FCRA Registration Prior Permission

FCRA Registration Prior Permission
Prior Permission: (Form FC-1A) To receive donations from foreign sources, NGOs in India need to apply for a Registration or Prior Permission with  the concerned department of FCRA. An organization can apply for the prior permission in the first year of its registration and before finalization of its accounts.  The concerned department will have tobe fully satisfied with the  documentation and credibility of the organisation. NGOs apply for Prior Permission in the following situations: .                     
•  An  NGO does not have an FCRA number (permanent FCRA  Registration)                   
•  An NGO may have got FCRA registration earlier but may have  cancelled by the FCRA   Department.                   
•  An NGOo may have applied for a Permanent registration and after    scrutiny, the department may have the concerned NGO to apply for     Prior Permissin under section 10 (b).                                    
 • The FCRA number may have  ‘frozen’ due to change in the Governing      Body or for any other reason as specified by the Deparment.             
How do you Apply for a Prior Permission:                        
 •  Use Form FC-1A (see the Forms section)                  
  •  Required documents as mentioned  in the FCRA Registration article((see separate article on FCRA Regn)                    
 • A copy of the letter from the donor who assures the NGO to give           funds for a particular purpose, amount and period.                   
• Send the proposal alongwith budget for which this Prior Permission is   sought.                   
• Send these by Registered post with AD to:     
                         The Secretary to Govt. of India
                         Ministry of Home Affairs
                         Jaisalmer House 
                         26 Mansingh Road
                         New Delhi    -110011                                     
How long it will take:   Based on the report and other factors, the department will either send you the permission  or  rejection letter  in 90 days.   They may also ask for another 30 days time.   Normally the reply comes by registered post.      
What should you do if the application is got rejected?                    •  
If your application is rejected, find out the  reasons for   rejection and you can reapply.                    
•   If you wish, you can also file an appeal against the rejection n the   High    Court within  60   days of date of letter (under section.21)                      
 • Prior Permission can be taken for more than once because an     organization may have different projects and can apply for each     project separately at a time or different at  times. 
From 1st August 2008 onwards organisations needs to apply online (see artilce on ON LINE registration for Prior Permission) and with a print out of the filled in ONLINE Form they need to send the other documents as mentioned in the Form to MHA by Registered Post/Courier.

            Foreign Contribution (Regulation) Act, 1976 (FCRA) was enacted in the year 1976 with the prime objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in the important areas of national life. The focus of this Act is to ensure that the foreign contribution and foreign hospitality is not utilized to affect or influence electoral politics, public servants, judges and other people working the important areas of national life like journalists, printers and publishers of newspapers, etc. The Act also seeks to regulate flow of foreign funds to voluntary organizations with objective of preventing any possible diversion of such funds towards activities detrimental to the national interest and to ensure that such individuals and organizations may function in a manner consistent with the values of sovereign democratic republic.
The organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may either obtain registration or prior permission to receive foreign contribution from Ministry of Home Affairs by making application in the prescribed format and furnishing details of the activities and audited accounts.  The registration is granted only to such association which has proven track record of functioning in the chosen field of work during last three years and after registration, such organization is free to receive foreign contribution from any foreign source for stated objectives. Registration is granted only after thorough security vetting of the activities and antecedents of the organization and office bearers thereof.  However, such organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose and from a specific source after seeking project based prior permission (PP) from the Ministry of Home Affairs.
In order to bring in transparency in the administration of the Foreign Contribution (Regulation) Act, 1976 and the Rules framed there under, improve the functioning, disseminate the information and enhance user friendliness of the various procedures the web-site is uploaded with all the FCRA forms, Citizens’ Charter, list of registered associations, State-wise status of application for registration/prior permission, etc. In our efforts to bring in further improvements in the system, the following additional charters/materials are uploaded for information and guidance of all concerned.
CHARTER FOR NGOs / ASSOCIATIONs GRANTED PRIOR PERMISSION OR REGISTRATION UNDER THE FOREIGN CONTRIBUTION (REGULATION) ACT, 1976.

• An association granted prior permission or registration under the Foreign Contribution (Regulation) Act, 1976 (FCRA) should receive the FC and subsequently utilise it using an exclusive designated bank account, as intimated in the application form. Do not deposit any local funds in this bank account.
• An association granted prior permission or registration under FCRA is required to carry out the activities, for which FC is received, in India only and the amount should not be utilised for purposes other than for which it is received.
• Any fixed asset acquired out of the FC and any article received in kind from the foreign source should be in the name of the association and not in the name of any individual in the association.
• Not more than 30% of the FC shall be defrayed to meet administrative expenses of the association.
• An association granted prior permission or registration under FCRA should maintain a separate set of accounts and records, exclusively for foreign contribution received and utilised-

(a) in Form FC-6, where the FC relates only to articles;
(b) in the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised.
(c) in Form FC-7, where the FC relates to foreign securities.

• Every account giving details of the receipt and purpose-wise utilisation of the FC, including the interest earned on the FC amount, should be maintained on an yearly basis, commencing on the 1st day of April each year and every such yearly account, duly certified by a chartered accountant in Form FC-3 alongwith a balance sheet and statement of receipt and payment should be furnished in duplicate, within four months of the closure of the year i.e before 31st July. Even if no FC is received during a year, a ‘Nil’ return is required to be filed with the Ministry of Home Affairs within the prescribed time limit.
• No FC should be transferred to an association which has not obtained either prior permission or registration under FCRA or to any person or association, prohibited under FCRA from receiving any FC.
• Change of name, address, registration, nature of activities or aims and objectives of an association should be intimated to the Ministry of Home Affairs within 30 days of effecting the change, alongwith the documentary evidence effecting the change.
• Prior permission of Ministry of Home Affairs should be obtained for replacing 50% or more of the office bearers.
• Prior permission of Ministry of Home Affairs should be obtained for changing bank account for valid and convincing reasons.