FCRA Handbook

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TM

AccountAble Handbook

FCRA

AccountAidTM India
New Delhi
About this book
(front inside cover)
The AccountAble Handbook is a compilation of
the individual issues of ‘AccountAble’, released
by AccountAid India since 1994. These issues
have been designed and circulated on a monthly
basis primarily for the partners of our client Agen-
cies.
‘AccountAble’ is circulated to about 1,200 per-
sons, including Chartered Accountants. It is also
available through e-mail, on a complimentary
basis. The present compilation brings all issues
of AccountAble related to FCRA together at one
place.
While we have taken utmost care to make sure
there are no mistakes, the handbook is designed
to provide a general understanding only. We,
therefore, suggest that you seek independent
and 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 as
also 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.

(i)
AccountAble™ Handbook

FCRA

AccountAid™ India
New Delhi
© AccountAid India 2002
All rights reserved.
No part of the publication may be reproduced or transmitted in any form or by any means, without
prior 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, provided
the 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 – 110 014
Ph.: 011-634 3128, 634 6111
Fax: 011-634 3852
e-mail: accountaid@vsnl.com

Typesetting, layout and printing by:


Chanakya Mudrak Pvt. Ltd.,
C-16, DSIDC Packaging Complex,
Kirti Nagar, New Delhi-110 015
Telefax.: 5923947, 5923951
Preface
Foreign Contribution (Regulation) Act, 1976 is a curious piece of legislation. The Act
has only 31 sections: a very short and simple piece of law by any standard. It has also
been amended only once in the last 26 years. Very few cases have gone to court
under FCRA.

The Act was essentially designed to prevent flow of foreign funds to political parties
in India. It was brought in after a big controversy erupted in 1967 over the possible use
of foreign funds in parliamentary elections. By 2002, there were similar laws operating
in 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 organisations
more closely, based on the Government’s perception that some of these organisations
may be used to channelise funds to political parties. This has resulted in a lot of
paper-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 also
adapted a citizen’s charter and has tried to streamline its working. However, much
remains to be done.

One peculiar implication of the 1984 amendment has been that FCRA is now commonly
perceived 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 FCRA
Department is dealing with NGOs (nearly 25,000 associations have FCRA registration).

The present handbook is designed primarily for use by NGOs, who often find themselves
on 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 the
book useful. Some sections would be of interest to grant-making Agencies working in
India, 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 handbook
may help give them an overview.

While we have tried to make sure that the book is free from errors, still the possibility
remains. We, therefore, welcome your comments and suggestions so that we can
correct 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 many
people have contributed to this, that it is difficult to decide who can be left out, given
the constraints of space and reader’s attention span. In keeping with our own tradition,
we can mention no individual names.

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However, the most important contribution has come from NGO functionaries and
accountants across India, who have shared their problems with us in confidence.
Many people working in grant-making Agencies, have helped us add depth and insight
to AccountAble, by attending our annual workshops and discussing their concerns.
Then there are people who have encouraged us by visiting our web-site and sending
us their feedback and questions.

We would also like to thank our client Agencies, CRY and Ford Foundation, who have
supported research and publication of AccountAble through these years. The publication
of this handbook has been made possible under an agreement with Ford Foundation
in 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 their
families, who sacrificed many evenings and weekends to this book.

30th June 2002 AccountAid Team

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Topics at a Glance

Preface ................................................................................................... i
Detailed Contents ............................................................................. v-xix

Section I: Funds, Sources & Receivers ........................................................ 1


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

Section II: Procedures ................................................................................. 55


Prior Permission .................................................................................. 57
FCRA Registration ............................................................................... 63
Basics of FC-3 ..................................................................................... 70
Intricacies of FC-3 ................................................................................ 75
Maintaining Form FC-6 ........................................................................ 84
FCRA Fellowships ............................................................................... 89
FCRA Penalries ................................................................................... 93

Section III: Intricacies ................................................................................... 99


Understanding FCRA ......................................................................... 101
Mysteries of FCRA ............................................................................. 111
Puzzles of FCRA ................................................................................ 115
Fund-raising and FCRA ..................................................................... 120

Section IV: Forms ....................................................................................... 125


Form 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
The Foreign Contribution (Regulation) Act, 1976 ................................. 156
Foreign Contribution (Regulation) Rules, 1976 ................................... 169

( iii )
( iv )
Detailed Contents
Preface ............................................................................................................. i
Topics at a Glance .............................................................................................. iii

Section I: Funds, Sources & Receivers....................................... 1


Sources and Caution .......................................................................................... 1
Inflow of Foreign Contribution ....................................................................... 3
How 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 ............................................ 9
State 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

(v)
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 ................................................................................ 19
Notified by the Government .............................................................................. 19
Other non-foreign sources ............................................................................... 23
Foreign Sources ........................................................................................ 25
Profiles of Top FC Donors ......................................................................... 31
The 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

( vi )
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 .................................................................... 44
1. 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

( vii )
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 ................................................................ 55


Prior Permission ........................................................................................ 57
When do you need it? ............................................................................................. 57

( viii )
Procedure ......................................................................................................... 57
Apply in FC-1A ....................................................................................................... 57
Field Inquiry ............................................................................................................ 57
Reply from FCRA .................................................................................................... 57
Appeal against rejection .......................................................................................... 57
Common doubts............................................................................................... 57
More 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 ................................................................................................ 58
1. 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 .......................................................... 61
Copies .................................................................................................................... 61
Send it to FCRA ..................................................................................................... 62

FCRA Registration ..................................................................................... 63


Can you lose your registration? ............................................................................... 63
How to register ................................................................................................. 63
FCRA Bank Account .............................................................................................. 63

( ix )
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 .......................................................................................... 64
Only registered NGOs ............................................................................................. 64
Three years ............................................................................................................. 65
No foreigners ........................................................................................................... 65
No time frame ......................................................................................................... 65
Reason for refusal? ................................................................................................. 65
Filling up FC-8 .................................................................................................. 65
1. 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 ...................................................................................................... 68
Sign and Date ......................................................................................................... 68
Sending the form ..................................................................................................... 68
Check-list of Documents to be attached .......................................................... 69
Basics of FC-3 .......................................................................................... 70
What is FC-3 .......................................................................................................... 70
Who should file FC-3 .............................................................................................. 70
Due Date ................................................................................................................ 70

(x)
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. ............................................................................ 71
Item (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 ........................................ 71
Column 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

( xi )
FC-3 Annexures .......................................................................................... 74
Intricacies of FC-3 ...................................................................................... 75
Opening Items .................................................................................................. 75
Address .................................................................................................................. 75
FCRA registration cancelled ................................................................................... 75
Summary of Interest ................................................................................................ 75
Table 2: Receipt and Utilisation ......................................................................... 75
FCRA 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 .......................................................................................... 78
In Cash ................................................................................................................... 78
In Kind .................................................................................................................... 78
Loan transactions with Indian Section .............................................................. 78
For opening bank account ....................................................................................... 78
During the year ....................................................................................................... 78
Bank Details ..................................................................................................... 79
Table 4: Donor Details ...................................................................................... 79
Box Collections ...................................................................................................... 79
Small Individual Donors ........................................................................................... 79
More on Individual Donors ....................................................................................... 80
Table 5: Country Chart ...................................................................................... 80

( xii )
Country-wise Receipts ............................................................................................ 80
Donation Box Collections .................................................................................. 80
From Another Indian Agency ............................................................................. 80
Reconciliation ................................................................................................... 80
Tables 2 and 4 ........................................................................................................ 80
Table 2: Cross-check Unutilised Balance in Cash ................................................... 80
Table 2: Cross-check Balance in Kind ..................................................................... 81
Closing Items ................................................................................................... 81
Signing 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 ............................................................................... 84


Foreign 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 ...................................................................................... 84
Only 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 ..................................................................................... 85
How long should we keep it ..................................................................................... 85
Step-by-step procedure .................................................................................... 85
Description of Article ............................................................................................... 85
Receipts ................................................................................................................. 85
1. Date .............................................................................................................. 85
2. Donor ............................................................................................................ 85

( xiii )
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 ..................................................................................... 89
Key features of a fellowship .............................................................................. 89
Valuing the Fellowship ...................................................................................... 89
Splitting Hairs ......................................................................................................... 90
FCRA: Issues and Formalities ......................................................................... 90
Routed 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 ......................................................................................... 93


The Power of the Law ...................................................................................... 93
Offenses and Penalties: Ready-Reckoner ....................................................... 94

( xiv )
Section III: Intricacies ................................................................. 99
Understanding 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 ................................................................................... 111
1. Prior permission ..........................................................................................111
2. FCRA Number .............................................................................................111
3. Change of Bank Account .............................................................................111
4. More than one bank account ...................................................................... 112

( xv )
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 ...................................................................................... 115
1. 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

( xvi )
17. Unrestricted FC funds .............................................................................. 118
18. Unrestricted FC funds – under Prior Permission ..................................... 119
19. FEMA and FCRA ...................................................................................... 119
Fund-raising and FCRA ........................................................................... 120
1. 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 ..................................................................... 125


Form 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

( xvii )
The Foreign Contribution (Regulation) Act, 1976 ....................................... 156
Section 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 contribution
except with the prior permission of the Central Government .................................. 160
Section 6. Certain associations and persons receiving foreign contribution to give
intimation 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 prior
permission to accept foreign contribution or hospitality– ....................................... 163
Section 12. Power to prohibit payment of currency received in contravention
of 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 contravention
of the Act ............................................................................................................. 164
Section 17. Seizure to be made in accordance with the Code of Criminal
Procedure, 1973– .................................................................................................. 165
Section 18. Confiscation of article or currency obtained in contravention
of 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 not
available for confiscation– ..................................................................................... 166
Section 25. Penalty for offences where no separate punishment has been
provided ................................................................................................................ 166
Section 25-A. Prohibition of acceptance of foreign contribution– ................................. 166
Section 26. Offences by companies– ........................................................................ 166

( xviii )
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 .......................................... 169


Rule 1. Short title and commencement– .................................................................... 169
Rule 2. Definitions– ................................................................................................... 169
Rule 3. Application for obtaining prior permission to receive foreign contribution
or foreign hospitality– ............................................................................................ 169
Rule 3-A. application for registration– ......................................................................... 169
Rule 4. Intimation regarding receipt of foreign contribution or scholarship or
stipend or any payment of a like nature or foreign hospitality ................................ 169
Rule 5. Intimation of receipt of scholarship, stipend or any payment of a like
nature, 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 Assistant
Sessions Judge may make adjudication of confiscation– ..................................... 171

( xix )
Section I: Funds, Sources & Receivers
Before 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 it
used for.
The data given in this section is mostly based on reliable sources (except the narratives in the
profiles). 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 received
by 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 Caution


Bulk of the analysis presented in this section is based on the annual ‘Inflow of Foreign
Contribution Report’ prepared by the Ministry of Home Affairs. This report provides a lot of
valuable data on foreign contribution. For this analysis, we have used the annual reports for
1996-97, 97-98, 98-99, and 99-00. We would like to place on record our appreciation of the hard
work the FCRA Department puts in while compiling this information, despite limited personnel
and 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. Also
in 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, religious
bodies, universities, and hospitals may receive this money as also NGOs set up by the
Government. For easier reading and in the absence of any definite classification, we have
used the term NGO for all these.
! The FCRA department actually makes no real distinction between grant making agencies
and NGOs. We have used the term Agency to indicate that an organisation is mainly involved
in making grants to other NGOs.
A crore means 10,000,000 or ten million. One crore of Indian Rupees is currently equal to about
208,000 US Dollars. A lakh means 100,000.
Profiles of the donors given in this section have been compiled from various sources, including
the Internet. We hold out no warranties for the accuracy or fairness of the information. Please
verify the information on your own before arriving at any decisions. We have also avoided the
use of religious honorifics. This is not intended as disrespect to the religious beliefs of any
person.
FCRA means Foreign Contribution (Regulation) Act, 1976.

1
2
Inflow of Foreign Contribution1

How many are registered

Fresh Registrations and prior-permissions


In 2000-012, about 1,680 associations
were given FCRA registration. Another
638 were granted prior-permission to
receive foreign contribution. From
these figures, it seems that FCRA
Department has become more liberal
in granting FCRA registration.

Present status
By November 2001, a total of 24,204
associations were registered with
FCRA. Apart from these, about 1,500
associations had prior-permission.
Together, this comes to about 26,000
associations.
How many filed their FC-3
How many file FC-3

13,986
13,775
12,136

12,198
Not all. Only about 60-70% file FC-3 regularly. 11,422
10,963

10,950
10,201

The number of associations filing FC-3 has


9,012

grown at about 5% annually over the last 9


years. This does not mean improved
compliance. Why? Because number of
registered associations has also grown over
last 9 years.
91-92

92-93

94-95

95-96
93-94

96-97

97-98

98-99

99-00
What about the rest
The 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 be
quite consistent in not filing their FC-3 in time!

FCRA Department then issues them a notice. If they ignore the notice, this leads to cancellation
of FC registration. In the past, Government has cancelled FC registration of 203 organizations
in July-96 and another 497 in September 1997.

How much did they receive


Going 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/ 99-00
2
April through March
3
By an FCRA registered association
4
15 months: Jan ’91 to Mar ’92

3
That means an annual growth rate of 13.63% over these nine years. The rate has been lowered
somewhat due to stagnation in 94-95.

If you look at the average funds


received per association, this has
also gone up. In 92-93, the average
was Rs.15.5 lakhs. In 99-00, it had
risen to Rs.28.1 lakhs. This is an
increase of 9% per year per NGO.

What contributes to this rate of


growth? Firstly, there is inflation.
Budgets have to increase every year
just to remain at the same in real

91-92

95-96

96-97

97-98
94-95
92-93

93-94

98-99

99-00
purchasing power.

Secondly, Rupee has fallen quite a


bit over the last seven years. In 1992, a dollar would get you 28 Rupees. Today, it gets you
48 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 for


The FC-3 classification
Many NGOs find it difficult to slot their funds into the categories set out in form FC-3. Also,
quite often the purposes giving in
FC-3 overlap. Religious

There is also another category:


“Other activities”. Around 30% of
the funds are reported under this.
While this makes analysis difficult,
it also shows how difficult it is to
categorize NGOs’ work.

Another perspective…
The table probably looks exciting
to mathematicians. For simple
human beings, it is not of much
use. The chart here shows a
simpler picture, with fewer
categories. This is a percentage
chart and does not give money
figures. Rather it shows the relative
percentage under a category in
each year.

4
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.

5
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 comes
in 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 watershed
development, 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.111.07
crores was received from 96-97 to 98-99. These were also years when there was no major
earthquake or cyclone. Tragically, these figures jumped to 163.33 crores in 99-00, with the
Orissa cyclone in Oct-99.

" Though India is a land of history, very little is received by NGOs for maintenance of historical
and cultural places. From 96-97 to 99-00, this came to just Rs.6.95 crores! Partly, this is due
to the sprawling presence of ASI6 . Then again, this work is probably low priority for most
international agencies except UNESCO. And UNESCO funds will not be reported under
FCRA.

" Quite a bit comes in for building construction, though:


96-97 97-98 98-99 99-00
And then some money is
spent on repairs and School/ colleges 97.31 290.01 145.19 184.64
maintenance. Over the last Other buildings 143.03 115.43 185.25 255.79
four years, this amounted to
Religious buildings 41.88 39.88 91.07 99.49
Rs.539.49 crores.
Total (Rs. Cr.) 282.22 445.32 421.51 539.92

Percent of total FC 11% 15.5% 12.4% 13.8%

How many are Religious… Religion Numbers


The break-up given here is as per Buddhist 70
details furnished so far to FCRA7. Christian 5,100
We estimate that this information is Hindu 321
probably available for around 15,000 Muslim 205
associations only. The balance 8,000 Sikh 10
or so associations (55% of 15,000) Other religions 963
are likely to be non-religious. Total Religious associations 6,669

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

6
How many received a crore and 43
above… 35 37
>10 crores 60
With the continuing erosion of Rupee, a 69 50
5-10 crores
crore8 today is not what it used to be. 28
1-5 crores
In 91-92, just 249 associations received
24 31
over a crore. By 99-00, this had risen to
684 associations. 19 20 23

581
15 27

536

540
19
And the top 5 were… 13 21

430
If you add up 17
the funds
received over
last nine
years 9 , who
received the
most? The
report 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 up
to 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 contributed
at least Rs.100 crores over last four years (1996-97 to 1999-00):

Amount in Rupees Crores Annual


Country Growth
96-97 97-98 98-99 99-00 Total 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

8
10 million
9
From 91-92 to 99-00
10
Church of South India

7
Amount in Rupees Crores Annual
Country Growth
96-97 97-98 98-99 99-00 Total 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, fund
from Spain have grown annually at a compounded rate of 35%. In the case of UK, the rate
of growth is 30%. Growth rate in the case of USA is also higher than the rest at 23% per year.

8
State-wise Distribution of Foreign Contribution11
This analysis provides information on how the foreign contribution is distributed across the
country – which areas receive more funds, which do not. It is hoped that this will provide useful
data for people working with NGOs and Agencies.

State Shares: 96-97 to 99-00


Which state gets how much
100% Others
attention from the
Agencies? This is not easy
90% Manipur
to work out. FCRA
authorities treat NGO and W. Bengal
Agency on the same 80%
Orissa
footing. This means that if
a state is hosting an 70% Bihar
Agency’s office (for
example, Delhi or 60% Uttar Pradesh
Karnataka), then its Himachal
receipts will appear higher. 50%
But much of this may be Rajasthan
transferred by the Agency 40% Madhya Pradesh
to other states. Secondly,
as there are many states, 30% Maharashtra
we look only at selected
Karnataka
states in the chart. 20%
Andhra
State Profiles: 96- 10% Andaman & Nicobar
Kerala
1.37

1.57

97 to 99-00 Tamilnadu
0%
Correlating the state-wise
0.91

96-97 97-98 98-99 99-00


data helps us understand
0.23

more 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, though
headquartered in a particular state. Also simple 96-97
averages
97-98like these
98-99 are not really suitable for
99-00

gauging 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 about
those organizations, which received foreign funds and filed an FC-3. Union Territories are marked
with 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 crores
in 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 average


of 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

9
area under each organisation (in sq. k.m.) was 1,178 (an area approx. 34 kms. wide and 34.5
kms. long).

Andhra Pradesh
Andhra

536.99
487.29
" Received Rs.352.72 crores, 398.08 crores, 487.29 crores and 536.99

398.08
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 15.04%

352.72
" 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 average


of Rs.33.23 lakhs each. Average funds per person came to Rs.70.91.
Average population per organisation was 46,861 people. Average
area under each organisation (in sq. k.m.) was 170 (an area approx. 96-97 97-98 98-99 99-00
13 kms. wide and 13 kms. long).

Arunachal Pradesh
Arunachal
" Received Rs.0.28 crores, 0.51 crores and 0.64 crores in 97-98, 98-
0.64

99, 99-00 " Annual growth rate: 51.19% " Population (2001) 10.91
0.51

lakhs " Land area (Sq. K.M.) 84,743


0.28

Six organisations received Rs.63.66 lakhs in 99-00, or an average


of Rs.10.61 lakhs each. Average funds per person came to Rs.5.83.
Average population per organisation was 181,853 people. Average
0

96-97 97-98 98-99 99-00 area under each organisation (in sq. k.m.) was 14,124 (an area
approx. 118 kms. wide and 119 kms. long).

Assam
" Received Rs.14.88 crores, 17.32 crores, 22.98 crores and 24.35 Assam
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 17.84 %

24.35
22.98
" Population (2001) 266.38 lakhs " Land area (Sq. K.M.) 78,438
17.32
14.88

163 organisations received Rs.24.35 crores in 99-00, or an average


of Rs.14.94 lakhs each. Average funds per person came to
Rs.9.14. Average population per organisation was 163,426 people.
Average area under each organisation (in sq. k.m.) was 481 (an
area approx. 22 kms. wide and 22 kms. long). Assam is classified 96-97 97-98 98-99 99-00

as a sensitive area in the report.

Bihar
" Received Rs.84.02 crores, 83.24 crores, 100.6 crores and 104.75
Bihar
104.75

crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 7.62 %
100.6

" Population (2001) 1,097.88 lakhs (incl. Jharkhand) " Land area (Sq.
83.24
84.02

K.M.) 173,877

723 organisations received Rs104.75 crores in 99-00, or an average


of Rs.14.49 lakhs each. Average funds per person came to Rs.9.54.
Average population per organisation was 151,851 people. Average
97-98 98-99 99-00
area under each organisation (in Sq. K.M.) was 240 (an area approx.
96-97
15 kms. wide and 16 kms. long).

10
Chandigrah (UT)
Chandigarh
" Received Rs.1.87 crores, 1.4 crores, 2.28 crores and 2.62 crores in 96-

2.62
97, 97-98, 98-99, 99-00 " Annual growth rate: 11.9 % " Population

2.28
(2001) 9.01 lakhs " Land area (Sq. K.M.) 114

1.87

1.4
17 organisations received Rs.2.62 crores in 99-00, or an average of
Rs.15.39 lakhs each. Average funds per person came to Rs.29.03.
Average population per organisation was 52,995 people. Average
area under each organisation (in sq. k.m.) was 7 (an area approx.
96-97 97-98 98-99 99-00
2 kms. wide and 3.5 kms. long).

Dadra & Nagar Haveli (UT)


Dadra Nagar Haveli
" Received Rs.0.72 crores, 0.4 crores, 0.71 crores and 0.26 crores in
0.72

0.71

96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 28.79 %


" Population (2001) 2.2 lakhs " Land area (Sq. K.M.) 491
0.26
0.4

12 organisations received Rs.0.26 crores in 99-00, or an average


of Rs.2.2 lakhs each. Average funds per person came to Rs.11.99.
Average population per organisation was 18,371 people. Average
area under each organisation (in sq. k.m.) was 41 (an area approx.
96-97 97-98 98-99 99-00
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 with
Goa. " Population (2001) 1.58 lakhs " Land area (Sq. K.M.)Delhi
112 636.11
487.28

No foreign contribution was reported by 3 organisations from Daman and Diu Islands.
418.52
346.35

Delhi
" Received Rs.346.35 crores, 418.52 crores, 487.28 crores and 636.11
crores 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
96-97 97-98 98-99 99-00
735 organisations received Rs.636.11 crores in 99-00, or an average
of Rs.86.55 lakhs each. Average funds per person came to
Rs.461.52. Average population per organisation was 18,752 people.
Average area under each organisation (in sq. k.m.) was 2 (an
area approx. 1 km. wide and 2 kms. long).

Goa
" Received Rs.13.28 crores, 12.93 crores, 13.29 crores and 13.81 crores
Goa
13.81

in 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
13.29
13.28

12.93

104 organisations received Rs.13.81 crores in 99-00, or an average


of Rs.13.27 lakhs each. Average funds per person came to
Rs.102.72. Average population per organisation was 12,923 people.
Average area under each organisation (in sq. k.m.) was 36 (an area
96-97 97-98 98-99 99-00 approx. 6 kms. wide and 6 kms. long).

