News Brief
FCRA Rules Overhauled: NGOs Will Have To Annually Declare Movable, Immovable Assets Acquired Using Foreign Contributions
Nayan Dwivedi
Sep 26, 2023, 01:58 PM | Updated 01:58 PM IST
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New rules have been introduced for NGOs and associations registered under the Foreign Contribution Regulation Act (FCRA).
Now, these organisations must annually disclose details about assets they've created using foreign donations.
The Ministry of Home Affairs made changes to the Foreign Contribution Regulation Rules of 2011.
The ministry has introduced a new form, Form FC-4, as part of the annual reporting process required by FCRA. This form has two sections.
In the first section, NGOs must provide information about their movable assets, including their value at the start of the financial year, assets acquired and sold during the year, and their value at the end of the year according to the balance sheet.
The second section focuses on immovable assets. NGOs must now list details of any land and buildings acquired through foreign contributions as of 31 March of the relevant financial year. This includes information on the size, location, and value of these assets as per the balance sheet.
These rule changes were made before an extension was granted for the validity of FCRA registration certificates for NGOs.
A public notice from the FCRA division of the ministry states that certificates extended until 30 September 2023, with pending renewal applications, will be further extended until 31 March 2024, or until the renewal application is processed, whichever comes first.
However, NGOs whose renewal applications have already been rejected will have their FCRA licenses considered expired from the date of refusal, making them ineligible to receive or utilise foreign contributions.
As of 25 September, the FCRA website reported 16,666 active NGOs with FCRA licenses, 13,282 with expired licenses, and 20,694 NGOs whose FCRA registrations had been canceled due to foreign funding issues.
These changes aim to increase transparency and accountability in how foreign contributions are used by NGOs in India.
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Nayan Dwivedi is Staff Writer at Swarajya.
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