Jul 31, 2019

Leader of Australian Cult the 'Ideal Human Environment' Has Been Jailed for Sexual Abuse

THE GROUP'S ARBURY PARK MANSION ON THE LEFT, AND JAMES "TAIPAN" SALERNO ON THE RIGHT. IMAGES VIA FLICKR USER SYDNEY OATS, CC LICENCE 2.0 (L) AND YOUTUBE/MATTEO SALERNO (R)
James "Taipan" Salerno founded the cult in the early 80s. Yesterday, he was found guilty of repeatedly sexually abusing a young member.

Gavin Butler
VICE
July 31, 2019,

This article originally appeared on VICE AU.

The leader of a cult dubbed the “Ideal Human Environment” (IHE) has been locked up for 10 years after being found guilty of eight counts of unlawful sexual intercourse with one of his teenage followers. James Gino Salerno, 72, appeared via video link in the South Australian District Court yesterday on allegations that he had sexually abused a young girl who fled the group several years ago—grooming her for sex from the age of 13. He allegedly told the victim it was his role to teach her “how to be a lady”, The Australian reports.

He has now been sentenced to 10 years in prison with a non-parole period of eight.

James Salerno, or “Taipan”, as he insisted his followers call him, formed IHE in South Australia’s Adelaide Hills during the early 80s, after returning from the Vietnam War. “I came back from Vietnam and I realised that war is the worst human environment,” he told The Weekend Australian in 2015. “So I dreamt up, I imagined, the opposite of that.”

Between 2001 and 2008, Salerno ran daily meetings at the group’s Arbury Park mansion, where much of the sexual abuse in question allegedly took place. As the cult grew in size, he and his devotees were forced to relocate to Beaudesert, in south-east Queensland, before finally moving to a compound in Western Australia's Kimberley region.

Between these three states, and over the course of some 40 years, Salerno conducted social experiments in an attempt to find a system of living he described as the “Ideal Human Environment”. These included giving a chronic gambler $100,000 so the group could witness and understand addiction, and buying three luxury cars so they could experiment with the idea of luxury car use on the Gold Coast. These “research projects” were funded by the cult members, who handed over most of their assets and income to the group as a joining fee.

Other details surrounding the peculiar goings on within IHE emerged over the past 12 months, as Salerno stood trial on the multiple charges of abuse for which he was charged this week. Among those details were claims that “Taipan” convinced his followers that he was an omnipotent god; that he made them dress in all white garb; and that he insisted they salute him like Russell Crowe’s character from Gladiator.

The complainant explained to the court in October that after a group viewing of Gladiator Salerno decided to introduce a new form of salutation, as inspired by Russell Crowe’s character in the film. Every time he entered a room the group’s members were expected to stand to attention, place their right arm over their shoulder and say “Strength and honour”.

"This was decided after the group had watched the movie Gladiator as a sign of respect and power," the complainant said.

"Taipan was a person that we were made to believe to be feared… he was God, he was someone that would bring down hell upon you. It was a lot of talking about how great Taipan was and how he was put on this Earth as God's gift and how we should all honour that. We would often wear white clothes because that was like a pure energy and we were often told we were there to serve Taipan.”

The complainant also claimed that Salerno selected a group of females to perform “healings” and massages on him, and that she was taught how to cut his nails, run his baths, and pick fruit for him.

When handing down the sentence yesterday, District Court Judge Paul Slattery said that Salerno’s offending—which took place in Salerno­’s bedroom in the Adelaide Hills house, as well as in the back of his car during a camping trip—was “very serious­”.

“You have been found guilty of unlawful sexual intercourse that occurred over a two-and-a-half-year ­period, against a young girl between­ the ages of 13 and 16 years,” Justice Slattery said. “You abused your primacy position within the group to not only groom and sexually abuse the complainant but to ensure that she was fearful of speaking out about your actions, and instille­d in her thoughts that no one would believe her even if she did speak out. Your offending has had a profoun­d effect on the complainant as she is still suffering ongoing physical, mental and emotional issues.

“To this day, you maintain your innocence and you’ve shown no contrition for your actions,” he added. Salerno is appealing against the guilty verdicts.

After the sentence was handed down, the victim told the ABC that she felt "justice has been served".

"The girls can sleep easy now, the ones that are still left in there," she said. "That's all I wanted from the start, to help the other girls."

Follow Gavin on Twitter or Instagram

This article originally appeared on VICE AU.

https://www.vice.com/en_in/article/xwne4d/leader-of-australian-cult-the-ideal-human-environment-has-been-jailed-for-sexual-abuse

'You Feel Like a Freak': Jehovah's Witnesses and the Difficult Way Out of Sect

'You Feel Like a Freak': Jehovah’s Witnesses and the Difficult Way Out of Sect
Sputnik International
July 31, 2019

Indoctrination, isolation, and horrification – the things that sectarian exiles tell about their childhood among Jehovah’s Witnesses sound like a nightmare. To share their experiences and point out paths from the sect, they have organised a “Watchtower Remembrance Day” on Berlin’s Alexanderplatz.

Those who grow up in a family of Jehovah’s Witnesses often led a dramatically different life from their peers – no birthday parties, little contact with people outside the faith community, no blood transfusions in medical emergencies, and no participation in elections later on. If someone decides to leave the sect, they are left with nothing at first, because the Jehovah’s Witnesses will turn their backs on the apostate, who often has no friends or relatives outside the community.

There are a variety of citizens’ initiatives, such as “JW Victims Help” (“JW Opfer Hilfe e.V.”), whose aim is to shed light on the dire implications of life within the sect and offer support to those who want to leave the faith-based community.

Last Friday, the association put an information stand on Berlin’s Alexanderplatz and observed "International Watchtower Remembrance Day". On this day, in 1931, the sect was renamed and "reformed", which resulted in it taking a more authoritarian form.

Giulia Silberger, one of the co-founders of the association, was one of those who came to Alexanderplatz on that hot summer day. In the media, she is known as the founder of "Goldener Aluhut", a platform that deals with conspiracy theories. What many don’t realise is that the young woman herself grew up among Jehovah's Witnesses.

The woman says that members of the sect would often face emotional abuse. Children are particularly affected; very often their emotional traumas haunt them throughout their lives.

"Children’s souls are destroyed – they are brought up in fear and violence; they are forced to constantly fear Armageddon, the end of the world, which only those who are pleasing to Jehovah can survive. This is a terrible fear, which one grows up with and which results in mental illnesses, basically making a person disabled," Giulia said.

According to the woman, the fear she grew up with gave her a mental illness and a disability status.

"I want that to stop, and I want people to know about the dangers of this organisation. These are not harmless people who you can find preaching love somewhere at the station; this is an ice-cold, almost fascist society that destroys its members."

In addition, Giulia believes the Jehovah’s Witnesses violate the country’s constitution, in particular, Article 6, which deals with the protection of marriage and the family. According to the woman, this is because even minor children face isolation from community members when they are expelled from the sect; and [their relatives] no longer talk to them.

Giulia also said that the sect has cultivated its own legal system:

"When a crime is committed within the community, it is usually not handed over to the authorities, but resolved by the sect's assembly according to their own, very cruel laws. For example, there is a two-witness rule – you have to bring two witnesses or nothing has happened. These are things that simply don’t fit into a democratic society like ours," she said.

Sophie Jones has also managed to get out of the sect. According to the young woman, she was born into a community of Jehovah’s Witnesses. When one doesn’t know what’s going on in the "outside world", they don’t think that what they see inside their community is weird. The sect members don’t celebrate Christmas or birthdays – from the cradle, children take part in constant sermons and prayers. But the older you get, the more you realise how isolated you are.

"Of course, one should mainly have contact with others in the community because they are 'good' and everyone else could dissuade you from the faith. Therefore, for a Jehovah’s Witness child, it’s quite difficult to find normal friends," Sophie said.

"When you get older, you realise that you’re somehow different; you realise that you’re weird and don’t do the things normal kids do. You don’t know what they’re talking about; you don’t watch the same TV shows. You go to the service; you look different and behave differently. You are even ashamed – that’s normal. Of course, people say that you should be proud of your faith and that you’re chosen by God. But at the same time, you actually feel like a freak.”

According to Sophie, there are "liberal" Jehovah’s Witnesses; however, her mother was a devout believer and brought her up accordingly. The turning point came at the age of thirteen, when her father was expelled from the community and any contact with him was forbidden, the woman recalled.

"I couldn’t cope with that; I really suffered a lot from being unable to contact him. You cannot even greet the person, no matter if they’re your family members or not. I realised that I was incredibly unhappy and asked myself what I was suffering for. How can it please God that I suffer so much that I move away from my own family? That made no sense to me and I realised that I had to change something in my life. As soon as I turned 18, I got out of the sect and sought contact with my father and other excluded friends."

The exit didn’t happen immediately, since the comeback rate is very high, because Jehovah’s Witness apostates usually have no contacts in the outside world. Sophie made a list of the people she would lose by leaving and those she would win back. At the same time, she was looking for new friends and building up new social contacts.

"When I realised I was ready, I went to the last service, the remembrance service. I told some people that they wouldn’t see me again, and then I left. I got a new phone number; I moved and got a new job. And then it worked quite well."

Today, Sophie Jones is very happy that she decided to leave and can see her father again.

"I feel as though I got a new life. I can be who I want. I can do what I want. I can be friends with whom I want. That makes me very happy," she said.

JW Victims Help seeks to support people like Sophie Jones; they want to raise awareness among the public, the media and politicians about the problems associated with various sectarian organisations. People from the outside have no idea how bad life is for members of sects and for those who have decided to leave their ranks, club activist Stefan Barnikow said.

"Very often outsiders cannot believe that such a medieval practice can be found today, in the middle of Berlin. With us, the dropouts have someone who listens to them and understands their problems," he said.

At the same time, according to Barnikow, Jehovah’s Witnesses' door-to-door missionary work, which is perceived by many as intrusive or annoying, don’t violate the constitution.

"The Jehovah’s Witnesses have managed to get recognition as a public organisation in all federal states. Thus, they are allowed to perform their missionary activities. Of course, as a homeowner, I can say that I don’t want that. You also have to understand that the Jehovah’s Witnesses don’t want to do anything bad to you; they just want to 'save' you. In fact, they have your best interests at heart, but there is nothing good about it."

There are currently about 170,000 Jehovah’s Witnesses in Germany, but the number is declining. Barnikow sees the increased desire to exit as a sign that the activity of his and other online and offline organisations is yielding results.

However, devout Jehovah’s Witnesses don’t seek a dialogue – not even on Alexanderplatz that day. "The Jehovah’s Witnesses tend to avoid us," Barnikow said.

https://sputniknews.com/europe/201907311076410515-you-feel-like-a-freak-jehovahs-witnesses-and-the-difficult-way-out-of-sect/

Jul 30, 2019

Doomsday cults whose members kill in God’s name


In Summary

Leaders prey on the poor, oppressed and the spiritually weak members under their command. 

Some are children too young to make independent decisions about the ‘shortcut to heaven’.

Cult leaders manipulate and study their targets well before attacking them at their weakest point, mostly to satisfy their own selfish interests.

 

STELLA CHERONO
JULY 17 2019

Kanungu village in the green hills of southwestern Uganda was unheard-of before the night of March 17, 2000, when some 530 followers were burnt to death in a church, ‘as a shortcut to heaven’.

Inside the church of the doomsday cult – Movement for the Restoration of the Ten Commandments of God – were bodies of the adherents and their children after the killing that has come to be known as the Kanungu massacre.

SERIAL KILLER

The church’s leaders – Credonia Mwerinde and Joseph Kibweteere – had before the massacre been accused of being behind several mysterious disappearances of both the cult’s followers and their livestock.

After the killings, the Uganda Human Rights Commission, in a periodical report, stated that the initial suspicion was that the massacre was mass suicide by the adherents who were convinced about going to heaven through fire, “but later it was established that it was planned and executed by the cult leadership. The victims of the inferno included children too young to make independent decisions”.

Closer home, just a few years after serial killer Phillip Onyancha confessed that he had killed 17 women and targeted to kill 83 more to hit the 100 target, a city lawyer, Mr Paul Magu, killed his wife and three children before throwing himself in front of a bus heading to Nairobi from Garissa to make his death look like an accident.

The murders of Ms Lydia Magu and her three children – Allen, Ryan and Tiffany – shocked Kenyans as the deranged killer-father managed to stay a step ahead of the police, relatives and neighbours to execute the evil plan.

Although the reason may never be known, detectives – searching for details of what may have led the otherwise bright lawyer to commit the heinous act — said he may have been pushed by a religious cult.

Several other killings have been blamed on religion. Just two days ago, former lawyer-cum-news anchor Esther Arunga confessed before a court in Australia that she had initially lied to police about the circumstances under which her son died on June 18, 2014.

BRAINWASHING

Ms Arunga told the court she lied in order to protect her husband Quincy Timberlake – who is accused of killing the boy – from punishment.

Ms Arunga said on that fateful day, her husband was hitting their son in the stomach, then threw him against the wall, adding that the accused was exorcising demons he believed dwelled in the little boy’s stomach.

“I was terrified of being alone and felt terrible because my husband was sick as well,” Ms Arunga, who is set to be sentenced Thursday, told the court.

Killing in the name of religion is neither new nor exclusive to East Africa.

In 1978, South America’s Jonestown Guyana mass murder and suicide claimed 913 lives.

Sociologists, theologists and religious leaders blame the killings on extreme doctrinal brainwashing.

“Most doctrinal cults target people who are vulnerable to their beliefs. Their prey is usually the poor, the oppressed, the spiritually weak and people who cannot fit in a certain class that they would want to,” Rev Dr Timothy Njoya, a retired minister at the Presbyterian Church of East Africa, told the Nation.

MANIPULATE

He said cult leaders manipulate and study their targets well before attacking them at their weakest point, mostly to satisfy their own selfish interests.

“Some people use religion as a reification tool, in order to create a non-existent world so that they can do things the way they want and create a world they want. This is not necessarily the reality and may not necessarily solve their problems,” Dr Njoya said,

Psychiatrist Lincoln Khasakhala says it is difficult to know exactly what may lead someone to commit homicide or suicide in the name of religion.

“It could be social or psychological factors. We have cases where some people say they were led by a commanding voice to kill. In some cases, schizophrenia plays a role,” Dr Khasakala said.

https://www.nation.co.ke/news/Doomsday-cults-whose-members-kill-in-God-s-name/1056-5198862-5f8t53z/index.html

Five men indicted in Jewish sect kidnapping case

Heather Yakin 
Times Herald-Record 
July 29, 2019

WHITE PLAINS — Five men charged with conspiring to kidnap a 14-year-old girl and her 12-year-old brother from Woodridge and later from Brooklyn to return them to a conservative ultra-Orthodox Jewish sect have now been indicted in the case.

Early on Dec. 8, Yante Teller, 14, and her brother, Chaim Teller, 12, walked out of a Woodridge home where the family was staying and got into a car.

Prosecutors say the two were abducted as the result of a plot by Nachman Helbrans, 36; Mayer Rosner, 42, and his son Jacob Rosner, 20; members of the Lev Tahor sect, which their mother had fled; and Aron Rosner, 45, of Brooklyn, Mayer Rosner’s brother. A fifth man, Lev Tahor member Matityau Malka, was charged with aiding a second kidnapping plot in March.

An indictment handed up earlier this month charges all five men with conspiracy to defraud the United States and international parental kidnapping. All entered not-guilty pleas, and the case has now been assigned to U.S. District Court Judge Nelson S. Roman.

According to court documents, the children’s mother is the daughter of Shlomo Helbrans, who founded the Lev Tahor sect in 1987. The group headed to Canada after the elder Helbrans’ 1994 conviction for kidnapping a 13-year-old, and later to Guatemala in the wake of child abuse allegations. Shlomo Helbrans died in 2017.

According to federal court papers, his son, Nachman Helbrans, took over leadership of the sect and moved the group in an increasingly extremist direction. His sister, the children’s mother, fled and brought them to the U.S. in October after learning that leaders wanted her then-13-year-old daughter to marry Jacob Rosner. She won full custody of her children on Nov. 14 in Kings County Family Court.

After the kidnapping, court papers say, Helbrans used his own children’s identities to get the children through security and onto a plane at Wilkes-Barre (Pa.) International Airport on Dec. 8, and the children were dressed in regular, secular clothing to avoid arousing suspicion.

U.S. and Mexican authorities found the children in Mexico. Helbrans and the Rosners were arrested in December.

The indictment charges that on four different dates in March, Malka provided cell phones to Yante Teller, allowing Helbrans to speak to her while being held at Westchester County Jail.

Four of the men are being held without bond pending trial. Aron Rosner was released on a $10 million bond, subject to home confinement and electronic monitoring.

