WELCOME TO THE SEMINAR ON FCRA

1. WELCOME TO THE SEMINAR ON FCRA

2. Foreign Contribution Regulation Act, 1976 An act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain persons or associations, with a view to ensuring that parliamentary institutions, political associations and academic and other voluntary organizations as well as individuals working in the important areas of national life may function in a manner consistent with the values of a sovereign democratic republic, and for matters connected therewith or incidental thereto.

3. Need for Foreign Contribution Regulation Act, 1976 Regulating Foreign contribution meant for influencing elections or individuals or associations working in important areas of national life. Not meant to prohibit receipt of foreign contribution for genuine purposes. Security considerations.

4. Foreign Contribution �Foreign contribution means the donation, delivery or transfer, made by any foreign source of any �a) article, not given to a person as a gift, for personal use, if the market value in India of such article exceeds one thousand rupees; b) currency, whether Indian or foreign; � c) foreign security as defined in clause 2(i) of the Foreign Exchange Regulation Act, 1973. � NOTE : Contributions made by a citizen of India living in another country, from his personal savings, through the normal banking channels, is not treated as foreign contribution. � It is advisable to obtain the passport details of the concerned citizen of India before accepting such contributions.

5. Foreign Source Government of foreign country or any agency of such Government. International agencies, not being of a) United Nations or its specialized agencies b) World Bank c) International Monetary Fund d) Such other agencies as so notified by the Central Government. Foreign company or Corporation incorporated in foreign country Trade Union in a foreign country Foreign Trust or Foundation or Society or Club formed or registered outside India Company where more than half of shareholding held by foreign Govt., foreign citizens, foreign corporations Citizens of foreign countries

6. Who cannot accept Foreign Contribution Candidate for elections. Correspondents, columnists, cartoonists, editor, owner, printer. Judge, Government servant or employee of any corporation Member of any Legislature Political party or office-bearer thereof.

7. Types of permission An association having a definite cultural, economic, educational, religious or social programme can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with the Central Government.

8. Registration Means permanent permission to accept foreign foreign contribution from any foreign source. Granted to associations with proven track record having definite cultural, economic, educational, religious, social programme. Reasons for rejection of Registration Applications Association being in formative stage Association formed for personal gain Association involved in prosetylisation Members of Executive Committee involved in illegal/criminal activities Sister association prohibited under the act Applicant association prohibited Association involved in anti-national activities Stated objects of the association not being pursued. Applicant having close links with another association with doubtful credentials Incomplete application.

9. Must Do�s for the Registered Association Designated exclusive Bank account for receipt and utilization of foreign contribution. Submission of annual FC-3 returns. Change in members, home, address, objectives of the association to be reported to Central Government within 30 days. Change in the O.B�s by 50% or more with prior permission only Exclusive accounts for utilisation of foreign contribution and audit by the Chartered Accountant. Exclusive accounts for receipt and utilization of foreign contribution . Substantial proportion of foreign contribution to be spent on welfare activities Reduction in Administrative expenses

10. Prior Permission When required Where the association does not have a FCRA registration Where the association is placed under prior permission category Where registration is frozen Associations of political nature, not being political party Essentials of prior permission Donor specific Donee specific Amount specific � within overall limits Purpose specific

11. Penalties Prohibition Placing the association in prior permission category Fine Seizure/confiscation of the foreign contribution Imprisonment upto 5 years

12. Role of Banks Prime source for receipt and utilization Can keep a watch over activities of doubtful associations Information about foreign contribution Not to allow receipt and utilization of foreign contribution without Registration or prior permission.

13. Bilateral Development Assistance Preferred Bilateral partner countries Japan United Kingdom United States of America Germany European union Countries Russian Federation Preferred Areas for Bilateral Development Assistance Projects of economic and social importance Technical assistance programmes that aim at enhancement of knowledge/skills of Indian Nationals Each project to be cleared by the DEA. No blanket permission to any NGO based on reputation/past performance FCRA clearance compulsory

14. Procedure for clearing the proposals Bilateral partners to identify the recipient organisations and projects. Submission of brief particulars of programme/project to the DEA. Response of DEA to bilateral partners. Approval of list of recipients/programmes/projects. Transfer of funds by bilateral partner to the recipient organizations. Monitoring the physical and financial progress of the projects.

15. RECEIPT OF FOREIGN CONTRIBUTION Year Amount % Increase over Rs/crores previous Year 2000-01 4535.2 15.56 2001-02 4871.9 7.42 2002-03 5046.5 3.58

16. Amount wise break-up of foreign contribution received by reporting associations Year Below Between Between Above Rs.1 cr Rs.1-5 cr Rs.5-10 cr Rs.10 cr 2000-01 13815 669 62 52 2001-02 14761 721 77 59 2002-03 15650 798 76 66

17. TOP DONOR COUNTRIES Foreign Contribution Rs/crores 2000-01 2001-02 2002-03 USA 1492.63 1658.29 1679.84 Germany 664.51 702.33 715.04 UK 677.59 679.29 685.38 Italy 269.78 304.55 315.82 Netherlands 227.04 237.37 261.88

18. TOP DONORS Foreign Contribution (Rs. in crores) 2000-01 2001-02 2002-03 Ford Foundation, USA 41.32 56.05 121.94 World Vision 80.43 78.33 90.24 International, USA Foundation Vicent E Ferrer, 63.26 63.06 79.16 Spain Christian Children Fund, USA 43.07 44.27 75.15 Foster Parents Plan International, USA 76.37 72.37 53.73

19. TOP RECIPIENT STATES/UNION TERROTORY Foreign Contribution (Rs. in crores) 2000-01 2001-02 2002-03 Delhi 763.05 794.42 880.77 Tamil Nadu 649.45 695.49 774.99 Andhra Pradesh 589.52 559.56 629.76 Karnataka 489.96 504.98 489.12 Maharashtra 466.91 464.35 505.13

20. TOP RECIPIENT DISTRICTS Foreign Contribution Rs./crores 2000-01 2001-02 2002-03 Bangalore 365.13 362.19 357.66 Chennai 310.77 311.55 363.45 Mumbai 240.25 298.28 283.59 Kolkata 167.38 168.38 181.44 Ananthapur 165.43 115.42 168.95

21. TOP PURPOSES PURPOSE 2000-01 2001-02 2002-03 Rural Development 547.74 464.61 486.50 Establishment Expenses 170.05 859.00 673.77 Construction and Maintenance of School 192.46 242.24 275.74 Relief/Rehabilitation of 339.77 438.65 265.85 Victims of Natural Calamities Construction of hospital/ dispensary/clinic -------- 145.77 186.65

22. TRENDS Year Registered Associations Amount of foreign (As on 31st March of F.Y) contribution received (in crores rupees) 1993-94 15,039 1865 1994-95 15,723 1892 1995-96 16,740 2168 1996-97 17,723 2571 1997-98 18,489 2864 1998-99 19,834 3402 1999-00 21,244 3924 2000-01 22,924 4535 2001-02 24,563 4872 2002-03 26,404 5047

23. ISSUES IN THE FUNCTIONING OF NGO�S Non-existent regulatory mechanism Accountability No perspective planning for NGO SECTOR Proliferation of paper organisations No National NGO policy Comprehensive National Legislation Required