Context:
The home ministry of the Union has now published the terms necessary for audit return filing by these CAs on behalf of the NGOs. It is a known fact that as per the Foreign Contribution (Regulation) Act, 2010, the CAs cannot just specify the name of NGO but must also certify that the organization does not violate any provision of the Act.
Non-Governmental Organization (NGO)
It is an independent, as well as non-profit organization that operates outside of government control. NGOs are basically a part of the “third sector” of society, along with the public and private sectors.
- NGOs Focuses on Aspects Like:
- Community health promotion and education
- Environmental issues
- Economic empowerment
- Inclusive Growth
- Women and children’s rights
Non-governmental organizations (NGOs) can receive funds from multiple sources such as, Donations, Membership fees, Grants from state govt. as well as private donors, Crowdfunding as well as MSMEs.
In order to receive foreign donations, the NGOs must:
- Be registered under the Foreign Contributions Regulation Act (FCRA)
- Be structured as a Trust, Society, or Section 8 Company
- Have existed for at least three years at the time of FCRA application
- Get government approval before receiving foreign contributions
The Foreign Contribution (Regulation) Act (FCRA)
The Foreign Contribution (Regulation) Act (FCRA) is a law that primarily regulates accepting and use of foreign funds by certain individuals, organizations, and companies in India. The FCRA was first enacted in 1976 and was later revised in 2010.
- Purpose
- Prevent the use of foreign funds for activities that are harmful to India’s national interests.
- Restricting the Indian non-profit organizations that receive foreign donations.