In court papers, his lawyers said he is a member of Satmar congregations in Brooklyn, where he lives with his wife and their six children. He is the primary caregiver for the kids, two of whom are severely disabled. Aron Rosner cooperated with authorities after his arrest and helped find the children, his lawyer noted in court papers.

https://www.recordonline.com/news/20190729/five-men-indicted-in-jewish-sect-kidnapping-case

Cult Leader Who Made His Son Beat His Father 100 to 200 Times, Sentenced For Tourting Followers In Barbaric Rituals

Brendan Cole
Newsweek 
July 30, 2019

A South Korean cult leader who convinced her followers to go to Fiji, where they were subjected to beatings and torture, has been jailed for six years.

Shin Ok-ju founded the Grace Road Church and managed to persuade her followers in 2014 that the island in the South Pacific would be a haven from natural disasters.

After their passports were taken away, around 400 followers were forced into labor on the island, attending evening sermons and being subject to beatings in a bid to drive out evil spirits, a court heard.

Footage filmed in South Korea broadcast by CNN last yearshows Shin hitting her parishioners in what the network described as "threshing," a technique used by the cult to atone for sins.

A statement by the Suwon District Court, near Seoul, said that Shin had "absolute authority over the followers" and pointed out that "all criminal acts including ground thrashing were unable to be carried out without her directions.

"Her responsibility is very heavy," the court statement read, according to the South China Morning Post.

A former follower told a South Korean TV program: "A son beat his father 100 to 200 times at a ground thrashing session."

Another congregant was hit more than 600 times and he died after returning home One follower told a local news program, according to the Post:"they are being treated as if they were farm oxen rather than human beings ... It was like hell there."

Shin had denied the claims. Her son, Daniel Kim, accused followers who had left the cult of slandering the church.

Kim told CNN last year that the threshing was not a crime because it was done by consent. He also denied that the followers were forced into labor, telling the network: "They don't really know what is going on here."

After the sentence was handed out on Tuesday, some followers in Seoul, who had attended the trial, protested.

https://www.newsweek.com/south-korea-cult-grace-shin-ok-ju-1451685

Jul 26, 2019

FCRA handbook Indian MMY Assets

FCRA handbook
Ratings:

5.0 (1)|Views: 8,683|Likes: 43
Published by anywish
AccountAid™ India
New Delhi
`AccountAid™ India
New Delhi

More info:
Categories:Books - Non-fiction
Published by: anywish on Jul 26, 2008
Copyright:Attribution Non-commercial

Availability:
Read on Scribd mobile: iPhone, iPad and Android.

Free download as PDF, TXT or read online for free from Scribd
Flag for inappropriate content|Add to collection
http://www.scribd.com/doc/4103830/FCRA-handbook

09/06/2012

AAccccoouunnttAAbbllee
TTMM
HHaannddbbooookk

FFCCRRAA

AAccccoouunnttAAiidd
TTMM
IInnddiiaa NNeewwDDeellhhii







(i)

About this book

(front inside cover)

The AccountAble Handbook is a compilation ofthe individual issues of ‘AccountAble’, released by AccountAid India since 1994. These issueshave been designed and circulated on a monthlybasis primarily for the partners of our client Agen-cies.‘AccountAble’ is circulated to about 1,200 per-sons, including Chartered Accountants. It is alsoavailable through e-mail, on a complimentarybasis. The present compilation brings all issuesof AccountAble related to FCRA together at oneplace.While we have taken utmost care to make surethere are no mistakes, the handbook is designedto provide a general understanding only. We,therefore, suggest that you seek independentand responsible advice before taking any impor-tant decisions based on this material.We trust the handbook will be of use to imple-menting NGOs in India, grant-making Agencies,consultants and auditors dealing with FCRA asalso to law-makers.The law presented in this book is valid as of 30th June 2002. It applies to India as well as to Indian citizens wherever located.

AccountAble™ Handbook FCRA
AccountAid™ India New Delhi© AccountAid India 2002All rights reserved.No part of the publication may be reproduced or transmitted in any form or by any means, withoutprior permission of AccountAid India, in writing.However, AccountAid India encourages reproduction or re-distribution of this material in work-shops or through non-profit / academic institution newsletters for non-commercial use, providedthe source is acknowledged. Your use must not affect our rights to the material adversely.The source should be acknowledged as ‘Copyright material of AccountAid™ India. Used for non-commercial purposes under general permission’.Price: Rs.75/-Published by:

AccountAid India,

55-B, Pocket C, Sidharth Extension,New Delhi – 110 014Ph.: 011-634 3128, 634 6111Fax: 011-634 3852e-mail: accountaid@vsnl.comTypesetting, layout and printing by:

Chanakya Mudrak Pvt. Ltd.,

C-16, DSIDC Packaging Complex,Kirti Nagar, New Delhi-110 015Telefax.: 5923947, 5923951

( i )

Preface

Foreign Contribution (Regulation) Act, 1976 is a curious piece of legislation. The Acthas only 31 sections: a very short and simple piece of law by any standard. It has alsobeen amended only once in the last 26 years. Very few cases have gone to courtunder FCRA.The Act was essentially designed to prevent flow of foreign funds to political partiesin India. It was brought in after a big controversy erupted in 1967 over the possible useof foreign funds in parliamentary elections. By 2002, there were similar laws operatingin many countries across the world, including USA, UK, France, Japan, Germany,Canada, Russia, Malaysia, and Spain.In 1984, the law was amended to regulate flow of funds to charitable organisationsmore closely, based on the Government’s perception that some of these organisationsmay be used to channelise funds to political parties. This has resulted in a lot ofpaper-work and confusion for non-profits working in India. Reflecting this confusion,one of our first issues on FCRA was titled ‘Mysteries of FCRA’!With time, the mysteries have reduced somewhat. The FCRA Department has alsoadapted a citizen’s charter and has tried to streamline its working. However, muchremains to be done.One peculiar implication of the 1984 amendment has been that FCRA is now commonlyperceived as a law focusing on the NGOs. While this was not the intention of the law,this is what may actually have happened, given the fact that most of the time FCRADepartment is dealing with NGOs (nearly 25,000 associations have FCRA registration).The present handbook is designed primarily for use by NGOs, who often find themselveson the receiving end, so far as FCRA is concerned (no pun intended). Similarly,consultants and auditors, who have to advise NGOs on FCRA, would also find thebook useful. Some sections would be of interest to grant-making Agencies working inIndia, who sometimes find that their programs and projects fall foul of FCRA provisions.Many Agencies located abroad are not aware that such a law exists, and, therefore,sometimes find it difficult to understand why their projects are delayed. This handbookmay help give them an overview.While we have tried to make sure that the book is free from errors, still the possibilityremains. We, therefore, welcome your comments and suggestions so that we cancorrect these in future editions. A copy of this book is also being put up on our web-site (www.AccountAid.net), where the information will be updated regularly.For a compilation like this, acknowledging support can be a bewildering task. So manypeople have contributed to this, that it is difficult to decide who can be left out, giventhe constraints of space and reader’s attention span. In keeping with our own tradition,we can mention no individual names.


( ii )

However, the most important contribution has come from NGO functionaries andaccountants across India, who have shared their problems with us in confidence.Many people working in grant-making Agencies, have helped us add depth and insightto AccountAble, by attending our annual workshops and discussing their concerns.Then there are people who have encouraged us by visiting our web-site and sendingus their feedback and questions.We would also like to thank our client Agencies, CRY and Ford Foundation, who havesupported research and publication of AccountAble through these years. The publicationof this handbook has been made possible under an agreement with Ford Foundationin India, whose people deserve a special word of thanks for their support,encouragement and the confidence they have shown in us.We would also like to thank people at Chanakya Mudrak, who worked on this patiently,despite short notice and a difficult manuscript.And finally, a special note of thanks to the members of our own team and to their families, who sacrificed many evenings and weekends to this book. 30th June 2002ccountAid Team

( iii )

Topics at a Glance

Preface...................................................................................................i
Detailed Contents.............................................................................v-xix

Section I: Funds, Sources & Receivers........................................................1

Inflow of Foreign Contribution.................................................................3
State-wise Distribution of Foreign Contribution......................................9
Non-Foreign Sources...........................................................................19
Foreign Sources..................................................................................25
Profiles of Top FC Donors....................................................................31
Profiles of Top FC Receivers...............................................................44

Section II: Procedures.................................................................................55

Prior Permission..................................................................................57
FCRA Registration...............................................................................63
Basics of FC-3.....................................................................................70
Intricacies of FC-3................................................................................75
Maintaining Form FC-6........................................................................84
FCRA Fellowships...............................................................................89
FCRA Penalries...................................................................................93

Section III: Intricacies...................................................................................99

Understanding FCRA.........................................................................101
Mysteries of FCRA.............................................................................111
Puzzles of FCRA................................................................................115
Fund-raising and FCRA.....................................................................120

Section IV: Forms.......................................................................................125

Form FC-1A.......................................................................................127
Form FC-3.........................................................................................133
Form FC-5.........................................................................................147
Form FC-6.........................................................................................149
Form FC-8.........................................................................................150
Form X: Declaration regarding newspaper / newsletter.......................155
The Foreign Contribution (Regulation) Act, 1976.................................156
Foreign Contribution (Regulation) Rules, 1976...................................169


( iv )

( v )

Detailed Contents

Preface.............................................................................................................i
Topics at a Glance..............................................................................................iii
Section I: Funds, Sources & Receivers.......................................1
Sources and Caution..........................................................................................1

Inflow of Foreign Contribution.......................................................................3
How many are registered...................................................................................3
How many file FC-3............................................................................................3
How much did they receive................................................................................3
What did they receive it for.................................................................................4

The FC-3 classification..............................................................................................4
Another perspective..................................................................................................4

Country of Origin................................................................................................7

State-wise Distribution of Foreign Contribution............................................9

State Shares: 96-97 to 99-00.............................................................................9
State Profiles: 96-97 to 99-00.............................................................................9

Andaman & Nicobar (UT)..........................................................................................9
Andhra Pradesh......................................................................................................10
Arunachal Pradesh.................................................................................................10
Assam....................................................................................................................10
Bihar....................................................................................................................10
Chandigrah (UT).......................................................................................................11
Dadra & Nagar Haveli (UT).......................................................................................11
Daman & Diu (UT)....................................................................................................11
Delhi.....................................................................................................................11
Goa.....................................................................................................................11
Gujarat....................................................................................................................12
Haryana..................................................................................................................12
Himachal Pradesh..................................................................................................12
Jammu & Kashmir..................................................................................................12
Karnataka...............................................................................................................13
Kerala....................................................................................................................13
Lakshadweep (UT)..................................................................................................13
Madhya Pradesh.....................................................................................................13

( vi )Maharashtra............................................................................................................13
Manipur...................................................................................................................14
Meghalaya..............................................................................................................14
Mizoram.................................................................................................................14
Nagaland................................................................................................................14
Orissa....................................................................................................................14
Pondicherry (UT).....................................................................................................15
Punjab....................................................................................................................15
Rajasthan...............................................................................................................15
Sikkim....................................................................................................................15
Tamil Nadu..............................................................................................................16
Tripura....................................................................................................................16Uttar Pradesh.........................................................................................................16
West Bengal...........................................................................................................16

State-wise distribution of FC funds: Basic data................................................17

Non-Foreign Sources................................................................................19

Notified by the Government..............................................................................19
Other non-foreign sources...............................................................................23

Foreign Sources........................................................................................25
Profiles of Top FC Donors.........................................................................31

The problem of double counting.......................................................................31
1. Foster Parents Plan International.................................................................31
2. EZE..........................................................................................................32
3. Christian Children’s Fund..............................................................................32
4. Missio..........................................................................................................33
5. ACTIONAID.................................................................................................33
6. Maharishi Ayurved Trust..............................................................................33
7. Kinder Not Hilfe.............................................................................................34
8. World Vision International..............................................................................34
9. MISEREOR..................................................................................................34
10. Manos Unidas Committee..........................................................................35
11. Ford Foundation..........................................................................................35
12. Inter Church Coordination Committee........................................................36
13. Oxfam (India) Trust.....................................................................................36
14. Christian Aid...............................................................................................37

( vii )

15. Age of Enlightenment Trust.........................................................................37
16. IPPF..........................................................................................................37
17. Foundation Vincent Ferrer..........................................................................38
18. Bilance........................................................................................................38
19. USAID........................................................................................................38
20. Christoffel Blinden Mission.........................................................................38
21. Gospel for Asia...........................................................................................39
22. Opere Don Bosco.......................................................................................39
23. Missio Prokur..............................................................................................39
24. The Leprosy Mission..................................................................................39
25. Bread for the World.....................................................................................40
26. Plan International........................................................................................40
27. Children House International......................................................................40
28. Manos Unidas Afonso TED........................................................................41
29. Lutheran World Federation..........................................................................41
30. Maharishi Education Foundation.................................................................41
31. Mata Amritanandmayi Centre.....................................................................41
32. HIVOS Foundation......................................................................................42
33. The Save the Children Fund.......................................................................42
34. General Conf. of 7th day Adventists...........................................................42
35. SOS Kinderdorf International......................................................................43
36. ZEH..........................................................................................................43
37. Zentralstelle Fur Entwickshilfe....................................................................43
38. Soka Gakkai International..........................................................................43
39. Bergita PIR.................................................................................................43

Profiles of Top FC Receivers....................................................................44

1. Maharishi Ved Vigyan…(MVVVV).................................................................44
2. Foster Parents Plan International.................................................................45
3. Sri Sathya Sai Central Trust..........................................................................45
4. World Vision of India.....................................................................................45
5. Mata Amritanandmayi Mission......................................................................46
6. Actionaid.......................................................................................................46
7. CSI Council for Child Care...........................................................................46
8. SOS Children’s Village of India.....................................................................47


( viii )

9. CASA..........................................................................................................47
10. Tibetan Children’s Village............................................................................47
11. Oxfam (India) Trust.....................................................................................48
12. Missionaries of Charity...............................................................................48
13. Seventh Day Adventists..............................................................................48
14. Rural Development Trust............................................................................48
15. Caritas India...............................................................................................49
16. IGSSS.........................................................................................................49
17. Gospel for Asia...........................................................................................49
18. SIFPSA.......................................................................................................49
19. MYRADA.....................................................................................................49
20. FPAI..........................................................................................................50
21. Lilavati Kirtilal Mehta Medical Trust.............................................................50
22. SRM Foundation of India.............................................................................50
23. Leprosy Mission Trust of India....................................................................50
24. India Campus Crusade for Christ...............................................................51
25. Christian Children’s Fund...........................................................................51
26. BAPS..........................................................................................................51
27. Central Tibet Relief Committee..................................................................52
28. Lutheran World Service - India...................................................................52
29. AMG India International...............................................................................52
30. Maharishi Gandharvaved Vishwa Vidyapeetham (MGVV)...........................52
31. Community Aid Sponsorship Program.......................................................53
32. Bharat Soka Gakkai....................................................................................53
33. The Assemblies of God Church.................................................................53
34. Watchtower Bible Tract Society of India.....................................................53
35. ASSEFA......................................................................................................54
36. Holistic Child Development of India............................................................54
37. Indian Society of Church of Jesus Christ...................................................54
38. Aga Khan Foundation.................................................................................54

Section II: Procedures................................................................55

Prior Permission........................................................................................57

When do you need it?.............................................................................................57


( ix )

Procedure.........................................................................................................57

Apply in FC-1A.......................................................................................................57
Field Inquiry............................................................................................................57
Reply from FCRA....................................................................................................57
Appeal against rejection..........................................................................................57

Common doubts...............................................................................................57

More than once.......................................................................................................57
Tailor-made.............................................................................................................57
Joint grants.............................................................................................................58
Maximum Amount..................................................................................................58
How early................................................................................................................58
Advance Credit........................................................................................................58
Automatic permission?...........................................................................................58
Filing FC-3..............................................................................................................58
Filling up FC-1A................................................................................................58

1. Background........................................................................................................58
2. Convictions.........................................................................................................59
3. Branch or Associate...........................................................................................59
4. FCRA Registration..............................................................................................59
5. Prior-permission..................................................................................................59
6. Newspapers........................................................................................................60
7. Activities and Accounts......................................................................................60
8 (i). How much......................................................................................................60
8 (ii). Project Proposal and Budget..........................................................................60
9. Bank Account.....................................................................................................60
10. Details of foreign source....................................................................................60
10A. Recommendation Certificate...........................................................................61
11. Additional Information........................................................................................61
Signing...................................................................................................................61

Check-list of Documents to be attached..........................................................61

Copies....................................................................................................................61
Send it to FCRA.....................................................................................................62

FCRA Registration.....................................................................................63

Can you lose your registration?...............................................................................63

How to register.................................................................................................63

FCRA Bank Account..............................................................................................63






( x )Filing FC-8..............................................................................................................63
Scrutiny..................................................................................................................63
Field Enquiry and Report.........................................................................................63
Acceptance............................................................................................................63
Registration Certificate............................................................................................63
Rejection................................................................................................................64
Grounds for rejection...............................................................................................64
How long will all this take?......................................................................................64
Appeal....................................................................................................................64
Can the courts help?...............................................................................................64

