Foreign currency donation by a charitable trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2013 Is there any approval required for receiving donations from abroad in foreign currency from IT dept?

The trust is approved for 80G.

Is there any other approval required from other authorities like RBI?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 October 2013 you need to be registered under FCRA.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2013 Thank you for your reply. What is FCRA? How to get registered? Where can i find the procedure?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2024 FCRA stands for Foreign Contribution (Regulation) Act, which is an Indian law enacted in 2010 to regulate the acceptance and utilization of foreign contributions and foreign hospitality by individuals, associations, and NGOs in India. Here’s an overview of FCRA and how to get registered under it:

### What is FCRA?

The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates the acceptance and utilization of foreign contributions and hospitality by individuals, associations, and NGOs in India. It is aimed at ensuring that such contributions do not adversely affect national interest and are used for legitimate purposes. The FCRA is overseen by the Ministry of Home Affairs, Government of India.

### Who Needs to Register under FCRA?

Entities and individuals that intend to receive foreign contributions (money, goods, or services) or hospitality from a foreign source need to register under FCRA. This includes:

- NGOs (Non-Governmental Organizations)
- Associations
- Individuals
- Companies
- Trusts
- Section 8 Companies (Non-profit organizations)

### How to Get Registered under FCRA:

#### Step-by-Step Procedure:

1. **Eligibility Criteria:**
- Ensure that your organization or entity meets the eligibility criteria for receiving foreign contributions under FCRA. This includes being in existence for at least three years and having a proven track record of activities.

2. **Application Form:**
- Obtain the FCRA registration application form (Form FC-3) from the official website of the Ministry of Home Affairs or from the designated authorities (usually the FCRA Wing of the Ministry of Home Affairs).

3. **Documentation:**
- Prepare the necessary documents required for registration, including:
- Certificate of Registration or Certificate of Incorporation (depending on the type of entity)
- Memorandum of Association (MoA) and Articles of Association (AoA)
- Audited statement of accounts
- Activity report of the organization
- Details of key office bearers

4. **Online Submission:**
- Fill out the application form online (if available) or manually, as per the instructions provided with the form.

5. **Submission:**
- Submit the completed application form along with all supporting documents to the designated authority.

6. **Processing and Verification:**
- The FCRA registration application will be processed by the Ministry of Home Affairs. They may conduct a field visit or seek additional information for verification.

7. **Registration Certificate:**
- Upon successful verification and approval, the Ministry of Home Affairs will issue a registration certificate under FCRA.

### Where to Find the Procedure:

You can find detailed information about FCRA registration, including the application form (Form FC-3), guidelines, and related notifications on the official website of the Ministry of Home Affairs, Government of India. Here are some resources:

- **Ministry of Home Affairs (MHA) Website:** Visit the MHA's official website and navigate to the FCRA section for guidelines and forms.
- **FCRA Online Portal:** The Ministry may provide an online portal for submitting FCRA applications and accessing guidelines.
- **Designated Authorities:** Contact the FCRA Wing of the Ministry of Home Affairs or the nearest FCRA designated authority for specific queries and assistance.

### Important Points to Note:

- FCRA registration is mandatory for receiving foreign contributions and hospitality in India.
- Non-compliance with FCRA regulations can lead to penalties, cancellation of registration, and legal consequences.
- Ensure that all transactions related to foreign contributions are compliant with FCRA guidelines and are routed through authorized banks.

For the most accurate and updated information, it is advisable to visit the official website of the Ministry of Home Affairs or consult with a legal advisor familiar with FCRA regulations.

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