What is FCRA?

The Foreign Contribution (Regulation) Act, 2010 is a law enacted by the Indian government to regulate the acceptance and utilization of foreign contributions or donations by individuals, associations, and companies. It ensures that foreign funds are used in a manner consistent with India’s national interest and public welfare.

Under this law:

• Only registered entities can legally receive and utilize foreign contributions.

• The funds must be used strictly for the purpose outlined during registration.

• Complete transparency in fund utilization and mandatory reporting are required.

FCRA is not just about permission—it’s about trust, accountability, and alignment with public interest.

Why FCRA Registration is Important for NGOs

If you're an NGO planning to raise funds from international donors or organizations, FCRA registration isn't just important—it’s mandatory. Here's why:

• Legal Requirement: Accepting foreign donations without FCRA approval is illegal and could lead to severe penalties or even shutdowns.

• Enhanced Credibility: FCRA registration boosts your NGO’s reputation, showing donors that you operate under a regulated and transparent system.

• Access to Global Funding: It opens doors to grants and donations from abroad, including from UN bodies, international foundations, and NRI supporters.

• Banking Compliance: Indian banks will not process foreign donations into your NGO account unless you’re FCRA-approved and have a designated bank account.

In short, if you’re dreaming big and aiming to make a global impact, FCRA registration is your launchpad.

Who Needs FCRA Registration?

Many assume that only large, established NGOs need FCRA. But in reality, any Indian organization or entity receiving foreign donations, aid, or grants must obtain FCRA registration. The law doesn’t discriminate based on the size of your budget or number of employees—it’s about the source of funds.

Applicability for NGOs and Non-Profits

FCRA applies to a wide range of entities including:

• Registered NGOs and non-profits

• Charitable trusts

• Registered societies

• Section 8 companies

• Research institutions receiving international grants

• Religious organizations

Whether you’re supporting orphaned children or conducting advanced medical research—if foreign money is involved, FCRA registration is mandatory.

For more info: https://www.psrcompliance.com/fcra-registration