Common Problems..........................................................................................64

Only registered NGOs.............................................................................................64
Three years.............................................................................................................65
No foreigners...........................................................................................................65
No time frame.........................................................................................................65
Reason for refusal?.................................................................................................65

Filling up FC-8..................................................................................................65

1. Background........................................................................................................65
2. Convictions.........................................................................................................66
3. Branch or Associate...........................................................................................66
4. Prior-permission..................................................................................................66
5. Newspapers........................................................................................................66
6. Earlier applications.............................................................................................67
7. Activities and Area..............................................................................................67
8. Politics...............................................................................................................67
9. Bank Account.....................................................................................................67
9A. Recommendation Certificate.............................................................................67
10. Additional Information........................................................................................68

Undertaking......................................................................................................68

Sign and Date.........................................................................................................68
Sending the form.....................................................................................................68

Check-list of Documents to be attached..........................................................69

Basics of FC-3..........................................................................................70

What is FC-3..........................................................................................................70
Who should file FC-3..............................................................................................70
Due Date................................................................................................................70

( xi )File it Each Year.....................................................................................................70
FC-3 Form revised (July 2001).................................................................................70

Filling the Form.................................................................................................70
Year..........................................................................................................70
Heading 1: Association’s Details.................................................................70

Item (i): Name and Address...............................................................................70
Item (ii): FCRA Registration...............................................................................71
Item (iii): Prior Permission.................................................................................71
Item (iv): Nature of Association..........................................................................71
Item (v): Religious..............................................................................................71

Heading 1A: Interest, etc.............................................................................71

Item (i): Foreign contribution..............................................................................71
Item (ii)(a): Interest on FCRA bank account.......................................................71
Item (ii)(b): Other interest..................................................................................71

Heading 2: Purpose-wise Receipt and Utilisation........................................71

Column 2: Purpose............................................................................................72
Classifying your expenses...........................................................................72
Columns 3, 4: Previous Balance........................................................................72
Columns 5 to 9: Receipts..................................................................................72
First Recipient.............................................................................................72
Second Recipient........................................................................................72
Columns 5 and 7: Receipts in Cash.............................................................72
Columns 6 and 8: Receipts in Kind..............................................................72
Column 9: Total Receipts.............................................................................72
Columns 10 and 11: Amount Utilised.................................................................73
Columns 12 and 13: Balance.............................................................................73
Add Up the Columns.........................................................................................73

Heading 3: Bank Details..............................................................................73
Heading 4: Donor Details............................................................................73

(i) Institutional Donors.......................................................................................73
Second Recipient........................................................................................73
(ii) Large Individual Donors.................................................................................74
(iii) Small Individual Donors................................................................................74

Heading 5: Country-wise Receipts..............................................................74
Declaration..................................................................................................74
CA Certificate..............................................................................................74

( xii )

FC-3 Annexures..........................................................................................74

Intricacies of FC-3......................................................................................75

Opening Items..................................................................................................75

Address..................................................................................................................75
FCRA registration cancelled...................................................................................75
Summary of Interest................................................................................................75

Table 2: Receipt and Utilisation.........................................................................75

FCRA Loans...........................................................................................................75
Receipts in Kind.....................................................................................................75
Valuation.................................................................................................................76
FC-6

..........................................................................................................

76Materials not reported.......................................................................................76
Who should report?...........................................................................................76
Micro-credit / Revolving Fund..................................................................................76
‘56: Other Activities’................................................................................................76
Interest...................................................................................................................76
Bank Interest.....................................................................................................76
Revolving Fund Interest......................................................................................77
Corpus Interest..................................................................................................77
Second Recipient....................................................................................................77
Non-earmarked Donations.......................................................................................77
Sale of Assets........................................................................................................77
Transfers to Other NGOs........................................................................................77
Level of Detail.........................................................................................................77

Unutilised balances..........................................................................................78

In Cash...................................................................................................................78
In Kind....................................................................................................................78

Loan transactions with Indian Section..............................................................78

For opening bank account.......................................................................................78
During the year.......................................................................................................78

Bank Details.....................................................................................................79
Table 4: Donor Details......................................................................................79

Box Collections......................................................................................................79
Small Individual Donors...........................................................................................79
More on Individual Donors.......................................................................................80

Table 5: Country Chart......................................................................................80


( xiii )Country-wise Receipts............................................................................................80
Donation Box Collections..................................................................................80
From Another Indian Agency.............................................................................80

Reconciliation...................................................................................................80

Tables 2 and 4........................................................................................................80
Table 2: Cross-check Unutilised Balance in Cash...................................................80
Table 2: Cross-check Balance in Kind.....................................................................81

Closing Items...................................................................................................81

Signing FCRA Accounts..........................................................................................81
1. Balance Sheet..............................................................................................81
2. Receipts and Payments................................................................................81
CA Certificate....................................................................................................81
Accounting Standards.............................................................................................81
Proof of posting.......................................................................................................82
Copy to Donors.......................................................................................................82
Filing Nil FC-3.........................................................................................................82
Penalty for not filing FC-3........................................................................................82
Concealing Information............................................................................................83
Revising your FC-3..................................................................................................83

Maintaining Form FC-6...............................................................................84

Foreign Contribution.........................................................................................84

What is FC-6..........................................................................................................84
But our Donors maintain it…...................................................................................84
Ok, where can we get the form?..............................................................................84

How do we maintain it......................................................................................84

Only for non-cash stuff............................................................................................84
One page for each item...........................................................................................84
What if some of the stuff has to be sold…...............................................................85
Items less than Rs.1,000........................................................................................85

Where do we file FC-6.....................................................................................85

How long should we keep it.....................................................................................85

Step-by-step procedure....................................................................................85

Description of Article...............................................................................................85
Receipts.................................................................................................................85
1. Date..............................................................................................................85
2. Donor............................................................................................................85
( xiv )
3. Mode.............................................................................................................85
4. Purpose........................................................................................................85
5. Quantity........................................................................................................86
6. Approximate Value........................................................................................86
7. Intimation......................................................................................................86
Utilisation................................................................................................................86
8. Date..............................................................................................................86
9. Beneficiary....................................................................................................87
10. Purpose......................................................................................................87
11. Utilised by NGO..........................................................................................87
12. Sold off........................................................................................................87
13. Transferred..................................................................................................87
14. Sale recovery..............................................................................................87
15. Entry reference............................................................................................87
16. Closing Balance..........................................................................................87

Declaration and Signature................................................................................88
Open a new account each year.......................................................................88
Auditing FC-6....................................................................................................88

FCRA Fellowships.....................................................................................89

Key features of a fellowship..............................................................................89
Valuing the Fellowship......................................................................................89

Splitting Hairs.........................................................................................................90

FCRA: Issues and Formalities.........................................................................90

Routed fellowships..................................................................................................90
No permission or registration..................................................................................90
Prohibited...............................................................................................................90
Journalists..............................................................................................................91
Accounts and Income Tax.......................................................................................91
File Form FC-5........................................................................................................91
Who should file FC-5..............................................................................................91
Filling up FC-5........................................................................................................91
When and Where....................................................................................................92

FCRA Penalties.........................................................................................93

The Power of the Law......................................................................................93
Offenses and Penalties: Ready-Reckoner.......................................................94

( xv )

Section III: Intricacies.................................................................99

Understanding FCRA...............................................................................101

Foreign Source...............................................................................................101

1. Individuals.........................................................................................................101
a. Non-resident Indians (NRIs).........................................................................101
b. Persons of Indian Origin (PIOs)...................................................................101
c. Dual Citizenship..........................................................................................102
2. Government......................................................................................................102
3. International Agencies.......................................................................................102
4. Non-profit organisations....................................................................................102
a. Trusts..........................................................................................................103
b. Foundations................................................................................................103
c. Society, clubs, etc......................................................................................103
d. Corporations................................................................................................103
e. Trade Unions...............................................................................................103
5. Business Organisations....................................................................................104
a. Company....................................................................................................104
b. Subsidiary...................................................................................................104
c. Corporation..................................................................................................104
d. Multi-national Corporation (MNC).................................................................104
Permitted institutions............................................................................................104
FC Receivers.................................................................................................105

1. Political parties.................................................................................................105
2. Organisations of a political nature.....................................................................105
3. Individuals in public life......................................................................................105
4. NGOs...............................................................................................................105
5. Private individuals..............................................................................................106
6. Business organisations.....................................................................................106

Business Transactions...................................................................................106
Organizations of a political nature..................................................................106

Mysteries of FCRA...................................................................................111

1. Prior permission..........................................................................................111
2. FCRA Number.............................................................................................111
3. Change of Bank Account.............................................................................111
4. More than one bank account......................................................................112
( xvi )

5. Interest on FCRA Funds.............................................................................112
6. Revolving Fund...........................................................................................112
7. Income from FCRA IGP..............................................................................112
8. Sale of fixed assets....................................................................................112
9. Separate Cash Book and Ledger...............................................................113
10. Consolidated Balance Sheet....................................................................113
11. Disclosing non-cash grants in form FC-3.................................................113
12. Don’t File form FC-6.................................................................................113
13. Second or subsequent recipient...............................................................113
14. Revising form FC-3..................................................................................113
15. Fellows: file form FC-5.............................................................................113
16. Shadow lending........................................................................................113
17. Funds to non-FCRA NGOs......................................................................114
18. Governing Body........................................................................................114
19. Funding Agencies.....................................................................................114
20. Form FC-3 in duplicate.............................................................................114
21. Elections...................................................................................................114

Puzzles of FCRA......................................................................................115

1. FCRA grants to individuals.........................................................................115
2. Business people/ professionals.................................................................115
3. Electronic media.........................................................................................115
4. Change of bank account number...............................................................115
5. Advances from FC funds............................................................................116
6. Loan between FC and Indian......................................................................116
7. Mahila Mandals...........................................................................................116
8. Indian office of foreign Agency....................................................................117
9. Opening branch abroad..............................................................................117
10. Organisations of a political nature............................................................117
11. Churches and Ashrams............................................................................117
12. Does second receiver need FCRA...........................................................117
13. When do FC funds become Indian...........................................................117
14. Catalogue sponsorship.............................................................................118
15. Souvenir Advertisements..........................................................................118
16. Relatives...................................................................................................118

( xvii )

17. Unrestricted FC funds..............................................................................118
18. Unrestricted FC funds – under Prior Permission.....................................119
19. FEMA and FCRA......................................................................................119

Fund-raising and FCRA...........................................................................120

1. Anonymous donations................................................................................120
2. NRI donations.............................................................................................120
3. Charity events.............................................................................................120
4. Raising funds abroad.................................................................................121
5. Consultancy income of NGO......................................................................121
6. Sale of Publications....................................................................................121
7. Staff Recoveries.........................................................................................121
8. Hire Charges..............................................................................................122
9. Guest recoveries........................................................................................122
10. Recoveries from Beneficiaries.................................................................122
11. Endowment Funds...................................................................................122
12. Endowment Investments..........................................................................122
13. Endowment Income.................................................................................122
14. How much................................................................................................122
15. Exchange rate variations..........................................................................123
16. Unused prior-permission..........................................................................123
17. Foreign Volunteers....................................................................................123
18. Items less than thousand rupees.............................................................123
19. Old items in FC-6 and FC-3.....................................................................123
20. PL-480......................................................................................................123
21. Bilateral funds...........................................................................................123

Section IV: Forms.....................................................................125

Form FC-1A...................................................................................................127
Form FC-3......................................................................................................133
Form FC-5......................................................................................................147
Form FC-6......................................................................................................149
Form FC-8......................................................................................................150
Form X: Declaration regarding newspaper / newsletter.................................155


( xviii )

The Foreign Contribution (Regulation) Act, 1976.......................................156

Section 1. Short title, extent, application and commencement...................................156
Section 2. Definitions–................................................................................................156
Section 3. Application of other laws not barred..........................................................158Section 4. Candidate for election, etc. not to accept foreign contribution–.................159
Section 5. Organisation of a Political nature not to accept foreign contributionexcept with the prior permission of the Central Government..................................160
Section 6. Certain associations and persons receiving foreign contribution to giveintimation to the Central Government–..................................................................160
Section 7. Recipients of scholarships, etc. to give intimation to the Central Govt.......161
Section 8. Persons to whom Section 4 shall not apply–............................................161
Section 9. Restrictions on acceptance of foreign hospitality–....................................162
Section 10. Power of Central Government to prohibit receipt of foreign contribution,etc. in certain cases.............................................................................................162
Section 11. Application to be made in prescribed form for obtaining priorpermission to accept foreign contribution or hospitality–.......................................163
Section 12. Power to prohibit payment of currency received in contraventionof the Act–............................................................................................................163
Section 13. Recipients of foreign contribution to maintain accounts, etc.–.................163
Section 14. Inspection of accounts or records–.........................................................164
Section 15. Seizure of accounts or records...............................................................164
Section 15 A. Audit of accounts–...............................................................................164
Section 16. Seizure of article or currency received received in contraventionof the Act.............................................................................................................164
Section 17. Seizure to be made in accordance with the Code of CriminalProcedure, 1973–..................................................................................................165
Section 18. Confiscation of article or currency obtained in contraventionof the Act..............................................................................................................165
Section 19. Adjudication of confiscation–..................................................................165
Section 20. Opportunity to be given before adjudication of confiscation–....................165
Section 21. Appeal–..................................................................................................165
Section 22. Penalty for article or currency obtained in contravention of Sec. 12.........166
Section 23. Punishment for the contravention of any provision of the Act...................166
Section 24. Power to impose additional fine where article or currency is notavailable for confiscation–.....................................................................................166
Section 25. Penalty for offences where no separate punishment has beenprovided................................................................................................................166
Section 25-A. Prohibition of acceptance of foreign contribution–.................................166
Section 26. Offences by companies–........................................................................166


( xix )
Section 27. Bar to the prosecution of offences under the Act–...................................167
Section 28. Investigation into cases under the Act–...................................................167
Section 29. Protection of action taken in good faith–.................................................167S
ection 30. Power to make rules–.............................................................................167
Section 31. Power to exempt–...................................................................................168
Section 32. Act not to apply to Government transactions–........................................168

Foreign Contribution (Regulation) Rules, 1976..........................................169

Rule 1. Short title and commencement–....................................................................169
Rule 2. Definitions–...................................................................................................169
Rule 3. Application for obtaining prior permission to receive foreign contributionor foreign hospitality–............................................................................................169
Rule 3-A. application for registration–.........................................................................169
Rule 4. Intimation regarding receipt of foreign contribution or scholarship orstipend or any payment of a like nature or foreign hospitality................................169
Rule 5. Intimation of receipt of scholarship, stipend or any payment of a likenature, when not necessary..................................................................................170
Rule 6. Authority to whom an application or intimation to be sent–............................170
Rule 7. Manner of service of prohibitory order or any other order or direction..............170
Rule 8. Maintenance of Accounts–............................................................................171
Rule 9. Limits up to which an officer, not below the rank of an Assistant Sessions Judge may make adjudication of confiscation–.....................................171

1

Section I: Funds, Sources & Receivers

Before we go into the technicalities of FCRA, we try to get an overview of the money involved:how much money is received each year, who gives this money, who receives, and what is itused for.The data given in this section is mostly based on reliable sources (except the narratives in theprofiles). However, please keep in mind that this is not all the foreign aid that flows into India – aid received and redistributed by the Government is not included here. Similarly, aid receivedby NGOs from UN Organisations or the World Bank is not included in these figures.This section includes the following chapters:Inflow of Foreign Contribution 3State-wise Distribution of Foreign Contribution 9Non-Foreign Sources19Foreign Sources25Profiles of Top FC Donors31Profiles of Top FC Receivers44

Sources and Caution

Bulk of the analysis presented in this section is based on the annual ‘Inflow of ForeignContribution Report’ prepared by the Ministry of Home Affairs. This report provides a lot ofvaluable data on foreign contribution. For this analysis, we have used the annual reports for1996-97, 97-98, 98-99, and 99-00. We would like to place on record our appreciation of the hardwork the FCRA Department puts in while compiling this information, despite limited personneland infrastructure.There are some limitations on the present analysis. Some of the charts may be misinterpreted,if taken casually. You are, therefore, requested to carefully read the notes for each chart. Alsoin general:

!

Foreign contribution in kind (material) is sometimes not valued or reported by receiving NGOs.The figures and analysis will be distorted accordingly.

!

The data includes all money reported as received for educational, social, religious, cultural,or economic programs. ‘Social-change institutions’, development organisations, religiousbodies, universities, and hospitals may receive this money as also NGOs set up by theGovernment. For easier reading and in the absence of any definite classification, we haveused the term NGO for all these.

!