11
Gujarat
" Received Rs.80.25 crores, 71.96 crores, 102.09 crores and 126.95 Gujarat

126.95
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 16.52 %

102.09
" Population (2001) 505.97 lakhs " Land area (Sq. K.M.) 196,024

71.96
80.25
551 organisations received Rs.126.95 crores in 99-00, or an average
of Rs.23.04 lakhs each. Average funds per person came to
Rs.25.09. Average population per organisation was 91,828 people.
Average area under each organisation (in sq. k.m.) was 356 (an
96-97 97-98 98-99 99-00
area approx. 18 kms. wide and 20 kms. long).

Haryana
" Received Rs.6.71 crores, 5.93 crores, 5.38 crores and 6.70 crores in
Haryana
96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 0.05 % " Population
6.71

6.7

(2001) 210.83 lakhs " Land area (Sq. K.M.) 44,212


5.93

5.38

74 organisations received Rs.6.70 crores in 99-00, or an average


of Rs.9.06 lakhs each. Average funds per person came to Rs.3.18.
Average population per organisation was 284,905 people. Average
area under each organisation (in sq. k.m.) was 597 (an area approx.
96-97 97-98 98-99 99-00
24 kms. wide and 25 kms. long).

Himachal Pradesh
" Received Rs.40.16 crores, 44.50 crores, 64.32 crores and 68.20 crores
Himachal
in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 19.31 % " Population

64.32

68.2
(2001) 60.77 lakhs " Land area (Sq. K.M.) 55,673
44.5
40.16

77 organisations received Rs.68.20 crores in 99-00, or an average


of Rs.88.57 lakhs each. Average funds per person came to
Rs.112.22. Average population per organisation was 78,925 people.
Average area under each organisation (in sq. k.m.) was 723 (an
area approx. 27 kms. wide and 27 kms. long). 96-97 97-98 98-99 99-00

Jammu & Kashmir


J&K
" Received Rs.9.93 crores, 2.60 crores, 14.89 crores and 13.64 crores
14.89

in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 11.16 %


13.64

" Population (2001) 100.7 lakhs " Land area (Sq. K.M.) 101,387
9.93

34 organisations received Rs.13.64 crores in 99-00, or an average


of Rs.40.12 lakhs each. Average funds per person came to Rs.13.55.
2.26

Average population per organisation was 296,174 people. Average


area under each organisation (in sq. k.m.) was 2,982 (an area
96-97 97-98 98-99 99-00
approx. 54 kms. wide and 55 kms. long).

J & K is classified as a sensitive area in the report.

12
Karnataka
Karnataka

411.34
" Received Rs.274.16 crores, 315.88 crores, 354.73 crores and 411.34

354.73
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 14.48 %

315.88
274.16
" 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 average


of Rs.35.64 lakhs each. Average funds per person came to Rs.78.
Average population per organisation was 45,697 people. Average
area under each organisation (in sq. k.m.) was 166 (an area approx.
96-97 97-98 98-99 99-00
13 kms. wide and 13 kms. long).

Kerala
Kerala
361.7

"
322.42

Received Rs.242.30 crores, 255.38 crores, 322.42 crores and 361.70


255.38

crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 14.29 %
242.3

" 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 average


of Rs.24.39 lakhs each. Average funds per person came to
Rs.113.60. Average population per organisation was 21,469 people.
96-97 97-98 98-99 99-00 Average area under each organisation (in sq. k.m.) was 26 (an area
approx. 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.


Maharashtra 350.23
322.61
323.52
274.91

Madhya Pradesh
M. P.
" Received Rs.57.81 crores, 60.35 crores, 80.67 crores and 84.57

84.57
80.67
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 13.52 %
60.35
57.81

" 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


96-97 average
97-98 98-99 99-00

of Rs.19.58 lakhs each. Average funds per person came to


Rs.10.42. Average population per organisation was 187,919 people. 96-97 97-98 98-99 99-00
Average area under each organisation (in sq. k.m.) was 1,026 (an
area approx. 32 kms. wide and 32 kms. long).

Maharashtra
" Received Rs.274.91 crores, 323.52 crores, 322.61 crores and 350.23
crores 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 average


of Rs.29.23 lakhs each. Average funds per person came to Rs.36.20.
Average population per organisation was 80,761 people. Average
area under each organisation (in sq. k.m.) was 257 (an area approx.
16 kms. wide and 16 kms. long).

13
Manipur
" Received Rs.10.18 crores, 8.74 crores, 11.73 crores and 9.93 crores in Manipur
96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 0.83 % " Population

11.73
10.18

9.93
(2001) 23.89 lakhs " Land area (Sq. K.M.) 22,327

8.74
218 organisations received Rs.9.93 crores in 99-00, or an average
of Rs.4.55 lakhs each. Average funds per person came to Rs.41.56.
Average population per organisation was 10,957 people. Average
area under each organisation (in sq. k.m.) was 102 (an area approx.
10 kms. wide and 10 kms. long). 96-97 97-98 98-99 99-00

Meghalaya
Meghalaya " Received Rs.20.78 crores, 24.08 crores, 26.29 crores and 29.44 crores
29.44

in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 12.32 % " Population
26.29
24.08

(2001) 23.06 lakhs " Land area (Sq. K.M.) 22,429


20.78

99 organisations received Rs.29.44 crores in 99-00, or an average


of Rs.29.73 lakhs each. Average funds per person came to
Rs.127.65. Average population per organisation was 23,294 people.
Average area under each organisation (in sq. k.m.) was 227 (an
96-97 97-98 98-99 99-00 area approx. 15 kms. wide and 15 kms. long).

Mizoram
" Received Rs.0.80 crores, 1.06 crores, 1.57 crores and 0.51 crores in Mizoram

1.57
96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 13.93 % " Population
(2001) 8.91 lakhs " Land area (Sq. K.M.) 21,081

1.06
0.8
12 organisations received Rs.0.51 crores in 99-00, or an average

0.51
of Rs.4.23 lakhs each. Average funds per person came to Rs.5.70.
Average population per organisation was 74,255 people. Average
area under each organisation (in sq. k.m.) was 1,757 (an area
96-97 97-98 98-99 99-00
approx. 42 kms. wide and 42 kms. long).

Nagaland
Nagaland
7.59

" Received Rs.4.35 crores, 5.25 crores, 6.62 crores and 7.59 crores in
6.62

96-97, 97-98, 98-99, 99-00 " Annual growth rate: 20.39 %


5.25

" Population (2001) 19.89 lakhs " Land area (Sq. K.M.) 16,579
4.35

42 organisations received Rs.7.59 crores in 99-00, or an average of


Rs.18.06 lakhs each. Average funds per person came to Rs.38.15.
Average population per organisation was 47,348 people. Average
96-97 97-98 98-99 99-00 area under each organisation (in sq. k.m.) was 395 (an area approx.
18 kms. wide and 22 kms. long).

Orissa
111.65

Orissa
" Received Rs.56.05 crores, 56.95 crores, 68.52 crores and 111.65
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 25.83 %
68.52

" Population (2001) 367.07 lakhs " Land area (Sq. K.M.) 155,707
56.95
56.05

714 organisations received Rs.111.65 crores in 99-00, or an average


of Rs.15.64 lakhs each. Average funds per person came to Rs.30.42.
Average population per organisation was 51,410 people. Average
area under each organisation (in sq. k.m.) was 218 (an area approx.
96-97 97-98 98-99 99-00
13 kms. wide and 17 kms. long).

14
Pondicherry (UT)
" Received Rs.9.20 crores, 10.67 crores, 11.62 crores and 12.49 crores Pondicherry

12.49
in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 10.73 % " Population

11.62
10.67
(2001) 9.74 lakhs " Land area (Sq. K.M.) 492

9.2
50 organisations received Rs.12.49 crores in 99-00, or an average
of Rs.24.98 lakhs each. Average funds per person came to Rs.128.26.
Average population per organisation was 19,477 people. Average
area under each organisation (in sq. k.m.) was 10 (an area approx.
96-97 97-98 98-99 99-00
2 kms. wide and 5 kms. long).

Punjab
Punjab " Received Rs.14.98 crores, 5.82 crores, 23.83 crores and 35.22
35.22

crores 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
23.83

70 organisations received Rs.35.22 crores in 99-00, or an average


14.98

of Rs.50.32 lakhs each. Average funds per person came to


5.82

Rs.14.50. Average population per organisation was 346,990


people. Average area under each organisation (in sq. k.m.) was
96-97 97-98 98-99 99-00 719 (an area approx. 24 kms. wide and 30 kms. long).

Rajasthan
Rajasthan

37.26
" Received Rs.18.02 crores, 22.97 crores, 30.47 crores and 37.26

30.47
crores 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 22.97
18.02

220 organisations received Rs.37.26 crores in 99-00, or an average


of Rs.16.94 lakhs each. Average funds per person came to Rs.6.60.
Average population per organisation was 256,696 people. Average
area under each organisation (in sq. k.m.) was 1,556 (an area 96-97 97-98 98-99 99-00
approx. 39 kms. wide and 40 kms. long).

Sikkim
Sikkim " Received Rs.1.26 crores, 0.31 crores, 0.83 crores and 1.15 crores in
1.26

96-97, 97-98, 98-99, 99-00 " Annual growth rate: – 3 %


1.15

" Population (2001) 5.4 lakhs " Land area (Sq. K.M.) 7,096
0.83

Four organisations received Rs.1.15 crores in 99-00, or an average


0.31

of Rs.28.63 lakhs each. Average funds per person came to


Rs.21.18. Average population per organisation was 135,123 people.
Average area under each organisation (in sq. k.m.) was 1,774 (an
area approx. 37 kms. wide and 48 kms. long).

15
Tamil Nadu
" Received Rs.404.98 crores, 416.64 crores, 486.36 crores and 572.51
crores 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 an


average of Rs.26.72 lakhs each. Average funds per person came
to Rs.92.18. Average population per organisation was 28,983 people.
Average area under each organisation (in sq. k.m.) was 61 (an
area approx. 7 kms. wide and 9 kms. long).

Tripura
Tripura
1.81

" Received Rs.1.22 crores, 1.04 crores, 1.81 crores and 1.71 crores in
1.71

96-97, 97-98, 98-99, 99-00 " Annual growth rate: 11.91 %


1.04
1.22

" Population (2001) 31.91 lakhs " Land area (Sq. K.M.) 10,492

11 organisations received Rs.1.71 crores in 99-00, or an average


of Rs.15.58 lakhs each. Average funds per person came to Rs.5.37.
Average population per organisation was 290,106 people. Average
96-97 97-98 98-99 99-00 area under each organisation (in sq. k.m.) was 954 (an area approx.
29 kms. wide and 33 kms. long).

Uttar Pradesh
U.P.

133.87

128.1
" Received Rs.70.16 crores, 128.25 crores, 133.87 crores and 128.10

128.25
crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 22.22 %
Tamilnadu
" Population (2001) 1,745.32 lakhs (incl. Uttaranchal) " Land area 70.16
572.51
486.36

(Sq. K.M.) 294,411


416.64
404.98

802 organisations received Rs.128.10 crores in 99-00, or an


average of Rs.15.97 lakhs each. Average funds per person came
to Rs.7.34. Average population per organisation was 217,621 96-97 97-98 98-99 99-00
people. Average area under each organisation (in sq. k.m.) was
367 (an area approx. 16 kms. wide and 23 kms.96-97
long).97-98 98-99 99-00

West Bengal
W. Bengal
" Received Rs.158.28 crores, 168.88 crores, 216.42 crores and 233.99
233.99
216.42

crores in 96-97, 97-98, 98-99, 99-00 " Annual growth rate: 13.92 %
168.88
158.28

" Population (2001) 802.21 lakhs " Land area (Sq. K.M.) 88,752

1,212 organisations received Rs.233.99 crores in 99-00, or an


average of Rs.19.31 lakhs each. Average funds per person came
to Rs.29.17. Average population per organisation was 66,189
people. Average area under each organisation (in sq. k.m.) was 73
96-97 97-98 98-99 99-00
(an area approx. 8 kms. wide and 9 kms. long).

16
State-wise distribution of FC funds: Basic data
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)

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
17

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
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
18

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.
Non-Foreign Sources12
Every dollar that comes into India as a grant does not automatically become foreign. There are
numerous exceptions to this. For example, funds received from UN bodies or from Indian
citizens living abroad are not covered by FCRA13 .

Notified by the Government


Following organisations are not a ‘foreign source’ for purposes of FCRA. Funds from them can
be taken without FCRA approval. This listing is based on the latest notification14 by Ministry
of 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 Countries
Experiencing 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 coarse
Grains, 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 Sources
13
Foreign contribution (Regulation) Act, 1976. Applicable in India
14
S.O. 1014 (E). Published in Part 2, Sec. 3, sub-section (ii) of Gazette of India – Extraordinary, dated 13-
Nov-2000.

19
22. CITES – Secretariat of the Convention on International Trade in Endangered Species of Wild
Fauna and Flora, Geneva

23. Commission on the Limit of the Continental Shelf, United Nations Divisions for Ocean Affairs
and 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”.

20
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, Santo
Domingo, 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 other
Developing 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 the
Montreal Protocol on Substances that Deplete the Ozone Layer, Nairobi
83. PTS for CTBTO – Provisional Technical Secretariat for the Comprehensive Nuclear Test Ban
Treaty Organisation, Vienna

21
84. RNAM – The Regional Network for Agriculture Machinery, Bangkok
85. Secretariat of the Basel Convention on the Control of Trans-boundary Movements of Hazardous
Wastes 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 of
Wild 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.

22
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 sources


The 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 from
the definition of ‘foreign source’. Under section 2(1)(e)(ii), the Central Government is required to
notify 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 Budgetary
Questions) - Geneva (note 3)
5. CCAQ (PER) – Consultative Committee on Administrative Questions (Personnel and General
Administrative 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 and
Publications, 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.

23
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)]

24
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 of
other 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 all
be foreign.

Also remember that some of the grants from Indian Agencies such as CAPART, Concern India
Foundation, National Foundation for India, CRY – Child Relief & You, IGSSS, etc. may be
covered 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

25
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)

26
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)

27
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)

28
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)

29
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 FCRA
2. International NGO / Funding Agency
3. Foreign NGO/ Agency
4. Multinational Corporation
5. International NGO / Funding Agency; has General Consultative status with UNO
6. International NGO / Funding Agency; has Special Consultative status with UNO
7. International organization with member states

30
Profiles of Top FC Donors19
The yearly MHA (Ministry of Home Affairs) report on foreign contribution gives a list of the top
25 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 say
anything on this. Therefore, a brief profile of each agency has been prepared from various
sources.

The problem of double counting


In some cases, the amounts disbursed by parent Agency do not apparently match those
reported by the Indian branch. What could be the reason for this? We believe that some of the
NGO partners show the grant as ‘first receiver’ in their FC-3. The Indian branch of the Agency
also reports this amount independently in its FC-3. This results in double counting. This problem
can 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 on
this analysis.

1. Foster Parents Plan International


" Based in Warwick, Rhodes Island, USA " Founded in 1937 " Grants to Indian NGOs: Rs.70.78
crores, 55.45 crores, 43.19 crores, 70.76 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual
growth in India disbursement: – 0.01 % " www.plan-international.org " www.childreach.org

The international network of Foster Parents Plan International


FPPI Inc. (FPPI) has 13 member organisations in Australia, Belgium,
70.78

70.76

Canada, Denmark, Finland, France, Germany, Japan, Korea,


55.45

43.19

Netherlands, Norway, Sweden, UK, and USA. The USA member


is also called Childreach.

FPPI is commonly known as PLAN International20 . It is an


international humanitarian, child-focused development organisation.
96-97 97-98 98-99 99-00 It attempts to link people21 in the US with needy children, families
and 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 total
number of children being assisted worldwide was 11.6 lakhs. Out of these, about 90,000 children
are supported by US sponsors and donors. Specific assistance to individuals22 in 98-99 came
to US$ 140 million (Rs.588 Crores).

Indian counterpart – Foster Parents Plan International23 is registered in New Delhi and Indian
disbursement is mainly routed through this.

19
Based on AccountAble 68, 74, 75: Profiles of Top FC Donors
20
FPPI’s US member is also named Plan International USA Inc. d.b.a. Childreach. ‘d.b.a.’ means ‘doing
business as’.
21
Called sponsors
22
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

31
2. EZE
" Registered in Bonn, Germany " Founded in 1962 " Grants
to Indian NGOs: Rs.49.36 crores, 59.03 crores, 55.03 crores, 49.50
crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth
in India disbursement: 0.09% " www.ekd.de/agked/ezee.html

EZE24 stands for Evangelische Zentralstelle fur Entwicklungshilfe


e.v. 25 . It means Protestant Association for Cooperation in
Development. It supports development projects carried out by
churches, church related and non-governmental organisations
in Africa, Asia, and Latin America.
EZE is currently working in the field of Integrated Rural
Development, People’s Organisation and Education, Environment, Gender equity, etc. with main
focus on Tribals, Dalits and Women.
Its funds come from German Government26, Churches Development Service and European
Union. 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 countries
from 1962 to 1999. Disbursement to India is approx. 13 to 15% of total funding. It is one of
the largest FC donors in India.

3. Christian Children’s Fund


" Registered in Richmond in the state of Virginia, USA " Founded
in 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, 99-00
respectively " Annual growth in India disbursement: – 7.8%
CCF
" www.christianchildrensfund.org

Christian Children’s Fund was started to help the orphans of the


Sino27 -Japanese War. It is working for nearly 25 lacs children in
US 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 of
race, 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. Out
of this, around 10 to 15% is disbursed to India.
CCF’s Indian branch – Christian Children’s Fund Inc. is registered under FCRA in Bangalore and
in New Delhi.

24
EZE and three other German protestant organisations (SO – Service Overseas, KED – Churches
Development Service, FMS – Federation of Missionary Societies in Germany) have recently merged into
a new organisation called EED – Evangelische Entwicklungs Dienst (Church Development Service). The
fifth 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.’ stands
for ‘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, Lutherans
or Protestants). These funds are used for charitable and religious activities across the world. In 1999, the
church tax came to about DM 17 billion (~Rs. 39,100 crores).
27
China

32
4. Missio
Missio
" Based in Germany " Grants to Indian NGOs: Rs.58.66 crores, 48.93

58.66
crores, 43.78 crores, 35.14 crores in 96-97, 97-98, 98-99, 99-00

48.93

43.78
respectively " Annual growth in India disbursement: – 15.7%

35.14
" www.missio-aachen.de/

Missio28 is a Catholic missionary organisation. Its formal name is


International Katholische Missionswerk missio e.v. It works mainly
with 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
ActionAid " Also registered with Charity Commission for England and Wales
58.81

" Grants to Indian NGOs: Rs.31.42 crores, 42.47 crores, 48.05 crores,
48.05

58.81 in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in


42.47

India disbursement: 23.24% " www.actionaid.org


31.42

It is operating in 20 countries of Asia, Africa, South and Central


America. Total disbursement in these areas in 1999 was about £33
million (Rs.221 crores).
96-97 97-98 98-99 99-00 Out of this around 15 to 20% is disbursed to India. Most of the
Indian 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, 31.42
crores, 51.82 crores, 60.06 crores in 96-97, 97-98, 98-99, 99-00
respectively " Annual growth in India disbursement: 23.24%
" www.maharishi-india.org/

Maharishi Ayurved Trust is part of a global group of institutions


associated with Maharishi Mahesh Yogi. The group focuses on
applying Vedic Technologies in the field of education, health,
management, architecture, agriculture and construction in projects
around the world.

Indian counterpart – Maharishi Ved Vigyan Vishwa Vidyapeetham33 is registered in Andhra


Pradesh.
28
Missio is a Latin word which means ‘mission’.
29
The web-site provides a sampling of three projects in Lunglei (Mizoram), Wayanad (Kerala), and
Jalpaiguri (West Bengal).
30
Formelry part of Indonesia. Now separated after a civil war.
31
Actionaid India, based in Bangalore. See ‘6. Actionaid’ on page 46
32
Charity Commission for England and Wales maintains a register for charitable and voluntary organisations
in UK. We could not find an exact match for Maharishi Ayurved Trust in this register. The register does show
an organisation with a similar name: “The Maharishi Ayurved Disease-Free Society Trust”, based in
Bedfordshire, UK.
33
Also see ‘1. Maharishi Ved Vigyan…(MVVVV)’ on page no.44

33
7. Kinder Not Hilfe
" Based in Germany " Founded in 1959 " Registered charitable
association " Member of the Diaconic Services of the Evangelical
Church in the Rhineland, Germany " Grants to Indian NGOs: Rs.40.02
crores, 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 of
emphasis is basic education, vocational training, nutrition, clothing
and medical care to children. It also supports parents of these
children. It supports about 1,20,000 children in 25 countries mainly
in 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.35.04
crores, 37.55 crores, 38.83 crores, 51.93 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual
growth in India disbursement: 14.01% " www.wvi.org " www.worldvision.org

World Vision International is a Christian ministry. It has fund raising


offices 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. Its


programmes 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 promote
human transformation, seek justice and bear witness to the good
news 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 disbursement
is mainly routed through this.

9. MISEREOR
" Based in Aachen, Germany " Founded in 1958 " Grants to
Indian NGOs: Rs.38.64 crores, 39.76 crores, 35.52 crores, 34.31 crores
in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in India
disbursement: – 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), World
Vision 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

34
MISEREOR36 works in cooperation with KZE37 , under the direction and responsibility of the
German Catholic Bishops’ Conference. It supports development projects based on the principle
of “help towards self-help”, regardless of ethnicity, gender, creed or nationality.
MISEREOR raises funds in three main ways : direct donations, from the German Dioceses, and
from the German Government through KZE38. Together these came to about DM 297 million. Out
of 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 development
projects in over 100 countries of Africa, Asia and Latin America. Out of this India received DM
30 million (Rs.69 crores39).
Main partners in India are IGSSS40 and Caritas India41 . These agencies in turn make grants for
small-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 formed


in 1960 to fight against poverty, hunger, disease, and
underdevlopment. In 1978, it acquired full legal and canonical
personality and came to be known as ‘Manos Unidas’42.

Manos appears to be an important agency in Spain, as it takes


up almost 32% of Spain’s total contribution to India. India is also
an important area for Manos Unidas, as it supports 223 projects
in India out of a total of 271 projects in Asia. Worldwide, it
supported 947 projects in 64 countries in year 2000. In the year
2000, 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, 26.49
crores, 26.59 crores, 48.12 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in India
disbursement: 34.52% " www.fordfound.org

The Ford Foundation is a private, non-profit, philanthropic organisation. Its funds are derived from
investment 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 Catholic
Bishops’ Organisation for Development Cooperation’.
37
Full name in German is ‘Katholische Zentralstelle für Entwicklungshilfe e.V.’. It means ‘The German
Catholic Central Agency for Development Aid’.
38
DM 124 million, DM 25 million, DM 148 million respectively. KZE funds come from the German Church
tax.
39
Figures taken from Misereor Annual Report for 1999 on its web-site. These may not tie up with FC funds
reported as received in India due to a variety of reasons. For example, some NGOs may report funds as
received directly from KZE.
40
Also see ‘16. IGSSS ‘ on page 49
41
Also see ‘15. Caritas India ‘ on page 49
42
A Spanish phrase meaning ‘United Hands’
43
Spanish official agency

35
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 programme
activities45 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, Latin
America and Russia through 15 overseas offices. It has been
working in India since 1952 from the South Asia regional office
in 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, 23.02
crores, 25.86 crores, 29.36 crores in 96-97, 97-98, 98-99, 99-00 respectively " Annual growth in India
disbursement: 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 Development
Assistance). It also receives some funds from European union and
private sources. ICCO works on behalf of a large number of
Protestant churches46 , which are also represented on its board.
It supports programme in about 69 countries in Africa and the
Middle East, Asia and the Pacific, Latin America and the Caribbean,
Central and Eastern Europe. Annual disbursement in year 1999
was NLG 184 million (Rs.368 crores), for over 800 projects. Its
main emphasis is on poverty related programmes (62%).

