7 changes in rules related to foreign funding, convenience to common man

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foreign funding

New Delhi: The Ministry of Home Affairs made 7 changes to the Foreign Contribution (Regulation) Act 2010 and its rules through 2 gazette notifications on Friday night. Now political parties, legislators, election candidates, judges, government servants, journalists, and media houses, among others – have all been barred from receiving foreign contributions. However, if they receive foreign contributions from relatives abroad and fail to inform the government within 90 days, they will not be prosecuted.

There was a provision to give information in the first 30 days itself. For this, a change has been made in Rule 6 of FCRA. If any of your relatives live abroad, then he can now send you up to 10 lakh rupees in a year without any hindrance. For this, you will not even need to inform any government department or administrative unit. Earlier this limit of contribution was only Rs 1 lakh. The new rules, now named the Foreign Contribution (Regulation) Amendment Rules, 2022, have come into force from July 1.

Government officials will not be able to take foreign cooperation
In the amended FCRA, government officials have been barred from receiving foreign contributions. Along with this, submission of Aadhaar has been made mandatory for every office-bearer of the NGO.

It is mandatory for the NGO to register under FCRA
According to the new rules, organizations receiving foreign donations cannot spend more than 20 percent of the amount received for administrative work. Earlier this limit was 50 percent of the amount. All non-governmental organizations (NGOs) receiving donations from abroad will be required to register under FCRA.

foreign funding

Information about any change in the bank account will have to be given
Similarly, rule 9 related to bank accounts related to foreign contribution has also been changed. If any change is made in the bank account related to the money received from abroad and its use, then the concerned individuals, organizations, or NGOs will have to inform the Union Home Ministry within 45 days, earlier this time was 30 days.

The obligation to give information related to donations every quarter is over
Provision ‘B’ of rule 13 has been omitted. Under this, complete information related to foreign donations had to be given to the government every quarter, including donors, the amount received, date of receipt of funds, etc.

The audit report of the balance sheet will have to be given within nine months
Now, a person receiving foreign contributions under FCRA will have to upload the audit report of complete accounts and balance sheets within 9 months after every financial year on its official website or on a centrally designated website. Individuals or NGOs receiving foreign donations will no longer be obliged to give information about the donations received on their websites every quarter.

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