NGOs aspiring to obtain overseas funding to face Govt’s strict new guidelines

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The NGOs that intend to obtain overseas funding will now face more durable guidelines with the Union Home Ministry making it clear that such organisations will need to have existed for not less than three years and spent Rs 15 lakh in voluntary actions to be eligible to obtain cash from overseas.

In a notification, the house ministry also stated workplace bearers of the NGOs searching for registration below the Foreign Contribution (Regulation) Act should submit a particular dedication letter from the donor indicating the quantity of overseas contribution and the aim for which it’s proposed to be given.

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The FCRA guidelines have been issued about two months after the central govt had amended the legislation below which offering Aadhaar numbers of the workplace bearers of the NGOs was made necessary, workplace bills have been introduced all the way down to 20 p.c of such quantity and election candidates, govt servants, members of any legislature and political events have been prohibited from accepting overseas funding.

“A person seeking registration under clause (b) of sub-section (4) of section 12 of the Act shall meet the following conditions, namely:– (i) it shall be in existence for three years and have spent a minimum amount of rupees fifteen lakh on its core activities for the benefit of society during the last three financial years,” the notification stated.

According to the foundations, any NGO or individual making an utility for acquiring prior permission to obtain overseas funds shall have an FCRA Account.

The house ministry stated “a person seeking prior permission for receipt of a specific amount from a specific donor for carrying out specific activities or projects shall meet certain criteria that include submission of a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given”.

For the Indian recipient individuals and overseas donor organisations having frequent members, prior permission shall be granted to the Indian individual/entity if it satisfies the circumstances that the chief functionary of the recipient shall not be part of the donor organisation, and 75 per cent of the office-bearers or members of the governing body of the recipient shall not be members or workers of the overseas donor organisation.

In case of overseas donor organisation being a single particular person, that particular person shall not be the chief functionary or workplace bearer of the recipient group and in case of a single overseas donor, 75 per cent of the workplace bearers or members of the governing body of the recipient shall not be the members of the family or shut kin of the donor, the house ministry stated.

Over Rs 58,000 crore overseas funds have been obtained by NGOs registered below the FCRA between 2016-17 and 2018-19. There are round 22,400 NGOs within the nation. PTI ACB RDM RDM

[Attribution HT]

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