ICCO works through church and non-church organisations in these countries. Its grants range
from Rs.60,000 to Rs.10 crores.

13. Oxfam (India) Trust


" Based in Oxford, UK " Registered with Charity Commission for
England & 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 and


distress 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 rates
45
Primarily grants to organizations and individuals, direct charitable activities and programme support
46
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 the
Reformed Congregations in the Netherlands); ICS; ZZG; Interservice Netherlands; Aids Fonds; Foundation
for Christian Education; Passage; Fund for Hope for Children

36
14. Christian Aid
" Based in London, UK " Founded in 1945 " Registered with Charity
Commission for England and Wales " Grants to Indian NGOs: Rs.20.33
crores, 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 its
best-known source of income, Christian Aid Week, which began in 1957. Since the reorganisation
of the Council of Churches in 1991, Christian Aid has been a separate legal entity, but remains
in close relationship with it.

It is mainly funded by churches and government agencies of UK and Ireland. Total donation
income in 1999-2000 came to £41.4 million (~Rs. 290 Crores). It operates in 60 countries
through 16 overseas offices including India. Main emphasis is on empowering people and
eradication of poverty.

15. Age of Enlightenment Trust


" Based in UK " Grants to Indian NGOs: Rs.27.68 crores, 40.43
crores, 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 " Registered
with Charity Commission for England and Wales " Grants to Indian
NGOs: 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 India
disbursement: – 6.53% " www.ippf.org

IPPF (International Planned Parenthood Federation) was founded


by the volunteer leaders of national family planning associations
of eight countries - India, Germany, Hong Kong, the Netherlands,
Singapore, Sweden, the United Kingdom, and the United States
of America.

IPPF now links national autonomous Family Planning Associations (FPAs) in over 180 countries
worldwide. These associations are committed to promote the family planning and reproductive
health, irrespective of race, creed, political belief, gender, or age.

IPPF also campaigns locally, regionally and internationally, through policy makers, opinion
leaders, professionals and the media to increase support for above.

Indian counterpart – Family Planning Association of India (FPAI) is registered in Mumbai, and
Indian disbursement is mainly routed through this.

37
17. Foundation Vincent Ferrer
" Based in Spain " Grants to Indian NGOs: Rs.34.60 and 45.54
crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 not
available

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, 99-00
respectively " Annual growth in India disbursement: 11.23% " http:/
/antenna.nl/bilance " www.cordaid.nl

A Catholic development organisation, it was earlier called Cebemo


and was renamed in 1996 as Bilance. Main source of funds is the
government of the Netherlands, the European Union and private
fundraising in the Netherlands. Bilance has supported communities
in more than forty countries in Africa, Asia, Latin America, and
Central and Eastern Europe.

In January 2000, Bilance, Memisa, Caritas the Netherlands and


Vastenaktie merged into ‘Cordaid’, which brings all aspects of
development cooperation under one roof. Major areas where Cordaid
97-98
plans to work are emergency aid, poverty alleviation and health
care 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 International


Development. This is an Independent US Federal Government
Agency that handles foreign assistance and humanitarian aid to
advance the political and economic interests of the United States.
Programmes include environmental and sustainable economic growth
in developing countries.

In 99-00, USAID received 6,720 million US$ in budget support and


donations. 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, 18.91
crores 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 CBM


International. Its member associations are in Austria, Australia,
Belgium, Canada, Germany, Switzerland, UK, and USA.

It is working mainly for blind and eye patients and otherwise


disabled 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.
97-98
Indian counterpart – Christoffel Blinden Mission is registered in
Karnataka and Indian disbursement is mainly routed through this.

38
21. Gospel for Asia
" Based in USA " Grants to India program: Rs.26.93 crores, 32.62
crores in 96-97, 99-00 respectively. Figures for 97-98 and 98-99 not
available " Annual growth in India disbursement: 6.6% " www.gfa.org

Gospel for Asia is a Christian missionary organisation registered in


USA. The mission of Gospel for Asia is “to reach the un-reached
of Asia with the Gospel of Jesus Christ and fulfill the Great
Commission through recruiting, training, sending and assisting
qualified laborers to win the lost and to plant local churches in
partnership with the body of Christ”.

Indian counterpart – Gospel for Asia is registered in Kerala and Indian disbursement is mainly
routed through this.

22. Opere Don Bosco


" Based in Italy " Grants to Indian NGOs: Rs.19.02 crores, 19.91
crores, 19.22 crores in 96-97, 97-98, 99-00 respectively. Figures for 98-99
not 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 the
psychological, spiritual and organisational center of his life and
97-98 activity. Don Bosco’s example and educative method has inspired
a gospel lifestyle among many.

The organisation supports various schools, oratories and youth centers, technical and professional
training centers, parishes, foreign missions, and activities in the realm of mass media and social
communications.

23. Missio Prokur


" Based in Germany " Grants to Indian NGOs: Rs.15.33 crores, 17.19
crores, 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, 28.28
Leprosy Mission crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 not
28.28

available " www.leprosymission.org


22.19

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 New


Delhi and Indian disbursement is mainly routed through this.

39
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. Figures
for 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 a


part of the “Diakonisches Werk der EKD” in Germany. Bread for
the World supports church-related and non-confessional NGOs in
poor countries. It also serves as their advocate in Germany and 97-98
other industrialized countries.

Bread for the World and its partners in poor countries encourage the empowerment of the poor
through 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 in
1950 " Based in London, UK " Registered with Charity Commission for England & Wales " Grants
to 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 Intl.
26.29

Plan International is an International network with 13 member


organizations in Australia, Belgium, Canada, Denmark, Finland,
18.37

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 to


the lives of children in need all over the world. Today it operates
in 42 countries for benefit of over 10 lakhs foster children. Sources
of its funds are sponsorship, official funding (DFID, European
Commission, etc.), and individual donations and legacies. Total disbursement in 1999 was £1.36
Cr. – 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
CHI
22.37

Children House International (CHI) specializes in international


20.1

adoption. It makes the adoption process as “pain free” and as


understandable 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 choice
requirements. It has agents in each country who provide support
through the entire process.

It has been working in India for last 20 years and hundreds of children have been placed with
adaptive families. CHI is also working in Russia, Romania, Moldova, Bulgaria, China, Bolivia,
Guatemala, Peru, the Marshall Islands, and Vietnam.

40
28. Manos Unidas Afonso TED Manos Unidas Afonso

22.75
" Based in Madrid, Spain " Grant made Rs.16.77 crores, 22.75 crores
in 96-97, 97-98 respectively. Figures for 98-99 and 99-00 not available

16.77
" www.manosunidas.org " www.mansunides.org

No definite information available on the web. May be associated


with 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 in
India disbursement: 6.45% " www.lutheranworld.org

Lutheran World Federation (LWF) is a global union of Christian


churches of Lutherans. LWF has about 131 member Lutheran
churches in nearly 72 countries.

LWF is involved in activities that promote Christian unity and


harmony. It also provides humanitarian support and grants to
activities like environment, landmines, human rights, refugees, and
activities like development & education. About $8 Crores are
disbursed in these countries annually, for implementing various
projects and relief work.

Indian counterpart – Lutheran World Service-India is registered in West Bengal (Kolkata) and
Indian 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 Maharishi
Mahesh Yogi.

No specific information found on the internet.

31. Mata Amritanandmayi Centre Amritanandmayi


22.71

" Based in San Roman in the state of California, USA


" Grants to
India program: Rs.22.71 crores, 15.34 crores in 98-99, 99-00
15.34

respectively. Figures for 96-97 and 97-98 not available


" www.ammachi.org

Mata Amritanandmayi Centre is associated with Mata


Amritanandmayi Devi47 . In the USA, it is classified as a ‘church’48
and hence exempt from filing annual return with IRS (Form 990).

47
See ‘5. Mata Amritanandmayi Mission’ on page 46
48
Any place of worship is technically called a church under US Tax law.

41
Its Indian parent – Mata Amritanandmayi Mission is registered in Kerala and funds are mainly
routed through the parent body.

32. HIVOS Foundation HIVOS

20.57
" Based in Netherlands " Grants to India program: Rs.17.44

17.44
crores, 20.57 crores in 98-99, 99-00 respectively. Figures for 96-97
and 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 Southern
Africa, Central America, and South Asia. Main emphasis of its
program is on economic self-reliance, culture, arts, gender, women
and development, sustainable development, human rights, and
AIDS.

Majority of Hivos funds come from Dutch Govt. In 1998 Hivos provided financial aid to over 750
partner organisations (1997: over 700) in Africa, Asia and Latin America. Hivos spent 106.8
million 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 a


secular background.
Indian counterpart – HIVOS is registered in Karnataka and Indian disbursement is mainly routed
through this.

33. The Save the Children Fund


" Based in London, UK " Company limited by guarantee " Registered with Charity Commission
for England & Wales " Grants to India program: Rs.16.77 crores, 17.26 crores in 96-97, 99-00
respectively. 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, mainly


working for welfare of children in about 60 countries. Annual program
budget 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 the
betterment of children, their families and their environment. It has
about 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 disbursement
is mainly routed through this.

34. General Conf. of 7th day Adventists


" Based in USA " Grants to India program: Rs.17.89 crores, 15.43
crores 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 Protestant


Christian denomination. Its members believe that Christ will return
soon in person. Their mission is to proclaim the gospel to all people.
They pursue this mission worldwide through preaching and teaching
the message of the Bible.

42
In 1999, SDA World Church raised $1,606 million49 as tithe and offerings. It gave away $159
million to 3,615 projects in 124 countries through its donor agency, ADRA50 . It also added 1.09
million members, or a new member every 29 seconds. A new church was organised every 5
hours51 . 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 in
Tamil 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, Austria
and 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 member
association is SOS Children’s Village of India in New Delhi. Indian disbursement is mainly
routed 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 not
available

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. Figures
for 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 Kyoiku
Gakkai (Value Creating Education Society). It is an international Buddhist association with over
12 million members from 76 constituent organisations in 181 countries and territories. SGI’s
humanitarian 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 disbursement
is 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 and
99-00 not available

No specific information found on the internet.

49
About Rs.7,226 crores
50
Adventist Development and Relief Agency International
51
www.adventist.org/worldchurch/factsandfigures.html
52
Religious schools
53
Original goal of Hermann Gmeiner was to provide a family, a house, a village to the orphans of war and
abandoned children.

43
Profiles of Top FC Receivers54
The yearly MHA55 report on foreign contribution gives a list of top 25 receivers. It also gives the
amounts 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 say
anything on this. Therefore, a brief profile of each organization has been prepared from other
sources. However, there are two important points regarding this:

1. Identity: Multiple FCRA registrations may exist due to various reasons. These organisations
may 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 other
states before registering a society. It is not necessary that each of the branches will receive
FC funds independently. Often, the funds are received centrally and then passed on to
branches.

2. Caution: Profiles of the receivers have been compiled from various sources, including the
Internet. We hold out no warranties for the accuracy or fairness of the information. Please
verify the information on your own before arriving at any decisions. We have also avoided
the use of religious honorifics. This is not intended as disrespect to the religious beliefs of
any person.

1. Maharishi Ved Vigyan…(MVVVV)


" Registered in Andhra Pradesh " Received Rs.40.3 crores, 56.5
MVVVV
crores, 64.4 crores and 68.1 crores in 96-97, 97-98, 98-99, 99-00

68.1
64.4
56.5
" Annual growth rate: 19.1% " www.maharishi-india.org
40.3
This is part of a global network of institutions working on Maharishi
Mahesh 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 a


96-97 97-98 98-99 99-00
college in NOIDA, near Delhi. Another member of the network is
the Maharishi Ayurved Trust, UK. Then again, there is the Maharishi Global Development Fund
in New York. The Fund raised Rs.63 crores in 1998. On 31st December 1998, its assets (mainly
investments, 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 Receivers
55
Ministry of Home Affairs
56
96-97 to 99-00

44
2. Foster Parents Plan International
" Registered in Delhi " Received Rs.35.9 crores, 44.3 crores, 42.9 FPPI

63.7
crores and 63.7 crores in 96-97, 97-98, 98-99, 99-00 " Annual

42.9
growth rate: 21.1% " www.plan-internaional.org/international/about/

44.3
35.9
where/india.html

Commonly known as Plan International. It started in UK in 1937.


Working in India since 1979. The International network raises
funds in USA, Canada, Europe, UK and Australia. Plan is a
secular grant-making agency with a focus on deprived children.
It raises funds through sponsorship but works with the community
as well. It works with 16 NGOs in 17 states and nearly 80,000
children in India benefit directly.

3. Sri Sathya Sai Central Trust


SSSCT " Registered in Andhra Pradesh " Received Rs.47.7 crores, 42.9
50.2

crores, 39.8 crores and 50.2 crores in 96-97, 97-98, 98-99, 99-00
47.7

39.8
42.9

" 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 Sai


Baba. Is involved in social and charitable work, mainly around
Puttaparthi 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 " Annual World Vision
55.1

growth rate: 17.5% " www.worldvisionindia.org " www.worldvision.org


39.9
35.2

World Vision India is a Christian humanitarian organisation. It


33.9

works throughout India on relief, rehabilitation and development


programs. It is part of the World Vision International, which started
in 1950.
The Indian organisation was started in 1976. Main source of funds
is World Vision, USA. In recent years, the Indian office has also
started 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

45
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 crores
and 53.1 crores in 97-98, 98-99, 99-00. Figure for 96-97 not available Amritanandmayi

53.1
" Annual growth rate: 24.4% " www.ammachi.org

51.6
The mission was started in Kollam in 1979. It is associated with

34.3
Mata Amritanandamayi Devi, who is a Hindu Satguru57 . The
mission is mainly involved in spreading her teachings but has
also 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
ActionAid
" Registered in Karnataka " Received Rs.24.8 crores, 32 crores,
39.2
36.4

36.4 crores and 39.2 crores in 96-97, 97-98, 98-99, 99-00 " Annual
growth rate: 16.5% " http://actionaidindia.org/
32
24.8

Actionaid is a secular grant-making Agency. It started working in


India in 1972. It is registered as the branch office of Actionaid
UK58 . It raises funds in UK and other European countries through
sponsorship of children. However, the program approach is
integrated development of the community. In India, it has also
initiated 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


CSI
" Registered in Karnataka " Received Rs.23.3 crores, 24.7 crores,
29.4
22.2

22.2 crores and 29.4 crores in 96-97, 97-98, 98-99, 99-00 " Annual
24.7
23.3

growth rate: 8%

CSI59 Council for Child Care is involved in supervision of hostels,


orphanages, schools and centers for the handicapped. Main office
is in Bangalore.

57
Spiritual teacher
58
A foreign company limited by guarantee
59
Church of South India

46
8. SOS Children’s Village of India SOS Children Village

31.7
" Registered in Delhi " Received Rs.16.9 crores, 20.3 crores, 28
crores and 31.7 crores in 96-97, 97-98, 98-99, 99-00 " Annual

28
growth rate: 23.3% " www.soscvindia.org

20.3
16.9
This is a secular organisation providing shelter and care to children
all over India. Working in India since 1964. It runs 32 ‘villages’,
which are communities for orphaned or abandoned children. Also
does fund-raising in India. It is a member of SOS Kinderdorf
International.
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, 24.3
crores and 34.1 crores in 96-97, 97-98, 98-99, 99-00 " Annual growth
rate: 25.4%

Churches’ Auxiliary for Social Action is a Christian grant-making


CASA 34.1
agency, but also carries out direct programs such as Food for
Work. It receives food material under PL-480 from USAID for this
24.3
20.1

work.
17.3

10. Tibetan Children’s Village


" Registered in Himachal Pradesh " Received Rs.18.9 crores, 16 crores, 27.4 crores and 26.5 crores
in 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 Tibetan
children in exile. It has established six branches in India extending
27.4

26.5

from Ladakh in the North to Bylakuppe in South, with over


18.9

14,000 children under its care. It is also a full member of SOS


16

Kinderdorf 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.

47
11. Oxfam (India) Trust
Oxfam (I) Trust

34.6
" 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 " Annual

21.9
growth rate: 31.2% " www.netecho.com/oxfam/

15.9
" www.oneworld.org/oxfam/

15.3
Oxfam India Trust is the program arm of Oxfam, Great Britain.
It is a secular grant-making agency, working in India for several
decades. Also involved in advocacy and disaster relief. It has
several offices all over India. 96-97 97-98 98-99 99-00

12. Missionaries of Charity


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 " Annual
29.2

growth rate: 10.7% " www.tisv.be/mt/indmt.htm


20.1
17.3

Founded by Late Mother Teresa in 1950. A Christian missionary


14.8

organization focusing on relief work with the sick, poor, children


and women. Branches all over the world and in India. No
information available on global fund-raising, though an article in
STERN60 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 7th Day Adventists


" Registered in Tamil Nadu " Received Rs.19.6 crores, 27.5
33
27.5

crores and 33 crores in 96-97, 98-99 and 99-00. Figure for 97-98 not
available " Annual growth rate: 18.9%
19.6

Registered as a company called Services Association of Seventh


Day Adventists Pvt. Ltd. Seventh Day Adventists are a 200-
year-old Christian group who believe that Christ will return in
person. Please also see ‘34. General Conference of 7th day
Adventists’ on page 42 for more informations.

RDT
14. Rural Development Trust
45.4

" Registered in Andhra Pradesh " Received Rs.34.2 crores and


34.2

45.4 crores in 98-99 and 99-00. Figures for 97-98 and 98-99 not
available.

Based in Ananthapur. Headed by Fr. Vincent Ferrer. Established


in 1969. Funded by religious funding agencies and others (see
www.indiangos.com/rdt).

60
Issue dated 10th September 1998

48
15. Caritas India Caritas

31.8
" 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 " Annual

16.8
growth rate: 29.3% " www.caritasindia.org

15.5
14.7
Set up by the Catholic Bishops Conference of India. ‘Caritas’
means charity. It has twelve regional offices in India. It is part of
the Caritas International (www.caritas.org). Caritas views itself as
a socio-pastoral expression of the Church and is engaged in
fighting poverty and for the rights of the poor.

16. IGSSS
IGSSS
" Registered in Delhi " Received Rs.14.8 crores, 17 crores, 18.8
23

crores and 23 crores in 96-97, 97-98, 98-99, 99-00 " Annual growth
18.8

rate: 15.8%
17
14.8

IGSSS stands for Indo-German Social Service Society. This is a


society established in India in 1961. It has regional and branch
offices throughout the country. Receives funds mainly from
Misereor, Germany. Working on tribal development and gender
96-97 97-98 98-99 99-00 issues. Makes grants to NGOs across India.

17. Gospel for Asia


" Registered in Kerala " Received Rs.26.1 crores, 14.4 crores and

32.3
32.3 crores in 96-97, 97-98 and 99-00. Figures for 98-99 not available
" Annual growth rate: 7.4% " www.gfa.org

26.1

14.4
Gospel for Asia is a Christian missionary organisation based in
USA. It was founded in 1979. Its aim is to spread the teachings
of Jesus Christ. It also trains and supports missionaries and
sets up churches. In 1999, it raised Rs.70 crores. Of this, about
Rs.52 crores was spent on direct program.
96-97 97-98 98-99 99-00

The Indian branch receives around ¼ of the total budget. Please


also see ‘21.Gospel for Asia’ on page 39.

18. SIFPSA
42.8

" Registered in Uttar Pradesh " Received Rs.42.8 crores and 27.1
crores in 97-98 and 98-99. No FC-3 filed in 96-97. Figure for 99-00 not
27.1

available " Annual growth rate: –37% " www.sifpsa.org (under


construction)

SIFPSA stands for State Innovations in Family Planning Services


Agency. It has been working since 1994 in Uttar Pradesh on family
welfare and population control. It is
working in 15 districts and has funded
19.4

over 80 NGOs. It was set up and is mainly funded by USAID.


17.2

15.6

15.2

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 " Annual
growth rate: 4.1% " www.myrada.org

49
MYRADA (Mysore Resettlement and Development Agency) is supported by 37 donors including
Plan International, SDC, NOVIB, CHF, EZE and the Government. It is based in Bangalore and
works mainly in Karnataka, Andhra Pradesh and Tamilnadu. It is involved in many activities,
including micro-credit, watershed and education.

20. FPAI FPAI

21.6
22.2

21.2
" Registered in Mumbai " Received Rs.22.2 crores, 21.6 crores
and 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 has


39 branches and works all over India. Its main area of work is
family planning and reproductive health. It is also involved in policy-
making in these matters. It is a Founder Member of the
International Planned Parenthood Federation, UK.

LKMMT
17.1

21. Lilavati Kirtilal Mehta Medical Trust


14.7

" Registered in Maharashtra " Received Rs.14.7 crores and 17.1


crores 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 in


Mumbai with 300 beds. Also has an outreach program.

SRM Foundation
22. SRM Foundation of India

33.2
" Registered in Delhi " Received Rs.16.9 crores and 33.2 crores in
98-99, 99-00. Figures for 96-97 and 97-98 not available.
16.9

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 96-97
and 97-98 not available " www.leprosymission.org/india.htm

Part of The Leprosy Mission, which is an international Christian


Leprosy Mission charity started in 1874 and based in UK. Runs clinics, hospitals
23.7

26

and 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

50
7. The Leprosy Mission Comprehensive H C U, Andhra Pradesh
8. The Leprosy Mission Home And Hospital, Punjab
9. The Leprosy Mission Hospital, Andhra Pradesh
10. The Leprosy Mission Hospital, Andhra Pradesh
11. The Leprosy Mission Hospital, Bihar
12. The Leprosy Mission Hospital, Uttar Pradesh
13. The Leprosy Mission Incorporation With…, Andhra Pradesh
14. The Leprosy Mission Of India, Delhi
15. The Leprosy Mission Purulia, West Bengal
16. The Leprosy Mission, Bihar
17. The Leprosy Mission, Uttar Pradesh
18. The Leprosy Mission, Uttar Pradesh
19. 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


Campus Crusade
" Registered in Karnataka " Received Rs.12.3 crores, 15.9 crores

20
15.9
and 20 crores in 97-98, 98-99, 99-00. Figures for 96-97 not available
" Annual growth rate: 27.5% " www.ccci.org

12.3
Indian associate of Campus Crusade for Christ, Inc., which is
based in Orlando, USA. In 98-99, the US office raised around
Rs.1,600 crores through several affiliated organisations. It is an
evangelistic organisation, working to promote Christianity in various
ways, including through sports (Athletes in Action).