The FCRA department actually makes no real distinction between grant making agenciesand NGOs. We have used the term Agency to indicate that an organisation is mainly involvedin making grants to other NGOs.A crore means 10,000,000 or ten million. One crore of Indian Rupees is currently equal to about208,000 US Dollars. A lakh means 100,000.Profiles of the donors given in this section have been compiled from various sources, includingthe Internet. We hold out no warranties for the accuracy or fairness of the information. Pleaseverify the information on your own before arriving at any decisions. We have also avoided theuse of religious honorifics. This is not intended as disrespect to the religious beliefs of anyperson.FCRA means Foreign Contribution (Regulation) Act, 1976.




2

3

Inflow of Foreign Contribution

1

How many are registered

Fresh Registrations and prior-permissions

In 2000-01

2

, about 1,680 associationswere given FCRA registration. Another638 were granted prior-permission toreceive foreign contribution. Fromthese figures, it seems that FCRADepartment has become more liberalin granting FCRA registration.

Present status

By November 2001, a total of 24,204associations were registered withFCRA. Apart from these, about 1,500associations had prior-permission.Together, this comes to about 26,000associations.

How many file FC-3

Not all. Only about 60-70% file FC-3 regularly.The number of associations filing FC-3 hasgrown at about 5% annually over the last 9years. This does not mean improvedcompliance. Why? Because number ofregistered associations has also grown overlast 9 years.

What about the rest

The law requires that FC-3 must be filed

3

even if no foreign contribution is received in a year. However, the balance 30-40% seems to bequite consistent in not filing their FC-3 in time!FCRA Department then issues them a notice. If they ignore the notice, this leads to cancellationof FC registration. In the past, Government has cancelled FC registration of 203 organizationsin July-96 and another 497 in September 1997.

How much did they receive

Going back to the ones who did file their FC-3, let’s see how much was received.Foreign contribution has gone up from Rs.1,412 crores in 91-92

4 to Rs.3,925 crores in 99-00.

1 Based on AccountAble 63: Inflow of FC: 98-99/ 99-00

2 April through March

3 By an FCRA registered association

4 15 months: Jan ’91 to Mar ’92

How many filed their FC-3

9 , 0 1 2 9 1 - 9 2 9 2 - 9 3 9 3 - 9 4 9 4 - 9 5 9 5 - 9 6 9 6 - 9 7 9 7 - 9 8 9 8 - 9 9 9 9 - 0 0 1 0 , 2 0 1 1 0 , 9 6 3 1 1 , 4 2 2 1 0 , 9 5 0 1 2 , 1 3 6 1 2 , 1 9 8 1 3 , 7 7 5 1 3 , 9 8 6







4 Religious

That means an annual growth rate of 13.63% over these nine years. The rate has been loweredsomewhat due to stagnation in 94-95.If you look at the average fundsreceived per association, this hasalso gone up. In 92-93, the averagewas Rs.15.5 lakhs. In 99-00, it hadrisen to Rs.28.1 lakhs. This is anincrease of 9% per year per NGO.What contributes to this rate ofgrowth? Firstly, there is inflation.Budgets have to increase every year just to remain at the same in realpurchasing power.Secondly, Rupee has fallen quite abit over the last seven years. In 1992, a dollar would get you 28 Rupees. Today, it gets you48 Rupees. In some ways, this increases the ability of Agencies to fund programs in India.Thirdly, program activities have also probably increased over the years.

What did they receive it for

The FC-3 classification

Many NGOs find it difficult to slot their funds into the categories set out in form FC-3. Also,quite often the purposes giving inFC-3 overlap.There is also another category:“Other activities”. Around 30% ofthe funds are reported under this.While this makes analysis difficult,it also shows how difficult it is tocategorize NGOs’ work.

Another perspective…

The table probably looks excitingto mathematicians. For simplehuman beings, it is not of muchuse. The chart here shows asimpler picture, with fewercategories. This is a percentagechart and does not give moneyfigures. Rather it shows the relativepercentage under a category ineach year.

9 1 - 9 2

9 2 - 9 3 9 3 - 9 4 9 4 - 9 5

9 5 - 9 6 9 6 - 9 7 9 7 - 9 8 9 8 - 9 9 9 9 - 0 0

































5

Purpose of ReceiptAmount in Crores 96-9797-9898-9999-00

1.Health Care & Family Welfare284.6306.4407.9449.42.Sanitation
2.14.4********
3.Welfare of Women & Children********56.399.9
4.Help for Poor, Aged & Destitute171.4210.1272.0230.1
5.Care of Orphans210.8191.3172.9286.2
6.Construction/ Extension of School/ College Building9
7.3290.0145.2184.67.Repair/ Maintenance of School/ College Building70.249.936.431.5
8.Construction/ Extension of other Building143.0115.4185.2255.8
9.Repair/ Maintenance of other Building41.527.074.442.2
10.Housing10.816.0********
11.Research138.8125.966.074.0
12.Stipends/ Scholarship47.156.742.763.4
13.Vocational/ Technical Training********40.648.5
14.Education/ Literacy Programs********126.1156.2
15.Seminars/ Conference/ Meetings********20.027.0
16.Construction/ Extension of places of Worship41.939.991.199.5
17.Repairs/ Maintenance of places of Worship69.240.931.724.6
18.Education of Priest & Preachers53.747.760.676.1
19.Religious Functions74.746.657.458.6
20.Publication of Religious Literature20.211.423.524.6
21.Agricultural Activities17.531.720.626.3
22.Animal Husbandry9.05.15.08.6
23.Environmental Programs3.57.716.918.9
24.Rural Development274.2279.9380.3522.9
25.Cultural Programs4.23.6********
26.Theatre/ Films, etc.11.73.66.95.5
27.Maint. of Places of Historical & Cultural Importance0.10.61.54.7
28.Relief for Natural Calamities25.136.849.2163.3
29.Establishment Expenses********163.1155.4
30.Welfare of other backward classes********2.52.4
31.Welfare of the Scheduled Tribes********9.510.2
32.Welfare of the Scheduled Castes********1.11.9
33.Other Activities749.1915.9836.3772.3

Total 2571.72864.53402.93924.6

**** Change in FC-3 classification. Therefore, data not reported under this category.




6 What do the table and the chart tell us?

"

Money for purely religious activities remains more or less the same, around 10%. Of course,contrary to popular belief, this money is not for Christian missionaries alone. Money comesin for other religions also, including Hinduism.

"

Welfare type activities

5

continue to be important, taking up as much 25% of the total flow.

"

Very little money has been reported for environment – rising from a mere Rs.3.54 crores(0.14%) in 96-97 to 18.9 crores (0.48%) in 99-00. This is contrary to the reality in the field.Numerous NGOs have spent large sums on environmental programs such as watersheddevelopment, soil and water conservation, forestry, pollution, and other similar issues.

"

Similarly, the amount for disaster relief has been low over this period. A total of Rs.111.07crores was received from 96-97 to 98-99. These were also years when there was no majorearthquake or cyclone. Tragically, these figures jumped to 163.33 crores in 99-00, with theOrissa cyclone in Oct-99.

"

Though India is a land of history, very little is received by NGOs for maintenance of historicaland cultural places. From 96-97 to 99-00, this came to just Rs.6.95 crores! Partly, this is dueto the sprawling presence of ASI

6

. Then again, this work is probably low priority for mostinternational agencies except UNESCO. And UNESCO funds will not be reported underFCRA.

"

Quite a bit comes in for building construction, though:And then some money isspent on repairs andmaintenance. Over the lastfour years, this amounted toRs.539.49 crores.

How many are Religious…

The break-up given here is as perdetails furnished so far to FCRA

7

.We estimate that this information isprobably available for around 15,000associations only. The balance 8,000or so associations (55% of 15,000)are likely to be non-religious.

5

This includes money spent on health education also.

6

Archaeological Survey of India. Foreign funds received by ASI will not be reported under FCRA.

7

Rajya Sabha unstarred question no. 1231 for 7-Mar-01

ReligionNumbers

Buddhist70Christian5,100Hindu321Muslim205Sikh10Other religions963

Total Religious associations6,669

96-9797-9898-9999-00

School/ colleges97.31290.01145.19184.64Other buildings143.03115.43185.25255.79Religious buildings41.8839.8891.0799.49Total (Rs. Cr.)282.22445.32421.51539.92

Percent of total FC11%15.5%12.4%13.8%


7

96-9797-9898-9999-00Total

How many received a crore andabove…

With the continuing erosion of Rupee, acrore

8

today is not what it used to be.In 91-92, just 249 associations receivedover a crore. By 99-00, this had risen to684 associations.

And the top 5 were…

If you add up the funds received over last nine years 9, who received the most? The report names Maharishi Ved Vigyan Vishwa Vidyapeetham.The top five and their inflow is given below:

Name(Rs. Cr.)

1.Maharishi Ved Vigyan Vishwa Vidyapeetham, Andhra Pradesh3462.Foster Parents Plan International, New Delhi3173.World Vision of India, Tamil Nadu2904.Sri Sathya Sai Central Trust, Andhra Pradesh 2785.CSI 10
Council for Child Care, Karnataka220
Country of Origin…

Where does all this money come from? The MHA reports for last four years (1996-97 to 1999-00) list about 178 countries, ranging from USA (Rs.1,086.32 crores) to Macau, Laos, Sudan(Rs.1,000 each!). Then there are smaller donors who are not listed individually – this adds upto around Rs.57, 52, 37 and 29 crores in 96-97, 97-98, 98-99, and 99-00 respectively.The following table summarizes contribution of top sixteen donor countries who have contributedat least Rs.100 crores over last four years (1996-97 to 1999-00):

Amount in Rupees CroresAnnualCountryGrowthrate in %

1.United States of America
582.22731.07892.431,086.323,292.04232.
Germany548.87577.08626.44650.732,403.116

436069282423202721191513171950373531

4 3 05 3 6 5 4 0 5 8 1

>10 crores5-10 crores1-5 crores

8

10 million

9

From 91-92 to 99-00

10 Church of South India


















8

96-9797-9898-9999-00TotalAmount in Rupees CroresAnnualCountryGrowthrate in %

3.United Kingdom302.35376.47480.26662.731,821.82304.Italy196.55198.47240.14261.58896.75105.
Netherlands185.58169.66194.99224.88775.1276.
Switzerland132.89140.62167.12188.07628.70127.
Spain62.4678.83137.95153.80433.05358.
Canada66.7369.4979.1793.45308.83129.
France59.5658.7078.2373.54270.03710.
Belgium49.1950.2175.1873.69248.271411.
Australia40.2063.6242.9243.41190.15312.
Austria39.6828.4146.3847.03161.50613.
Sweden32.6227.8830.0332.83123.370.214.
Norway20.6330.7235.5233.82120.691815.
Japan20.0538.1628.6727.69114.571116.
Denmark24.5021.3326.1733.68105.6711
Flow of funds from Spain, UK and USA is rising faster than other countries. For example, fund from Spain have grown annually at a compounded rate of 35%. In the case of UK, the rate of growth is 30%. Growth rate in the case of USA is also higher than the rest at 23% per year.

































9

0%10%20%30%40%50%60%70%80%90%100%96-97 97-98 98-99 99-00OthersManipurW. BengalOrissaBiharUttar PradeshHimachalRajasthanMadhya PradeshMaharashtraKarnatakaAndhraKeralaTamilnadu




Andaman & Nicobar

1 . 5 7 0 . 9 1

96-9797-98 98-9999-00

0 . 2 3 1 . 3 7

State-wise Distribution of Foreign Contribution

11

This analysis provides information on how the foreign contribution is distributed across thecountry – which areas receive more funds, which do not. It is hoped that this will provide usefuldata for people working with NGOs and Agencies.

State Shares: 96-97 to 99-00

Which state gets how muchattention from theAgencies? This is not easyto work out. FCRAauthorities treat NGO andAgency on the samefooting. This means that ifa state is hosting anAgency’s office (forexample, Delhi orKarnataka), then itsreceipts will appear higher.But much of this may betransferred by the Agencyto other states. Secondly,as there are many states,we look only at selectedstates in the chart.

State Profiles: 96-97 to 99-00

Correlating the state-wisedata helps us understandmore about how FCRA registered NGOs and funds are spread across the country. Remember,however, that some of the averages related to funds may be distorted due to inclusion of grant-making Agencies in the FC data. Some NGOs may be working in multiple states, thoughheadquartered in a particular state. Also simple averages like these are not really suitable forgauging an activity as complex as development or social work.In the following paragraphs, we look more closely at each of the states, from an FCRA angle.Keep in mind that population data is from 2001 census. Secondly, we are talking only aboutthose organizations, which received foreign funds and filed an FC-3. Union Territories are markedwith the abbreviation UT. Some of this data is given in a table at the end of the state profiles.

Andaman & Nicobar (UT)

"

Received Rs.1.37 crores, 1.57 crores, 0.91 crores and 0.23 croresin 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: – 44.83 %

"




Population (2001) 3.56 lakhs

"

Land area (Sq. K.M.) 8,249

Seven organisations received Rs.0.23 crores in 99-00, or an averageof Rs.3.34 lakhs each. Average funds per person came to Rs.6.56.Average population per organisation was 50,895 people. Average

11

Based on AccountAble 64, 65: Profiles of Top FC Receivers

































10

Assam

1 4 . 8 8 1 7 . 3 22 2 . 9 8 2 4 . 3 5

96-9797-98 98-9999-00

Arunachal

0 0 . 2 8 0 . 5 10 . 6 4

96-9797-98 98-9999-00

Andhra

96-9797-98 98-9999-00

3 5 2 . 7 2 3 9 8 . 0 8 4 8 7 . 2 9 5 3 6 . 9 9

area under each organisation (in sq. k.m.) was 1,178 (an area approx. 34 kms. wide and 34.5kms. long).

Andhra Pradesh

"

Received Rs.352.72 crores, 398.08 crores, 487.29 crores and 536.99crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 15.04%

"

Population (2001) 757.28 lakhs

"

Land area (Sq. K.M.) 275,068

1,616 organisations received Rs.536.99 crores in 99-00, or an averageof Rs.33.23 lakhs each. Average funds per person came to Rs.70.91.Average population per organisation was 46,861 people. Averagearea under each organisation (in sq. k.m.) was 170 (an area approx.13 kms. wide and 13 kms. long).

Arunachal Pradesh

"

Received Rs.0.28 crores, 0.51 crores and 0.64 crores in 97-98, 98-99, 99-00

"

Annual growth rate: 51.19%

"

Population (2001) 10.91lakhs

"

Land area (Sq. K.M.) 84,743

Six organisations received Rs.63.66 lakhs in 99-00, or an averageof Rs.10.61 lakhs each. Average funds per person came to Rs.5.83.Average population per organisation was 181,853 people. Averagearea under each organisation (in sq. k.m.) was 14,124 (an areaapprox. 118 kms. wide and 119 kms. long).

Assam

"

Received Rs.14.88 crores, 17.32 crores, 22.98 crores and 24.35crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 17.84 %

"

Population (2001) 266.38 lakhs

"

Land area (Sq. K.M.) 78,438

163 organisations received Rs.24.35 crores in 99-00, or an averageof Rs.14.94 lakhs each. Average funds per person came toRs.9.14. Average population per organisation was 163,426 people.Average area under each organisation (in sq. k.m.) was 481 (anarea approx. 22 kms. wide and 22 kms. long). Assam is classifiedas a sensitive area in the report.

Bihar

"

Received Rs.84.02 crores, 83.24 crores, 100.6 crores and 104.75crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 7.62 %

"

Population (2001) 1,097.88 lakhs (incl. Jharkhand)

"

Land area (Sq.K.M.) 173,877

723 organisations received Rs104.75 crores in 99-00, or an averageof Rs.14.49 lakhs each. Average funds per person came to Rs.9.54.Average population per organisation was 151,851 people. Averagearea under each organisation (in Sq. K.M.) was 240 (an area approx.15 kms. wide and 16 kms. long).

Bihar

8 4 . 0 2 8 3 . 2 4 1 0 0 . 6 1 0 4 . 7 5

96-9797-98 98-9999-00

































11

Goa

1 3 . 2 8 1 2 . 9 3

96-9797-98 98-9999-00

1 3 . 2 9 1 3 . 8 1

Delhi

3 4 6 . 3 5 4 1 8 . 5 2 4 8 7 . 2 8 6 3 6 . 1 1

96-9797-98 98-9999-00

Dadra Nagar Haveli

0 . 7 2 0 . 7 1 0 . 4 0 . 2 6

96-9797-98 98-9999-0096-9797-98 98-9999-00

Chandigarh

1 . 8 72 . 2 82 . 6 2 1 . 4




Chandigrah (UT)

"

Received Rs.1.87 crores, 1.4 crores, 2.28 crores and 2.62 crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 11.9 %

"

Population(2001) 9.01 lakhs

"

Land area (Sq. K.M.) 114

17 organisations received Rs.2.62 crores in 99-00, or an average ofRs.15.39 lakhs each. Average funds per person came to Rs.29.03.Average population per organisation was 52,995 people. Averagearea under each organisation (in sq. k.m.) was 7 (an area approx.2 kms. wide and 3.5 kms. long).

