FCRA Amendments Impact NGO’s
Source : The Hindu
GS II : Development processes and the development industry- the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders
Why in News ?
The amendments to the Foreign Contribution Regulation Act (FCRA) has crippled the work of many organisations who’re unable to obtain overseas funds.
- An NGO recently moved the Delhi High Court searching for exemption from the Union Home Ministry’s March 31 deadline to open an FCRA account with the SBI department.
Key Facts
- Registered NGOs can obtain overseas contribution for 5 functions
- Social
- Academic
- Non secular
- Financial
- Cultural.
- An FCRA registration is obligatory for NGOs to obtain overseas funds and 22,591 FCRA registered NGOs.
- Issues Facing
- Administrative delays especially during COVID period.
- FCRA amendments made it compulsory for all trustees to register their Aadhaar card.
- The trustees and members live in different parts of the country and getting documents together poses immense challenges due to COVID-19 restriction.
- NGOs may provide their providers in containment zones and different areas the place curfew is imposed.
- Latest amendment makes all overseas donations ought to be acquired within the SBI account.
- It capped the executive bills at 20% of the overseas funds acquired earlier the higher restrict was 50%.
- The modification additionally barred sub-granting by NGOs to smaller NGOs who work on the grassroots.
Foreign Contribution Regulation Act Amendments ?
- The amendments to the Act , no public servant henceforth can receive foreign contributions.
- Mandatory Aadhaar provision is included to all officials belonging to the recipient organisation.
- Foreign contributions are to be used by their original recipient and can’t be transferred to any other entity or person.
- Though foreign contributions can be spent for administrative purposes, their limit has been reduced to 20 per cent from the earlier 50 per cent.
- There won’t be an automatic renewal of permissions granted for receiving such funds
- Authorities can now probe the functioning and purpose of the recipient organisation.
- The bill also proposes to enable the Centre to allow an NGO or association to surrender its FCRA certificate.
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