CCF 25. Christian Children’s Fund


24.2
22.2

" Registered in Bangalore " Received Rs.22.2 crores and 24.2


crores 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. Part


of an international network, with main fund-raising in USA. Funds
are raised through sponsorship of children, though work extends
to 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 28.3
crores 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 Hindu


religious organisation and part of the Swaminarayan sect. Also
involved in charitable work.

51
27. Central Tibet Relief Committee
CTRC
" Registered in Himachal Pradesh " Received Rs.14.9 crores and

19.3
19.3 in 98-99 and 99-00. Figures for 96-97 and 97-98 not available

14.9
" www.tibet.com/Paljor/ctrc.html

Headed by the Dalai Lama. CTRC (HH Dalai Lama Central Tibetan
Relief Committee) was registered as a society in 1981. It serves
as the relief and development wing of the Central Tibetan
administration. It provides relief, rehabilitation as also social, cultural
and 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 18.8
crores 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 Department


of World Service of the Lutheran World Federation (LWF) in
Geneva (www.lutheranworld.org). LWF represents about 6 crore
Lutherans, who make up the largest evangelical Protestant
Church. It spends about Rs.360 crores annually on relief and
welfare in 70 countries.

29. AMG India International


" Registered in Andhra Pradesh " Received Rs.14.3 crores and
17.7 crores in 96-97 and 97-98. Figures for 98-99, 99-00 not available
AMG Int.
" www.gospelcom.net/amg/

Part of AMG International, an American organization, which was


established in 1942. It started work in Greece; now works in 60
countries.

AMG originally meant ‘American Mission to the Greeks’. In 1974,


this was reworded as ‘Advancing the Ministries of Gospel’. AMG
is involved in evangelization61 . At one point of time, it was accused
of proselytism62 in Greece.

The Indian branch was set up in 1970. It works mainly with leprosy patients and has also
established 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 not
available.

MGVV (Maharishi Gandharvaved Vishwa Vidyapeetham) is part of a network of institutions


involved in promoting the ideas of Maharishi Mahesh Yogi, a Hindu spiritual leader.

61
Spreading Jesus Christ’s teachings; converting to Christianity by preaching
62
Religious conversion, often by inducement

52
31. Community Aid Sponsorship Program
" Registered in Maharashtra " Received Rs.20.1 crores, in 96-97. Figures for other years not
available.

One of the first partners of Plan International, with partnership dating back to 1980s. Also
known 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 is
committed 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 Pentecostal
Church and is viewed as a fundamentalist Protestant group. Active in evangelism. Headed by
Huldah Buntain, an American missionary working in India since 1954. She is also co-founder
of ‘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 not
available " 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 for
their person-to-person ministry. Each congregation tries to reach all the people in its neighborhood
with a brief Bible message at least once a year. This is usually done by Witnesses visiting
from door to door. Witnesses also talk to people on the streets, in parks and in other public
places – 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

53
talk. If a Witness finds someone who is interested in learning more about the Bible, further
discussions 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 to
help people who received land under ‘Bhoodan’. Now works in six states on multiple issues
including 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 programs
for children. Makes grants to other NGOs working on these issues. Programs mainly in North
India.

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 Indian
office of the main foundation, based in Geneva, Switzerland. It is also part of Aga Khan
Development 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

54
Section II: Procedures
All NGOs need either prior-permission or FCRA registration before they can accept foreign
contribution. However, getting this permission or registration is not so simple as it sounds. And
getting 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
regulations, but extremely complex for most NGO people, whose only brush with bureaucracy
may have been the issue of a driving license!

This section includes the following chapters:

Prior Permission 57
FCRA Registration 63

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 a
University), want to accept foreign funds. However, if you are going to receive foreign funds
regularly, you should get ‘FCRA Registration’, so that you don’t have to apply for permission
again and again.

Either way, you need to fill up form FC-3 each year, when you receive foreign funds. And if you
have 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 ‘Intricacies
of FC-3’. Then sometimes, you have to maintain a stock ledger in form FC-6. This happens if
you have received foreign contribution in kind (blankets, rations, etc.).
You should read ‘FCRA Fellowships’, if you are a scholar and are receiving any stipend or
scholarships from foreigners. You may also want to read this if you are not a scholar, but are
going abroad for training or a study tour.
What happens if you fall foul of FCRA? Read all about it in a pleasant chapter titled ‘FCRA
Penalties’. If that doesn’t sound very pleasant, then read AND follow all the other chapters…

55
56
Prior Permission1
Prior-permission is given to NGOs by FCRA department to accept foreign contribution on a
case-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 .

Procedure
Apply in FC-1A
For getting prior-permission, you have to file form FC-1A along with required documents.

Field Inquiry
If your documents are complete, some one from the Intelligence Bureau will visit your main
office.
He may look at your accounts and ask questions from you and your neighbours. He may also
inquire at the local Police Station or visit the field area.

He will then send a confidential report to FCRA Department at Delhi.

Reply from FCRA


Based on the report and other factors, the Department will either send you the permission letter
or a rejection in 90 days. They may also ask for another 30 days’ time. The reply comes by
registered post.

Appeal against rejection


If 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 days
of date of letter [sec. 21].

Common doubts
More than once
You can get prior-permission more than once. In fact, you can have two or more projects running
side-by-side under prior-permission.

Tailor-made
Each prior-permission is tailor-made. This means you can not use it for a different project or
same project under a different agency.

1
Based on AccountAble 33: Prior Permission
2
See ‘Changes in office bearers’ on page 68

57
Joint grants
If your project is being funded jointly by two or more Agencies, you can apply for both on one
form only. You will then get a prior-permission, which covers both.

Maximum Amount
There is no minimum or maximum limit for prior-permission. For example, there are cases where
prior-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 early
Prior permission can be obtained in the first year itself, even before the first year’s accounts
are finalised. But this will happen only if the Department is fully satisfied about your credibility
and accountability.

Advance Credit
If you have already received the funds in your account by bank transfer, do not spend the money
till 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 120
days. This is not correct!

The Act says that your application must be disposed within 90 or 120 days. This means a
decision must be taken within that time.
The Act does not say that this decision must be communicated within 90 or 120 days to the
applicant.

As a matter of practice, the Department always sends a reply. If you don’t get a reply, it may
merely mean that it has been returned undelivered, delayed in post or wrongly delivered. Please
check with them.

Filing FC-3
You have to file FC-3 at the end of each financial year (by 31st July). This will continue year
after year till the time the FCRA funds you received are exhausted.

Filling up FC-1A
In form FC-1A3 there are 11 main items of information. Fill up the entire form in CAPITAL letters
only.

1. Background
Applicant: Start with writing the Chief Functionary’s name in the blank space (‘I,……..’). This
means 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 and
should 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 will
visit this office to make inquiries. This may be different from your registered office.

3
See page 127 for form FC-1A

58
(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 is
development, 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
and objects of the NGO. Secondly, give the objects and specific programs for which foreign
contribution 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 member
is an office bearer (President, Secretary, etc.), then say this in column 6. If one of the members
is related to an office-bearer, then say this (brother, husband, wife of...) in column 7.

2. Convictions
Here the NGO has to provide details of convictions, etc. These should relate to one of the
members of Governing body listed in the previous table. Moreover, these convictions should be
related to their official duties or on a criminal charge. This means that if a person is convicted
for 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 Associate
Sometimes foreign NGOs or Agencies set up a branch office in India. Clause (a) asks for
details of their parent organization. Similarly, your NGO may have a sister NGO that already
has 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 due
to some violation.

Clause (c) applies if your NGO has been asked [under section 10(b)] to get prior- permission
for each grant.

4. FCRA Registration
There are two clauses here. You may have applied earlier for FCRA registration. Give information
about this under clause (i).
Clause (ii) is a little more complicated. Your NGO may have close links with another NGO (or
its branch / unit), which has been refused FCRA registration. Or worse still, that NGO may have
been prohibited from accepting foreign funds. You are asked to give this information here.

5. Prior-permission
Past Record: You may have received foreign contribution earlier under prior permission. Details
of this should be given under 5(i)(a). Also give the date when you submitted the related FC-
3 and accounts.

59
Amount Utilised: If you have already received funds under prior-permission this year, then you
may 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 earlier
without legal permission (by channeling, shadow-lending, legal holder, etc.). If you have, then
give full details here.

Remember that under the law you can get up to five years in prison for this!

6. Newspapers
Is your NGO bringing out a newsletter? If yes, check whether it has been registered under
Press and Registration of Books Act, 1867 (PRBA). If yes, then see whether it is registered
as a ‘newspaper’. If it is registered as a ‘newspaper’, then give details of registration here. For
more on this, see ‘Newspapers’ under ‘FCRA Registration’ on page 66.

7. Activities and Accounts


Activities: You have to give a detailed report on the activities carried out in past three years
by 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. Some
of these may mislead the FCRA department into thinking that you have received foreign
contribution illegally. Therefore, review the report carefully, and clarify this where necessary.

Accounts: A copy of the audited Balance Sheet, Income and Expenditure, and Receipts and
Payments Account should also be given for last three years.

8 (i). How much


Give the nature (money, material, shares, etc.) and value of foreign contribution, which you will
be 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 a
sensitive area.

8 (ii). Project Proposal and Budget


A copy of the detailed proposal, which has been approved by the Agency, should be given. Also
attach 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 the
money from another FCRA holder. This information, if required, should be given at 8(iii). In this
case also, a copy of proposal and budget for your grant should be attached.

9. Bank Account
You have to open and use a bank account exclusively for foreign funds. Give details of this
FCRA bank account here. These details include account number, name and address of the
bank.

10. Details of foreign source


Who will give you the grant? Where is their Head Office? Who is their chief functionary? Who
are their office bearers? All this information is to be given under 10(b). Avoid guesswork on this.
Ask the donor agency for this information.

60
In case you are receiving the money from another FCRA holder in India, give information related
to 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 this
should be clarified under 10(c).

10A. Recommendation Certificate


A recommendation certificate should be attached to the application. The format is given at the
end of form FC-1A.

This certificate confirms that the NGO has been formed and registered. It also says that the
organisation is genuine and there is nothing against them. The area where the proposed project
will be implemented is also required.

The total recommended budget of the project and the name of the donor is also to be given
in the certificate.

The District Collector of the area can issue this certificate. Alternatively, you can get it from
the concerned Department of the State or Central Government.

11. Additional Information


You can give any additional relevant information here. For example, if the money has been
credited in advance to your account, this must be stated here.

Signing
The 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 the
association 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 given
at two places: on first page and again on the last page.

Check-list of Documents to be attached


Before 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, Income
and Expenditure Statement) for past three years (or less if registered recently)
! Details of foreign contribution received and utilised this year5 .

Copies
You should make two complete sets. But only one has to be sent to the FCRA. The other
should be kept on your office files.

4
See ‘Applicant’ on page 58
5
See ‘Amount Utilised’ on page 60

61
Send it to FCRA
You 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 Delhi
Phone (Reception): 469 7018

You should send your papers by ‘Registered Post - Acknowledgement Due’. Retain the proof of
posting and acknowledgement card (when received back) carefully.

If you are having the form delivered by hand, make sure you get an acknowledgement, with
rubber stamp, date and signatures.

62
FCRA Registration6
FCRA Registration means registration under Foreign Contribution (Regulation) Act, 1976. This
is 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 or
prior 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 you
will be allowed to receive foreign contribution only through prior permission.

How to register
In 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 Account


For receiving foreign funds, you should first open a separate, new bank account (savings or
current). The account can be opened with Indian funds7 . After this, make sure that you use this
account exclusively for foreign contribution (fresh or recycled).

Filing FC-8
You should then fill up and file an application in form FC-8. Along with this form, you will have
to give several documents8 .

Scrutiny
The FCRA Department will review your application. If it is complete and satisfactory, FCRA will
ask the IB (Intelligence Bureau) for a report. Otherwise, they may ask you for additional details.

Field Enquiry and Report


Someone from the LIB or SIB (Local or Subsidiary Intelligence Bureau) will visit your office and
work 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 submit
a report to the FCRA Department.

Acceptance
If the report is satisfactory, your application will be accepted and you will be issued a registration
certificate.

Registration Certificate
The certificate will show your FCRA registration number. Read the certificate carefully. It also
includes other important information regarding FCRA. A copy of the certificate also goes to your
bank.

6
Based on AccountAble 42: FCRA Registration
7
Open the account with minimum deposit (normally Rs.500). This money will remain in the account till the
bank account is kept open.
8
See ‘Form FC-8’ on page 150

63
Keep the certificate carefully. Laminate it if you wish. Also make extra xerox copies for donor
agencies, which ask for it.

Rejection
Your application can also be rejected under section 10. In that case, you will be asked to apply
for prior permission on a case-by-case basis.

Grounds for rejection


For rejecting an application, the government has to be satisfied that the registration will be bad
for 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, the
application is processed within four months to one year. Still, there are people who say that they
have waited for 3-4 years without getting a reply.

Appeal
If 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 received
it.

Can the courts help?


We do not have systematic information on how many cases of rejection have gone to court
and what happened then. However, some of the cases which have come up to court are listed
below:
" 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 Problems
FCRA 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 which
people face in getting FCRA registration.

Only registered NGOs


FCRA 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.

64
Three years
The NGO should have been registered for at least three years before FCRA people will consider
their application.

No foreigners
If there are any foreigners on your Governing Board, your application is likely to be rejected.

No time frame
There is no time limit under the law on how long FCRA will take to process or register an NGO
under FCRA.

Reason for refusal?


As discussed earlier, the FCRA Department can refuse registration on any one of the grounds
given 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-8
Form FC-8 has ten main headings and an undertaking. The entire form should be filled up in
CAPITAL letters:

1. Background
Start with writing the Chief Functionary’s name in the blank space (‘I,……..’). This means the
person 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 will
visit 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 not
likely to get FCRA registration.

(iii) Nature of Association: This depends on the work you plan to do. If your main work is
development, 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 and
objects of the NGO. Secondly, you have to give the objects and specific programs for which
foreign contribution is to be accepted and used.

Under the first sub-heading, summarize the main objectives of your association. These can be
taken from the objects clause of your Memorandum of Association. A copy of the Memorandum
and Bylaws of Society should be attached.

Filling up the second part of this clause is not easy. It is difficult to say which specific program
you will be running 10 years from now. This becomes tricky because each year you have to
confirm (in form FC-3) that you have spent the foreign contribution only for the purpose for which
it was registered under FCRA.

(v) Governing Body: The Governing Body normally has two types of members. Some hold an
office (President, Secretary, etc.). These are called ‘office bearers’. Others do not hold any office
but are plain members of the Governing Body. Trustees are treated as office bearers.

10
Local Intelligence Bureau

65
Details of all the 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 member is an office bearer (President, Secretary, etc.), then say this in column 6. If one
of the members is related to an office-bearer, then say this (brother, husband, wife of…) in
column 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. Convictions
These convictions may relate to any of the members of Governing body listed in the previous
table. Moreover, these convictions should be connected to the performance of their official
duties 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 Associate
Sometimes foreign NGOs or Agencies set up a branch office in India. This clause asks for
details of their parent organization.

Similarly, your NGO may have a sister NGO that already has FCRA registration. If yes, then
you should give details of such sister NGO here.

4. Prior-permission
Past Record: You may have received foreign contribution earlier under prior permission. Details
of this should be given under 4(i)(a). You should also give information on when you submitted
the related FC-3 and accounts.

Previous Violations: On the other hand, you may have accepted foreign contribution earlier
without legal permission (by channeling, shadow-lending, legal holder, etc.). If you have, then
give full details here.

Remember that under the law you can get up to five years in prison for this!

5. Newspapers
Is your NGO bringing out a newsletter? If yes, check whether it has been registered under
Press 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 newspapers
can receive foreign contribution. In some cases, NGOs which have registered their publication
as ‘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 or
comments on public news’. This also means that under the law it should not be necessary to

66
register it under chapter VA of the PRBA. If this is true, then it does not matter that the
publication 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 falls
in ‘category B’.

Secondly, you also need to give a declaration to the FCRA department signed by the chief
functionary. This declaration will have to be given each year (January-December), by 31st
January.

6. Earlier applications
If your NGO had applied earlier also for FCRA registration, then you should give the details
here. These would include date on which your application was filed and reference of the last
letter you received from FCRA.

If you have not received any letter or the application is still pending, then say this at 6(d). But
if you were refused registration earlier, then say so at 6(c).

7. Activities and Area


Activities: You have to give a detailed report on the activities carried out in past three years
by 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. Some
of these may mislead the FCRA into thinking that you have received foreign contribution
illegally. Therefore, review the report carefully, and clarify this where necessary.

Accounts: A copy of the audited Balance Sheet, Income and Expenditure, and Receipts and
Payments Account should also be given for last three years.

Area of Operation: This should preferably include names of states covered by you. If you are
operating in a large state or in a region which is politically disturbed, specify the districts you
are working in.

If you want, you can also give a note on socio-economic background of the region and
particularly the beneficiaries you are covering.

8. Politics
Is your NGO politically active or connected with a political party? Then the Government may
have issued a notification in the official gazette. This notification may say that your NGO is
an 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 NGOs
can not be registered under FCRA but are given prior-permission on case by case basis.

9. Bank Account
Give details of the FCRA bank account here (see ‘FCRA Bank Account’ on page 63). These
details include account number, name and address of the bank.

9A. Recommendation Certificate


A recommendation certificate should be attached to the application. The certificate looks at the
history 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 nature
of their work should be mentioned. Finally, the certificate should also show how much money
has been spent on program activities in last three years. Administrative expenditure should not
be included.

67
10. Additional Information
You can give any additional relevant information here.

Undertaking
The revised undertaking is relevant only for those NGOs, which apply for FCRA registration in
the 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 objects
of 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 for
approving 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 foreign
contribution 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 may
cause problems for other NGOs also.

To reduce the nuisance, try to expand your Governing Body before applying for FCRA. Consider
increasing the number of office bearers to 10 or 12. After all, cabinets often have more than
50 ministers!

(iii) Change in bank: If you change the FCRA bank or branch, you will have to apply to FCRA
for permission. This can be done on your letterhead. You will also need to give satisfactory
reasons for this change.

Sign and Date


The form has to be signed at two places by the Chief Functionary. Date of the form is to be
given on the first page itself.
However, before this is done, get all the necessary documents together. Some documents may
not be available readily and may take time.

Sending the form


You can send the completed form, along with all the documents and annexures to this address
by 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 Delhi
Phone (Reception): 469 7018

If you want to deliver the form personally, make sure you take an acknowledgement (with rubber
stamp and date) at the counter. Also phone up to check the visiting hours, which may change
from time to time.

11
For more on office-bearers see ‘Governing Body’ on page 65

68
Check-list of Documents to be attached
This form has been revised by Ministry of Home Affairs vide notification no. GSR 63 (E) and
published in The Gazette of India – dated 24th January 2000. This revision provides for
attaching a recommendation certificate with this form. All applications for registration filed after
24-1-2000 should be in this form. Attach the following documents (one copy each) to your
application in form FC-8:
! Certificate from concerned District Collector/ Department of State Government/ Ministry
or 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 and
Expenditure, 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 Gujarat
and 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 Gujarat
and 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 of
Company Affairs

If you are bringing out a ‘registered newspaper’ (meaning that you have registered
your 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

69
Basics of FC-313
What is FC-3
The 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-3


FC-3 should be filed by organisations that are registered under FCRA or have obtained prior
permission 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 Date
Each year the form should be prepared for the period beginning 1st April to 31st March of
following year. The form should be posted early to reach FCRA Department by 31st July.

File it Each Year


If you are registered under FCRA, you should file this form every year – whether you have
received any funds that year or not. If you have not received or utilised any contribution, your
FC-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 July
2001 [MHA notification # G.S.R. 557(E) dated 26-Jul-01].

Filling the Form


Fill form FC-3 in triplicate at least. Two copies are for dispatch to FCRA and the third is for office
record. Extra photocopies should be made later for dispatch to the funding agencies.

Year
On top of the form, give the year for which the form is being filled. For example, in case of
year 2001-02, you will write “Account of foreign contribution of the year ending on 31st March
2002”.

Heading 1: Association’s Details


Item (i): Name and Address
Fill the name and registered address of the association in block letters (CAPITALS).

13
Based on AccountAble 20: Filling Up Form FC-3 – Basics

70
Item (ii): FCRA Registration
Fill the FCRA registration number and the date of registration at the top. This information is
taken from the FCRA registration certificate.

Item (iii): Prior Permission


You have to fill this if you are not registered under FCRA, but have taken specific prior
permission from FCRA for receiving foreign contribution.

Give the number and date of FCRA’s prior permission letter for this grant. If you have received
more than one grant during the year under two separate prior permission letters, give reference
of both the letters.

Item (iv): Nature of Association


Here you should normally tick in front of ‘social’ or ‘educational’. If your association is any of
the other, you should tick ‘Cultural’, ‘Economic’ or ‘Religious’, as the case may be.

Item (v): Religious


If 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 contribution
Show total foreign contribution received during this year.

Item (ii)(a): Interest on FCRA bank account


Show interest credited by bank on the FCRA bank account here.

Item (ii)(b): Other interest


Show interest on investments here. This includes fixed deposit receipts also.

Heading 2: Purpose-wise Receipt and Utilisation


This is the most important heading of form FC-3. Information to be provided under this heading
has 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 and
balances 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

71
Column 2: Purpose
This column gives a list of 56 ‘purposes’ for which the money may have been received and
utilised. The last purpose (56th) is for activities, which may not be covered by the other 55.

Classifying your expenses


Some objects in form FC-3 overlap each other. Still, this table helps FCRA Department analyse
the flow of foreign funds into India. You should, therefore, try and choose the most specific item
wherever possible. For example, if you are providing some technical training to the villagers, then
this 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 arrive
at the figures in FC-3.

Columns 3, 4: Previous Balance


The ‘previous year balance’ column is sub-divided into two: one shows the balance in cash and
the other shows balance in kind. In this column you have to show the closing balances (unspent
balances) 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 opening
balance under a particular item, just say ‘Nil’.

Columns 5 to 9: Receipts
This section has several columns. There are three main sub-sections: ‘As first recipient’, ‘As
second / subsequent recipient’ and ‘Total’.

First Recipient
For each receipt, check whether you have received it directly from the foreign donor or not. If
yes, you will be known as ‘first recipient’. You will then show the particular receipt in the ‘first
recipient’ columns.

Second Recipient
If 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 ‘second
recipient’.

Columns 5 and 7: Receipts in Cash


Most grants come in by cheque. However, some small donations may be in the form of currency
or coins. All such grants or donations should be shown in the ‘cash’ column (either column 5
or column 7). Take the figure of receipt from your FCRA Receipts and Payments Account.

Columns 6 and 8: Receipts in Kind


Sometimes 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 Receipts


This column is a total of columns 5, 6, 7, and 8. Remember not to add up column 3 and 4 when
you write the total here.

