Rules tightened for NGOs to apply for foreign donation

New Delhi: The home ministry has tightened the eligibility criteria for NGOs applying for foreign donation, saying such entities should have been operational for a minimum three years and spent at least Rs 15 lakh in voluntary activities to apply for funds. The ministry notification dated November 10 said office bearers of NGOs seeking registration under the Foreign Contribution (Regulation) Act must submit a specific commitment letter from the donor indicating the contribution amount and the purpose for which it is proposed to be given.

These FCRA rules come about two months after the Centre amended the law under which providing Aadhaar numbers of the office-bearers of NGOs was made mandatory, office expenses were brought down to 20% of such amount and election candidates, government servants, members of any legislature and political parties were prohibited from accepting foreign funding. "A person seeking registration under clause (b) of sub-section (4) of section 12 of the Act shall meet the following conditions, namely: (1) it shall be in existence for three years and have spent a minimum amount of Rs 15 lakh on its core activities for the benefit of society during the last three financial years," the notification said.

As per the rules, any NGO or person making an application for obtaining permission to receive foreign funds shall have an FCRA account. The ministry, however, defined norms for students, farmers and religious groups to receive grants in the form of foreign donations, saying they should not be involved in "party politics".
Read more: Click Here