Dadra & Nagar Haveli (UT)

"

Received Rs.0.72 crores, 0.4 crores, 0.71 crores and 0.26 crores in96-97, 97-98, 98-99, 99-00

"

Annual growth rate: – 28.79 %

"

Population (2001) 2.2 lakhs

"

Land area (Sq. K.M.) 491

12 organisations received Rs.0.26 crores in 99-00, or an averageof Rs.2.2 lakhs each. Average funds per person came to Rs.11.99.Average population per organisation was 18,371 people. Averagearea under each organisation (in sq. k.m.) was 41 (an area approx.6 kms. wide and 7 kms. long).Dadra & Nagar Haveli is classified as a predominantly tribal Union Territory in the report.

Daman & Diu (UT)

"

Received Rs.0.006 crores in 96-97. Other years’ data not available. For 99-00, data combined withGoa.

"

Population (2001) 1.58 lakhs

"

Land area (Sq. K.M.) 112

No foreign contribution was reported by 3 organisations from Daman and Diu Islands.

Delhi

"

Received Rs.346.35 crores, 418.52 crores, 487.28 crores and 636.11crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 22.46 %

"

Population (2001) 137.83 lakhs

"

Land area (Sq. K.M.) 1,483

735 organisations received Rs.636.11 crores in 99-00, or an averageof Rs.86.55 lakhs each. Average funds per person came toRs.461.52. Average population per organisation was 18,752 people.Average area under each organisation (in sq. k.m.) was 2 (anarea approx. 1 km. wide and 2 kms. long).

Goa

"

Received Rs.13.28 crores, 12.93 crores, 13.29 crores and 13.81 croresin 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 1.3 %

"

Population(2001) 13.44 lakhs

"

Land area (Sq. K.M.) 3,702

104 organisations received Rs.13.81 crores in 99-00, or an averageof Rs.13.27 lakhs each. Average funds per person came toRs.102.72. Average population per organisation was 12,923 people.Average area under each organisation (in sq. k.m.) was 36 (an areaapprox. 6 kms. wide and 6 kms. long).

































12

J & K

9 . 9 3 2 . 2 6 1 4 . 8 9 1 3 . 6 4

96-9797-98 98-9999-00

Haryana

6 . 7 1 5 . 9 3 5 . 3 8 6 . 7

96-9797-98 98-9999-00

Gujarat

8 0 . 2 5 7 1 . 9 6 1 0 2 . 0 9 1 2 6 . 9 5

96-9797-98 98-9999-00

Gujarat

"

Received Rs.80.25 crores, 71.96 crores, 102.09 crores and 126.95crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 16.52 %

"

Population (2001) 505.97 lakhs

"

Land area (Sq. K.M.) 196,024

551 organisations received Rs.126.95 crores in 99-00, or an averageof Rs.23.04 lakhs each. Average funds per person came toRs.25.09. Average population per organisation was 91,828 people.Average area under each organisation (in sq. k.m.) was 356 (anarea approx. 18 kms. wide and 20 kms. long).

Haryana

"

Received Rs.6.71 crores, 5.93 crores, 5.38 crores and 6.70 crores in96-97, 97-98, 98-99, 99-00

"

Annual growth rate: – 0.05 %

"

Population(2001) 210.83 lakhs

"

Land area (Sq. K.M.) 44,212

74 organisations received Rs.6.70 crores in 99-00, or an averageof Rs.9.06 lakhs each. Average funds per person came to Rs.3.18.Average population per organisation was 284,905 people. Averagearea under each organisation (in sq. k.m.) was 597 (an area approx.24 kms. wide and 25 kms. long).

Himachal Pradesh

"

Received Rs.40.16 crores, 44.50 crores, 64.32 crores and 68.20 croresin 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 19.31 %

"

Population(2001) 60.77 lakhs

"

Land area (Sq. K.M.) 55,673

77 organisations received Rs.68.20 crores in 99-00, or an averageof Rs.88.57 lakhs each. Average funds per person came toRs.112.22. Average population per organisation was 78,925 people.Average area under each organisation (in sq. k.m.) was 723 (anarea approx. 27 kms. wide and 27 kms. long).

Jammu & Kashmir

"

Received Rs.9.93 crores, 2.60 crores, 14.89 crores and 13.64 croresin 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 11.16 %

"

Population (2001) 100.7 lakhs

"

Land area (Sq. K.M.) 101,387

34 organisations received Rs.13.64 crores in 99-00, or an averageof Rs.40.12 lakhs each. Average funds per person came to Rs.13.55.Average population per organisation was 296,174 people. Averagearea under each organisation (in sq. k.m.) was 2,982 (an areaapprox. 54 kms. wide and 55 kms. long).J & K is classified as a sensitive area in the report.

Himachal

4 0 . 1 6 6 4 . 3 2 6 8 . 2

96-9797-98 98-9999-00

4 4 . 5

































13

Maharashtra

2 7 4 . 9 1 3 2 3 . 5 2 3 2 2 . 6 1 3 5 0 . 2 3

96-9797-98 98-9999-00

M. P.




5 7 . 8 1 6 0 . 3 5 8 0 . 6 7 8 4 . 5 7

96-9797-98 98-9999-00

Kerala

2 4 2 . 3 2 5 5 . 3 8 3 2 2 . 4 2 3 6 1 . 7

96-9797-98 98-9999-0096-9797-98 98-9999-00

Karnataka

2 7 4 . 1 6 3 1 5 . 8 8 3 5 4 . 7 3 4 1 1 . 3 4

Karnataka

"

Received Rs.274.16 crores, 315.88 crores, 354.73 crores and 411.34crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 14.48 %

"

Population (2001) 527.34 lakhs

"

Land area (Sq. K.M.) 191,791

1,154 organisations received Rs.411.34 crores in 99-00, or an averageof Rs.35.64 lakhs each. Average funds per person came to Rs.78.Average population per organisation was 45,697 people. Averagearea under each organisation (in sq. k.m.) was 166 (an area approx.13 kms. wide and 13 kms. long).

Kerala

"

Received Rs.242.30 crores, 255.38 crores, 322.42 crores and 361.70crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 14.29 %

"

Population (2001) 318.39 lakhs

"

Land area (Sq. K.M.) 38,863

1,483 organisations received Rs.361.70 crores in 99-00, or an averageof Rs.24.39 lakhs each. Average funds per person came toRs.113.60. Average population per organisation was 21,469 people.Average area under each organisation (in sq. k.m.) was 26 (an areaapprox. 5 kms. wide and 5 kms. long).

Lakshadweep (UT)

"

Population (2001) 0.61 lakhs

"

Land area (Sq. K.M.) 32

No foreign contribution was reported from Lakshadweep and Minicoy Islands.

Madhya Pradesh

"

Received Rs.57.81 crores, 60.35 crores, 80.67 crores and 84.57crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 13.52 %

"

Population (2001) 811.81 lakhs (incl. Chhattisgarh)

"

Land area(Sq. K.M.) 443,446

432 organisations received Rs.84.57 crores in 99-00, or an averageof Rs.19.58 lakhs each. Average funds per person came toRs.10.42. Average population per organisation was 187,919 people.Average area under each organisation (in sq. k.m.) was 1,026 (anarea approx. 32 kms. wide and 32 kms. long).

Maharashtra

"

Received Rs.274.91 crores, 323.52 crores, 322.61 crores and 350.23crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 8.41 %

"

Population (2001) 967.52 lakhs

"

Land area (Sq. K.M.) 307,713

1,198 organisations received Rs.350.23 crores in 99-00, or an averageof Rs.29.23 lakhs each. Average funds per person came to Rs.36.20.Average population per organisation was 80,761 people. Averagearea under each organisation (in sq. k.m.) was 257 (an area approx.16 kms. wide and 16 kms. long).

































14

Orissa

5 6 . 0 5 5 6 . 9 5 6 8 . 5 21 1 1 . 6 5

96-9797-98 98-9999-00

Nagaland

4 . 3 5 5 . 2 56 . 6 27 . 5 9

96-9797-98 98-9999-00

Mizoram

0 . 8 1 . 0 6 1 . 5 7 0 . 5 1

96-9797-98 98-9999-00

Meghalaya

2 0 . 7 8 2 4 . 0 8 2 6 . 2 9 2 9 . 4 4

96-9797-98 98-9999-00

Manipur

1 0 . 1 8 8 . 7 41 1 . 7 3 9 . 9 3

96-9797-98 98-9999-00

Manipur

"

Received Rs.10.18 crores, 8.74 crores, 11.73 crores and 9.93 crores in96-97, 97-98, 98-99, 99-00

"

Annual growth rate: – 0.83 %

"

Population(2001) 23.89 lakhs

"

Land area (Sq. K.M.) 22,327

218 organisations received Rs.9.93 crores in 99-00, or an averageof Rs.4.55 lakhs each. Average funds per person came to Rs.41.56.Average population per organisation was 10,957 people. Averagearea under each organisation (in sq. k.m.) was 102 (an area approx.10 kms. wide and 10 kms. long).

Meghalaya

"

Received Rs.20.78 crores, 24.08 crores, 26.29 crores and 29.44 croresin 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 12.32 %

"

Population(2001) 23.06 lakhs

"

Land area (Sq. K.M.) 22,429

99 organisations received Rs.29.44 crores in 99-00, or an averageof Rs.29.73 lakhs each. Average funds per person came toRs.127.65. Average population per organisation was 23,294 people.Average area under each organisation (in sq. k.m.) was 227 (anarea approx. 15 kms. wide and 15 kms. long).

Mizoram

"

Received Rs.0.80 crores, 1.06 crores, 1.57 crores and 0.51 crores in96-97, 97-98, 98-99, 99-00

"

Annual growth rate: – 13.93 %

"

Population(2001) 8.91 lakhs

"

Land area (Sq. K.M.) 21,081

12 organisations received Rs.0.51 crores in 99-00, or an averageof Rs.4.23 lakhs each. Average funds per person came to Rs.5.70.Average population per organisation was 74,255 people. Averagearea under each organisation (in sq. k.m.) was 1,757 (an areaapprox. 42 kms. wide and 42 kms. long).

Nagaland

"

Received Rs.4.35 crores, 5.25 crores, 6.62 crores and 7.59 crores in96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 20.39 %

"

Population (2001) 19.89 lakhs

"

Land area (Sq. K.M.) 16,579

42 organisations received Rs.7.59 crores in 99-00, or an average ofRs.18.06 lakhs each. Average funds per person came to Rs.38.15.Average population per organisation was 47,348 people. Averagearea under each organisation (in sq. k.m.) was 395 (an area approx.18 kms. wide and 22 kms. long).

Orissa

"

Received Rs.56.05 crores, 56.95 crores, 68.52 crores and 111.65crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 25.83 %

"

Population (2001) 367.07 lakhs

"

Land area (Sq. K.M.) 155,707

714 organisations received Rs.111.65 crores in 99-00, or an averageof Rs.15.64 lakhs each. Average funds per person came to Rs.30.42.Average population per organisation was 51,410 people. Averagearea under each organisation (in sq. k.m.) was 218 (an area approx.13 kms. wide and 17 kms. long).

































15

Sikkim

1 . 2 6 0 . 3 1 0 . 8 31 . 1 5

Rajasthan

1 8 . 0 2 2 2 . 9 7 3 0 . 4 73 7 . 2 6

96-9797-98 98-9999-00

Punjab

1 4 . 9 8 5 . 8 2 2 3 . 8 3 3 5 . 2 2

96-9797-98 98-9999-00

Pondicherry

9 . 21 0 . 6 7 1 1 . 6 2 1 2 . 4 9

96-9797-98 98-9999-00

Pondicherry (UT)

"

Received Rs.9.20 crores, 10.67 crores, 11.62 crores and 12.49 croresin 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 10.73 %

"

Population(2001) 9.74 lakhs

"

Land area (Sq. K.M.) 492

50 organisations received Rs.12.49 crores in 99-00, or an averageof Rs.24.98 lakhs each. Average funds per person came to Rs.128.26.Average population per organisation was 19,477 people. Averagearea under each organisation (in sq. k.m.) was 10 (an area approx.2 kms. wide and 5 kms. long).

Punjab

"

Received Rs.14.98 crores, 5.82 crores, 23.83 crores and 35.22crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 32.97 %

"

Population (2001) 242.89 lakhs

"

Land area (Sq. K.M.) 50,362

70 organisations received Rs.35.22 crores in 99-00, or an averageof Rs.50.32 lakhs each. Average funds per person came toRs.14.50. Average population per organisation was 346,990people. Average area under each organisation (in sq. k.m.) was719 (an area approx. 24 kms. wide and 30 kms. long).

Rajasthan

"

Received Rs.18.02 crores, 22.97 crores, 30.47 crores and 37.26crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 27.40 %

"

Population (2001) 564.73 lakhs

"

Land area (Sq. K.M.) 342,239

220 organisations received Rs.37.26 crores in 99-00, or an averageof Rs.16.94 lakhs each. Average funds per person came to Rs.6.60.Average population per organisation was 256,696 people. Averagearea under each organisation (in sq. k.m.) was 1,556 (an areaapprox. 39 kms. wide and 40 kms. long).

Sikkim

"

Received Rs.1.26 crores, 0.31 crores, 0.83 crores and 1.15 crores in96-97, 97-98, 98-99, 99-00

"

Annual growth rate: – 3 %

"

Population (2001) 5.4 lakhs

"

Land area (Sq. K.M.) 7,096

Four organisations received Rs.1.15 crores in 99-00, or an averageof Rs.28.63 lakhs each. Average funds per person came toRs.21.18. Average population per organisation was 135,123 people.Average area under each organisation (in sq. k.m.) was 1,774 (anarea approx. 37 kms. wide and 48 kms. long).




























































1 7

State-wise distribution of FC funds: Basic data

Received in 1996-97Received in 1997-98Received in 1998-99Received in 1999-00StateTotal# ofAv. perTotal# ofAv. perTotal# ofAv. perTotal# ofAv. per(Rs.AssociaOrg.(Rs.Associa Org.(Rs.Associ-Org.(Rs.Associ-Org.Lakhs)tions (Lakhs)Lakhs)tions(Lakhs) Lakhs)ations(Lakhs)Lakhs)tions(Lakhs)

Andaman & Nicobar136.95817.12157.13819.6491.07713.0123.3673.34Chandigrah187.351413.38140.131211.68227.61515.17261.561715.39Dadra & Nagar Haveli71.9297.9940.1394.4670.79116.4426.43122.20Daman & Diu0.6630.22———0.0030.000.0030.00Pondicherry919.775716.141,066.875419.761,161.895521.131,249.055024.98Andhra Pradesh35,272.211,22628.7739,808.091,25631.6948,729.401,53931.6653,698.971,61633.23Arunachal0.0040.0027.8564.6451.0377.2963.66610.61Assam1,488.451589.421,732.4014511.952,298.1615814.552,435.1716314.94Bihar8,402.3753915.598,324.1659813.9210,060.4069814.4110,474.6772314.49Delhi34,635.0560257.5341,852.1562467.0748,728.4069570.1163,610.7073586.55Goa1,328.0210912.181,293.2910312.561,329.4510412.781,380.5210413.27Gujarat8,025.1748416.587,196.0347715.0910,208.7355618.3612,695.4255123.04Haryana670.756410.48593.435710.41538.26727.48670.46749.06Himachal Pradesh4,015.627057.374,449.546667.426,431.597783.536,819.717788.57J & K*993.242441.39259.732410.821,489.313542.551,364.013440.12Karnataka27,415.771,02926.6431,588.151,01231.2135,472.541,14331.0341,133.731,15435.64

































1 8

Received in 1996-97Received in 1997-98Received in 1998-99Received in 1999-00StateTotal# ofAv. perTotal# ofAv. perTotal# ofAv. perTotal# ofAv. per(Rs.AssociaOrg.(Rs.Associa Org.(Rs.Associ-Org.(Rs.Associ-Org.Lakhs)tions (Lakhs)Lakhs)tions(Lakhs) Lakhs)ations(Lakhs)Lakhs)tions(Lakhs)

Kerala24,229.571,45016.7125,537.911,41918.0032,241.891,59120.2736,169.541,48324.39Madhya Pradesh5,781.0737815.296,034.8037915.928,066.9542518.988,457.4443219.58Maharashtra27,491.4694129.2232,351.761,03131.3832,261.451,18327.2735,022.681,19829.23Manipur1,017.952025.04874.282004.371,172.982165.43992.812184.55Meghalaya2,077.649422.102,407.729126.462,628.769228.572,943.769929.73Mizoram79.79117.25105.59911.73157.041411.2250.76124.23Nagaland435.084010.88524.953515.00661.874315.39758.684218.06Orissa5,604.8250411.125,694.8853410.666,851.8765210.5111,165.3471415.64Punjab1,498.347220.81581.77708.312,382.919026.483,522.237050.32Rajasthan1,801.5215411.702,297.4616613.843,046.9720015.233,725.9122016.94Sikkim125.54431.3930.79310.2682.75516.55114.50428.63Tamilnadu40,498.422,01620.0941,663.741,99120.9348,635.512,04423.7957,250.882,14326.72Tripura121.76913.53104.27911.59180.691018.07171.371115.58Uttar Pradesh7,015.577089.9112,824.6468618.6913,387.4380616.6112,810.4680215.97West Bengal15,827.561,15313.7316,887.791,12415.0221,641.831,22917.6123,398.741,21219.31

All India257,169.3912,13621.19286,451.4312,19823.48340,289.5213,77524.70392,462.5213,98628.06

*Actual area of Jammu & Kashmir is 2,22,236 sq. kms. However, for this analysis, 1,20,849 sq. kms. illegally occupied by Pakistan and China has been excluded.Population data is from 2001 census. Land area has been taken from “India 1998”, published by Information & Broadcasting Ministry of Government of India.

