72
Columns 10 and 11: Amount Utilised
The funds utilised during the year should be shown in column 10. Pick up the figures from your
FCRA Receipts and Payments Account.

If you have received materials15 also, show the utilisation of these items in column 11 as utilised
in kind.

Columns 12 and 13: Balance


Show the unutilised balance for each item. This should be shown separately for cash and for
kind.

Add Up the Columns


Now add up each column and write the total of the column in the last row. The total of last
two columns (12 and 13) will give you the Total Unutilised Balance with you at the year-end.

Heading 3: Bank Details


Under FCRA rules16 , you can receive FCRA funds and keep them only in one separate bank
account. This bank account number is also given in your FCRA registration certificate. This rule
also applies to prior-permission cases.
You should give your FCRA bank account17 number, name of the bank and address with PIN
code (of the branch) here.

Heading 4: Donor Details


Give the details of the donors (who have given foreign funds or materials) here. Donors are sub-
divided into three categories:

(i) Institutional Donors


All grant-making agencies (and other organisations, such as companies) fall into the category
of Institutional Donors.
All grants, whether large or small, from such donors should be included here. Examples of such
donors 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 be
given in column 4.
Each installment from the donor agency is to be listed separately along with purpose, date and
amount.

Second Recipient
If you received funds as second recipient, these grants also have to be listed here. In such
a case, give the name and address of the Indian agency / NGO through whom you have
received 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 FCRA
funds) for use over there. FCRA law does not allow this. However, in practice, sometimes FCRA authorities
do not object to this if the reasons are genuine.

73
(ii) Large Individual Donors
If you have received funds/ material which add up to more than Rs.1 Lakh in a year from an
individual (person) donor, then you should list such donors here. Name and address of such
donors should be given in column 3.
In this case also, all installments should be listed separately. Give purpose, date and amount
under columns 4, 5 and 6.

(iii) Small Individual Donors


If grants from an individual (person) donor add up to less than Rs.1 lakh in a year, the donor
is known as ‘small individual donor’. Such donations should be shown here.

Heading 5: Country-wise Receipts


At the end, give a summary of the foreign contribution country-wise. Each country should be
shown 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 .

Declaration
The form has to be signed only at one place (i.e. under the declaration statement) by the Chief
Functionary. The seal (rubber stamp) of the NGO should also be put.

CA Certificate
This certificate should be given by a Chartered Accountant (preferably your auditor). He/she
should indicate his/her name, address and registration number. He/she should also put the seal
of his/her firm on the form. The same person should also sign the FCRA Receipts and Payments
Account and FCRA Balance Sheet in the same manner.

FC-3 Annexures
Under rule 8 (2), the two accounting statements should be annexed to the form FC-3. These
are: FCRA Receipts and Payments Account, and the FCRA Balance Sheet. Again at least three
copies should be obtained – two for dispatch to the FCRA authorities along with FC-3, and one
for 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

74
Intricacies of FC-319
Opening Items
Address
In most cases, you should give the address of your registered office in FC-3. This should be
done even if the registered office is merely an address of convenience and the main office is
else where in the city/ state.

However, in some cases, the FCRA account is transferred to another state. For example, your
registered 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 letter
to FCRA department regarding the new address22. When filling up FC-3, you should use this
new address only.

FCRA registration cancelled


In some cases, an NGO’s FCRA registration may be cancelled. Such NGOs can not accept
any more funds without prior permission. However, in many cases, they are allowed to use up
the existing FC balance with them. Such NGO should also file FC-3 till the time any balance
of FC contribution remains with them.

Summary of Interest
Under this head, all interest earned through the FCRA Balance Sheet should be shown. This
interest income should be taken into FCRA Receipts and Payments Account. Interest earned
on endowments, corpus, micro-credit loans, fixed deposits, savings bank account, etc. can also
be shown here.
Remember, that this is merely a summary of the interest earned. The receipt and utilization of
interest should also be shown in table 2 and again in tables 423 and 524 .

Table 2: Receipt and Utilisation


FCRA Loans
Loans taken from a foreign source should be deposited in FCRA bank account and reported
in FCRA Receipts and Payments Account. These loans should also be reported in FC-3 as
receipt 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 foreign
source. These are treated as foreign contribution26. These should be reported in columns 6 or
8 of table 2.

19
Based on AccountAble 72-73: Intricacies of FC-3
20
This is done after approval by FCRA authorities and filling of fresh FC-8
21
Filed with FCRA department at the time of shifting of FCRA account
22
See ‘Undertaking’ in form FC-8
23.
Donor-wise Receipt of foreign contribution
24
Country-wise Receipt of foreign contribution
25
Section 2(1)(c) does not make any distinction between grant and loans funds – both are treated as
foreign contribution
26
Section 2(1)(c)(i)

75
Valuation
How should these be valued? The valuation does not have to be very accurate. You can give
estimated values, which are reasonably fair. You can also talk to the donor and find out
approximate landed price in India. Or you can find out the value from insurance documents. In
some cases, you may have received a Proforma invoice also.

FC-6
The 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 the
FCRA27 .

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 various
agencies involved. Sometimes these are reported at the regional level – further distribution is
reflected as having been done by the regional agency. However, in reality the distribution is done
by 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. You
can not avoid this liability by entering into an agreement with the Donor Agency.

Micro-credit / Revolving Fund


This topic has been discussed in detail under the heading ‘Micro-Credit Revolving Funds’ in the
AccountAble 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 provided
in 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 given
here. 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.

Interest
Bank Interest
Some donor agencies ask for accounting of interest earned on their funds lying in the bank
account. Such interest can be shown as addition to their funds in column seven of the relevant
row. 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 bank
interest, 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.

76
Revolving Fund Interest
This includes interest and service charges, etc. on micro–credit loans. This income can be
shown under item ‘56: Other Activities’, under the sub heading ‘interest / service charges on
revolving fund’. You can use column seven for this.
Any interest paid out on revolving fund capital can be shown in the column ten (utilisation) of
the same row.

Corpus Interest
This interest income would come from investments made out of Corpus/ Endowment Fund. This
can 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 Recipient
In 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 Donations
Any foreign donations that are received in cash should also be shown here. Such donations are
often not earmarked by the donor for any particular activity. These should be shown under
‘miscellaneous’ category (item ‘56: Other Activities’).

Sale of Assets
With the donor’s consent, you can sell FCRA assets to any one (whether they have FCRA or
not).
If you sell off any asset (purchased earlier with foreign funds), then show the amount received
as sale price here. This can be shown under the activity for which the asset was originally
received (such as ‘rural development’).

Transfers to Other NGOs


Any amounts given to another association out of FCRA funds for carrying out a program or
under direction of Funding Agency should be shown against item ’56: Other Activities’. The
FCRA number (or prior permission reference), name and address of the second recipients
should be given as a footnote.

Level of Detail
How much detail should be given in FC-3 or FCRA Receipts and Payments Account? This
depends 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 purpose
of reporting is not met29 .

Your auditors should be able to guide in this. However, in general you should try to break down
the figures so that each line item is not more than 5% of total receipts or Rs.1 lakh, whichever
is higher.

29
In such cases, FCRA department often issues show cause notice or makes a field visit.

77
For example, if your total receipts are Rs.10 lakhs, then you should try to break down individual
line items to Rs.1 lakh or lower. However, if your total receipts are Rs.2 crores, then you can
show individual line items up to ten lakhs each.

Unutilised balances
In Cash
For 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 = Balance


Balance in cash receiver in cash receiver in cash cash in cash

In Kind
Similarly for working out the balances in kind, add up column 4, column 6 and column 8. From
this deduct column 11.
4 6 8 11 13

Previous + Received as first + Received as second – Utilised in = Balance


Balance 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 (column
12 or 13: Balance in cash or kind, as the case may be).

Loan transactions with Indian Section


For opening bank account
When you opened the FCRA bank account,
you would have deposited a small amount
FCRA Balance Sheet (partial)
in this account from Indian funds. This
Liabilities Assets
money remains in the bank account. It
Loan from Indian FCRA Bank
can be shown in the partial FCRA balance
section 500 Account 20,500
sheet here. Note that the FCRA bank
account balance of Rs.20,500/- includes
Rs.500 which was deposited initially to open the account.

During the year


Can you have loan transactions with the Indian section of your account books? FCRA regulations
prohibit any mixing of Indian and FCRA funds. However, as we have seen above, the FCRA
account itself is opened with Indian funds. Does this not result in mixing of funds? The FCRA
law is silent on this.

Clearly the intention of FCRA law is to avoid mixing of funds. Following this opening, many
NGOs frequently borrow / lend money to the Indian section. This happens when FCRA funds
are delayed but the project has to continue.

Whether this is legal or not is separate issue. Our suggestion here is limited only to the
accounting and disclosure aspects. Such loans can be shown in the Receipts and Payments

78
Account and Balance Sheet as below:

FCRA Receipts and Payments Account (partial) FCRA Balance Sheet (partial)
Receipts Payments Liabilities Assets
Loan from Grant receivable 2,000
Grant received 90,000 Project Expenditure 92,000
Indian section 4,500 FCRA bank
Loan from Ind- Loan returned to
Account 22,500
ian section 10,000 Indian section 6,000

Bank Details
For practical reasons, you may need to open another bank account in the field area (and
transfer 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 Details


Box Collections
If you are keeping donation boxes at airports, shopping centres, etc. you may receive foreign
donations 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 much
from Indian. Indians settled abroad might drop dollar notes into the box; foreign tourists may
drop surplus Rupee notes in the box.
In such a situation, the only practical solution is to treat all foreign exchange collection as
foreign contribution. This should be deposited into the FCRA bank.

In case of Rupee collections, you can think of treating 50% as foreign contribution and balance
50% as Indian. While there is no circular or guideline on this, this appears to be the only logical
option.

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 your
organisation’s main purpose (e.g. ‘18. Help for poor, aged or destitute’ or ‘24. Welfare of women
and children’).

Small Individual Donors


Donations below one lakh, from an individual donor, are known as small donations. There is no
need to give name of each donor. Date and month of receipt also should not be filled in this
case.
However, if you want, you can summarise these donations according to the purpose of the
donation. Such a summary may look like the following:

Sl. No. Institutional/ Name and Address Purpose Date and Month Amount
Individual/ 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

79
More on Individual Donors
These donors may be sending you money by cheque or in cash (when they visit you). You
should note down their names and addresses while issuing a receipt. If possible (and without
offending the donor), also take down the passport number, country of issue30 and expiry date.

Table 5: Country Chart


Country-wise Receipts
Donation Box Collections
In 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 Agency


Where 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’.

Reconciliation
Tables 2 and 4
Add up all the cash and cheque grants / donations listed in Table 4. These should be the same
as 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 in
column 9 of Table 2 also).
However, you may find a small difference in these two figures. This may be because some
inflows 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 Cash


The unutilised amount (total of column 12) should be cross-checked with the FCRA Balance
Sheet 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 can
attach a copy of this calculation to your FC-3.

30
Needed to fill up the country chart

80
Table 2: Cross-check Balance in Kind
Similarly the unutilised balance in kind (total of column 13) should be cross-checked with the
total 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 Items
Signing FCRA Accounts
The FCRA Receipts and Payment Account and Balance Sheet have to be attached to FC-3.

1. Balance Sheet
This should show position of accounts as at 31st March. It should be prepared from accounts
maintained for FCRA.

2. Receipts and Payments


The Statement of Receipts and Payments should reflect all receipts of foreign grants / FCRA
receipts (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, name
and signatures under a suitable audit statement. Normally, the audit statement would be “As
per our separate report of even date in Form FC-3 attached”.

Chief Functionary should also sign both the Annexures.

CA Certificate
The auditor also has to certify the figures of opening balance, receipts during the year and
closing balances. These figures appear in the certificate at end of form FC-3. The opening
balance 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 is
issued by the auditor on their firm’s letterhead. The auditor is also free to give any clarificatory
notes or qualification in the certificate.

Accounting Standards
If the NGO has any income generation project33 , then the following Accounting Standards
should be considered when preparing FCRA accounts34:

31
Taken from Receipts & Payments Account
32
Taken from FC-6
33
Refer ICAI clarification titled ‘Accounting Standards for NGOs’; The Chartered Accountant, Sep-95,
Page 79.
34
Receipts & Payments Account and Balance Sheet

81
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 changes
in 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 Financial


Statements of Employers 1-Apr-95

AS-18 Related Party Disclosures 1-Apr-01

AS-19 Leases 1-Apr-01

Proof of posting
Keep the proof of posting (Post Office receipt) carefully on file. This comes in useful if you
receive a letter from FCRA for non-filing of return.

Copy to Donors
After filing the form FC-3, send a copy (with Balance Sheet and Receipts and Payments and
other Annexures) to your Funding Agency’s local office, according to their reporting requirements.

Filing Nil FC-3


You are required to file the FC-3 even if you have not received any foreign contribution during
the year. In such cases also, the Balance Sheet and Receipts and Payments Account should
be attached to the FC-3.

Penalty for not filing FC-3


What happens if you do not file FC-3? The law on this is fairly strict: your FCRA registration
can 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 NGO
in default is given several chances to file the FC-3. If there is no response from the NGO
despite 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.

82
Concealing Information
FCRA department has now added a warning at the end of the table in Heading 2. Read this
carefully before you sign the form FC-3 – any concealment or falsification may prompt the
Department to initiate ‘appropriate action’.
While the Department does not say here what ‘appropriate action’ can be taken, this includes
suspension / cancellation of registration, fine and jail37 .

Revising your FC-3


If you make a mistake in your FC-3, then you can revise it and file it on your own38. Send a
covering letter with the revised FC-3 explaining the reason for revision.

37
See item 9 under heading ‘Offenses and Penalties: Ready-Reckoner’ on page 95
38
Balance Sheet and Receipts & Payments Account should also be attached.

83
Maintaining Form FC-639
Foreign Contribution
Foreign 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 contribution
in kind’. Examples are blankets, food, boats, plastic sheets, etc. You can not record these in
cash book or ledger. Therefore, FCRA rules say that you should maintain a separate stock
register for these [rule 8(1)(a)].

What is FC-6
The format for this stock register is called FC-6. This shows all foreign contribution received
as 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 first
receiver. 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 web
site (www.AccountAid.net).

You will have to xerox or print 50-200 copies of the form. After this, the sheets can be bound
to make a register.

How do we maintain it
The step-by-step procedure is given on page 85. But first let us understand some main issues:

Only for non-cash stuff


FC-6 is used only when an item is received as foreign contribution. It should not be used when
you 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 cost
you 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 a
motorcycle for you and send it to you. Will you enter this in FC-6? Yes. Will you also enter
it in your FCRA cash book? No.

One page for each item


FC-6 is just like a stock register. So you have to open a separate page for each article. This
also means that if you regularly receive two sizes of blankets, then you should open separate
sheets 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 each
category.

39
Based on AccountAble 58: Maintaining FC-6
40
Section 2(1)(c)(i)

84
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 may
sell the material. The money collected from the sale becomes FCRA money. This sale should
be recorded in FC-6.

Items less than Rs.1,000


Items 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-6


You do not have to file FC-6 with the FCRA Department. This is like your stock register – you
should keep it with you.

Only the information extracted from this should be entered in FC-3. The FC-3 is later filed with
the FCRA Department.

How long should we keep it


FCRA Act and rules are silent on this. Still, to be on the safe side, keep the register for 10
years.

Step-by-step procedure
The following explains how stock register in form FC-6 should be maintained:

Description of Article
Start with a fresh sheet for each type of item. Remember to open different sheets for different
size / packing of the same item.

Write the name of the article on top. For example, ‘Blankets – large size’ or ‘Cooking Oil – 200
ml. Tins’. If you also receive Cooking oil in 500 ml tins, open a separate account for these.

Receipts
Numbers refer to column numbers in the form. Enter each transaction separately, in separate
lines.

1. Date
Date on which you received the consignment.

2. Donor
Who sent you these items? Give the name and address of the donor here. If you received the
items through another NGO, just give the name and address of that NGO.

3. Mode
How did the items reach you? This could be by road, rail or in some cases by air. Write the
mode here – also give truck / train number, if feasible. In case of some small items, the donor
may have just given these to you by hand also. In this case, the mode will be ‘by hand’.

4. Purpose
Why 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.

85
5. Quantity
The 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 1
tonne 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 description
of the item. Then write 4,000 in the quantity column (column # 5).

6. Approximate Value
Here 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 the
local market, you can also use this price as the basis.

7. Intimation
This 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. Fill
it up after you have sent the FC-3 to the FCRA Department.

Utilisation
Each issue of items should be recorded in a separate line.

8. Date
Date of issue should be given here.

86
9. Beneficiary
Who 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 one
row.
Sometimes, the items are issued to another NGO. This NGO will then distribute the items in
their 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 person
who bought these items.

10. Purpose
If the items are sold, then there is no need to write any purpose. In other cases, you should
give the purpose. In case of food items, the purpose will mostly be ‘relief’. In case of construction
items, it could be ‘rehabilitation’.

If the items were issued to another NGO, the purpose could be redistribution.

11. Utilised by NGO


Beneficiaries: Quantity distributed to beneficiaries should be entered here. Make sure that you
are using the correct unit (see comment on column 5).

Damages: If some of the items were damaged or pilfered, then these should also be entered
here.
Totals: At the end of the year, total up column 11. Work out a rupee value for this. Use the
same 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 suitable
purpose in FC-3. For example, this could be ‘5. Rural Development’ or ‘23. Relief for natural
calamities’.

If the items were used for mixed purposes, you can split the value and show it in several
different rows in form FC-3.

12. Sold off


If the goods were sold, enter the quantity here. The value of sales will be shown as receipt in
form FC-3 in column 7. At the same time, the value of sale will also be shown in column 11
of FC-3.

13. Transferred
If these were returned to donor or given to another NGO, enter the quantity in this column.

14. Sale recovery


In case the items were sold, enter the value (in Rupees) of sale here.

15. Entry reference


This 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 recovery
is shown.

16. Closing Balance


This should be recalculated whenever you make an entry for receipt or for issue.

87
Declaration and Signature
Each filled up sheet of form FC-6 should be signed at the end of the year. However, the rules
do not say who should sign the declaration. Therefore, the chief functionary or an equally
responsible person can sign it.

Open a new account each year


Financial year for FCRA ends on 31st March. When you start the register for next year, open
up 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 opening
balance.

Auditing FC-6
Should the auditors check FC-6 also? Yes:
" Clause (iv) of the certificate given by the auditors covers all records maintained under rule
8(1) of FCRA. These include the FCRA cash book, ledger, and registers in form FC-6 and
form 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.)

88
FCRA Fellowships42
Fellowships are common in the development sector. Quite often these are funded from FCRA
grants. However, in most cases, the Agencies and the individuals concerned are not aware that
certain FCRA formalities are required. Here we deal with the FCRA implications of a fellowship
grant.

In the development sector, fellowship generally means a regular payment to an individual for
some research or study. The topic of the study is clearly defined. Some sort of output (a report
or a book) is also expected at the end of the study. Normally, the work is that it can be done
by one person — an organization is not required for the work.

Key features of a fellowship


If 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 not
common.

However, requirements of FCRA apply equally to all similar payments (made to an Indian
citizen), including scholarships and stipend.

Valuing the Fellowship


If 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 foreign
country
! 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

89
! 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 Hairs
The 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 to
a 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) to
assist in the cost of education; Oxford 2: financial award for a student, etc. given for scholarly
achievement.

Stipend: Webster: a fixed sum of money paid periodically for services or to defray expenses;
Oxford: salary, especially of a clergyman.

FCRA: Issues and Formalities


Routed fellowships
Remember that foreign contribution can never be converted into Indian funds43 [explanation to
section 2(1)(c)].
If your fellowship originated with a foreign agency but has been routed through one or more
Indian agencies, it will still remain FCRA fellowship.

An Indian Agency or NGO, which does not have FCRA or prior permission, should not receive
or disburse any FCRA amount for fellowship.

No permission or registration
No 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 make
program grants to an organization as fellowship payments to its workers, you may attract
prosecution.

Prohibited
Fellowship, 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.

90
Some exceptions to this are provided in section 10. These cover ordinary business payments
received by newspapers, etc. from foreign sources. These exceptions should be interpreted very
carefully.

Journalists
If you are making any payments to a journalist, check whether the person works with a
registered newspaper. If yes, it would be better to avoid the payment. Freelance journalists are
not covered by the prohibition, so long as they do not write a regular column or have correspondent
status for a registered newspaper or magazine.

Accounts and Income Tax


You don’t need to keep accounts or get an audit done for FCRA. However, you may have to
pay income tax, depending on the amount of fellowship.

File Form FC-5


If 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 other
cases, the period of fellowship is specified in the sanction letter and this may be treated as
an academic year.

Who should file FC-5


Form 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 its
FC-3 as expenditure.

Filling up FC-5
Personal details (1-7): Give your (receiver’s) personal details here. These include your passport
particulars (number, date and place of issue, valid till), if you have one. Also give details of
your occupation or profession.

Agency details (8): Give the particulars of the granting Agency here. When finalizing your
fellowship, 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 also
mode or channel (cash, bank, etc.) should be given here. If the fellowship will be received in
equal 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 your
stay 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.

91
When and Where
FC-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.), then
you 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.

92
FCRA Penalties45
Most of us violate some law or the other at some point of time. We may do this knowingly or
unknowingly. But ignorance of law is not an excuse.

FCRA contains many penalties. We have ignored these all along because very few people have
been penalized under FCRA. Our thinking on this may be similar to those company directors
who 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 care
lest you step on one.

The Power of the Law


Before we go deeper into this, we must be clear about one thing. The law, by and large, is
benevolent. During enforcement, various positive factors are also considered. The authorities try
to 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 a
fiscal act. It is an Act to preserve internal security. This means that the style and procedure
of enforcement is different.
Various offenses and their penalties are listed in a ready-reckoner on next three pages. It may
be 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 confiscation
order in the sessions court or High Court [sec. 21].

2. Appeal against prohibition or refusal: If you are prohibited from receiving foreign contribution
or permission/ registration is refused, you can appeal within sixty days of order date. The appeal
has to be made to the High Court [sec. 21].

3. Chief Functionaries: Assume that the violation is done by a company or society. Who will
be penalized? Firstly the company/ society itself will be penalized. Secondly, anyone who was
in charge of the company / society (Chief Functionary/ director, etc.). However, if this person
can show that he did not know about this or it happened despite his best effort, then he / she
will not be penalized [sec. 26].

4. Governing body: In 3 above, can anyone else be penalized? Any director, member of
Governing 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 an
organization in receiving foreign contribution (in violation of FCRA). This may include Governing
Body 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 Government
first sanctions prosecution. This means that there can not be any public-interest petition under
FCRA [sec. 27].

7. Investigative powers: The Government may authorize a person or department to investigate


some 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

93
8. Honest mistake: When the Government is acting under FCRA, it may make an honest
mistake and cause loss or damage. For this loss or damage, no one can prosecute the
Government [sec. 29].

