FCRA 2010: I SSUES A ND C HALLENGES

I NDIVIDUALS  Individuals now covered by FCRA  Scholarships exempt  Need FCRA registration / permission for:  Program Activities  Non-academic Fellowships 2

F ELLOWSHIP  Difference between scholarship and fellowship  Prior-permission for fellowship  Consultancy fees? 3

E LECTRONIC M EDIA  Prohibition on media expanded to include:  Organization producing or broadcasting news / current affairs programs through any electronic mode (audio/ video)  Use of Internet as a mode of transmission  Other modes of mass communication  Individuals not covered, except as owners of the organization 4

P ANCHAYATS  Panchayats defined as legislature  Not eligible to receive foreign funds  Members / candidates  Can not accept foreign funds  Need permission for foreign hospitality etc.  Form FC-9 Form FC-9 5

P OLITICAL A CTIVITIES 6

A DMINISTRATIVE E XPENSES  Capped at 50% of total foreign contribution received in a year  Includes:  Salaries, Fees, Travel  Rent and other Overheads  Excludes:  Salary of field researchers, Doctors, teachers etc.  Direct program expenses(?) 7

S PECULATIVE I NVESTMENTS  Restrictive definition of ‘speculative activities’  …has an element of risk of appreciation/ depreciation…linked to market forces, incl. investment in mutual funds…  …any scheme that promise high returns like investment in chits, land etc….not directly linked with declared aims… 8

I NTERESTS OF THE S TATE  Registration cannot be granted if it might affect:  the security, strategic, scientific or economic interest of the State Not defined in law  Might include:  Nuclear energy  Work in border states  Internal unrest  Defense expenditure / strategy  Displacement issues 9

S ECONDARY G RANTS  Secondary transfer of FC to non-FCRA NGOs:  10% of total FC received  Prior-permission needed  Secondary transfer of FC to FCRA NGOs  Validate FCRA registration of receiver 10

R ENEWAL  Renewal required every five years  Old registrations valid till 30-Apr-2016  Apply 6-12 months prior to expiry  Delayed application allowed Registration frozen in the meanwhile  Can lapse if no activity for two years  Renewal of FCRA Registration: FC-5 11 See page 110 of AccountAble Handbook: FCRA 2010 for more.

F URTHER R EADING  AccountAble 35: FCRA Fellowships  AccountAble 84: ‘Foreign Source’ in FCRA 2010  AccountAble 96: Introduction to FCRA