FCRA 2020: How The Landscape For NPOs In India Has Been Altered

Regulation of foreign contributions in India goes back to 1976, when the Foreign Contribution (Regulation) Act, 1976 was enacted to regulate the inflow of foreign funds in India to voluntary organizations set up for various socio-economic, religious or cultural objects. While the 1976 Act loosely regulated foreign funding to such organizations, in 2010 it was repealed in favour of a wider and stricter law on foreign contributions in India. The Foreign Contribution (Regulation) Act, 2010 (“FCRA”), along with the Foreign Contribution (Regulation) Rules, 2011 (“FCRR”) repealed the Foreign Contribution (Regulation) Act, 1976. The FCRA permitted registered entities to receive foreign contribution, but subject to strict conditions and disclosure requirements. The FCRA has been in the limelight in the past few years following widespread crackdown on several NGOs for FCRA violations, resulting in cancellation or suspension of registration of thousands of NGOs . Most