Offenses and Penalties: Ready-Reckoner


Offense Who may be penalized Penalty

1. Politician/ journalist/ judge/ " Person who " Seizure and confiscation
Government servant/ public accepted the of foreign contribution [sec. 16, 18]
sector employee accepts foreign contribution " Additional fine (upto five times in
foreign 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 confiscation
accepts foreign contribution of foreign contribution [sec. 16, 18]
without Government’s prior " Additional fine (upto five times in
permission (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 of
Citizen accepts foreign contri- Indian Citizen who foreign contribution [sec. 16, 18]
bution (currency) for above accepted " Additional fine (upto five times in
persons (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 foreign
Citizen 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 of
foreign contribution the currency foreign contribution [sec. 16, 18]
(currency) for one " Person who assisted " Additional fine (upto five times in
association delivers value) if original foreign contribution
it 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 foreign
contribution 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]

94
Offense Who may be penalized Penalty

7. Association having FCRA " Association " Compulsory prior permission


registration 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 foreign
contribution [sec. 16, 18]
" Additional fine (upto five times
in value) if original foreign
contribution spent [sec. 24]

8. Association having FCRA " Association " Compulsory prior permission


registration 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 contribution
spent [sec. 24]
" Imprisonment upto one year and
/ or fine upto Rs.1,000 [sec. 25]

9. Association having FCRA " Association " Compulsory prior permission


registration 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 contribution
spent [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 of
within 180 days of accepting foreign contribution [sec. 16, 18]
foreign contribution fails to " Additional fine (upto five times in
intimate 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 of
scholarship, stipend or similar foreign contribution [sec. 16, 18]
payment (exceeding Rs.36,000 " Additional fine (upto five times in
in academic year) fails to file value) if original foreign contribution
form 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 foreign
Government servant/ public the gift contribution [sec. 16, 18]
sector employee accepted " Additional fine (upto five times in

95
Offense Who may be penalized Penalty

foreign contribution exceeding value) if original foreign contribution


Rs.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 foreign
Government servant/ public the gift contribution [sec. 16, 18]
sector employee who " Additional fine (upto five times in
accepted foreign contribution value) if original foreign contribution
upto 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 without
medical emergency
[sec. 9]

15. Politician/ journalist/ judge/ " Person who accepted " Imprisonment upto one year and
Government servant/ public the foreign hospitality / or fine upto Rs.1,000 [sec. 25]
sector employee accepts
foreign hospitality in medical
emergency and does not
give intimation in 30 days
[sec. 9]

16. Association with FCRA " Association " Inspection and seizure of accounts
registration or prior perm- " Chief Functionary, etc. and records [sec. 14, 15]
ission does not maintain " Governing Body " Seizure and confiscation of foreign
prescribed records and members contribution [sec. 16, 18]
accounts [section 13] " Other officers " Additional fine (upto five times in
value) if original foreign contribution
spent [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 foreign
foreign contribution despite erred or dealt contribution [sec. 16, 18]
prohibitive order under " Person who assisted " Additional fine (upto five times in
section 12 [sec. 22] value) if original foreign contribution
spent [sec. 24]
" Imprisonment upto three years and/
or fine upto market value of foreign
contribution [sec. 22]

18. Accepting or assisting ano- " Person who accepts " Seizure and confiscation of for
ther 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]

96
Offense Who may be penalized Penalty

" Additional fine (upto five times in


value) if original foreign contribution
spent [sec. 24]

19. A person is convicted second " Association " Prohibition on accepting foreign
time for offense under sec. 23 " Person contribution for three years
(1) or 25 [sec. 25 A] [sec. 25 A]

97
98
Section III: Intricacies
The word ‘intricate’ comes from the English word ‘trick’. Intricacies are, therefore, the tricks that
the law plays on you. Of course, the law itself becomes trickier as time passes, learning
lessons 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 also
understanding the intention of the law. As the overall design of the Act becomes clearer, it may
be 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 which
confusion exists or where a provision of the Act causes difficulties. There is a general expectation
that a new FCRA law will be passed soon – let us see whether the new Act will resolve these
issues 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 with


constancy and then destroy them with laughter.

But while you build your sand-towers, the ocean brings more sand
to 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 with
which they would carve it in their own likeness?…

What of the ox who loves his yoke and deems the elk and deer of
the 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 and
all 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….”

99
100
Understanding FCRA
Foreign Contribution (Regulation) Act, 1976 is a very short Act. However, there is an enormous
amount 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 that
we have gained over the years.

Foreign Source
Foreign 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 allows
the 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 categories
are discussed below:

1. Individuals
How 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 still
remain a foreign source. On the other hand, an Indian working abroad, getting salary from a
foreign 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 an
Indian source. Similarly, if an Indian becomes a foreign citizen, then he or she will become a
foreign 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. They
are settled abroad but are still Indian citizens.

However, the term NRI is sometimes used very casually. Therefore, it is best to confirm this
by asking whether the person has become a foreign citizen. If the answer is ‘no’, then the funds
will 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. His
grandfather 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 citizenship
promptly loses his or her Indian citizenship.

101
Shri Naipaul is eligible to apply under the Indian Government’s PIO Card scheme. If he applies
and 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 hold
the PIO card or not.

c. Dual Citizenship
The Government is now also seriously talking about dual-citizenship. This means that an Indian
can 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 case
of 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. Government
Government of a foreign country or territory is a foreign source4. When does a group become
government of a foreign country? When the Indian Government recognizes it. For example, India
did not recognize Taliban as government of Afghanistan5 during the years it was administering
large parts of Afghanistan.
This distinction is more important for diplomatic relations than for FCRA. So far as FCRA is
concerned, both (recognized Government and unrecognized one) will be treated as a foreign
source.
Agencies of a foreign government are also treated as a foreign source.

3. International Agencies
All international agencies are a foreign source. However, multilateral agencies such as UNO, its
specialized 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 funds
can 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 also
mean a special Government Department (e.g. USAID) concerned with a specific field. When
such an organization operates on an international scale, it is called an ‘international agency’.

4. Non-profit organisations
Foreign 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)

102
a. Trusts
What is a foreign trust? The Act does not say about this. However, normally a trust7 formed
abroad would be a foreign trust. Also, a trust formed in India by a foreigner could be a foreign
trust. Foreign trusts are a foreign source8 .

b. Foundations
Foundations are also like trusts, though sometimes the term is also applied to other type of
organisations. 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 nature
of a trust, and is not supported by a foreign country? It is possible that such a foundation will
not fall within this clause10.

c. Society, clubs, etc.


In the case of societies11 , the Act is clearer. Societies, etc. formed or registered outside India
are treated as foreign source12 . What if the society was formed by Indians living abroad? The
society 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. Corporations
In some countries, non-profit organizations are registered as charitable corporations. These are
also treated as foreign source13 .

e. Trade Unions
A trade union formed or operating in a foreign country (or territory) is a foreign source14 . It does
not 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 definition
is 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 registered
under Trade Unions Act, 1926. Therefore, even this does not appear to be relevant for foreign
trade unions discussed in section 2(1)(e)(vii).

The definition of a Trade Union will vary from country to country. For example, the standard
reference Black’s Law Dictionary15 defines it as ‘a union composed of workers of the same or
of several allied trades’. This may perhaps be relevant in some Western countries. But what
about 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 property
who 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 in
section 2(1)(e) is merely an inclusive one!
11
Also clubs or other associations of individuals
12
Sec. 2(1)(e)(ix)
13
Sec. 2(1)(e)(iv)
14
Sec. 2(1)(e)(vii)
15
7th Edition, 1999. p.1532

103
5. Business Organisations
Five types of business organizations are listed: 1. a foreign company, 2. subsidiary of a foreign
company, 3. a foreign corporation, 4. a multi-national corporation, and 5. a company controlled
by foreigners. All five are treated as foreign source.

a. Company
What is a foreign company? It is defined in section 591 of the Companies Act, 1956. Any
company incorporated16 outside India is a foreign company17 .

b. Subsidiary
Any subsidiary18 of a foreign company is also treated as a foreign company. It does not matter
if the subsidiary is formed in India.

c. Corporation
As discussed above, a corporation formed in a foreign country is a foreign corporation. What
is 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 under
FCRA.

The definition21 of an MNC has two parts. First, that the corporation should have an office or
business in two or more countries. Second, the corporation should have been formed in a
foreign country.

What does this mean? If an Indian corporation22 starts operating in a foreign country, it will not
become an MNC for the purpose of FCRA.

Permitted institutions
The last para of section 2(1)(e) provides a special exemption. Any foreign institutions permitted
to work in India by Indian Government are not a foreign source.

What does this mean? There are many foreign organizations working in India. The Government
may have a special agreement with some of them. Others may have been given permission
by RBI or other Government agencies. Are these a foreign source or not?

16
Formed
17
There is a quirk in the definition given in section 591: the company should have an office in India. If we
interpret 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 board
of A; (ii) B controls more than 50% of the voting power (in general meetings) in A; (iii) B holds more than
50% of the equity shares in A; (iv) B is a subsidiary of A under the laws of B’s home country (the country
where B was formed).
19
Based on Black’s Law Dictionary, 1999, p.341
20
Multi-national corporation
21
Explanation to section 2(1)
22
or company

104
Such permissions or agreements mean nothing for FCRA. This exemption is available only if
the Government has issued a notification in the official Gazette permitting the organization to
work in India.

FC Receivers
There 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 foreign
contribution under any circumstances. There is no case by case prior permission or exemption
from this rule.

2. Organisations of a political nature


‘Organisations of political nature’ are defined in explanation to section 5(1). These can not get
FCRA Registration. However, these organisations can receive foreign contribution on a case by
case basis after getting prior-permission23 . The central government issues notifications from
time to time naming such organisations24 .

3. Individuals in public life


These 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, printer
or 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 apply
to journalist working with electronic media including TV news channels26. Other exceptions are
given in section 8 (salary, business receipts, personal gifts from relatives, etc.).

4. NGOs
The Act regulates receipt of foreign contribution by any association27 which has definite program28.
Such organisations are commonly refered as NGOs29 , NPOs30 , PBOs31, or Development
Organisations. These organisations can get foreign contribution after registration under FCRA
or getting prior permission on a case by case basis. Mostly, this foreign contribution is exempt
from income tax.

23
Form FC-1
24
See Table ‘Organisations of a Political Nature’ on page 106
25
‘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 since
1985.
27
Defined in section 2(1)(a)
28
See section 6(1)
29
Non-governmental Organisations
30
Non-profit Organisations
31
Public Benefit Organisations

105
5. Private individuals
Private individuals can get foreign contribution freely. However, this is subject to applicable
taxation laws. Private individuals must report receipt of foreign contribution in the nature of
scholarship or stipend, etc. if it exceeds Rs.36,000/- per year.

6. Business organisations
Business organisations can get foreign contribution32 freely without any registration or reporting.
This is subject to normal taxation laws.

Business Transactions
Are business transactions of NGOs outside FCRA? Section 2 defines ‘foreign contribution’ using
the words ‘donation, delivery or transfer’. Some people argue that the word ‘donation’ defines
the types of delivery or transfer that law-makers had in mind. If this is correct, then business
transactions 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 these
people are allowed to accept some types of foreign contribution. The section gives a list, which
includes 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 remittance
from a foreign source. Even ordinary business remittances to business houses are foreign
contribution. However, the Act does not restrict acceptance of foreign contribution by business
houses. 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 Market
New 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-38
Organisations
All India Defence Employees Federation Pune

32
‘Foreign contribution’ as defined in section 2(1)(c) includes both commercial as well as
charitable transactions.

106
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 & college
Teachers 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 Employees
Federation Mumbai
All 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 Employees
Federation 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

107
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, New
Delhi
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 Union
of 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

108
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, Near
Kapil Theatre, Kirloskar Road, Bangalore
Mahase-e-Azadi J&K
Marathwada Janta Vikas Parishad Saraswati Bhavan, Sikshan Prasarak
Mandal 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 & Telegraph
Employees (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

109
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 Muslim
League 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

110
Mysteries of FCRA33
For the voluntary sector, FCRA remains the most mysterious piece of law. Partly this is due
to the manner in which it has been interpreted at different times and partly it is due to the
secrecy surrounding its implementation.
The work of many Indian NGOs is dependent on foreign funds. And they live under a constant
fear 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 do
not 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 as
misuse of funds or anti-national activities (list at www.AccountAid.net).

1. Prior permission
If you have applied for prior permission, then your application should be processed within 90
days [section 11(2)]. The period of 90 days starts from the date when the application is received
at FCRA Department.

The Ministry may also write to you, asking you to wait for another 30 days. In such case, the
total 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 you
haven’t received a reply within 120 days then your application is approved. Your reply may have
been lost in the post.

2. FCRA Number
Refusal: 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 the
order [section 21(2)].
Cancellation: If your FCRA registration is canceled, don’t panic. File an appeal in the High
Court within 60 days of order date [section 21(2)]. If the cancellation is unjustified, the court
will restore your registration.

3. Change of Bank Account


If you have moved your main office or for some other reasons you want to shift your FCRA
bank account, you can do so. The procedure is different for older NGOs (registered under FCRA
prior to 27th December 1996) and for new NGOs:
Older NGOs: First open the new bank account, which you want to use as FCRA Account. Then
apply (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 by
a resolution of the Governing Body.

New NGOs: If you had applied for FCRA registration after 27th December 1996, in the revised
FC-8, then you can change bank accounts by applying on plain paper (undertaking in your
original application in form FC-8).

33
Based on AccountAble 22: Mysteries of FCRA

111
4. More than one bank account
You 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 transfer
funds to other locations / bank accounts for operational reasons. This includes bank accounts
for 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 for
FCRA funds. Further, the Ministry of Home Affairs has not granted any official sanction permitting
this widespread practice.

Still, if you are maintaining bank accounts in the field for FCRA funds, you should take the
following precautions:
i Open such accounts only when absolutely necessary, and justified for operational
reasons.

ii Use these accounts exclusively for keeping FCRA funds.


iii Do not ever deposit FCRA funds directly into such accounts. The funds must first
be deposited in the designated FCRA bank account.

iv When transferring funds between these accounts, use only account payee cheque
or draft, wherever possible.

5. Interest on FCRA Funds


There is no bar on earning interest on FCRA funds. However, all such interest should be
accounted for as FCRA funds and disclosed in FC-3 under heading 1A and FCRA Receipts and
Payments 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 Fund
If you are giving recoverable loans to beneficiaries out of FCRA funds, you should show these
loans as assets in the FCRA Balance Sheet. However, these can be treated as utilization of
FCRA funds in FC-3.

When these loans are recovered you should show the money received in FCRA Receipts and
Payments Account and FC-3.
When loans are given out again (out of recovered funds), you should continue to show these
in the same manner in the FCRA Balance Sheet and Receipts and Payments Account.

7. Income from FCRA IGP


According to the FCRA Department, income earned from an Income Generation Project funded
or set up out of FCRA funds should be shown as FCRA receipts in FC-3.

8. Sale of fixed assets


When fixed assets (or raw material, stocks, etc.) are purchased out of FCRA funds, these
should be shown in the FCRA Balance Sheet. The funds spent on this can be shown as utilized
in the FC-3.

112
If later on any of these assets are sold off, then the amount recovered should be again shown
as receipt in FC-3. If you make a profit or gain in selling the asset, this also should be shown
in 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 Ledger


Some NGO’s are not aware that it is absolutely essential for a separate Cash Book and Ledger
to be maintained for FCRA transactions [rule 8(1)(b)].

10. Consolidated Balance Sheet


You should only file the FCRA Balance Sheet and Receipts and Payments Account with your
FC-3. Please do not file the consolidated Balance Sheet.

11. Disclosing non-cash grants in form FC-3


All FCRA grants in kind (blankets, shares, securities, vehicles, food, etc.) should also be
disclosed in the FC-3. Both the receipt of such grants as also the utilization should be shown.

12. Don’t File form FC-6


Record 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 reported
in FC-3.

13. Second or subsequent recipient


If you receive your FCRA funds from another organization which is already registered under
FCRA (e.g. CRY), then such funds should be shown as ‘Funds received as second or subsequent
recipient’. For this purpose, it is irrelevant whether the funds are in Rupees or disbursed by the
India office of a foreign funding agency.

14. Revising form FC-3


If you have made a mistake in the FC-3 for any reason, you can revise it within a reasonable
period, say two years. Along with the revised FC-3, file a letter explaining the reasons for
revising the FC-3.

15. Fellows: file form FC-5


Individuals receiving Fellowship (exceeding Rs.36,000 p.a.) out of FCRA funds should file form
FC-5 within 30 days of receipt of the fellowship funds.

16. Shadow lending


Sometimes NGOs with FCRA registration lend their ‘shadows’ to other NGOs. The funds are
received 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 NGO
as legal project holder.

113
Whether the second NGO is an NGO registered under Societies Act or not, this type of
arrangement is illegal and strictly prohibited. In case this comes to the notice of FCRA Department
then 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 NGOs


It is clearly mentioned in the FCRA registration letter that you should not give FCRA funds to
NGOs which do not have FCRA registration or prior-permission. If you do this, your registration
may be canceled and you may be penalized [section 23].

18. Governing Body


If 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 Agencies


If a funding agency or its officers ‘assist’ an NGO in getting foreign funds without FCRA
permission or registration, then the funding agency and its officers can also be penalized
[section 23(1)].

20. Form FC-3 in duplicate


Form FC-3 should be filed with FCRA in duplicate.

21. Elections
NGOs 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 permission
for each grant.

114
Puzzles of FCRA34
A strict interpretation of FCRA [Foreign Contribution (Regulation) Act, 1976] gives you strange
results. Consider the following common situations:
1. A student from Ghana registers at an Indian University and pays the course fees. The
university 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 a
souvenir. The mother of one of the students works for an International Bank. They insert
an 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-knit
shawls. 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 FC
funds. The Mahila Mandal is functioning as an unregistered society and does not have
FCRA. 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 polythene
sheets. 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 FCRA
completed silver jubilee on 5th August 2001. It is unlikely that the Government will repeal it in
near future. But, there is a need for review so that there can be reasonable compliance. We
discuss here 19 puzzles of FCRA. Section references are to Foreign Contribution (Regulation)
Act, 1976.

1. FCRA grants to individuals


Can you make FCRA grants to individuals? Apparently, yes. They do not need FCRA permission
or registration for this.

But, there is one very important condition. The individual must work totally on his/ her own. He
or she should not employ people or tie up with others. In legal terms, he / she must not form
an association of individuals or an organisation [Section 2(1)(a)].

2. Business people/ professionals


Profit-oriented organisations are not covered by FCRA. These people can receive payments
from foreign agencies or out of FCRA funds. They do not need FCRA registration for this. This
exemption is not available to NGOs doing consultancy.

3. Electronic media
FCRA 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 been
amended since 1985. Electronic media was opened up to private sector much later.

4. Change of bank account number


Many banks are computerising their accounts now. Your bank may also give you a new number
for your FCRA bank account.

34
Based on AccountAble 55: Puzzles of FCRA

115
This does not mean that you have changed your bank account. Just write a letter to the FCRA
Department explaining this. Attach a copy of the bank’s letter showing change of account
number.

5. Advances from FC funds


Advances from FC funds cannot be given to NGOs that do not have FCRA registration. The
reason is that section 2(1)(c) covers ‘donation, delivery or transfer’ of funds. Advances obviously
involve either transfer or delivery.

The same reasoning applies to loans from FCRA funds.

6. Loan between FC and Indian


FCRA does not allow mixing up of Indian funds and FCRA funds. This means you should keep
track of both funds separately.

However, the Act does not prohibit taking or giving loans to the Indian section. The most
obvious example is money required to open the FCRA bank account. This money is always a
loan from the Indian section.

In recent years, FCRA Department has felt that this facility is being used carelessly. As a
result, they often take up glaring cases with the concerned NGOs.

7. Mahila Mandals
Do 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 into
five 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 in
to the Mandal. Leaders start emerging. savings and credit.
3 Group becomes more organised. Objectives of the group are widened and
A membership register is started. put down in writing.
Office bearers are appointed.
4 Memorandum of Association is signed. Memorandum of Association serves as
Society 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)

116
8. Indian office of foreign Agency
If a foreign donor agency opens a branch or liaison office in India, the Indian office needs FCRA
registration or prior permission. This applies even if the branch office is only receiving
administrative funds and not grants.

9. Opening branch abroad


FCRA 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 [section
6(1)(b)].
" It can then be transferred to the bank account of foreign branch. For this, you will need
MHA permission under rule 8(1)(b). This permission should be taken before transferring
FC funds to foreign account.

10. Organisations of a political nature


Can NGOs get involved in political activities? Yes – but at the risk of losing their FCRA
registration.
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 ‘organisation
of a political nature’. This will mean that the NGO cannot accept foreign contribution without
specific prior-permission on case-by-case basis.

11. Churches and Ashrams


Some organisations set up additional organisations to carry out some of their work. Each of
these bodies may specialise in one aspect of the work or be run independently. This is common
in 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 FCRA
registration or prior-permission. This concept also applies to Federations.

12. Does second receiver need FCRA


Yes. The second, third, fourth, fifth and all the subsequent receivers need FCRA registration
or prior-permission.

13. When do FC funds become Indian


Never, so far as NGOs are concerned. FC funds do not become Indian merely by changing
hands. It is believed that funds of foreign origin can not cleanse themselves even if they were
to take a dozen dips in the most sacred river Ganga!

117
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 become
FCRA [explanation to section 2(1)(c)].

14. Catalogue sponsorship


An International Bank or MNC sponsors your catalogue or souvenir. They pay the printers
directly. 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. You
should also report this in FC-3.

15. Souvenir Advertisements


Your NGO brings out a souvenir. An MNC agrees to insert a full-page advertisement. What do
you do with the money?
FCRA says that you should deposit this money in the FCRA account. If you don’t have FCRA
registration, too bad. Just refuse the advertisement or run it free of cost.

16. Relatives
Till death do us part… holy vows of matrimony notwithstanding, it is not a good idea to keep
your spouse on the board.

Nowadays, FCRA people get alarmed when they find assorted sons, parents, in-laws and other
family members on the board of an applicant NGO. This often results in rejection of the NGO’s
application for FC registration or prior-permission.

17. Unrestricted FC funds


Any income generated from FC funds or assets is kept in FCRA account. Examples are surplus
on sale of assets, interest on FCRA bank account. What should you do with this? There are
three possibilities:

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.

What are unrestricted funds? These are similar to General Fund in the Indian section. We use
a different name for clarity. You can use these funds to maintain your buildings, meet other
institutional expenses or add to your corpus.

You can also use it for any other purpose for which the organisation has been registered with
FCRA. 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. They
must remain in FCRA account. You must also follow all other normal precautions related to
FCRA funds.

118
18. Unrestricted FC funds – under Prior Permission
Suppose 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 these
for general organisational purposes.

19. FEMA and FCRA


FERA37 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 financial
law. FCRA is an internal security law. FCRA, therefore, has nothing to do with economic
liberalisation.

This is also the reason why the Government cannot move FCRA from Ministry of Home Affairs
to Ministry of Finance.

