What the new FCRA rules mean for NGOs

New Delhi, Nov 13: The Union Government has tightened the rules for organisations that seek foreign funds and also said that these entities cannot be of political nature.

The rules mandate that all entities seeking registration under the FCRA should have been in existence for three years. It also says that these entities should have spent a minimum of Rs 15 lakh on core activities for the benefit of society during the previous three financial years.

However, the more important rule is that these entities cannot be of political nature. The organisations should be directly aligned to political parties. Further organisations that habitually engage in political action such as road blocks, bandhs or hartals are barred from receiving foreign contributions.

Further, the government has also increased the registration fee under the FCRA from Rs 3,000 to Rs 5,000. Such fee should be submitted through a payment gateway. If no application for renewal of registration is received or the application is not accompanied by the requisite fee before the expiry of validity of the certificate of registration, such validity shall be deemed to have ceased from the date of completion of five years from the date of the grant of certificate of registration, as per the Foreign Contribution (Regulation) (Amendment) Rules, 2020 that was notified.