19

Non-Foreign Sources

12

Every dollar that comes into India as a grant does not automatically become foreign. There arenumerous exceptions to this. For example, funds received from UN bodies or from Indiancitizens living abroad are not covered by FCRA

13

.

Notified by the Government

Following organisations are not a ‘foreign source’ for purposes of FCRA. Funds from them canbe taken without FCRA approval. This listing is based on the latest notification

14

by Ministryof Home Affairs:1.AARRO – Afro - Asian Rural Reconstruction Organisation, New Delhi2.ADB – African Development Bank, Abidjan3.ADB – Asian Development Bank, Manila4.APAARI – The Asia Pacific Association of Agricultural Research Institution, Bangkok5.APCTT – Asia And Pacific Centre of Transfer of Technology, New Delhi6.ACCU – Asia / Pacific Cultural Centre for UNESCO, Japan7.Asian African Legal Consultative Committee, New Delhi8.Asian and Pacific Development Administration, Kualalumpur9.Asian Productivity Organisation, Tokyo10.Bureau (Secretariat) of the Convention on Wetlands (Ramsar), Gland, Switzerland11.CABI – Commonwealth Agricultural Bureaux International, UK12.CBD – Secretariat of the Convention on Biological Diversity, Montreal13.CCD – Secretariat of the United Nations Convention to Combat Desertification in CountriesExperiencing Serious Drought / or Desertification, Especially in Africa, Bonn14.CDB – Caribbean Development Bank, St. Michael, Barbados15.CGIAR – Consultative Group on International Agricultural Research, Washington D.C.16.CGPRT Centre – The Regional Co-ordination Centre for Research and Development of coarseGrains, Pulses, Roots, and Tuber crops in the Humid Tropics of Asia and the Pacific, Indonesia17.CGRFA – Commission on Genetic Resources for Food and Agriculture, Rome18.CIAT – International Centre for Tropical Agriculture, Columbia19.CIFOR – Centre for International Forestry Research, Indonesia20.CIMMYT – International Wheat and Maize Improvement Centre, Mexico21.CIRDAP – Centre on Integrated Rural Development for Asia and the Pacific, Dhaka

12

Based on AccountAble 40: Non-foreign Sources

13

Foreign contribution (Regulation) Act, 1976. Applicable in India

14

S.O. 1014 (E). Published in Part 2, Sec. 3, sub-section (ii) of Gazette of India – Extraordinary, dated 13-Nov-2000.

































2022.CITES – Secretariat of the Convention on International Trade in Endangered Species of WildFauna and Flora, Geneva23.Commission on the Limit of the Continental Shelf, United Nations Divisions for Ocean Affairsand the Law of the Sea, New York24.Commonwealth Secretariat, London25.Department for Disarmament Affairs, New York26.Department for General Assembly Affairs and Conference Services, New York27.Department of Economic and Social Affairs, New York28.Department of Management, New York29.Department of Peacekeeping Operations, New York30.Department of Political Affairs, New York31.Department of Public Information, New York32.ECA – Economic Commission for Africa, Addis Ababa, Ethiopia.33.ECE – Economic Commission for Europe, Geneva34.ECLAC – Economic Commission for Latin America and the Caribbean, Santiago, Chile.35.ESCAP – Economic Commission for Asia and the Pacific, Bangkok, Thailand36.ESCWA – Economic Commission for Western Asia, Beirut, Lebanon37.European Community (EC)38.FAO – Food and Agriculture Organisation, Rome39.Global Environment Facility, Washington D.C.40.IAEA – International Atomic Energy Agency, Vienna41.IBRD

15

– International Bank for Reconstruction and Development, Washington D.C.42.ICAO – International Civil Aviation Organisation, Montreal43.ICARDA – International Centre for Agricultural Research in Dry Areas, Syria44.ICGEB – International Centre for Genetic Engineering and Bio - Technology, New Delhi45.ICGFI – International Consultative Group on Food Irradiation, Vienna46.ICLARM – International Centre for Living Aquatic Resource Management, Philippines47.ICRAF – International Centre of Research in Agro-forestry, Nairobi48.ICRISAT – International Crops Research Institute for Semi-Arid Tropics, Hyderabad49.ICSID – International Centre for the Settlement of Investment Disputes, Washington D.C.50.IDA – International Development Association, Washington D.C.51.IDB – Inter-American Development Bank, Washington D.C.52.IFAD – International Fund for Agricultural Development, Rome

15

Commonly known as “The World Bank”.

































2153.IFC – International Finance Cooperation, Washington D.C.54.IFPRI – International Food Policy Research Institute, Washington D.C.55.IIMI – International Irrigation Management Institute, Colombo56.IITA – International Institute of Tropical Agriculture, Nigeria57.ILO – International Labour Organisation, Geneva58.ILRI – International Livestock Research Institute, Nairobi59.IMF – International Monetary Fund, Washington D.C.60.IMI – International Water Management Institute, Srilanka61.IMO – International Maritime Organisation, London62.INCB – International Narcotics Control Board, Vienna63.INSTRAW – International Research and Training Institute for Advancement of Women, SantoDomingo, Dominican Republic64.International Potato Centre, Peru65.International Rice Research Institute, Manila, Philippines66.International Seabed Authority, Kingston67.International Sugar Organisation, London68.International Tribunal for the Law of the Sea, Hamburg69.IPCC – Intergovernmental Panel on Climate Change, Geneva70.IPGRI – International Plant Genetic Resource Institute, Rome71.ISNAR – International Service of National Agricultural Research, The Netherlands72.ISTA – The International Seeds Testing Association, Zurich73.ITC – International Trade Centre (UNCTAD/ WTO), Geneva74.ITU – International Telecommunication Union, Geneva75.MIGA – Multilateral Investment Guarantee Agency, Washington D.C.76.NAM S&T Centre – Centre for Science and Technology of the Non - Aligned and otherDeveloping Countries, New Delhi77.Office for Coordination of Humanitarian Affairs, New York78.Office of Internal Oversight Services, New York79.Office of Legal Affairs, New York80.OHCHR – Office of the UN High Commissioner for Human Rights, Geneva81.OPCW – Organisation for the Prohibition of Chemical Weapons, The Hague82.Ozone Secretariat to the Vienna Convention for the Protection of the Ozone Layer and theMontreal Protocol on Substances that Deplete the Ozone Layer, Nairobi83.PTS for CTBTO – Provisional Technical Secretariat for the Comprehensive Nuclear Test BanTreaty Organisation, Vienna































2284.RNAM – The Regional Network for Agriculture Machinery, Bangkok85.Secretariat of the Basel Convention on the Control of Trans-boundary Movements of HazardousWastes and their Disposal, Geneva86.UNAIDS – Joint United Nations Programme on HIV / AIDS, Geneva87.UNCDF – United Nations Capital Development Fund, New York88.UNCTAD – United Nations Conference on Trade and Development, Geneva89.UNDCP – United Nations International Drug Control Programme, Vienna.90.UNDP – United Nations Development Programme, New York.91.UNEP – United Nations Environment Programme, Nairobi.92.UNEP / CMS Secretariat of the Convention on the Conservation of Migratory Species ofWild Animals (CMS or Bonn Convention), Bonn93.UNESCO – United Nations Educational, Scientific and Cultural Organisation, Paris94.UNFCCC – Secretariat of the United Nations Framework Convention on Climate Change,Bonn95.UNFPA – United Nations Population Fund, New York.96.UNHCHR – Office of the UN High Commissioner for Human Rights, Geneva97.UNHCR – Office of the UN High Commissioner for Refugees, Geneva98.UNICEF – United Nations Children’s Fund, New York.99.UNICRI – United Nations Interregional Crime and Justice Research Institute, Rome100.UNIDIR – United Nations Institute for Disarmament Research, Geneva101.UNIDO – United Nations Industrial Development Organisation, Vienna102.UNIFEM – United Nations Development Fund for Women, New York103.UNITAR – United Nations Institute for Training and Research, Geneva.104.United Nations Office at Geneva105.United Nations Office at Nairobi106.United Nations Office at Vienna107.United Nations Outer Space Committee108.UNOPS – United Nations Office for Project Services, New York109.UNRISD – United Nations Research Institute for Social Development, Geneva.110.UNRWA – United Nations Relief and work Agency for Palestine Refugees in the Near East,Ghaza And Aman.111.UNSCO – United Nations Statistical Office112.UNSDRI – United Nations Social Defence Research Institute113.UNU – United Nations University, Tokyo114.UNV – United Nations Volunteers, Bonn.































23115.UPO

16

– Universal Postal Union, Berne, Switzerland116.UPOV – International Union for the Protection of New Varieties of Plants, Geneva117.WARDA – West Africa Development Association, Abidjan118.WFC – World Food Council119.WFP – World Food Programme, Rome120.WHO – World Health Organisation, Geneva121.WIPO – World Intellectual Property Organisation, Geneva122.WMO – World Metrological Organisation, Geneva123.WTO / OMT – World Tourism Organisation, Madrid

Other non-foreign sources

The MHA notification has been issued under section 2(1)(e)(ii). It includes 123 organisations,both from the UN system as also other international organisations.This raises a question. What about those UN organisations which are not listed in the notification?Do these become foreign sources?We don’t think so. Apparently, UN and its specialized agencies are automatically excluded fromthe definition of ‘foreign source’. Under section 2(1)(e)(ii), the Central Government is required tonotify only ‘other agencies’ as non-foreign.Following is a list of UN offices and its agencies which are not included in the MHA notification.Please confirm their status with MHA before treating these as non-foreign.1.ACABQ – Advisory Committee on Administrative and Budgetary Questions, New York (note 2)2.Ad Hoc Inter – agency Meeting on Women – New York (note 3)3.Administrative Committee on Coordination (ACC

17

) - New York (note 3)4.CCAQ (FB) – Consultative Committee on Administrative Questions (Financial and BudgetaryQuestions) - Geneva (note 3)5.CCAQ (PER) – Consultative Committee on Administrative Questions (Personnel and GeneralAdministrative Questions) - Geneva (note 3)6.CCPOQ – Consultative Committee on Programme and Operational Questions - Geneva(note 3)7.EDI – Economic Development Institute, Washington (note 4)8.IACSD – Inter - agency Committee on Sustainable Development - New York (note 3)9.IAMLADP – Inter - agency Meeting on Language Arrangements, Documentation andPublications, New York (note 3)10.IBE – International Bureau of Education - Geneva (note 1)11.ICC – International Computing Centre - Geneva (note 3)

16

As Notified. Nomally called UPU.

17

It has several sub-committees also, such as on drug control, oceans and coastel areas, rural development,statistical activities, water resources, nutrition, etc.

































2412.ICJ – International Court of Justice - The Hague (note 2)13.ICS – International Centre for Science and High Technology - Trieste, Italy (note 1)14.ICSC – International Civil Service Commission - New York (note 2)15.ILO / ITC – International Training Centre - Turin, Italy (note 1)16.IMF Institute [part of IMF; exempt u/s 2(e)(ii)]17.ISCC – Information Systems Coordination Committee - Geneva (note 3)18.JIAMCATT – Joint Inter - agency Meeting on Computer - assisted Translation and Terminology- Geneva (note 3)19.JIU – Joint Inspection Unit - Geneva (note 2)20.JUNIC – Joint United Nations Information Committee - New York (note 3)21.OOSA – Office for Outer Space Affairs - Vienna (note 2)22.Organisational Committee of ACC - New York (note 3)23.UNCC – United Nations Compensation Commission - Geneva (note 2)24.UNCHS (Habitat) – United Nations Centre for Human Settlements - Nairobi (note 2)25.UNCITRAL – United Nations Commission on International Trade Law - Vienna (note 2)26.United Nations Board of Auditors - New York (note 2)27.UNJSPF – United Nations Joint Staff Pension Fund - New York, USA (note 2)28.UNSC – United Nations Staff College - Turin, Italy (note 2)

Notes:

1.Specialized Agency of UN [sec. 2(e)(ii)]2.Part of UN: a Program [sec. 2(e)(ii)]3.Part of UN (Inter - Agency Coordination) [sec. 2(e)(ii)]4.Part of World Bank [sec. 2(e)(ii)]





















































































































































































































































































































































40

2 2 . 3 7 2 0 . 1

CHI

1 8 . 3 7 2 6 . 2 9

Plan Intl.97-98

25. Bread for the World

"

Based in Germany

"

Grants to Indian NGOs: Rs.18.45 crores,16.04 crores, 13.57 crores in 96-97, 97-98, 99-00 respectively. Figuresfor 98-99 not available

"

Annual growth in India disbursement: – 9.73%

"

www.breadworld.com (USA)

"

www.brotfuerdiewelt.de (Germany)

Bread for the World is a Christian organisation, and is legally apart of the “Diakonisches Werk der EKD” in Germany. Bread forthe World supports church-related and non-confessional NGOs inpoor countries. It also serves as their advocate in Germany andother industrialized countries.Bread for the World and its partners in poor countries encourage the empowerment of the poorthrough more than 2,000 projects and programs per year.

26. Plan International

"

Founded in 1937 as Foster Parents Plan for Children in Spain. Renamed as Plan International in1950

"

Based in London, UK

"

Registered with Charity Commission for England & Wales

"

Grantsto India Program: Rs.18.37 crores, 26.29 crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 not available

"

www.plan-international.org

Plan International is an International network with 13 memberorganizations in Australia, Belgium, Canada, Denmark, Finland,France, Germany, Japan, Korea, Netherlands, Norway, Sweden,UK, and USA. The international head office is in UK.Plan International aims at bringing constructive lasting change tothe lives of children in need all over the world. Today it operatesin 42 countries for benefit of over 10 lakhs foster children. Sourcesof its funds are sponsorship, official funding (DFID, EuropeanCommission, etc.), and individual donations and legacies. Total disbursement in 1999 was £1.36Cr. – of this around 15 to 20% is disbursed to India.

27. Children House International

"

Based in the State of Utah, USA

"

Founded in 1975

"

Grants to Indian NGOs: Rs.22.37 crores,20.1 crores in 98-99, 99-00 respectively. Figures for 96-97 and 97-98 not available

"

www.childrenshouseinternational.com

Children House International (CHI) specializes in internationaladoption. It makes the adoption process as “pain free” and asunderstandable as possible.CHI provides help for adoption through each step of the paperwork,immigration and naturalization process, state requirements,country legalization requirements, and ultimately, country of choicerequirements. It has agents in each country who provide supportthrough the entire process.It has been working in India for last 20 years and hundreds of children have been placed withadaptive families. CHI is also working in Russia, Romania, Moldova, Bulgaria, China, Bolivia,Guatemala, Peru, the Marshall Islands, and Vietnam.









41

2 2 . 7 1 1 5 . 3 4

Amritanandmayi


28. Manos Unidas Afonso TED
"
Based in Madrid, Spain
"
Grant made Rs.16.77 crores, 22.75 croresin 96-97, 97-98 respectively. Figures for 98-99 and 99-00 not available
"
www.manosunidas.org
"
www.mansunides.org
No definite information available on the web. May be associatedwith Manos Unidas Committee, discussed on page 35.

29. Lutheran World Federation
"

Based in Geneva, Switzerland
"
Founded in 1947
"
Grants to India program: Rs.17.46 crores,21.06 crores in 96-97, 99-00 respectively. Figures for 97-98 and 98-99 not available
"
Annual growth inIndia disbursement: 6.45%

"

www.lutheranworld.org

Lutheran World Federation (LWF) is a global union of Christianchurches of Lutherans. LWF has about 131 member Lutheranchurches in nearly 72 countries.LWF is involved in activities that promote Christian unity andharmony. It also provides humanitarian support and grants toactivities like environment, landmines, human rights, refugees, andactivities like development & education. About $8 Crores aredisbursed in these countries annually, for implementing variousprojects and relief work.Indian counterpart – Lutheran World Service-India is registered in West Bengal (Kolkata) andIndian disbursement is mainly routed through this.

