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FCRA 2010: Issues And Challenges. Individuals. Individuals now covered by FCRA Scholarships exempt Need FCRA registration / permission for: Program Activities Non-academic Fellowships. Fellowship. Difference between scholarship and fellowship Prior-permission for fellowship

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individuals
Individuals
  • Individuals now covered by FCRA
  • Scholarships exempt
  • Need FCRA registration / permission for:
    • Program Activities
    • Non-academic Fellowships
fellowship
Fellowship
  • Difference between scholarship and fellowship
  • Prior-permission for fellowship
    • Consultancy fees?
electronic media
Electronic Media
  • Prohibition on media expanded to include:
    • Organization producing or broadcasting news / current affairs programs through any electronic mode (audio/ video)
    • Use of Internet as a mode of transmission
    • Other modes of mass communication
  • Individuals not covered, except as owners of the organization
panchayats
Panchayats
  • Panchayats defined as legislature
    • Not eligible to receive foreign funds
  • Members / candidates
    • Can not accept foreign funds
    • Need permission for foreign hospitality etc.
    • Form FC-9
political activities
Political Activities
  • Wider coverage of organizational forms
  • Wider definition of ‘political activity’
    • …steps towards advancement of larger socio-economic or political interests of the organisation
    • …habitually engages itself in , …political action like bandh, hartal, rastaroko, rail roko…in support of public causes
administrative expenses
Administrative Expenses
  • Capped at 50% of total foreign contribution received in a year
  • Includes:
    • Salaries, Fees, Travel
    • Rent and other Overheads
  • Excludes:
    • Salary of field researchers, Doctors, teachers etc.
    • Direct program expenses(?)
speculative investments
Speculative Investments
  • Restrictive definition of ‘speculative activities’
    • …has an element of risk of appreciation/ depreciation…linked to market forces, incl. investment in mutual funds…
    • …any scheme that promise high returns like investment in chits, land etc….not directly linked with declared aims…
interests of the state
Interests of the State
  • Registration cannot be granted if it might affect:
    • the security, strategic, scientific or economic interest of the State
      • Not defined in law
  • Might include:
    • Nuclear energy
    • Work in border states
    • Internal unrest
    • Defense expenditure / strategy
    • Displacement issues
secondary grants
Secondary Grants
  • Secondary transfer of FC to non-FCRA NGOs:
    • 10% of total FC received
    • Prior-permission needed
  • Secondary transfer of FC to FCRA NGOs
    • Validate FCRA registration of receiver
renewal
Renewal

See page 110 of AccountAble Handbook: FCRA 2010 for more.

  • Renewal required every five years
    • Old registrations valid till 30-Apr-2016
  • Apply 6-12 months prior to expiry
    • Delayed application allowed
      • Registration frozen in the meanwhile
    • Can lapse if no activity for two years
    • Renewal of FCRA Registration: FC-5
further reading
Further Reading

AccountAble 35: FCRA Fellowships

AccountAble 84: ‘Foreign Source’ in FCRA 2010

AccountAble 96: Introduction to FCRA 2010