FOREIGN CONTRIBUTION TO NGO’s

FOREIGN CONTRIBUTION TO NGO’s

TOPIC: Polity

Context- The Ministry of Home Affairs has renewed the FCRA (Foreign Contribution (Regulation) Act) registration of Public Health Foundation of India (PHFI), a public health advocacy group.

• The move comes four years after the organisation was barred from receiving foreign funds for lobbying with parliamentarians, the media and the government on tobacco control issues.

Concept-

Foreign Contribution (Regulation) Act (FCRA), 2010

• Foreign funding of persons in India is regulated under FCRA Act and is implemented by the Ministry of Home Affairs.
• Individuals and NGOs are permitted to accept foreign contributions without permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
• The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
• Under the Act, organisations are required to register themselves every five years.

Foreign Contribution (Regulation) Amendment Act, 2020

• Prohibition to accept foreign contribution: The Act bars public servants from receiving foreign contributions. Public servant includes any person who is in service or pay of the government, or remunerated by the government for the performance of any public duty.
• The Act prohibits the transfer of foreign contributions to any other person not registered to accept foreign contributions.
• The Act makes Aadhaar number mandatory for all office bearers, directors or key functionaries of a person receiving foreign contribution, as an identification document.
• The Act states that foreign contribution must be received only in an account designated by the bank as FCRA account in such branches of the State Bank of India, New Delhi.
• The Act proposes that not more than 20% of the total foreign funds received could be defrayed for administrative expenses. In FCRA 2010 the limit was 50%.