37
Foreign Exchange Regulation Act, 1973
38
Foreign Exchange Management Act, 1999

119
Fund-raising and FCRA39
FCRA was passed during the Emergency days (5th August 1976). Initially, it only asked NGOs
to report how much foreign contribution they receive and spend. The purpose of the Act was
to gather information. You did not need FCRA registration or even prior-permission to receive
foreign contribution.

This ‘genial’ regime lasted for a little over eight years. In 1985, compulsory FCRA registration
was introduced. You could not receive foreign funds if you did not have FCRA registration or
prior-permission. However, registration was very easy in those days. People who were already
getting foreign funds were sent registration certificates automatically. These days things are a
little different.
The main point is that FCRA was originally designed only for gathering information. The provisions
for 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. A
foreigner, 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 thanks
her profusely. The next day, both are arrested and put into jail. Why? The NGO did not have
FCRA registration!

Fortunately, FCRA is implemented in spirit and not by the letter of the law. The Department
understands that a rigorous interpretation or implementation will cause injustice. So the above
story will probably not become news. Nevertheless, the point remains. The law exists and can
be misused. Therefore, it needs to be redesigned.

The provisions discussed here are based largely on the existing law. Some of the provisions
may seem ridiculous or unnecessarily harsh. Therefore, keep the above in mind: FCRA people
are 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 donations
Electronic banking and Internet fund-raising is here. You suddenly receive a credit of Rs.1.3
lakhs 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 to
your 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 donations
NRI donations to an Indian NGO may be Indian funds or FC funds. If the NRI holds an Indian
passport, 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 events
NGOs sometimes organise cultural events for raising funds. At these events, they sell donor
passes. These passes are priced high, to generate a surplus. For example, a ticket for a movie
may 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

120
Rs.500 or more. What are the FCRA implications of this?

There can be two situations, depending on how the event was funded:

Funded with Foreign Contribution Implications

FC funds 1. All proceeds from tickets or donor passes are FC funds. It is


immaterial 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.

Separating guests into Indian and foreigners will not be easy. Therefore, implement this only to
the extent it is practical. For example, do not bother to segregate counter sales, when received
in Indian currency.

4. Raising funds abroad


FCRA 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 two
options:
1. Set up an independent sister concern abroad. They will raise funds for you and transfer
these to you.
2. Make an arrangement with a fund-raising group / attorney abroad. They will raise funds on
your 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 NGO


NGOs 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 Publications
If 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 Recoveries
NGOs sometimes make recoveries for STD calls, room rent, etc. from staff. Where should these
recoveries go?
If the related expenditure (phone bill, office rent, etc.) is booked in FCRA, then the recoveries
should also be credited to FCRA.

121
Ideally, these recoveries should be credited to the concerned Agency’s project accounts. If this
is not required, then these can be taken to FCRA unrestricted funds40.

8. Hire Charges
If 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 can
be shown there as unrestricted funds (similar to General Fund).

9. Guest recoveries
If your NGO is not registered under FCRA, do not accept any payments (for food, etc.) from
foreign volunteers who stay. You will be violating FCRA!

If you do have FCRA registration, credit these recoveries to the FCRA accounts.

10. Recoveries from Beneficiaries


NGOs sometimes make full or nominal recoveries from beneficiaries. These may be for items
distributed (food, blankets, medicines, etc.). Or these may be for services provided (school
fees, 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. If
the 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 workshop
is funded by FC funds, then the recoveries must be reported in FC-3.

11. Endowment Funds


If you receive money for an endowment or corpus from foreign source, it will remain FCRA
funds. Take it into your FC Receipts and Payments Account and report it in FC-3 under heading
purpose, item no. 55 (i)(a). Also show it on the Liabilities side of FC Balance Sheet as
‘Endowment Fund41 ’.

12. Endowment Investments


You are free to make investments out of Endowment Funds in the normal way. These can be
reported as utilization in FC-3. But you must show these on the assets side of FC Balance
Sheet as ‘Endowment Investments42 ’.

13. Endowment Income


When you receive interest or dividend on your endowment investments, report these in FC-3
under heading 1A (ii)(b).
When you make a ‘profit’ by sale of investments (capital appreciation), show the entire sale
realization as ‘receipt’ in FC-3.

14. How much


In case of prior-permission, you can receive amounts up to the limit given in prior-permission
letter.

For example, if the permission is in dollars, you can receive that many dollars or equivalent
Indian Rupees.

40
Funds that can be spent at NGO’s discretion. See ‘17. Unrestricted FC funds’ on page 118 for more
details.
41
For example: ‘Ford Endowment Fund’
42
For convenience, you can group these together as, for example: ‘Ford Endowment Investments’

122
15. Exchange rate variations
Also, in prior-permission cases, you may sometimes receive a little more due to exchange rate
variations.

Don’t worry43. Just report the actual amounts received. Also give a note in FC-3 saying ‘excess
received due to change in Exchange Rate’.

16. Unused prior-permission


Suppose FCRA gave you prior-permission for $ 10,000 for a project. But the donor Agency
could 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 the
approved project. Also, the donor Agency must remain the same.

17. Foreign Volunteers


A foreigner can come and work in your NGO without any salary. This is not considered as
foreign contribution.

18. Items less than thousand rupees


Many people believe that gifts below Rs.1,000 each are not foreign contribution. This is not quite
correct. This exemption applies when the gift is given to an individual. Secondly, the gift must
be 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-3


Sometimes foreign Agencies give away old items to NGOs. Examples are vehicles, refrigerators,
computers, fax machines, typewriters, filing cabinets, etc. The Agencies do not charge any
money for this.
These items are foreign contribution. You must record these in FC-6. Later you must report
these in FC-3 also.

20. PL-480
PL-480 means Public Law number 480. It was passed a long time ago in United States of
America. Indian NGOs have been receiving bulgur, oil and milk powder under PL-480. This is
distributed 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 these
must maintain an FC-6 and report these in FC-3. The NGO must also have FCRA or prior
permission to handle these items.

21. Bilateral funds


Indian Government negotiates bilateral funding with other countries. Such funds are received by
the Central Government. These are then transferred to states, funding bodies or NGOs. FCRA
act 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.

123
124
Section IV: Forms
Whether you believe it or not, forms were invented to make your life simple! However, as time
passed, people must have found this unsatisfactory and must have started making simple
things complicated.
FCRA forms, by and large, are not very complicated. However, there have been frequent
changes in the forms in the last few years. The last change that took place was on 26th July
2001, 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 133


received and used

Form FC-5 Intimation about foreign fellowship 147

Form FC-6 Stock register for foreign contribution


in kind 149

Form FC-8 For getting FCRA registration 150

Form X Needed if you are publishing a news-letter


registered under Press and Registration
of 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 the
Rules, for which you must refer to the text published in the Gazette of the Government of India.

125
126
Form FC-1A1
[See Rule 3 (aa)]
Form of application for seeking prior permission from the Central Government under the
Foreign 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 the
Foreign Contribution (Regulation) Act, 1976 for acceptance of foreign contribution.

Sir,

I, ……………………………………………….. , on behalf of the Association named hereafter, hereby


apply for seeking prior permission of the Central Government for the acceptance of foreign
contribution under proviso to sub-section (1) of section 6 or under sub-section (1A) of that section
or 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)

127
(iv) Please indicate the main aim(s) and object(s) of the Association (enclose a copy of
Memorandum of Association and/or the Articles of Association, if applicable).

(v) Please furnish the names and address of the members of the Executive Committee/Governing
Council, etc. of the Association, including the Chief Functionary, in the following manner:

S. Name Name of Nationa- Occupat- Office held Relation with Address


No. Father / lity ion in the other office
Husband Association, bearer, if
if 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 official
functions –
(a) been convicted by any court of law;
(b) a prosecution for any offence pending
against him/her;
(c) been found guilty of diversion or
misutilisation of funds of the
Association or any other association
in the past.
3. Please indicate whether the applicant
Association –
(a) is a branch/unit/associate of foreign
based organisation or another
association already registered under
the Act. If so, name and address of
the parent organisation should be
furnished;

(b) has been directed by the Central


Government in terms of the proviso
to sub-section (1) of section 6 (1) of
the Act to seek prior permission. If
so, the number and date of the
relevant order should be furnished;
128
(c) has been directed by the Central
Government in terms of section 10
of the Act to seek prior permission. If
so, the number and date of the
relevant 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 application
for registration;
(b) the number and date of last of
reference, if any, received from the
Ministry;
(c) whether registration was refused;
(d) whether the application for
registration is still pending.

(ii) whether the Association has close links with another association, or its unit or branch which
has been–
(a) refused registration under the Act,
(b) prohibited from accepting foreign
contribution.
5. Please indicate,–
(i) whether the Association was,–
(a) granted prior permission to receive
foreign contribution under the Act in the
past. If so, the number and date of the
letter granting prior permission should
be furnished;
(b) whether the account of the receipt
and utilisation of the foreign
contribution received above was sent
to the Central Government in the
prescribed form. If so, the date of
submission of the accounts should
be furnished:
(c) if the prior permission was granted in
the current year, details of the foreign
contribution received and utilised,
purpose-wise, showing the unspent
balance should be annexed.
(ii) whether the Association has received foreign contribution without the prior permission of the
Central Government, in the past. If so,–
(a) full particulars of the foreign
contribution received, address of the
branch of the bank and account number
in which deposited should be
furnished;
129
(b) whether the said violation has been
condoned by the Central Government;
(c) whether the Association has been
prohibited from accepting foreign
contribution under the Act.
6. Please indicate whether the Association
is owner/printer/ publisher, editor of a
publication which is a “registered
newspaper” under the Press and
Registration of Books Act, 1867.
7. Please furnish–
(i) Details of the activities of the
Association during the past three
years;
(ii) Copies of the audited statement of
accounts of the Association for the
past three years.
8. (i) Please indicate the–
(a) nature and value of foreign
contribution to be received (a copy
of the latest commitment letter from
the donor should be furnished);
(b) the purpose for which the foreign
contribution is proposed to be
received and utilised indicating also
the geographical area(s) to be
covered.
(ii) A copy of the proposal/project which
has been approved by the foreign
source for funding, including projected
outlays/budget breakup, should be
enclosed.
(iii) A copy of the proposal/project which
has been approved for funding out of
the foreign contribution should be
enclosed (This column applies only
to sub-sequent recipients).
9. Please indicate–
(i) the name of the bank and address of
the branch through which foreign
contribution is proposed to be
received;
(ii) the account number in the said branch
of the bank.
10. Please indicate the particulars of the foreign source or the sources* from which the foreign

130
contribution* is proposed to be received:–
(a) If an individual, his personal
particulars including name, present
address, permanent address,
nationality, profession;
(b) If an Organisation/ Institution/
Association/ Trust/ Trade Union, etc.,
full particulars thereof, including –

(i) Full name and complete


address.
(ii) Address of Head Office/
Principal Office.
(iii) Particulars of Chief
Functionary and important
office bearers.
(c) Please indicate whether the foreign
source is a government of a foreign
country 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)]

Declaration
I 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 or
association who has received the same as first, second or subsequent recipient, particulars of
such person or association should be given against column 10 above.
Note:
1. An incomplete application i.e. without necessary documents/details/explanations is likely
to 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.

131
“CERTIFICATE”
(To be submitted alongwith the application)
This is to certify that the …………………………………….............……………......… (name of the
association) 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 the
organization 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 contribution
amounting to…..….....……………...(Currency/ Amount) from ……………...….……….. (Name and
address of foreign donor) under the Foreign Contribution (Regulation) Act, 1976 for the said project
is 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

132
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
133

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)
2. Purpose(s) for which foreign contribution has been received and utilised:
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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 of
national events
(Independence /
Republic day) /
festivals, etc.

2. Theatre / Films.
134

3. Maintenance of
places of historical
and cultural
importance.

4. Preservation of
ancient /
tribal art forms.

5. Research.

6. Cultural shows.

7. Setting up and
running handicraft
centre / cottage
and Khadi industry
/ social forestry
projects.
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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
8. Animal husbandry
projects.

9. Income generation
projects / schemes.

10. Micro-finance
projects, including
setting up banking
135

co-operative and
self-help groups.

11. Agricultural
activity.

12. Rural Development.

13. Construction and


maintenance of
school / college.

14. Construction and


running of hostel
for poor students.
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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
15. Grant of stipend /
scholarship / assis-
tance in cash and
kind to poor / dese-
rving children.

16. Purchase and


supply of educatio-
nal material – books,
136

notebooks, etc.

17. Conducting adult


literacy programs.
18. Education / Schools
for the mentally
challenged.

19. Non-formal educa-


tion projects / coach
ing classes.
20. Construction / Rep-
airs / Maintenance
of places of worship.

21. Religious schools /


education of priests
and preachers.
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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
22. Publication and dis-
tribution of religious
literature.

23. Religious functions.

24. Maintenance of pri-


ests / preachers /
137

other religious fun-


ctionaries.

25. Construction / Run


ning of Hospital /
dispensary / clinic.
Construction of co-
mmunity halls, etc.

27. Construction and


Management of old
age home.

28. Welfare of the aged


/ widows.

29. Construction and


Management of
Orphanage.
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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

30. Welfare of the


orphans.

31. Construction and


Management of
dharamshala /
shelter.
138

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. to
the handicapped.

35. Treatment / Rehab-


ilitation of persons
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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
suffering from lep-
rosy.

36. Treatment / Rehab-


ilitation of drug
addicts.

37. Welfare / Empowe-


rment of women.
139

38. Welfare of children.

39. Provision of free


clothing / food to
the poor, needy
and destitute.

40. Relief / Rehabili-


tation of victims of
natural calamities.

41. Help to the victims


of riots/ other distu-
rbances.

42. Digging of bore


wells.
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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

43. Sanitation includ-


ing community to-
ilets, etc.

44. Vocational training


– tailoring, motor-
repairs, compute-
rs, etc.
140

45. Awareness Camp /


Seminar / Works-
hop / Meeting / Con-
ference.

46. Providing free


legal aid / Runn-
ing legal aid centre.

47. Holding sports meet.

48. Awareness about


Acquired Immune
Deficiency Synd-
rome (AIDS) / Trea-
tment and rehabil-
itation of persons
affected by AIDS.
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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

49. Welfare of the phy-


sically and menta-
lly challenged.

50. Welfare of the Sch-


eduled Castes.

51. Welfare of the Sch-


eduled Tribes.
141

52. Welfare of the


Other Backward
Classes.

53. Environmental
programs.

54. Survey for socio-


economic and other
welfare programs.

55. Establishment exp


enses, –
(i) Asset building:
(a) Establishment
of Corpus Fund,
Sl. Purpose Previous Balance Receipt during the year Utilised Balance
No. As first recipient As 2nd / subsequent Total
recipient
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
and
(b) Purchase of land;

(ii) Construction /
Extension / Mainte-
nance of office, ad-
ministrative and ot-
her buildings;

(iii) Payment of sa-


142

laries / honorarium;

(iv) Publication of
newsletter / litera-
ture / books, etc.

(v) Other expenses.

56. Activities other than


those mentioned
above (Furnish
details).

TOTAL
CAUTION:– Submission of false information or concealment of material facts shall attract the relevant provision of the Foreign Contribution (Regulation) Act, 1976
warranting appropriate action.
3. Name and address of the designated branch A/c No. ……………………………………………………………………..
of the Bank and account number (as specified Bank………………………………….……………………………………
in the application for registration/ prior permis- Branch:…………………………………………………………………….
sion or permitted by the Central Government)
Address:……………………………………………………………………
……..……………………………………….…………………………..….
PIN………………………...…………………….
4. Donor-wise Receipts of foreign contribution (in Rupees)
Sl. Institutional / Individual / Name(s) and address(es) Purpose(s) Date and month Amount
No. Other Donors of receipt
1 2 3 4 5 6
(i) Institutional Donors
143
Sl. Institutional / Individual / Name(s) and address(es) Purpose(s) Date and month Amount
No. Other Donors of receipt

1 2 3 4 5 6
(ii) Individual Donors above Rs. One lakh
144

(iii) Individual Donors below Rs.One lakh (only columns 4 and 6 need to be filled)

Total
5. Country-wise Receipts of foreign contribution (in Rupees)
S. No. Name of the country Amount

1 2 3

1.
2.
3.
4.
5.
145

Total:

DECLARATION
I hereby declare that the above particulars furnished by me are true and correct. I also affirm that the foreign contribution has been utilised for the
purpose(s) for which the Association has been registered/ prior permission obtained. To the best of my knowledge, I have not concealed or suppressed
any fact.

Place: Signature of the Chief Functionary


Date:

(Name of the Chief Functionary and seal of the Association)


Certificate To Be Given By Chartered Accountant
I/ We have audited the accounts of ...........................…………………………………………………………………………………………………………...............
................................................................................................................................…………………………………………………………………………………...…….(name
of Association and its full address including State and pin code, if registered society, its registration number and State of registration), for the year ending 31st
March ….....….... 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 the
Foreign 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.
146

Place _______________

Date ________________

Signature of Chartered Accountant

with seal, address and Registration number


Form FC-5
[See Rule 4(c)]
Intimation to the Central Government of receipt of scholarship, stipend or any
payment 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 source
from whom scholarships, stipend or
payment of a like nature was
received:
(a) If an individual, his personal
particulars including name,
present address, permanent
address, nationality, profession

(b) If an Organisation/ Institution/


Association/ Trust/ Foundation/
Trade Union, etc. full particulars
thereof including:
(i) Full name and complete
address

(ii) Address of Head Office/


Principal Office

147
(iii) Aims and Objects

(iv) Particulars of important office-


bearers

9. Nature and full details of


scholarship, stipend, or any
payment of a like nature received
from foreign source, indicating:
(a) total amount and its break-up under
various 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 or
any payment of a like nature with
specific 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 to
furnish.

Declaration
I hereby declare that the above particulars furnished by me are true and correct.

Place: _________,

Date: __________
_________________
Signature of applicant

148
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 Purpose QUANTITY Q T Y.
address of Receipt of receipt received value of intimation sent address of for which Utilised by Sold Otherwise If sold, Reference to Balance in
the person of Articles to the Central the person issued or the organi- transferred the amount entry in the stock
from 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
149

DECLARATION
I hereby declare that the above particulars furnished by me are true and correct.

Signature
Form FC-83
(See Rule 3-A)
Form of application for seeking registration with the Central Government under the
Foreign 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 the
acceptance 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 Act
for 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)

150
(iv) Please indicate –
(a) the main aim(s) and object(s) of the
Association (enclose a copy of
Memorandum of Association and/or the
Articles of Association, if applicable);
(b) the main object(s) and definite
programme(s) for which the foreign
contribution 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 following
manner:

S. Name Name of Nationa- Occupat- Office held Relation with Address


No. Father / lity ion in the other office
Husband Association, bearer, if
if 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 official
functions–

(a) been convicted by any court of law;

(b) a prosecution for any offence pending


against him/her;

(c) been found guilty of diversion or


misutilisation of funds of the
Association or any other association in
the past.
3. Please indicate whether the applicant
Association is a branch/ unit/ associate
of foreign based organisation or another
association already registered under the
Act. If so, name and address of the parent
organisation.

151
4. Please indicate,–
(i) whether the Association was,–
(a) granted prior permission to receive
foreign contribution under the Act in the
past. If so, the number and date of the
letter granting prior permission should
be furnished;
(b) whether the account of the receipt and
utilisation of the foreign contribution
received above was sent to the Central
Government in the prescribed form. If
so, the date of submission of the
accounts should be furnished.
(ii) whether the,–
(a) Association has received foreign
contribution without the prior permission
under Act in the past. If so, full
particulars of the foreign contribution
received along with complete address
of the bank branch and bank account
number in which deposited should be
furnished;
(b) said violation has been condoned by
the Central Government;
(c) Association has been prohibited from
accepting foreign contribution under the
Act.

5. Please indicate whether the Association


is functioning as editor, owner, printer or
publisher of a publication required to be
registered as “newspaper” under the
Press 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 application


for registration;
(b) the number and date of the last
communication, if any, received from
the Ministry;
(c) whether registration was refused;
(d) whether application for registration is
still pending.

152
(ii) whether the Association has close links with another association, or its unit or branch
which has been–
(a) refused registration under the Act;
(b) prohibited from accepting Foreign
Contribution.
7. Please furnish,–
(i) details of the activities of the
Association during the past three years.

(ii) copies of the audited statements of


accounts of the Association for the past
three years.
(iii) details of the area(s) of operation.

8. Please indicate whether the Association


has been specified as an organisation of
a political nature, not being a political
party, under Section 5 of the Act. If so,
the details of the notification should be
furnished.
9. Please indicate,–
(i) the name and address of the branch of
the bank through which the foreign
contribution shall be received;
(ii) please specify the account number in
the said branch of the bank.

9A. whether a recommendation certificate


from 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)

153
Declaration and undertaking
The Association named here-in-above affirms that the information furnished above is correct
and undertakes:–
(i) to inform the Central Government (Ministry of Home Affairs) within thirty days if any change
takes 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 change
causes replacement of 50% or more of the office-bearers as were mentioned in the application
for registration under Foreign Contribution (Regulation) Act, 1976 and undertakes further not
to accept any foreign contribution, except with prior permission, till the permission to replace
the office-bearer(s) has been granted;
(iii) not to change the bank or branch of the bank without prior permission of the Central
Government. The reason for change of bank or branch of the bank shall have to be relevant
and 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 the
Central Government;
(ii) An incomplete application i.e. without required documents/details/explanations is likely to be
rejected 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 (excluding
administrative expenditure) amounting to ………………….. (Amount in Rupees) during the last
three 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 against
them.
(4) The grant of registration to the aforesaid association to accept foreign contribution under the
Foreign 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

154
Declaration regarding newspaper/ newsletter
Form X
Declaration
I, …………………………………………. on behalf of the association named hereafter declare
that the printed work/ publication of which the association is the owner/ editor/ printer/ publisher
and whose details have been furnished hereinafter, is not a ‘Newspaper’ as per definition of
Section 1(1) of Press and Registration of Books Act, 1867 and/ or is not required to be
registered under part 6(a) of the said Act (a copy of certificate issued by Registrar of Newspapers
for India to the effect that the said printed work falls within the category ‘B’ of publications as
per 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 Prior


Permission. If so, Ministry of Home
Affairs Order No. and date.
(b) Whether prohibited from
acceptance of any foreign
contribution. If so, Ministry of
Home 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 comments
thereon and will be absolutely non-political.
2) That it does not and shall not in future contain any article or reference criticizing or commenting
on any religion, faith, ritual, practice which may hurt the sentiments of the particular religious
group 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; or
b) the public interest; or
c) freedom or fairness of election to any Legislature; or
d) friendly relations with any foreign State; or
e) harmony between religious, racial, linguistic or regional groups, castes or
communities.
Signature
Place: (Chief Functionary)
Date: Name:
(Seal of the Association)

155
The Foreign Contribution (Regulation) Act, 1976
An act to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by
certain persons or associations, with a view to ensuring that parliamentary institutions, political
associations and academic and other voluntary organisations as well as individuals working in
the important areas of national life may function in a manner consistent with the values of
sovereign 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 I
PRELIMINARY

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 the
Official 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, having
an office in India and includes a society, whether registered under the Societies
Registration Act, 1860 (21 of 1860), or not, and any other organisation, by whatever
name called;
(b) “candidate for election” means a person who has been duly nominated as a candidate
for election to any Legislature;
(c) “foreign contribution” means the donation, delivery or transfer made by any foreign
source,-
(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 not
exceed 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 Exchange
Regulation Act, 1973 (46 of 1973);
5
[Explanation– A donation, delivery or transfer of any article, currency or foreign security
referred to in this clause by any person who has received it from any foreign source, either
directly or through one or more persons, shall also be deemed to be foreign contribution within
the 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 – 1976
5
Ins. by Act 1 of 1985, S. 2 (w.e.f. 20 – 10 – 1984).

