New Delhi, September 27, 2023. In a significant development, non-governmental organizations (NGOs) registered under the Foreign Contribution Regulations Act (FCRA) will now be required to provide comprehensive details of their movable and immovable assets generated through foreign funds.
The obligation for mandatory asset declaration, slated for the end of each financial year by March 31st, comes in the wake of a recent gazette notification issued by the Ministry of Home Affairs (MHA), amending the regulatory framework governing NGOs that receive foreign contributions. Under the FCRA, all NGOs that receive foreign donations must be duly registered.
The modifications made by the MHA are reflected in the Foreign Contribution Regulation Rules of 2010. Two new clauses have been included: (ba) outlining the specifics of movable assets created from foreign contributions, and (bb) specifying the particulars of immovable assets generated from foreign contributions in Form FC-4. NGOs and associations holding FCRA licenses file their annual returns through Form FC-4.
The MHA will also be extending the validity of FCRA licenses for entities whose licenses were set to expire on September 30th, and renewals were pending. The Ministry is in the process of carrying out inspections and audits of 335 NGOs registered under the FCRA, as well as those granted prior permission under the Act between 2019 and 2022.
As of July 17th this year, there were 16,301 NGOs in the country holding valid FCRA licenses. According to ministry data, INR 55,449 crore in foreign contributions has been received by NGOs over the last three years.
Given the substantial foreign funding received by these NGOs, the MHA has been intensifying its oversight. Over the past five years, FCRA licenses for more than 6,600 NGOs have been revoked due to violations of the law. In total, FCRA licenses for 20,693 NGOs have been canceled till date.
