FCRA (Foreign Contribution Regulation Act) 2025

What is FCRA?

The FCRA (Foreign Contribution Regulation Act) is a law of the Government of India, first enacted in 1976 and later amended in 2010 and 2020. Its purpose is to regulate foreign funds coming into India and ensure their proper use.

Simply put, the FCRA determines which NGOs, trusts, and organizations can receive foreign funds and for what purposes they will spend them.

The objective of the FCRA is to

Bring transparency and accountability in the use of foreign funds.

Prohibit organizations that may misuse foreign funds.

Permit foreign contributions for social welfare, education, health, and research within a legal framework.

Protect the security, unity, and integrity of India.

FCRA Registration Process

Requirements for Registration

The organization must be at least 3 years old.

The organization must have done social work worth at least ₹10 lakh in the last 3 years.

The purpose must be related to social welfare, education, health, research, or rural development.

Registration Process

1. Application must be made on the FCRA online website (FCRA Portal).
2. The organization must upload its documents such as registration certificate, PAN, details of previous activities, and audit reports.
3. Approval is granted after scrutiny by the Ministry of Home Affairs (MHA).

Which organizations are not permitted to receive FCRA funds?

Political parties and their candidates

Government employees, the judiciary, and media houses

Public servants

Organizations involved in corruption or crime


Penalties for FCRA violations

Registration may be revoked.

Receiving foreign funds may be completely banned.

The organization may face fines and legal action.

FCRA Amendment 2020 – Recent Changes

The Government of India made several changes through amendments in 2020:

Administrative expenses were reduced from 50% to 20%.

Transfer of foreign funds from one organization to another was prohibited.

It was made mandatory for all organizations to open a bank account with the SBI, New Delhi main branch.


Importance of FCRA

Foreign funds are used only for public welfare and development work.

NGOs and trusts can be monitored.

India’s national security and social balance are maintained.


FAQs (Frequently Asked Questions)

Q1. What is the full form of FCRA?
👉 The full form of FCRA is – Foreign Contribution Regulation Act.

Q2. For how many years is FCRA registration valid?

👉 FCRA registration is generally valid for 5 years.

Q3. What were the main changes in the FCRA Amendment 2020?
👉 Transfer of foreign funds was prohibited and the administrative expenditure limit was raised to 20%.

Q4. Is FCRA registration mandatory for all NGOs?
👉 Yes, if an NGO wishes to receive funding or support from abroad, it is mandatory to obtain FCRA registration.


Conclusion

FCRA is an important law of the Government of India that regulates, transparently, and secures foreign contributions. If an NGO, trust, or society wishes to receive funds from abroad, it must obtain FCRA registration.