Madhaw NGO Consultancy provides FCRA (Foreign contribution Regulation Act) Registration Consultancy to NGOs who need foreign funds and grants. Foreign contribution Regulation Act or FCRA law is implemented by the Ministry of Home Affairs, Government of India is a tool necessary to regulate and monitor the flow of foreign funds making sure that they do not interfere in social, political or cultural structure of the country. People working in national interest like journalists, politicians, public servants, judiciary, newspaper publishers and editors should not be affected in any way by the use of this money. FCRA takes care of all these concerns by managing receipts of foreign contributions extended to Indian areas from abroad. It is the tool that differentiates between fake and real foreign help ensuring smooth running and applicability for the real helpers.

Foreign sources include funding agency of such belonging to foreign country; any international agency that does not belong to the United Nations (or any of its specialized agencies like the World Bank, International Monetary Fund); foreign company; multi-national corporation; corporations incorporated in a foreign country; trusts/societies/ trade union or other associations of individuals formed or registered in a foreign country and any company belonging to a foreign citizen. Any company within the realms of the Companies Act 1956 with more than one-half of the nominal value of its share capital held, either singly or in the aggregate, by the Government or the citizens of a foreign country is also considered foreign source.

Foreign contribution consists of donations, delivery by any foreign source other than personal gifts to a person. Money (in any currency) as well as securities contributed by any foreign body to any association / company in India is also considered as foreign contribution. An important point to remember here is that gift/money to a person /joint Hindu family/an association or company registered under Section 8 of Company Act will not be counted as foreign contribution. Contributions made by Non-Resident Indians (NRIs) from his personal savings, through the normal banking channels, are not treated as foreign contribution. Donation given by an individual of Indian origin and having foreign nationality is treated as foreign contribution. This will also apply to PIO / OCI cardholders. However, this will not apply to ‘Non-resident Indians’, who still hold Indian citizenship.

Funds received from organizations of the United Nations, World Bank and some other International agencies are not considered as foreign contribution. List of such organizations which are not treated as ‘foreign source’ is available on the website fcraonline.nic.in. NGOs having a definite economic, cultural, educational, social and religious program are entitled for the FCRA registration process. NGOs can apply for FCRA even if they are having any foreigner as its member. But the authorities in that case become more strict and vigilant in processing a FCRA application. However, very few authorities are given this chance of when the board members have a foreigner and yet it is a FCRA. It has Amendments, Permanent FCRA, FCRA Registration and Prior Permission which is required.
However it is hard for a NGO to get a FCRA when it is having a foreigner as a trustee as there have been hardly few instances. There are few procedures and complicated situations that are needed to looked at when an organization is claimed to be a FCRA. There are legislations in India which is related to this and need to be followed. So to know the loopholes better you need to understand the rules and the regulations. The formation of a FCRA, the registration, the members all need to be taken care of.

There are 2 types of Foreign Contribution Regulation Act registrations:
1. Prior consent certification
2. Long-term certificate

For Prior Approval the NGO should provide the list of foreign benefactors together with their addresses, classifications and cause for donation. NGOs also need to declare the overall quantity of cash being received as foreign donation. For long term FCRA registration (valid for 5 years) the NGO must be at least three years old. The NGO will have to send last 3 years of annual and audit report with a copy of pan card. The NGO must have spent at least Rs.15, 00,000/- over the last three years on the social welfare programs and activities, excluding administrative expenditure. Statements of Income and Expenditure, duly audited by Chartered Accountant, for last three years must also be submitted.

After 5 years you will have to apply for the renewal of FCRA license with the Home Ministry who will look into your work and achievements. If they find it exemplary and good they would grant you restoration.
This complete process requires extensive legal paperwork where you will need help of experts like Madhaw whose expert group members know how to provide documentation support in order to gain recognition for FCRA. For any kind of help or clarification like NGOs already having FCRA still and need the help in some regard so they can contact Madhaw team. Madhaw consultants would help NGOs in the best they that their matter can resolve through documentation consulting.
To understand more about FCRA and the entire registration process please click here

Consultancy for FCRA Registration
• You just need to hand over us all the essential documents and we will fill up all the forms for your NGO and apply for FCRA registration be it any form prior one or long term.
• In case if any other documents required including Annual Reports, Audit Reports then we can prepare for you. In case of preparation the other documents in addition to preparation, submission of document and following of the FCRA proceeding the documentation consultancy charges are additional.
• We shall file activity report, Activity Report indicating details of activities during the last three years; copies of relevant audited statement of accounts for the past three years reflecting expenditure incurred on aims and objects of the association and on administrative expenditure on your behalf.
• In case of renewal we shall present your work and NGO profile in an exemplary way to win continuation of FCRA status.

The documents required for FCRA are:
• Copies of the audited statements of accounts for the last 3 years.
• Copies of the annual report of last three years.
• Bank Information.
• Bank Name.
• Account Number.
• Bank Address.
• List of governing body.
• Name.
• Father’s Name.
• Copy of registration certification of society or trust deed
• Occupation.
• Designation.
• Address.
• Name of the chief functionary and his mobile Number.
• Phone number of the office.
• Copy of PAN Card of the Society / Trust.