 1. Short title and commencement–(1) These rules may be called the Foreign Contribution (Regulation) Rules, 1976.
(2) They shall come into force on the 5th day of August, 1976.
Rule 2. Definitions–In these rules unless the context otherwise requires,–
(a) “Act” means the Foreign Contribution (Regulation) Act, 1976;
(b) “Form” means a form appended to these rules;
(c) “Section” means a section of the Act.14[(d) “Year” means the accounting year commencing from 1st day of April and ending on31st day of March of the next Calendar year.]
Rule 3. Application for obtaining prior permission to receive foreign contributionor foreign hospitality–
An application for obtaining prior permission of the Central Government to–
(a) receive foreign contribution under sub-section (1) of section 5, or clause (a) ofsub-section (2) of that section, shall be made in Form FC-1;
15[(aa) receive foreign contribution under proviso to sub-section (1) of section 6, or undersub-section (1-A) of that section or clause (b) of section 10, shall be made in FormFC-1A;]
(b) accept foreign hospitality under section 916 [or clause (d) of section 10], shall bemade in Form FC-2.
Rule 16[3-A. application for registration–An application for registration of an association referred to in sub-section (1) of section 6 foracceptance of foreign contribution shall be made in Form FC-8.]
Rule 4. Intimation regarding receipt of foreign contribution or scholarship orstipend or any payment of a like nature or foreign hospitality(1) An intimation as to the receipt of–
17[(a) foreign contribution by an association referred to in sub-section (1) and (1-A) of section6 shall be given for every year beginning on the 1st day of April, in Form FC-3 induplicate, within 18[four months] of the closure of the year;
Provided that a NIL report shall also be furnished. The intimation to be furnished for the yearbeginning on the 1st day of April 1991 shall also include the receipt and utilisation of foreigncontribution during the period commencing from 1st January 1991 and ending on 31st March,1991];
14 Ins. by GSR 179 (E) dt. 25-3-1991 w.e.f. 1-4-199115 Ins. by GSR 755 (E) dt. 5-11-1984 w.e.f. 5-11-198416 Ins. by S. O. 860 (E), w.e.f. 29-12-197717 Subs. by GSR 179 (E) 25-3-1991 w.e.f. 1-4-199118 Subs. for ‘sixty days’ vide GSR 592 (E), dt. 27-12-1996
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(b) foreign contribution by a candidate for election, referred to in sub-section (2) ofsection 6 shall be given in Form FC-4, within fifteen days from the date on whichhe is duly nominated as a candidate for election;
(c) any scholarship, stipend or any payment of a like nature, from any foreign sourcein relation to which an intimation is required to be given under sub-section (1) ofsection 7, shall be given in Form FC-5, within thirty days of receipt of suchscholarship, stipend or other payment of a like nature:
Provided that where the person receiving the scholarship, stipend or any payment of a like natureis residing outside India, the intimation shall be given within sixty days from the date of receipt ofsuch scholarship, stipend or other payment of a like nature;
(d) foreign hospitality, referred to in proviso to section 9, shall be given on plain paperwithin thirty days from the date of receipt of such hospitality specifying the particularsas to the receipt of such hospitality and the source from which and the manner inwhich such hospitality was received.
Rule 5. Intimation of receipt of scholarship, stipend or any payment of a like nature,when not necessary
It shall not be necessary for a citizen of India to give any intimation under section 7regarding receipt of scholarship, stipend or any payment of a like nature from any foreignsource, if the value of such scholarship, stipend or other payment does not exceed, duringan academic year, rupees thirty-six thousand.
Explanation- In calculating the value,—
(a) the amount received by the citizen for the purchase of books, clothing and equipmentand for sight-seeing in a foreign country or territory shall be taken into account; but
(b) the amount spent in travel by air in economy class from India to a foreign country orterritory and back to India from such foreign country or territory, and the amount spentby the foreign source in respect of such citizen towards tuition and other fees, shall notbe taken into account.
Rule 6. Authority to whom an application or intimation to be sent–Any application or intimation referred to in Rule 3, 19[Rule 3-A] or Rule 4, as the case may be,shall be made or given to the Secretary to the Government of India in the Ministry of HomeAffairs, New Delhi, and such application or intimation shall be sent by registered post.
