FCRA AMENDMENT
- May 20, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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FCRA AMENDMENT
Subject : Legislations
Context : FCRA rules: Govt extends validity of registration certificates for NGOs till September 30.
Concept :
- The public notice issued by the Ministry of Home Affairs suggests that this validity extension is applicable to NGOs whose registration certificates have expired/expiring during the period between September 29, 2020 and September 30, 2021.
- The decision has been taken in the wake of petitions filed by NGOs in courts over the delay in implemented amended FCRA.
Foreign Contribution (Regulation) Amendment, 2020:
- It seeks to prohibit ‘public servants’ from receiving any foreign funding.
- It proposes to reduce the use of foreign funds to meet administrative costs by NGOs from the existing 50 per cent to 20 per cent.
- It seeks to “prohibit any transfer of foreign contribution to any association/person”.
- It proposes to make Aadhaar cards a mandatory identification document for all office-bearers, directors and other key functionaries of NGOs or associations eligible to receive foreign donations.
- It seeks to allow for the central government to hold a summary inquiry to direct bodies with FCRA approval to “not utilise the unutilised foreign contribution or receive the remaining portion of foreign contribution”.
- And to limit the use of foreign funds for administrative purposes. This would impact research and advocacy organisations which use the funding to meet their administrative costs.
Foreign Contribution (Regulation) Act (FCRA), 2010:
- Under the Act, organisations require to register themselves every five years.
- As per the amended FCRA rules, all NGOs registered or granted prior permission under FCRA are now required to upload details of foreign contributions received and utilized by them every three months on their website or the FCRA website.
- NGOs now need to file their annual returns online, with the hard copy version dispensed with.