Part of: GS Prelims and Mains II and III – Polity, law, fundamental rights, NGOs; Economy
What is FCRA?
It is a law enacted by Parliament to regulate foreign contribution (especially monetary donation) provided by certain individuals or associations to NGOs and others within India.
FCRA Act was originally passed in 1976 and majorly modified in 2010.
The government has used the act over the years to freeze bank accounts of certain NGOs who it found were affecting India’s national interest for wrong purposes.
Do you know?
As per the FCRA Act 2010, all NGOs are required to be registered under the Act to receive foreign funding.
According to terms stipulated in the FCRA, an organisation cannot receive foreign funding unless it is registered under the 2010 Act, except when it gets government approval for a specific project.
Under the FCRA Act, registered NGOs can receive foreign contribution for five purposes — social, educational, religious, economic and cultural.
Important value additions:
NGOs
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.
NGOs receive funds from abroad, if they are registered with the Home Ministry under the Foreign Contribution (Regulation) Act (FCRA).
