NGO needs for foreign Funds & Contribution
Apply for FCRA before raising funds from foreign source. NGO should apply for prior permission for foreign contributions from Central Government of India
Nonprofit NGO organization should have a FCRA certificate to receive foreign currency funds. Any type of NGO must apply to the Central government for prior permission to receive foreign currency from outside India towards their foreign fundraising. When you deal with FCRA, you should also know about the documents during and after the process of FCRA. There are several penalties and punishable offenses if you misuse the foreign contribution or if you import foreign funds without prior permission from Central Government of India.
The important points which you should keep in mind before foreign fundraising or any type of foreign contributions are-
- You should maintain a separate bank account for foreign contribution; you should not mix your local bank transactions or any local currency dealings, with such FCRA bank account. Bankers may guide you more.
- You should maintain accounts in separate books and accounts to avoid penalties, punishments, and imprisonment related to FCRA and foreign contribution activities, and it should be up to date.
The below form names shall explain the use of FCRA forms.
FORM FC-1A-For getting FCRA prior permission.
FORM FC-3-Annual returns of funds and material received and used
FORM FC-5-Intimation of foreign fellowship
FORM FC-6-Stock register for foreign contribution in kind
FORM FC-8-For getting FCRA registration
FORM X-If you’re publishing a newsletter registered under press and registration of books act.
As there are several genius and generous brains around us in the sector of NGO, we are free now to write more about FCRA. Also it is a fact, that we cannot provide more excellent information than above two portals in FCRA.