Can ngo take money frm other countries ?
Swastik Upadhyay
(Querist) 03 July 2012
This query is : Resolved
I have registered an NGO as a Society and have many friends and well- wishers outside India and they want to donate fund to my organization. As my organization is very new so I cant register fr FCRA also. How to take those fund frm them.The fund amount will be more thn 100000/ year.
So please help how can I take those donation frm thm??
Thanks,
Swastik
A V Vishal
(Expert) 03 July 2012
Yes but subject to prior permission which is granted on case to case basis if you are not registered under FCRA.
Swastik Upadhyay
(Querist) 03 July 2012
Can u plz let me knw wht are the permission which I have to get and wht r the possible cases in which the permission is granted?
Thanks
Swastik
A V Vishal
(Expert) 04 July 2012
Prior Permission
Application for grant of Prior Permission (PP) can be submitted in prescribed form FC-1A to the Ministry of Home Affairs, which can be down loaded from Ministry of Home Affairs’ website http://mha.nic.in/fore.htm. For this a commitment letter from the donor foreign source for funding specific project/scheme is mandatory to be submitted along with the application form. On receipt of the application, the same is processed by the Ministry as per the provisions of Act and guidelines issued thereunder. Prior Permission is granted to such associations which are new or in formative stage but are carrying out some programmes in the area of cultural, economic, educational, religious or social field of activities.
The normal time taken for final disposal of an application is about 3 months (extendable to four months) for the associations, which are not able to furnish verification certificate from Collector of the concerned District or other officers not below the rank of Deputy Secretary of the concerned Department/Ministry in the State Government/Central Government. For the associations which submit such verification certificate, Prior Permission is granted within a fortnight of submission of the application.
Once Prior Permission is granted, the association may receive foreign contribution from particular foreign source for particular purpose within a reasonable time limit. In such cases donor and donee are specific and amount of FC receipt can be utilized for the particular purpose only for which the permission has been sought. Such associations are required to furnish annual returns regarding receipt and utilization of foreign contribution to the Ministry of Home Affairs (Foreigners Division) in prescribed FC-3 form duly certified by a Chartered Accountant. This has to be submitted before 31st July of the following financial year.
If during a particular financial year, an association applies for Prior Permission for second or subsequent time, it is required to furnish details of receipt and utilization of foreign contribution received earlier.
A V Vishal
(Expert) 04 July 2012
Common Grounds for Rejection of Applications
To remove certain lacunae noticed during administration of the FCRA and the Rules made thereunder, certain guidelines were laid down for considering applications for grant of prior permission/ Registration under the Act. Some of the common grounds for rejection of applications are enlisted below as illustrations to bring in transparency and benefit the applicants in taking due care and caution :-
· If the association is not registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956.
· If any of the office bearers/trustees, including the chief functionary is a foreign national, other than of Indian origin.
· If the association has a single office bearer/member.
· If the association is found to have been formed for personal gain or for diversion of the funds for undesirable purposes.
· If the association is found to be fictitious or ‘benami’ in nature.
· If the credibility of any member of the governing body is in doubt.
· If the association has close links with another association which has been refused registration under FCRA or prohibited under FCRA or violated the provisions of FCRA.
· If the association has links with any banned organizations.
· If the principal office bearers of the association have been convicted by any court of law under any act or if a prosecution for any offence is pending against them.
· If the principal office bearers of the association have been found guilty of diversion or misutilisation of funds of the said association or any other association in the past.
· If the activities of the association are found to be aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another.
· If the association is found to propagate sedition or to advocate violent methods to achieve its ends.
· If the association is found to be creating communal tensions or disharmony.
· If the office bearers of the association are also office bearers of another association and one of these associations has come to adverse notice.
· If the association’s printed work is not certified by the Press registrar of India not to be a newspaper in terms of section 1(1) of the Press Registration of Books Act, 1867.
· If the source of foreign contribution is found to be adverse to the interests of the country.
· If the acceptance of foreign contribution by the association is likely to be prejudicial to (a) the sovereignty and integrity of India; (b) free and fair elections to any Legislature or House of Parliament; (c) public interest; (d) friendly relations with a foreign state; or (e) harmony between any religious, social, linguistic, regional groups, caste or community.
· If the association has not filed its annual FC-3 returns, of receipt and utilization of foreign contribution received with prior permission, within the stipulated period.
· If the association has violated any provisions of the Act or Rules in the preceding three years and the said violation has not been remedied or rectified
1. Additional grounds for rejection of applications for Registration.
· If the association is not in existence for three years at least.
· If the association has not carried on any activity in its chosen field during the last three years.
· If the association has not received foreign contribution, with prior permission, during the preceding three years.
· If the association has not made any substantial contribution, excluding expenditure on administration, (Rs.6,00,000 over a period of three years or Rs.2,00,000 per year) in its field of interest.
2. Additional grounds for rejection of applications for Prior Permission
If the application is not accompanied by the ‘commitment letter’ of the donor.
If the application is not accompanied by the copy of project for which foreign contribution is solicited/is being offered.
