Centre Tightens FCRA Norms: NGOs Engaged In Foreign Funding Can't Publish News Content—All You Need To Know

The Ministry of Home Affairs (MHA) has introduced stricter regulations for non-governmental organisations (NGOs) seeking foreign funding, especially those involved in publication-related activities, reported PTI.

According to a recent notification, NGOs must now provide comprehensive documentation and obtain a certificate from the Registrar of Newspapers for India confirming that they do not circulate news content under the amended Foreign Contribution (Regulation) Act (FCRA) rules.

The MHA stated stated that NGOs seeking registration must enclose financial statements and audit reports of the last three financial years, including the statement of assets and liabilities, receipts and payments account, and income and expenditure account.

Where audit reports do not break down activity-wise spending, a certificate from a chartered accountant specifying the same, duly reconciled with the income and expenditure statement, must be submitted.

In a significant development, NGOs involved in publications or those whose objectives include publication must submit an undertaking affirming compliance with the FCRA, 2010.

If the publication is registered with the Registrar of Newspapers, the NGO must furnish a "Not a Newspaper" certificate.

NGOs must also adhere to the Good Practice Guidelines of the Financial Action Task Force (FATF), the Centre clarified, referring to the global watchdog monitoring terror financing and money laundering.

NGOs must now include a commitment letter from the foreign donor, with the committed amount matching the donation.

This must be accompanied by a detailed project report outlining expenses and a declaration ensuring administrative costs will not exceed 20 per cent of the received foreign contribution.

The Centre reiterated that any association wishing to receive foreign contributions must have a definite cultural, economic, educational, religious or social programme.

It further stated that the organisation must neither receive, nor utilise, any foreign contribution without obtaining permission or registration from the Centre.

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