DOs and DON’Ts

DOs & DON’Ts

DOs	DON’Ts
Accept FC only after obtaining registration or PP from the Government.	Don’t accept FC without registration or PP.
Be absolutely truthful about furnishing all the information for obtaining Registration/ Prior Permission under FCRA, 2010.	Any false information/declaration may lead to imprisonment vide Section 33 of FCRA, 2010.
Utilise FC for the purpose(s) for which it is received.	Don’t utilise or divert FC from the purpose(s) of the contribution or for personal gains. Don’t transfer FC to any other person.
Receive contributions/donations from foreign sources, whether located overseas or in India, only in the exclusive designated ‘FCRA Account’ at SBI, NDMB. Open another ‘FCRA Account’ for keeping or utilising FC received in the designated ‘FCRA Account’ at SBI, NDMB and for depositing some other FC receipts generated in India, as indicated in FCRA Charter for Banks. If required, open Utilisation Account(s) for utilising the FC and intimate MHA within 45 days of opening of such account(s).	Don’t deposit any local receipt/contribution in the designated ‘FCRA Account’ in SBI, NDMB or in another ‘FCRA Account’ or in any FC Utilisation Account(s). Don’t make inter-account transfer of FC between the Utilisation Accounts. Don’t receive FC through Western Union, MoneyGram etc.
Maintain separate set of accounts and records, exclusively for FC received, in cash or kind, and utilised.	Don’t mix up local/domestic receipts/ accounts/ records with the accounts/records relating to receipt & utilisation of FC.
Do check the list of banned organisations.	Don’t accept FC from any banned organisation.
Conduct due diligence about the donor and the terms of the donation.	Don’t accept FC without looking into the antecedents of the donor and the terms of the donation.
Acquire/create all fixed assets out of the FC and any article received in kind from any foreign source in the name of the Association and not in the name of any individual.	Don’t acquire/create any fixed assets out of FC in the name of any individual.
Limit expenditure on ‘administrative expenses’ up to 20% of FC received during any financial year. Maintain verifiable record of ‘administrative expenses’.	Try not to exceed 20% of FC received during any financial year on administrative expenses.
Use FC judiciously with financial prudence.	Don’t invest FC or any income arising out of it in mutual funds or any speculative business.
Make all transactions in FC through bank cheques. Any expenditure/payment amounting to Rs. 20,000/- or more should be done by cheque/demand draft.	Don’t use ATM/debit cards for the FC A/c. Avoid cash withdrawals from FC A/c as every cash withdrawal can be suspect.
Maintain details of the receipt and purpose-wise utilisation of the FC, including the interest/income earned on the FC, on a yearly basis, commencing on the 1^st day of April each year.	Don’t fail in maintaining the details of the receipt and purpose-wise utilisation of the FC and records thereof.
Submit the mandatory annual return online in Form FC-4 along with the prescribed documents within 9 months of the closure of the financial year, i.e., before 31^st December.	Don’t fail in submitting the mandatory annual return online.
Even if no FC is received during a year, file ‘Nil’ return within the prescribed time limit.	Don’t fail in submitting ‘Nil’ return, even if no FC is received during a year.
Preserve the accounting statements/records at least for a period of six years. Try to preserve older records for as many years as possible in digitized form.	Don’t fail in preserving accounting statements/records.
FCRA registered associations should apply for renewal of registration within 6 months before the date of expiry of registration.	Don’t fail to apply for renewal of registration within the prescribed period.
Intimate MHA about the change of name, address within the same State, registration, nature of activities or aims and objectives, another ‘FCRA Account’, opening of any Utilisation Account and change of any office bearer, as the case may be, within 45 days of such change.	Don’t forget to intimate MHA about such changes.
Familiarise yourself with the provisions of FCRA, 2010 & FCRR, 2011 and the related procedures, as amended from time to time by referring to MHA’s website http://fcraonline.nic.in/ and adhere to all the provisions of the Act and the Rules.	Don’t be totally dependent on external consultants. Don’t approach middlemen for getting your work done in MHA. Don’t violate any of the provisions of FCRA, 2010 & FCRR, 2011, as amended from time to time and any other guidelines issued by MHA.

Note:

FCRA, 2010, FCRR, 2011, FAQs thereon and all other related information, all the prescribed Forms as also link to FCRA Online Services are available at the website http://fcraonline.nic.in/of the Ministry of Home Affairs.

Ministry of Home Affairs does not provide any assistance to any organisation in obtaining foreign contribution from donors.

FUNDAMENTALS OF FCRA

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DOs and DON’Ts

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FUNDAMENTALS OF FCRA

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