FCRA Registration Rules And Regulation

Foreign Contribution (Regulation) Act 2010
FCRA
Foreign Contribution Regulation Act (FCRA) registration is inevitable for all those organizations those are working on grass root level to develop the society by conducting numbers of educational programs. Foreign Contribution Regulation Act is applied for society, NGO's and other organization those are working for poor people or needy people in our society. There are certain rules and procedures for FCRA registration and one should follow as per the Government rules and regulations in order to receive continuous foreign remittances from different sources. Therefore, foreign contribution regulation act is compulsory for all organizations or institutions those are committed for the common good of the society since the day one. In order to get FCRA registration certificate, an applicant must be registered under the following acts.

• Societies Registration Act, 1860
• Indian Trust Act, 1982
• Charitable and Religious Act, 1920

Foreign Contribution Regulation Act Procedure
Foreign Contribution Regulation Act (FCRA) 1976 is essential for all organizations or banks to receive or accept foreign funds from different sources. There are numbers of organizations those are working for various social programs and causes need to register under the FCRA act in order to receive funds from various persons. There are large numbers of organizations including societies, NGO's and other self help institutions those are working for the good of societies can receive foreign funds. Those institutions are organizing some educational and social programs in order to educate the common mass about the daily happenings of the world and other events can receive foreign funds under the foreign contribution regulation act. Those organizations are receiving more than ten lakhs as contribution for various events and programs need to register under the foreign contribution regulation act 1976. The FCRA policy as per the Government rules and regulations states that no political parties or candidate can receive foreign contribution, as it's meant for the social programs.

Amendment in the year 2010
Foreign Contribution (Regulation) Act 2010 (FCRA 2010) was passed by Rajya Sabha on 19th August 2010 with a view to replace the Foreign Contribution (Regulation) Act 1976.
The Foreign Contribution (Regulation) Act, 2010 has come into effect from May 1, 2011. The Ministry of Home Affairs has issued the necessary Gazette Notification vide S.O. 999 (E) dated the 29th April, 2011 in this regard.
The Ministry of Home Affairs has also issued a Gazette Notification vide G.S.R. 349 (E) dated the 29th April, 2011 notifying the Foreign Contribution (Regulation) Rules, 2011 made under section 48 of FCRA, 2010.The FCR Rules, 2011 have come into force simultaneously with FCRA, 2010 i.e w.e.f 1st May, 2011.
The new FCRA, 2010 has a much broader applicability; it is applicable to individuals, Hindu Undivided Family (HUF), Association and a section 25 company. In the earlier Act, the term person was not defined and generally the Act referred to the term ‘Association’.
The FCRA is amended to remove some inadequacies and practical difficulties in administration of the Act.
For instance Section 17 of FCRA 2010 provides that multiple bank accounts can be opened for the purposes of utilization provided only one bank account is maintained for receiving foreign contribution. This amendment provides a great relief to all the NGOs which were struggling under the arbitrary disallowance of multiple bank accounts under FCRA, 1976. Another relief is the time limit for processing an application for registration. In the old FCRA there was no time limit but section 12 of the FCRA 2010, provides the time limit and applications for registration have to be processed within 90 days. The FCRA department shall also provide reasons for rejections.