30. Maharishi Education Foundation
"
Based in U.K.
"
Grants to India program: Rs.38.22 crores in 99-00. Figures for 96-97, 97-98, 98-99 not available

Maharishi Education Foundation is part of a global group of institutions associated with MaharishiMahesh Yogi.No specific information found on the internet.

31. Mata Amritanandmayi Centre

"

Based in San Roman in the state of California, USA

"

Grants toIndia program: Rs.22.71 crores, 15.34 crores in 98-99, 99-00respectively. Figures for 96-97 and 97-98 not available

"

www.ammachi.org

Mata Amritanandmayi Centre is associated with MataAmritanandmayi Devi

47

. In the USA, it is classified as a ‘church’

48

and hence exempt from filing annual return with IRS (Form 990).

1 6 . 7 72 2 . 7 5

Manos Unidas Afonso

47

See ‘5. Mata Amritanandmayi Mission’ on page 46

48

Any place of worship is technically called a church under US Tax law.

































42

1 7 . 4 4 2 0 . 5 7

HIVOS

Its Indian parent – Mata Amritanandmayi Mission is registered in Kerala and funds are mainlyrouted through the parent body.

32. HIVOS Foundation

"

Based in Netherlands

"

Grants to India program: Rs.17.44crores, 20.57 crores in 98-99, 99-00 respectively. Figures for 96-97and 97-98 not available

"

www.hivos.nl/Engels/index.htm

Hivos operates through three regional offices at Harare (Zimbabwe),San Jose (Costa Rica), and Bangalore (India) to serve SouthernAfrica, Central America, and South Asia. Main emphasis of itsprogram is on economic self-reliance, culture, arts, gender, womenand development, sustainable development, human rights, andAIDS.Majority of Hivos funds come from Dutch Govt. In 1998 Hivos provided financial aid to over 750partner organisations (1997: over 700) in Africa, Asia and Latin America. Hivos spent 106.8million guilders on their initiatives (compared with 98.5 million in 1997).Hivos is also a member of Eurostep, an alliance of 23 European development agencies with asecular background.Indian counterpart – HIVOS is registered in Karnataka and Indian disbursement is mainly routedthrough this.

33. The Save the Children Fund

"

Based in London, UK

"

Company limited by guarantee

"

Registered with Charity Commissionfor England & Wales

"

Grants to India program: Rs.16.77 crores, 17.26 crores in 96-97, 99-00respectively. Figures for 97-98 and 98-99 not available

"

Annual growth in India disbursement: 0.96%

"

www.savethechildren.net/

"

www.oneworld.org/scf

"

www.scfuk.org

The Save the Children Fund is a secular organisation, mainlyworking for welfare of children in about 60 countries. Annual programbudget was about £5.7 Cr. in 1997 and £5.6 Cr. in 1998.It is also a member of the International Save the Children Alliance(ISCA), an association of autonomous, non-profit, non-sectarian,voluntary organisations working throughout the world for thebetterment of children, their families and their environment. It hasabout 30 member countries like Australia, Canada, France, Italy,Japan, Netherlands, Sweden, USA, etc.Indian counterpart – The Save the Children Fund is registered in New Delhi and Indian disbursementis mainly routed through this.

34. General Conf. of 7th day Adventists

"

Based in USA

"

Grants to India program: Rs.17.89 crores, 15.43crores in 96-97, 99-00 respectively. Figures for 97-98, 98-99 not available

"

Annual growth in India disbursement: – 4.81%

"

www.adventist.orgSeventh Day Adventist Church (SDA) is a 140-year-old ProtestantChristian denomination. Its members believe that Christ will returnsoon in person. Their mission is to proclaim the gospel to all people.They pursue this mission worldwide through preaching and teachingthe message of the Bible.

































43In 1999, SDA World Church raised $1,606 million

49

as tithe and offerings. It gave away $159million to 3,615 projects in 124 countries through its donor agency, ADRA

50

. It also added 1.09million members, or a new member every 29 seconds. A new church was organised every 5hours

51

. It ran 166 hospitals, 5,846 normal schools and 1,10,229 Sabbath schools

52

worldwide.Indian counterpart – Services Association of Seventh Day Adventists Pvt. Ltd. is registered inTamil Nadu as a company and Indian disbursement is mainly routed through this. By 30-Jun-01, SDA had 1,397 churches and 5.21 lakh members in India.

35. SOS Kinderdorf International

"

Based in Austria

"

Grants to India program: Rs.23.55 crores in 99-00. Figures for 96-97, 97-98, 98-99 not available

"

http://www.sos-childrensvillages.org

"

www.sos-kd.org

Started in 1949 by Hermann Gmeiner. He built the first SOS Children’s Village in Imst, Austriaand named it the “House of Peace”

53

. By 2002, SOS Villages was operating in 131 countries.In 1999, SOS raised



180 million. This is equivalent to about Rs.864 crores. Its Indian memberassociation is SOS Children’s Village of India in New Delhi. Indian disbursement is mainlyrouted through this.

36. ZEH

"

Based in Germany

"

Grants to Indian NGOs: Rs.21.12 crores in 99-00. Figures for 96-97, 97-98, 98-99 not available

No specific information found on the internet.

37. Zentralstelle Fur Entwickshilfe

"

Based in Germany

"

Grants to Indian NGOs: Rs.19.14 crores in 97-98. Figures for 96-97, 98-99 notavailable

No specific information found on the internet.

38. Soka Gakkai International

"

Formed in 1975

"

Based in Japan

"

Grants to India program: Rs.18.05 crores in 97-98. Figuresfor 96-97, 98-99, 99-00 not available

"

www.sgi.org

Soka Gakkai International (SGI) began in 1930 as an educators group, called the Soka KyoikuGakkai (Value Creating Education Society). It is an international Buddhist association with over12 million members from 76 constituent organisations in 181 countries and territories. SGI’shumanitarian assistance efforts are based on the long-standing principles of Nichiren Buddhism.Its Indian counterpart – Bharat Soka Gakkai is registered in New Delhi and the Indian disbursementis mainly routed through this.

39. Bergita PIR

"

Based in Austria

"

Grants to Indian NGOs: Rs.16.86 crores in 96-97. Figures for 97-98, 98-99 and99-00 not available

No specific information found on the internet.

49

About Rs.7,226 crores

50

Adventist Development and Relief Agency International

51

www.adventist.org/worldchurch/factsandfigures.html

52

Religious schools

53

Original goal of Hermann Gmeiner was to provide a family, a house, a village to the orphans of war andabandoned children.

































44

MVVVV

4 0 . 3

96-9797-9898-9999-00

5 6 . 5 6 4 . 4 6 8 . 1

Profiles of Top FC Receivers

54

The yearly MHA

55

report on foreign contribution gives a list of top 25 receivers. It also gives theamounts received by them. If you combine the lists for last four

56

years, 38 such names emerge.Who are these people? What kind of work do they carry out? The MHA report does not sayanything on this. Therefore, a brief profile of each organization has been prepared from othersources. However, there are two important points regarding this:

1.Identity

: Multiple FCRA registrations may exist due to various reasons. These organisationsmay be totally independent, part of the same group or branches of the same organisation.Society Registrars do not verify whether organisations with similar names exist in otherstates before registering a society. It is not necessary that each of the branches will receiveFC funds independently. Often, the funds are received centrally and then passed on tobranches.

2.Caution

: Profiles of the receivers have been compiled from various sources, including theInternet. We hold out no warranties for the accuracy or fairness of the information. Pleaseverify the information on your own before arriving at any decisions. We have also avoidedthe use of religious honorifics. This is not intended as disrespect to the religious beliefs ofany person.

1. Maharishi Ved Vigyan…(MVVVV)

"

Registered in Andhra Pradesh

"

Received Rs.40.3 crores, 56.5crores, 64.4 crores and 68.1 crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 19.1%

"

www.maharishi-india.org

This is part of a global network of institutions working on MaharishiMahesh Yogi’s vision. The group is mainly working on health,spiritual, educational matters based on Hindu Vedic culture.MVVVV (Maharishi Ved Vigyan Vishwa Vidyapeetham) runs acollege in NOIDA, near Delhi. Another member of the network isthe Maharishi Ayurved Trust, UK. Then again, there is the Maharishi Global Development Fundin New York. The Fund raised Rs.63 crores in 1998. On 31

st

December 1998, its assets (mainlyinvestments, pledges and bank balances) were valued at Rs.2,400 crores.

In 96-97, four FC-3 were filed with similar names:1.Maharishi Veda V V V Peetham, Andhra Pradesh2.Maharishi Ayurveda Prathisthana, Delhi3.Maharishi Gandharva Ved Vishwa Vidyapeth, Delhi4.Maharishi Mahila Education Society, DelhiOf these four, the first one’s receipts are included in top 25 category.

54

Based on AccountAble 64, 65: Profiles of Top FC Receivers

55

Ministry of Home Affairs

56

96-97 to 99-00

































45

World Vision

3 3 . 9 3 5 . 2 3 9 . 95 5 . 1

SSSCT

4 7 . 7 4 2 . 9 3 9 . 8 5 0 . 2

FPPI

3 5 . 94 4 . 3 4 2 . 96 3 . 7

2. Foster Parents Plan International

"

Registered in Delhi

"

Received Rs.35.9 crores, 44.3 crores, 42.9crores and 63.7 crores in 96-97, 97-98, 98-99, 99-00

"

Annualgrowth rate: 21.1%

"

www.plan-internaional.org/international/about/ where/india.html

Commonly known as Plan International. It started in UK in 1937.Working in India since 1979. The International network raisesfunds in USA, Canada, Europe, UK and Australia. Plan is asecular grant-making agency with a focus on deprived children.It raises funds through sponsorship but works with the communityas well. It works with 16 NGOs in 17 states and nearly 80,000children in India benefit directly.

3. Sri Sathya Sai Central Trust

"

Registered in Andhra Pradesh

"

Received Rs.47.7 crores, 42.9crores, 39.8 crores and 50.2 crores in 96-97, 97-98, 98-99, 99-00

"

Annual growth rate: 1.7%

"

www.sathysai.org

"

http:// saionline.org/service_projects/sathya_sai_central_trust.html

Hindu religious-spiritual organisation built around Sri Sathya SaiBaba. Is involved in social and charitable work, mainly aroundPuttaparthi ashram in Andhra Pradesh.

In 96-97, six FC-3 were filed with similar names:1. Sri Sathya Sai Central Trust, Andhra Pradesh2.Shri Sathya Sai Health, Karnataka3.Shri Sathya Sai Trust, Karnataka4.Sri Sathya Sai Books & Publication Trust, Andhra Pradesh5.Sri Sathya Sai Institute of Higher Learning, Andhra Pradesh6.Sri Sathya Sai Medical Trust, Andhra PradeshOf these six, the first one’s receipts are included in top 25 category.

4. World Vision of India

"

Registered in Tamilnadu

"

Received Rs.33.9 crores, 35.2 crores,39.9 crores and 55.1 crores in 96-97, 97-98, 98-99, 99-00

"

Annualgrowth rate: 17.5%

"

www.worldvisionindia.org

"

www.worldvision.org

World Vision India is a Christian humanitarian organisation. Itworks throughout India on relief, rehabilitation and developmentprograms. It is part of the World Vision International, which startedin 1950.The Indian organisation was started in 1976. Main source of fundsis World Vision, USA. In recent years, the Indian office has alsostarted raising funds in India.

In 96-97, seven FC-3 were filed with similar names:1.World Vision of India, Tamilnadu2.World Vision of India, Andhra Pradesh3.World Vision of India, Maharashtra4.World Vision of India, Meghalaya

































46

CSI

2 3 . 3 2 4 . 7 2 2 . 2 2 9 . 4

ActionAid

2 4 . 83 23 6 . 4 3 9 . 2

Amritanandmayi

3 4 . 3 5 1 . 6 5 3 . 1

5.World Vision of India, Nagaland6.World Vision of India, Orissa7.World Vision of India Delhi Branch, DelhiOf these seven, the first one’s receipts are included in top 25 category.

5. Mata Amritanandmayi Mission

"

Registered in Kerala

"

Received Rs.34.3 crores, 51.6 croresand 53.1 crores in 97-98, 98-99, 99-00. Figure for 96-97 not available

"

Annual growth rate: 24.4%

"

www.ammachi.org

The mission was started in Kollam in 1979. It is associated withMata Amritanandamayi Devi, who is a Hindu

Satguru

57

. Themission is mainly involved in spreading her teachings but hasalso undertaken several charitable and educational projects,including an orphanage, colleges, hospitals, housing for widows,etc.

In 98-99, two FC-3 were filed with similar names:1.Mata Amritanandamayi Mission, Kerala2.Mata Amritnandmayi Math, MaharashtraOf these two, the first one’s receipts are included in top 25 category.

6. Actionaid

"

Registered in Karnataka

"

Received Rs.24.8 crores, 32 crores,36.4 crores and 39.2 crores in 96-97, 97-98, 98-99, 99-00

"

Annualgrowth rate: 16.5%

"

http://actionaidindia.org/

Actionaid is a secular grant-making Agency. It started working inIndia in 1972. It is registered as the branch office of ActionaidUK

58

. It raises funds in UK and other European countries throughsponsorship of children. However, the program approach isintegrated development of the community. In India, it has alsoinitiated other efforts such as Books for Change, Praxis and Partnersin Change.

In 98-99, two FC-3 were filed with similar names:1.Action Aid, Karnataka2.Action Aid Karnataka Project, KarnatakaOf these two, the first one’s receipts are included in top 25 category.

7. CSI Council for Child Care

"

Registered in Karnataka

"

Received Rs.23.3 crores, 24.7 crores,22.2 crores and 29.4 crores in 96-97, 97-98, 98-99, 99-00

"

Annualgrowth rate: 8%

CSI

59

Council for Child Care is involved in supervision of hostels,orphanages, schools and centers for the handicapped. Main officeis in Bangalore.

57

Spiritual teacher

58

A foreign company limited by guarantee

59

Church of South India









































































































































































































































































































































































































































































































































































































































































































71

Item (ii): FCRA Registration

Fill the FCRA registration number and the date of registration at the top. This information istaken from the FCRA registration certificate.

Item (iii): Prior Permission

You have to fill this if you are not registered under FCRA, but have taken specific priorpermission from FCRA for receiving foreign contribution.Give the number and date of FCRA’s prior permission letter for this grant. If you have receivedmore than one grant during the year under two separate prior permission letters, give referenceof both the letters.

Item (iv): Nature of Association

Here you should normally tick in front of ‘social’ or ‘educational’. If your association is any ofthe other, you should tick ‘Cultural’, ‘Economic’ or ‘Religious’, as the case may be.

Item (v): Religious

If you ticked ‘religious’ in item (iv), here you should also tick whether the association is ‘Hindu’,‘Muslim’, ‘Christian’, etc. Again, you should tick in front of the relevant option. If you tick‘others’, then you should write which religion (Bahai, Parsi, etc.)

Heading 1A: Interest, etc.

Item (i): Foreign contribution

Show total foreign contribution received during this year.

Item (ii)(a): Interest on FCRA bank account

Show interest credited by bank on the FCRA bank account here.

Item (ii)(b): Other interest

Show interest on investments here. This includes fixed deposit receipts also.

Heading 2: Purpose-wise Receipt and Utilisation

This is the most important heading of form FC-3. Information to be provided under this headinghas been split into two heads: one for Cash and another for Kind

14

.All the information of previous balance available, receipts during the year, funds utilised andbalances at the end have to be segregated into cash and kind.The table given under this heading has five main sections (columns):

!

Purpose (column 2)

!

Previous Balance (columns 3 – 4)

!

Details of Receipts (columns 5 – 9)

!

Utilisation (columns 10 – 11)

!

Unspent Balance (columns 12 – 13)

14

Physical items or material

































72

Column 2: Purpose

This column gives a list of 56 ‘purposes’ for which the money may have been received andutilised. The last purpose (56th) is for activities, which may not be covered by the other 55.

Classifying your expenses

Some objects in form FC-3 overlap each other. Still, this table helps FCRA Department analysethe flow of foreign funds into India. You should, therefore, try and choose the most specific itemwherever possible. For example, if you are providing some technical training to the villagers, thenthis should be classified under ‘Vocational/ technical training’ and not under ‘rural development’.Also keep a copy of the worksheet showing how you have grouped your ledger heads to arriveat the figures in FC-3.

Columns 3, 4: Previous Balance

The ‘previous year balance’ column is sub-divided into two: one shows the balance in cash andthe other shows balance in kind. In this column you have to show the closing balances (unspentbalances) brought forward from the previous year.You will find these balances in your FC-3 of the previous year. If you do not have any openingbalance under a particular item, just say ‘Nil’.

Columns 5 to 9: Receipts

This section has several columns. There are three main sub-sections: ‘As first recipient’, ‘Assecond / subsequent recipient’ and ‘Total’.