Rule 7. Manner of service of prohibitory order or any other order or direction–A prohibitory order under section12 or any other order or direction made or issued under theAct, shall be served on the person concerned in the following manner, that is to say,–
(a) by delivering or tendering it to that person or to his duly authorised agent; or
(b) by sending it to him by registered post acknowledgement due to the address of his lastknown place of residence or the place where he carries on, or is known to have lastcarried on, business or the place where he personally works for gain or is known tohave last worked for gain, and in case the person is an organisation or an association,to the last known address of the office of such organisation or association;
(c) if it cannot be served in any of the manners aforesaid, by affixing it on the outer door orsome other conspicuous part of the premises in which that person resides, or carries
19 Ins. by GSR 755-E dt. 5-11-1984 w.e.f. 5-11-1984
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on, or is known to have last carried on, business, or personally works for gain, or isknown to have last worked personally for gain, and in case the person is an organisationor an association, on the outer door or some other conspicuous part of the premises inwhich the office of the organisation or association is located, or is known to have beenlast located, and the written report whereof should be witnessed by at least two persons.
Rule 8. Maintenance of Accounts–(1) A separate set of accounts and records shall be maintained, exclusively for foreign
contribution received and utilised,–
(a) in Form FC-6, where the foreign contribution relates only to articles as referred to initem (I) of sub-clause (c) of clause (1) of section 2;
(b) in the cash book and ledger account on double entry basis, where the foreigncontribution relates to currency received and utilised, and a separate bank accountshall be maintained in respect of such contribution;
(c) in Form FC-7, where the foreign contribution relates to foreign securities.20[(2) Every account specified in sub-rule (1) shall be maintained on an yearly basis,
commencing on the 1st day of 21{April} each year and every such yearly account, dulycertified by a chartered accountant 22(in Form FC-3 along with a Balance Sheet andstatement of Receipts and Payments), shall be furnished, in duplicate, to the Secretaryto the Government of India, in the Ministry of Home Affairs, New Delhi, within 23[fourmonths] of the closure of the year.]
Explanation– In this rule, “Chartered Accountant” has the meaning assigned to it in the CharteredAccountants Act, 1949 (38 of 1949).
Rule 9. Limits up to which an officer, not below the rank of an Assistant SessionsJudge may make adjudication of confiscation–
An officer referred in clause (b) of Section 19 may adjudge confiscation in relation to anyarticle or currency seized under Section 16, if the value of such article or the amount ofsuch currency exceeds one thousand rupees but does not exceed fifty thousand rupees.
20 Subs. by S. O. 860 (E) w.e.f. 29-12-197721 For “January” vide GSR 179 (E) dt. 25-3-1991 w.e.f. 1-4-199122 Subs. vide GSR 179 (E) dt. 25-3-1991 w.e.f. 1-4-199123 Subs. for “sixty days” vide GSR 592 (E) dt. 27-12-1996
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About AccountAid India(Back inside cover)
AccountAid™ India is a private consultingorganisation, which was set up 1992 with en-couragement by Oxfam America. It works withAgencies and NGOs on accounting and relatedissues. These issues include accounting struc-ture, compliance with FCRA, Income Tax, Soci-eties Act, budgeting, donor reporting.AccountAid India works only through Agenciesand does not accept fees or fee-based assign-ments from implementing NGOs.
AccountAid persons have participated as keyresource persons in workshops organised byvarious agencies including Actionaid, CAPART,CARE, CRS, CRY, Diakonia, EZE, Ford Foun-dation, Oxfam America, Oxfam India Trust,Swissaid as also various network groups.AccountAid India has also contributed as amember of the Task Force set up by the Plan-ning Commission on Laws affecting VoluntarySector.
AccountAid develops its own training materialbased on needs felt during the field visit to theNGOs and provides training related to basicaccounting, FCRA, Income Tax, other legal re-quirement for NGOs, project monitoring etc. Ourtraining material is sometimes published or usedby others during workshops (such as BombayChartered Accountants Society, Christian Man-ager) or for development of other material (suchas Accounting Manual for NGOs by Sida).
Some of the reference material, including ear-lier issues of AccountAble and FCRA forms, areavailable on our web site at http://www.accountaid.net. The web-site also providesa facility for answering NGO questions, in confi-dence and on a complimentary basis.
AccountAid staff includes persons with diversebackgrounds such as education, cost account-ing and rural banking. It also draws on the expe-rience of professional accountants on a regularbasis, who also visit the field.
You can reach us (Monday-Friday; 9:30 -5:30) at:
AccountAid India,55-B, Pocket C, Sidharth Extension,New Delhi – 110 014Phone: 011-634 3128, 634 6111Fax: 011-634 3852e-mail: [email protected] site: http://www.accountaid.net