156
source for providing a person with the costs of travel to any foreign country or territory
or 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 such
Government,
(ii) any international agency, not being the United Nations or any of its specialised
agencies, the World Bank, International Monetary Fund or such other agency as
the Central Government may, by notification in the official Gazette, specify in this
behalf,
(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 or
territory,

(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 more
than one-half of the nominal value of its share capital is held, either singly or in
the 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 or


not), formed or registered in a foreign country or territory,
(vii) a trade union in any foreign country or territory, whether or not registered in such
foreign country or territory,

(viii) a foreign trust by whatever name called, or a foreign foundation which is either in
the 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 outside


India,
(x) a citizen of a foreign country,

but does not include any foreign institution, which has been permitted by the Central Government
by 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 Legislative
Council, either House of the Legislature of that State,

(iii) Legislative assembly of a Union territory constituted under the Government of


Union Territories Act, 1963 (20 of 1963),
(iv) the Metropolitan Council of Delhi constituted under Section 3 of the Delhi

157
Administration Act, 1966 (19 of 1966),
(v) Municipal Corporations in metropolitan areas as defined in the Code of Criminal
Procedure, 1973 (2 of 1974),

(vi) District Councils and Regional Councils in the States of Assam and Meghalaya
and in the Union Territory of Mizoram as provided in the sixth Schedule to the
Constitution, 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 of
India as a political party under the Election Symbols (Reservation and
Allotment) Order, 1968, as in force the time being; or
(2) which has set up candidates for election to any Legislature, but is not so
registered or deemed to be registered under the Election Symbols (Reservation
and Allotment) Order, 1968;
(ii) a political party mentioned in Column 1 of table I to the notification of the Election
Commission of India No. 56\J&K\ 84, dated the 27th September, 1984, as in
force 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 Registration
of Books Act, 1867 (25 of 1867);
(j) “subsidiary” and “associate” have the meanings respectively, assigned to them in the
Companies Act, 1956 (1 of 1956);
(k) “trade Union” means a trade union registered under the Trade Unions Act, 1926 (16 of
1926).
Explanation– for the purposes of this Act, a corporation incorporated in a foreign country or
territory 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 Regulation
Act, 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 Exchange
Regulation 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 meanings
respectively assigned to them in such Act.

Section 3. Application of other laws not barred


The provisions of this Act shall be in addition to, and not in derogation of, any other law for
the time being in force.

6.
Substituted by Act 1 of 1985, S. 2 w.e.f. 20 – 10 – 1984

158
CHAPTER II
REGULATION 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 registered
newspaper,
7
(c) [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 or


controlled by government and includes a Government company as defined in Section 617 of
the Companies Act, 1956 (1 of 1956).

(2) (a) No person, resident in India, and no citizen of India resident outside India shall accept
any foreign contribution, or acquire or agree to acquire any currency from a foreign
source, on behalf of any political party, or any person referred to in sub-section (1), or
both.
(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 has
reasonable cause to believe that such other person intends, or is likely, to deliver such
currency 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 or
foreign 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 other
person intends, or is likely, to deliver such currency to a political party or to any
person referred to in sub-section (1), or both.
(3) No person receiving any currency, whether Indian or foreign, from a foreign source on behalf
of 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 was
received, or

(ii) to any other person, if he knows or has reasonable cause to believe that such
other person intends, or is likely, to deliver such currency to an association other
than the association for which such currency was received.

7
Subs. by Act 1 of 1985 of S. 3 w.e.f. 20 – 10 – 1984

159
Section 5. Organisation of a Political nature not to accept foreign contribution except
with 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 a
political party” means such organisation as the central Government may, having regard to the
activities of the organisation or the ideology propagated by the organisation or the programme
of 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 in
India, 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 referred
to in sub-section (1).
(b) Except with the prior permission of the Central Government, no person, resident in
India, shall deliver any foreign currency to any person if he knows or has reasonable
cause to believe that such other person intends, or is likely to deliver such currency to
an organisation referred to in sub-section (1).
(c) Except with the prior approval of the Central Government, no citizen of India, resident
outside India, shall deliver any currency, whether Indian or foreign, which has been
accepted 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 person
intends, 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 give


intimation 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 accept
foreign contribution unless such association,–
(a) registers itself with the Central Government in accordance with the rules made under
this Act; and
(b) agrees to receive such foreign contributions only through such one of the branches of
a bank as it may specify in its application for such registration, and every association
so registered shall give, within such time and in such manner as may be prescribed, an
intimation to the Central Government as to the amount of each foreign contribution
received by it, the source from which and the manner in which such foreign contribution
was received and the purposes for which and the manner in which, such foreign
contribution was utilised by it:
Provided that where such association obtains any foreign contribution through any branch other
than such branch of the bank through which it has agreed to receive foreign contribution or fails
to give such intimation within the prescribed time or in the prescribed manner, or gives any
intimation 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 any
foreign 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

160
(1-A) Every association referred to in sub-section (1) may, if it is not registered with the
Central Government under that sub-section, accept any foreign contribution only after
obtaining the prior permission of the Central Government and shall also give, within
such time and in such manner as may be prescribed, an intimation to the Central
Government as to the amount of foreign contribution received by it, the source from
which and the manner in which such foreign contribution was received and the purposes
for 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 time
within one hundred and eighty days immediately preceding the date on which he is duly
nominated as such candidate, shall give, within such time and in such manner as may
be prescribed, an intimation to the Central Government as to the amount of foreign
contribution received by him, the source from which and the manner in which such
foreign contribution was received and the porposes for which and the manner in which
such foreign contribution was utilised by him.

Section 7. Recipients of scholarships, etc. to give intimation to the Central


Government
(1) Every citizen of India receiving any scholarship, stipend or any payment of a like
nature from any foreign source shall give, within such time and in such manner as may
be prescribed, an intimation to the Central Government as to the amount of the
scholarship, stipend or other payment received by him and the foreign source from
which, and the purpose for which, such scholarship, stipend or other payment has
been, or is being, received by him.
(2) Where any recurring payments are being received by any citizen of India from any
foreign source by way of scholarship, stipend or other payment, it shall be sufficient if
the intimation referred to in sub-section (1) includes a precise information as to the
interval at which, and the purpose for which, such recurring payments will be received
by such citizen of India.
(3) It shall not be necessary to give such intimation as referred to in sub-section (1) or
sub-section (2) in relation to scholarships, stipends or payments of a like nature, if the
annual value of such scholarships, stipends or other payments does not exceed such
limits as the Central Government may, by rules made under this Act, specify in this
behalf.

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 that
section, of any foreign contribution, where such contribution is accepted by him, subject to
the provisions of section 10–
(a) by way of salary, wages or other remuneration due to him or to any group of persons
working under him, from any foreign source or by way of payment in the ordinary
course 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 ordinary
course of business transacted by him outside India; or
(c) as an agent of a foreign source in relation to any transaction made by such foreign
source 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 regulations
made by the Central Government with regard to the acceptance or retention of such
gift or presentation; or

161
(e) from his relative when such foreign contribution has been received with the previous
permission of the Central Government:
Provided that no such permission shall be required if the amount of foreign contribution
received by him from his relative does not exceed, in value, eight thousand rupees per
annum and an intimation is given by him to the Central Government as to the amount
received, the source from which and the manner in which it was received and the purpose
for 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 official
channel, post office, or any authorised dealer in foreign exchange under the Foreign
Exchange Regulation Act, 1973 (46 of 1973).
Explanation– In this Act, the expression ‘relative’ has the meaning assigned to it in the
Companies 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 servant
or 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 aid
needed on account of sudden illness contracted during a visit outside India, but, where such
foreign hospitality has been received, the person receiving such hospitality shall give, within one
month from the date of receipt of such hospitality, an intimation to the Central Government as to
the receipt of such hospitality and the source from which, and the manner in which, such hospitality
was 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 any
foreign contribution;
10
(b) [without prejudice to the provisions of sub-section (1) of section 6, require any
association specified in that sub-section], to obtain prior permission of the Central
Government before accepting any foreign contribution;
(c) require any person or class of persons or any association, not being an association
specified in section 6, to furnish intimation within such time and in such manner as
may be prescribed as to the amount of any foreign contribution received by such
person or class of persons or association, as the case may be, and the source from
which and the manner in which such contribution was received and the purpose for
which 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 prior
permission 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 any
foreign hospitality, the source from which and the manner in which such hospitality
was received:

9
Subs. by Act 1 of 1985, S. 5 w.e.f. 20 – 10 – 1984
10
Subs. by Act 1 of 1985, S. 6 w.e.f. 1 – 1 – 1985

162
Provided that no such prohibition or requirement shall be made unless the Central Government is
satisfied that the acceptance of foreign contribution by such association or person or class of
persons, as the case may be, the acceptance of foreign hospitality by such person, is likely to
affect 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 prior


permission to accept foreign contribution or hospitality–
(1) Every individual, association, organisation or other person, who is required by or under
this Act to obtain the prior permission of the Central Government to accept any foreign
contribution or foreign hospitality, shall, before the acceptance of any such contribution
or hospitality, make an application for such permission to the Central Government in
such 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 from
the date of receipt of such application, the permission prayed for in such application
shall, on expiry of the said period of ninety days, be deemed to have been granted by
the Central Government:
Provided that, where, in relation to an application, the Central Government has informed the
applicant the special difficulties by reason of which his application cannot be disposed of within
the said period of ninety days, such application shall not, until the expiry of a further period
of thirty days, be deemed to have been granted by the Central Government.

CHAPTER III
MISCELLANEOUS
Section 12. Power to prohibit payment of currency received in contravention of
the Act–
Where the Central Government is satisfied, after making such inquiry as it may deem fit that
any 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 this
Act, it may be, by order in writing, prohibit such person from paying, delivering transferring
or otherwise dealing with, in any manner whatsoever, such article or currency save in
accordance with the written orders of the Central Government and a copy of such order shall
be served upon the person so prohibited in the prescribed manner, and thereupon the provisions
of 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 currency
and references in the said sub-sections to moneys, securities or credits shall be construed
as 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 manner
as 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.

163
Section 14. Inspection of accounts or records–
If the Central Government has, for any reason, to be recorded in writing, any ground to
suspect 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 A
post], as it may think fit (hereinafter referred to as the authorised officer), to inspect any
account or record maintained by such political party, person, organisation or association, as
the case may be, and thereupon every such authorised officer shall have the right to enter
in or upon any premises at any reasonable hour, before sunset and after sunrise, for the
purpose of inspecting the said account or record:
Provided that no gazetted officer shall be authorised to inspect the account or record maintained
by political party, unless he has been holding a 11[Group A Post] in connection with the affairs of
the Union, or a State, for not less than ten years.

Section 15. Seizure of accounts or records


If, after inspection of an account or record referred to in section 14, the authorised officer
has any reasonable cause to believe that any provision of this Act or of any other law
relating to foreign exchange has been, or is being, contravened, he may seize such account
or record and produce the same before the court in which any proceeding is brought for such
contravention:
Provided that the authorised officer shall return such account or record to the person from
whom it was seized if no proceeding is brought within six months from the date of such
seizure 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 the
time specified therefor or the returns so furnished are not in accordance with law or if, after
inspection of such returns, the Central Government has any reasonable cause to believe
that any provision of this Act has been, or is being, contravened, that Government may, by
general or special order, authorise such gazetted officer, holding a Group A post, as it may
think 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 upon
any premises at any reasonable hour, before sunset and after sunrise for the purpose of
auditing the said books of account:
Provided that any information obtained from such audit shall be kept confidential and shall
not 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 or
special order, has any reason to believe that any person has in his possession or control
any 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 may
seize such article or currency.

11
Subs. by Act 1 of 1985, S. 7 w.e.f. 20 – 10 – 1984
12
Ins. by Act 1 of 1985, S. 8 w.e.f. 20 – 10 – 1984

164
Section 17. Seizure to be made in accordance with the Code of Criminal
Procedure, 1973–
Every seizure made under this Act shall be made in accordance with the provision of section
100 of the Code of Criminal Procedure, 1973 (2 of 1974).

Section 18. Confiscation of article or currency obtained in contravention of the


Act–
Any article or currency, which is seized under section 16, shall be liable to confiscation if
such article or currency has been adjudged under section 19 to have been received or
obtained 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 jurisdiction
the seizure was made; and
(b) subject to such limits as may be prescribed, by such officer, not below the rank of
an Assistant Sessions Judge, as the Central Government may, by notification in
the 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 of
making a representation against such confiscation has been given to the person from whom
any 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 to
which such Court is subordinate; or
(b) where the order has been made by any officer specified under clause (b) of section
19, or to the Court of Session within the local limits of whose jurisdiction such
order of adjudication of confiscation was made, within one month from the date
of communication to such person of the order:
Provided that the appellant court may, if it is satisfied that the appellant was prevented by sufficient
cause from preferring the appeal within the said period of one month, allow such appeal to be
preferred 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 in
section 9, or section 10, aggrieved by an order made in pursuance of the explanation to
sub-section (1) of section 5 or by an order of the Central Government refusing to give
permission, or by an order made by the Central Government, under section 5 or section
9 or section 10, as the case may be, may within sixty days from the date of such order
prefer an appeal against such order to the High Court within the local limits of whose
jurisdiction the appellant ordinarily resides or carries on business or personally works
for gain, or where the appellant is an organisation or association, the principal office of
such organisation or association is located.
(3) Every appeal preferred under this section shall be deemed to be an appeal from an
original decree and the provisions of Order XLI of the First Schedule to the Code of
Civil Procedure, 1908 (5 of 1908) shall, as far as may be, apply thereto as they apply
to an appeal from an original decree.

165
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, whether
Indian or foreign, in contravention of such prohibitory order, he shall be punished with
imprisonment for a term which may extend to three years, or with fine, or with both; and
notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the
court trying such contravention may also impose on the person convicted an additional fine
equivalent to the market value of the article or the amount of the currency in respect of
which the prohibitory order has been contravened by him or such part thereof as the court
may 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 any
provision of this Act or any rule made thereunder, shall be punished with imprisonment
for 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 or
any rule made thereunder, shall be punished with imprisonment for a term which may
extend to three years, or with fine, or with both.

Section 24. Power to impose additional fine where article or currency is not
available for confiscation–
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the
court 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 currency
liable to confiscation under this Act, may, in the event of the conviction of such person for
the act or omission aforesaid, impose on such person a fine not exceeding five times the
value of the article or currency or one thousand rupees, whichever is more, if such article or
currency is not available for confiscation, and the fine so imposed shall be in addition to any
other fine which may be imposed on such person under this Act.

Section 25. Penalty for offences where no separate punishment has been
provided
Whoever fails to comply with any provision of this Act for which no separate penalty has
been provided in this Act shall be punished with the imprisonment for a term which may
extend 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 any
offence under sub-section (1) of section 23 or section 25, in so far such offence relates to
the acceptance or utilisation of foreign contribution, is again convicted of such offence shall
not accept any foreign contribution for a period of three years from the date of the subsequent
conviction.]

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 charge
of, and was responsible to, the company for the conduct of the business of the company,

13
Ins. by Act 1 of 1985, S. 9 w.e.f. 20 – 10 – 1984

166
as well as the company, shall be deemed to be guilty of the offence and shall be liable
to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render such person liable to any punishment
if he proves that the offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act
or any rule made thereunder has been committed by a company and it is proved that
the offence has been committed with the consent or connivance of, or is attributable to
any neglect on the part of, any director, manager, secretary or other officer of the
company, such director, manger, secretary or other officer shall also be deemed to be
proceeded 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 other
association 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, trade
union 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 previous
sanction of the Central Government or any officer authorised by the Government in this
behalf.

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 as
the Central Government may specify in this behalf and the authority so specified shall have
all the powers which an officer-in-charge of a police station has while making an investigation
into 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 any
loss or damage caused or likely to be caused by anything which is in good faith done or
intended to be done in pursuance of the provisions of this Act, or any rule or order made
thereunder.

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 rules
may 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 an
association referred to in section 6, with regard to the foreign contributions received
by it;
(b) the limits up to which receipt of scholarships, stipends or payments of a like
nature need not be intimated to the Central Government;
(c) the time within which, and the manner in which, intimation is to be given by the
persons receiving any scholarship, stipend or any payment of a like nature from a

167
foreign source;
(d) the time within which, and the manner in which, a candidate for election should
give intimation as to the amount of foreign contribution received by him at any
time within one hundred and eighty days from the date when he became such
candidate;
(e) the form and the manner in which an application shall be made for obtaining prior
permission of the Central Government to receive foreign contribution or foreign
hospitality;
(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 be
maintained;
(h) the limits up to which an officer, not below the rank of an Assistant Sessions
Judge, 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 as
may be after it is made, before each House of Parliament while it is in session for a
total period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following
the session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be of on effect, as the case
may be; so, however that any such modification or annulment shall be without prejudice
to 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 interests
of the general public so to do, it may, by order and subject to such conditions as may be
specified in the order, exempt any association (not being a political party), organisation or
any individual (not being a candidate for election) from the operation of all or any of the
provisions 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 of
India and the Government of any foreign country or territory.

168
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 on
31st day of March of the next Calendar year.]

Rule 3. Application for obtaining prior permission to receive foreign contribution


or 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) of
sub-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 under
sub-section (1-A) of that section or clause (b) of section 10, shall be made in Form
FC-1A;]
(b) accept foreign hospitality under section 916 [or clause (d) of section 10], shall be
made 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 for
acceptance of foreign contribution shall be made in Form FC-8.]
Rule 4. Intimation regarding receipt of foreign contribution or scholarship or
stipend 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 section
6 shall be given for every year beginning on the 1st day of April, in Form FC-3 in
duplicate, 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 year
beginning on the 1st day of April 1991 shall also include the receipt and utilisation of foreign
contribution 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. 1-4-1991
15
Ins. by GSR 755 (E) dt. 5-11-1984 w.e.f. 5-11-1984
16
Ins. by S. O. 860 (E), w.e.f. 29-12-1977
17
Subs. by GSR 179 (E) 25-3-1991 w.e.f. 1-4-1991
18
Subs. for ‘sixty days’ vide GSR 592 (E), dt. 27-12-1996

169
(b) foreign contribution by a candidate for election, referred to in sub-section (2) of
section 6 shall be given in Form FC-4, within fifteen days from the date on which
he is duly nominated as a candidate for election;
(c) any scholarship, stipend or any payment of a like nature, from any foreign source
in relation to which an intimation is required to be given under sub-section (1) of
section 7, shall be given in Form FC-5, within thirty days of receipt of such
scholarship, stipend or other payment of a like nature:
Provided that where the person receiving the scholarship, stipend or any payment of a like nature
is residing outside India, the intimation shall be given within sixty days from the date of receipt of
such scholarship, stipend or other payment of a like nature;
(d) foreign hospitality, referred to in proviso to section 9, shall be given on plain paper
within thirty days from the date of receipt of such hospitality specifying the particulars
as to the receipt of such hospitality and the source from which and the manner in
which 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 7
regarding receipt of scholarship, stipend or any payment of a like nature from any foreign
source, if the value of such scholarship, stipend or other payment does not exceed, during
an 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 equipment
and 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 or
territory and back to India from such foreign country or territory, and the amount spent
by the foreign source in respect of such citizen towards tuition and other fees, shall not
be 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 Home
Affairs, 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 the
Act, 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 last
known place of residence or the place where he carries on, or is known to have last
carried on, business or the place where he personally works for gain or is known to
have 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 or
some 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

170
on, or is known to have last carried on, business, or personally works for gain, or is
known to have last worked personally for gain, and in case the person is an organisation
or an association, on the outer door or some other conspicuous part of the premises in
which the office of the organisation or association is located, or is known to have been
last 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 in
item (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 foreign
contribution relates to currency received and utilised, and a separate bank account
shall 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, duly
certified by a chartered accountant 22(in Form FC-3 along with a Balance Sheet and
statement of Receipts and Payments), shall be furnished, in duplicate, to the Secretary
to the Government of India, in the Ministry of Home Affairs, New Delhi, within 23[four
months] of the closure of the year.]
Explanation– In this rule, “Chartered Accountant” has the meaning assigned to it in the Chartered
Accountants Act, 1949 (38 of 1949).

Rule 9. Limits up to which an officer, not below the rank of an Assistant Sessions
Judge may make adjudication of confiscation–
An officer referred in clause (b) of Section 19 may adjudge confiscation in relation to any
article or currency seized under Section 16, if the value of such article or the amount of
such currency exceeds one thousand rupees but does not exceed fifty thousand rupees.

20
Subs. by S. O. 860 (E) w.e.f. 29-12-1977
21
For “January” vide GSR 179 (E) dt. 25-3-1991 w.e.f. 1-4-1991
22
Subs. vide GSR 179 (E) dt. 25-3-1991 w.e.f. 1-4-1991
23
Subs. for “sixty days” vide GSR 592 (E) dt. 27-12-1996

171
About AccountAid India
(Back inside cover)

AccountAid™ India is a private consulting


organisation, which was set up 1992 with en-
couragement by Oxfam America. It works with
Agencies and NGOs on accounting and related
issues. These issues include accounting struc-
ture, compliance with FCRA, Income Tax, Soci-
eties Act, budgeting, donor reporting.
AccountAid India works only through Agencies
and does not accept fees or fee-based assign-
ments from implementing NGOs.
AccountAid persons have participated as key
resource persons in workshops organised by
various 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 a
member of the Task Force set up by the Plan-
ning Commission on Laws affecting Voluntary
Sector.
AccountAid develops its own training material
based on needs felt during the field visit to the
NGOs and provides training related to basic
accounting, FCRA, Income Tax, other legal re-
quirement for NGOs, project monitoring etc. Our
training material is sometimes published or used
by others during workshops (such as Bombay
Chartered Accountants Society, Christian Man-
ager) or for development of other material (such
as Accounting Manual for NGOs by Sida).
Some of the reference material, including ear-
lier issues of AccountAble and FCRA forms, are
available on our web site at http://
www.accountaid.net. The web-site also provides
a facility for answering NGO questions, in confi-
dence and on a complimentary basis.
AccountAid staff includes persons with diverse
backgrounds such as education, cost account-
ing and rural banking. It also draws on the expe-
rience of professional accountants on a regular
basis, 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 – 110 014
Phone: 011-634 3128, 634 6111
Fax: 011-634 3852
e-mail: accountaid@vsnl.com
web site: http://www.accountaid.net
(ii)

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