Non-Governmental Organizations (NGOs), charitable trusts, and Section 8 companies in India often rely on funding to carry out their social and developmental activities. To legally receive contributions from abroad, obtaining FCRA Registration is mandatory. This certification, governed by the Ministry of Home Affairs, enables organizations to accept foreign donations while ensuring transparency and accountability.
What is FCRA Registration?
The Foreign Contribution Regulation Act (FCRA) was introduced to regulate the acceptance and utilization of foreign funds by NGOs and other entities. With FCRA Registration, an NGO becomes eligible to receive donations and grants from international donors, institutions, and CSR contributors.
Benefits of FCRA Registration:
- Legal approval to receive foreign contributions.
- Enhanced credibility among global donors.
- Access to large-scale funding for social and developmental projects.
- Builds trust and accountability in financial management.
Types of FCRA Registration:
- Normal Registration – For NGOs with a proven track record of at least three years.
- Prior Permission – For newly established NGOs seeking funds for a specific donor and project.
Why is it Important?
Without FCRA Registration, NGOs cannot lawfully accept foreign funds, which can lead to penalties and restrictions. Hence, timely registration ensures uninterrupted growth and compliance.
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