The Foreign Contribution Regulation Act (FCRA) is regulated by the Ministry of Home Affairs (MHA), India. Nowadays, it has been observed that many NGOs badly struggle with FCRA compliance and are eventually not even able to renew the existing registration.
Here are some best practices for FCRA-registered NGOs:
1) Maintaining Proper Records:
Maintaining proper records is essential for ensuring transparency in the organization. Every NGO should maintain proper records of all funds received and utilized. These records must be maintained in a prescribed format and must be available for inspection by the authorities.
2) Submitting Annual Reports:
The NGOs registered under the FCRA must submit annual reports to the MHA. The annual report should include details of all foreign contributions received and utilized during the year. The report must be submitted in a prescribed format, certified by a Chartered Accountant (CA).
3) Utilization of Foreign Contributions:
NGOs should utilize foreign contributions only for the purposes for which they were received. Utilizing foreign contributions for any other purpose than those for which they were received will be considered a violation of the FCRA.
4) Comply with the various provisions of FCRA:
The provisions under FCRA are quite strict, and the MHA is proactively monitoring compliance relating to the act. NGO management team should ensure that they comply with the provisions of the FCRA to avoid cancellation of registration. Most NGOs face problems in India due to ignorance and lack of professional services to them.
5) Use of FCRA registration:
The use of FCRA registration means receiving foreign contributions is equally important to get it renewed. In case, your organization has failed to secure any foreign funds for 2 years continuously [Ref Sec: 14(1)(e), FCRA, 2010] then the chances of its renewal become negligible. Most probably renewal will be refused by MHA due to inactivity.
6) How can the OZG team help to my NGO?
The OZG has been a reputed name in the compliance law sector. We have been serving NGOs for the last 20 years. You can follow our informative pages and stay in touch with our online helpdesk. It costs you only ₹11 to get proper guidance, whenever you need it. In case of any questions or managerial decisions, you can seek our advice over the helpdesk chat or by simply emailing: ask@fcra.in
TAGS: FCRA AMENDMENT ACT 2020, FCRA COMPLIANCE, FCRA CONSULTANT, FCRA REFUSAL, FCRA REGISTRATION, FCRA RENEWAL
