A.R. Rahman’s NGO gets FCRA licence
Part of: GS Prelims –Economy and GS-II- Money laundering
- The Union government has granted Foreign Contribution Regulation Act (FCRA) licence this year to more than 20 non-governmental organisations (NGOs), including the A.R. Rahman Foundation
- Any NGO or association that intends to receive foreign funds has to compulsorily register under the FCRA, monitored by the Union Home Ministry.
- In 2014, the FCRA licences of more than 16,000 NGOs were cancelled
- Under the FCRA Act, registered NGOs can receive foreign contribution for five purposes — social, educational, religious, economic and cultural.
From Prelims Point of View:
- The term ‘NGO’ is used to describe a body that is neither part of a government nor a conventional for-profit business organisations
- Groups of ordinary citizens that are involved in a wide range of activities that may have charitable, social, political, religious or other interests.
- Helpful in implementing government schemes at the grassroots.
- In India, NGOs can be registered under Indian Societies Registration Act, 1860, Religious Endowments Act,1863, Indian Trusts Act, etc.
- India has the largest number of active NGOs in the world,(In 2009, 33 lakh)
- NGOs receive funds from abroad, if they are registered with the Home Ministry under the Foreign Contribution (Regulation) Act (FCRA).
Foreign Contribution (Regulation) Act (FCRA), 2010
- Implemented by the Ministry of Home Affairs.
- The Acts ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
- Under the Act, organisations require to register themselves every five years.