First Recipient

For each receipt, check whether you have received it directly from the foreign donor or not. Ifyes, you will be known as ‘first recipient’. You will then show the particular receipt in the ‘firstrecipient’ columns.

Second Recipient

If you have received your funds through another FCRA registered NGO, then you become a‘second / subsequent recipient’. You should then show this receipt in the columns for ‘secondrecipient’.

Columns 5 and 7: Receipts in Cash

Most grants come in by cheque. However, some small donations may be in the form of currencyor coins. All such grants or donations should be shown in the ‘cash’ column (either column 5or column 7). Take the figure of receipt from your FCRA Receipts and Payments Account.

Columns 6 and 8: Receipts in Kind

Sometimes donors give material or assets instead of funds. These are also foreign contribution.Such items may be vehicles, blankets, food, oil, medicine, computers, etc.All such receipts have to be reported here at estimated value.

Column 9: Total Receipts

This column is a total of columns 5, 6, 7, and 8. Remember not to add up column 3 and 4 whenyou write the total here.































73

Columns 10 and 11: Amount Utilised

The funds utilised during the year should be shown in column 10. Pick up the figures from yourFCRA Receipts and Payments Account.If you have received materials

15

also, show the utilisation of these items in column 11 as utilisedin kind.

Columns 12 and 13: Balance

Show the unutilised balance for each item. This should be shown separately for cash and forkind.

Add Up the Columns

Now add up each column and write the total of the column in the last row. The total of lasttwo columns (12 and 13) will give you the Total Unutilised Balance with you at the year-end.

Heading 3: Bank Details

Under FCRA rules

16

, you can receive FCRA funds and keep them only in one separate bankaccount. This bank account number is also given in your FCRA registration certificate. This rulealso applies to prior-permission cases.You should give your FCRA bank account

17

number, name of the bank and address with PINcode (of the branch) here.

Heading 4: Donor Details

Give the details of the donors (who have given foreign funds or materials) here. Donors are sub-divided into three categories:

(i) Institutional Donors

All grant-making agencies (and other organisations, such as companies) fall into the categoryof Institutional Donors.All grants, whether large or small, from such donors should be included here. Examples of suchdonors are Actionaid, Diakonia, CRS, CCF, Ford Foundation, Oxfam, SDC, Sida, etc.Some Indian Agencies like CAPART or CRY may also give you funds from their FCRA account.In such a case, their grant should also be listed here.Name and address of the donor should be written in column 3. Purpose of each grant is to begiven in column 4.Each installment from the donor agency is to be listed separately along with purpose, date andamount.

Second Recipient

If you received funds as second recipient, these grants also have to be listed here. In sucha case, give the name and address of the Indian agency / NGO through whom you havereceived the funds. Particulars of the original donor do not have to be given.

15

You have to maintain FC-6 for these. See ‘Maintaining Form FC-6’ on page 84.

16

Section 6 (1)(b), rule 8(1)(b)

17

For practical reasons, you may need to open another bank account in the field area (and transfer FCRAfunds) for use over there. FCRA law does not allow this. However, in practice, sometimes FCRA authoritiesdo not object to this if the reasons are genuine.

































74

(ii) Large Individual Donors

If you have received funds/ material which add up to more than Rs.1 Lakh in a year from anindividual (person) donor, then you should list such donors here. Name and address of suchdonors should be given in column 3.In this case also, all installments should be listed separately. Give purpose, date and amountunder columns 4, 5 and 6.

(iii) Small Individual Donors

If grants from an individual (person) donor add up to less than Rs.1 lakh in a year, the donoris known as ‘small individual donor’. Such donations should be shown here.

Heading 5: Country-wise Receipts

At the end, give a summary of the foreign contribution country-wise. Each country should beshown in a separate line. If you have received the funds from a foreign agency’s Indian Office,show the country where the Head Office is situated

18

.

Declaration

The form has to be signed only at one place (i.e. under the declaration statement) by the ChiefFunctionary. The seal (rubber stamp) of the NGO should also be put.

CA Certificate

This certificate should be given by a Chartered Accountant (preferably your auditor). He/sheshould indicate his/her name, address and registration number. He/she should also put the sealof his/her firm on the form. The same person should also sign the FCRA Receipts and PaymentsAccount and FCRA Balance Sheet in the same manner.

FC-3 Annexures

Under rule 8 (2), the two accounting statements should be annexed to the form FC-3. Theseare: FCRA Receipts and Payments Account, and the FCRA Balance Sheet. Again at least threecopies should be obtained – two for dispatch to the FCRA authorities along with FC-3, and onefor the office record. Make extra photocopies for dispatch to the funding agencies.

18

Only if the Indian office of the Donor is not registered under FCRA





75

Intricacies of FC-3

19

Opening Items

Address

In most cases, you should give the address of your registered office in FC-3. This should bedone even if the registered office is merely an address of convenience and the main office iselse where in the city/ state.However, in some cases, the FCRA account is transferred to another state. For example, yourregistered office may be in Delhi and your FCRA account may have been shifted to Orissa

20

.In such a case, you should give the address that is given in the revised FC-8

21

.Similarly, if you have shifted your office within the city or state, you would have sent a letterto FCRA department regarding the new address

22

. When filling up FC-3, you should use thisnew address only.

FCRA registration cancelled

In some cases, an NGO’s FCRA registration may be cancelled. Such NGOs can not acceptany more funds without prior permission. However, in many cases, they are allowed to use upthe existing FC balance with them. Such NGO should also file FC-3 till the time any balanceof FC contribution remains with them.

Summary of Interest

Under this head, all interest earned through the FCRA Balance Sheet should be shown. Thisinterest income should be taken into FCRA Receipts and Payments Account. Interest earnedon endowments, corpus, micro-credit loans, fixed deposits, savings bank account, etc. can alsobe shown here.Remember, that this is merely a summary of the interest earned. The receipt and utilization ofinterest should also be shown in table 2 and again in tables 4

23

and 5

24

.

Table 2: Receipt and Utilisation

FCRA Loans

Loans taken from a foreign source should be deposited in FCRA bank account and reportedin FCRA Receipts and Payments Account. These loans should also be reported in FC-3 asreceipt of foreign contribution

25

.Repayment of FCRA loan is treated as utilisation of FC funds.

Receipts in Kind

‘Receipts in kind’ are different from assets purchased by your organisation out of foreign funds.These are items (goods, materials, etc.) donated or given at a nominal price by a foreignsource. These are treated as foreign contribution

26

. These should be reported in columns 6 or8 of table 2.

19

Based on AccountAble 72-73: Intricacies of FC-3

20

This is done after approval by FCRA authorities and filling of fresh FC-8

21

Filed with FCRA department at the time of shifting of FCRA account

22

See ‘Undertaking’ in form FC-8

23.

Donor-wise Receipt of foreign contribution

24

Country-wise Receipt of foreign contribution

25

Section 2(1)(c) does not make any distinction between grant and loans funds – both are treated asforeign contribution

26

Section 2(1)(c)(i)




76

Valuation

How should these be valued? The valuation does not have to be very accurate. You can giveestimated values, which are reasonably fair. You can also talk to the donor and find outapproximate landed price in India. Or you can find out the value from insurance documents. Insome cases, you may have received a Proforma invoice also.

FC-6

The items and figures (for materials) that you report in the FC-3 should tie up with your FC-6 as well. Remember that FC-6 is like a stock record and this should not be filed with theFCRA

27

.

Materials not reported...

Some NGOs have not been reporting material received and distributed by them under various‘food-for-work’ type schemes. This is sometimes due to lack of clarity on part of the variousagencies involved. Sometimes these are reported at the regional level – further distribution isreflected as having been done by the regional agency. However, in reality the distribution is doneby village or block level NGOs.

Who should report?

If you are distributing food/ material received in your custody, then you should report it to FCRA.The primary responsibility of fulfilling FCRA formalities will always remain with the receiver. Youcan not avoid this liability by entering into an agreement with the Donor Agency.

Micro-credit / Revolving Fund

This topic has been discussed in detail under the heading ‘Micro-Credit Revolving Funds’ in theAccountAble Handbook on ‘NGO Accounting and Regulation’. A separate item (item 10: Micro-finance projects, including setting up banking co-operative and self-help groups) is now providedin form FC-3 for this.

‘56: Other Activities’

Any items of receipt or expenditure, which do not fit any of the specific items, should be givenhere. You may have to attach an annexure giving summary listing of the items of expenditure.Expenditure out of FCRA interest, small donations, etc. can be shown here.

Interest

Bank Interest

Some donor agencies ask for accounting of interest earned on their funds lying in the bankaccount. Such interest can be shown as addition to their funds in column seven of the relevantrow. This refers to the row where their main project funds are shown such as ‘rural development’or ‘animal husbandry’, etc.However, some agencies do not insist on allocation of interest to their project. Some bankinterest, therefore, remain surplus. Such unallocated

28

bank interest can be shown under item‘56: Other Activities’.

27

See ‘Maintaining form FC-6’ on page 84 for more on this.

28

Interest that has not been allocated to particular grant making agency.





77

Revolving Fund Interest

This includes interest and service charges, etc. on micro–credit loans. This income can beshown under item ‘56: Other Activities’, under the sub heading ‘interest / service charges onrevolving fund’. You can use column seven for this.Any interest paid out on revolving fund capital can be shown in the column ten (utilisation) ofthe same row.

Corpus Interest

This interest income would come from investments made out of Corpus/ Endowment Fund. Thiscan be shown in column seven item 55 (i) (a) ‘Establishment of Corpus Fund’.Alternatively, you can show this income under item ‘56: Other Activities’ as ‘interest on corpus / endowment investments’.It will be useful to give a footnote showing the nature of this income in the FC-3.

Second Recipient

In some cases, the funding agency’s Indian office may be registered in India under FCRA (e.g.Actionaid). You should then show receipts from such agencies in the ‘second recipient’ columns(7 and 8).

Non-earmarked Donations

Any foreign donations that are received in cash should also be shown here. Such donations areoften not earmarked by the donor for any particular activity. These should be shown under‘miscellaneous’ category (item ‘56: Other Activities’).

Sale of Assets

With the donor’s consent, you can sell FCRA assets to any one (whether they have FCRA ornot).If you sell off any asset (purchased earlier with foreign funds), then show the amount receivedas sale price here. This can be shown under the activity for which the asset was originallyreceived (such as ‘rural development’).

Transfers to Other NGOs

Any amounts given to another association out of FCRA funds for carrying out a program orunder direction of Funding Agency should be shown against item ’56: Other Activities’. TheFCRA number (or prior permission reference), name and address of the second recipientsshould be given as a footnote.

Level of Detail

How much detail should be given in FC-3 or FCRA Receipts and Payments Account? Thisdepends on the amount of total funds involved and the nature of programmes. For instance,if utilisation of a crore of Rupees is shown in one line as ‘rural development’, then the purposeof reporting is not met

29

.Your auditors should be able to guide in this. However, in general you should try to break downthe figures so that each line item is not more than 5% of total receipts or Rs.1 lakh, whicheveris higher.

29

In such cases, FCRA department often issues show cause notice or makes a field visit.





78For example, if your total receipts are Rs.10 lakhs, then you should try to break down individualline items to Rs.1 lakh or lower. However, if your total receipts are Rs.2 crores, then you canshow individual line items up to ten lakhs each.

Unutilised balances

In Cash

For working out the unutilised cash balance, look at the chart below:

3571012Previous

+

Received as first

+

Received as second



Utilised in

=

BalanceBalance in cashreceiver in cashreceiver in cash cashin cash

In Kind

Similarly for working out the balances in kind, add up column 4, column 6 and column 8. Fromthis deduct column 11.

4681113Previous

+

Received as first

+

Received as second



Utilised in

=

BalanceBalance in kindreceiver in kindreceiver in kindkindin kind

You have to do the above exercise for each row and write the figures in the last column (column12 or 13: Balance in cash or kind, as the case may be).

Loan transactions with Indian Section

For opening bank account

When you opened the FCRA bank account,you would have deposited a small amountin this account from Indian funds. Thismoney remains in the bank account. Itcan be shown in the partial FCRA balancesheet here. Note that the FCRA bankaccount balance of Rs.20,500/- includesRs.500 which was deposited initially to open the account.

During the year

Can you have loan transactions with the Indian section of your account books? FCRA regulationsprohibit any mixing of Indian and FCRA funds. However, as we have seen above, the FCRAaccount itself is opened with Indian funds. Does this not result in mixing of funds? The FCRAlaw is silent on this.Clearly the intention of FCRA law is to avoid mixing of funds. Following this opening, manyNGOs frequently borrow / lend money to the Indian section. This happens when FCRA fundsare delayed but the project has to continue.Whether this is legal or not is separate issue. Our suggestion here is limited only to theaccounting and disclosure aspects. Such loans can be shown in the Receipts and PaymentsFCRA Balance Sheet (partial)LiabilitiesAssets

Loan from IndianFCRA Banksection500Account20,500

































79 Account and Balance Sheet as below:

Bank Details

For practical reasons, you may need to open another bank account in the field area (andtransfer FCRA funds) for use over there. The position regarding this practice is not very clear.Sometimes FCRA authorities do not object to this if the reasons are genuine.

Table 4: Donor Details

Box Collections

If you are keeping donation boxes at airports, shopping centres, etc. you may receive foreigndonations also. Such donations may be in Rupees or in foreign currencies.There is no way of making out how much of the collection is from foreign donors and how muchfrom Indian. Indians settled abroad might drop dollar notes into the box; foreign tourists maydrop surplus Rupee notes in the box.In such a situation, the only practical solution is to treat all foreign exchange collection asforeign contribution. This should be deposited into the FCRA bank.In case of Rupee collections, you can think of treating 50% as foreign contribution and balance50% as Indian. While there is no circular or guideline on this, this appears to be the only logicaloption.All foreign collections should be lumped together and shown as one entry in the table under‘individual donors below 1 lakh’. In such case the purpose shown (in column 4) can be yourorganisation’s main purpose (e.g. ‘18. Help for poor, aged or destitute’ or ‘24. Welfare of womenand children’).

Small Individual Donors

Donations below one lakh, from an individual donor, are known as small donations. There is noneed to give name of each donor. Date and month of receipt also should not be filled in thiscase.However, if you want, you can summarise these donations according to the purpose of thedonation. Such a summary may look like the following:

FCRA Receipts and Payments Account (partial)ReceiptsPaymentsGrant received90,000Project Expenditure92,000Loan from Ind-Loan returned toian section10,000Indian section6,000FCRA Balance Sheet (partial)LiabilitiesAssetsLoan fromGrant receivable2,000Indian section4,500FCRA bankAccount22,500Sl. No.Institutional/Name and AddressPurposeDate and MonthAmountIndividual/of Receiptin Rs.Other Donors1––Schools–3,25,2512––

Gaushala

–2,67,7623––Corpus–1,50,675

Total7,43,688

































80

More on Individual Donors

These donors may be sending you money by cheque or in cash (when they visit you). Youshould note down their names and addresses while issuing a receipt. If possible (and withoutoffending the donor), also take down the passport number, country of issue

30

and expiry date.

Table 5: Country Chart

Country-wise Receipts

Donation Box Collections

In case of donation box collections, show the country as ‘not known’. In case of bank interest,revolving fund recoveries, etc., show the country as ‘India’.

From Another Indian Agency

Where you have received the funds from another Indian agency / NGO as second recipient,show the country as ‘India’. In brackets, you can say ‘second recipient status’.

Reconciliation

Tables 2 and 4

Add up all the cash and cheque grants / donations listed in Table 4. These should be the sameas grant receipts (in money terms) shown in the FCRA Receipts and Payments Account.Crosscheck the total receipts (including materials grants, with the total receipts shown incolumn 9 of Table 2 also).However, you may find a small difference in these two figures. This may be because someinflows can not be classified under any of the three donor categories. The earlier category of‘others’ has now been deleted.

Table 2: Cross-check Unutilised Balance in Cash

The unutilised amount (total of column 12) should be cross-checked with the FCRA BalanceSheet also, as shown below:

Start with FCRA Bank Balance

Add: Cash in hand.................................................Add: Fixed Deposits.................................................Add: Advance to staff / Imprest.................................................Add: Advances to suppliers.................................................Add: Any loan to Indian section.................................................Less: Loans taken from others.................................................Less: Loan from Indian section

Should be equal to total of column 12

The resulting figure should tally with the un-utilised amount in column 12. If you wish you canattach a copy of this calculation to your FC-3.

30

Needed to fill up the country chart

































81

Table 2: Cross-check Balance in Kind

Similarly the unutilised balance in kind (total of column 13) should be cross-checked with thetotal balances shown in FC-6 register.For this, prepare a summary of FC-6 sheets showing the balance on 31st March. Add this up.This should tally with total of column 13.

Closing Items

Signing FCRA Accounts

The FCRA Receipts and Payment Account and Balance Sheet have to be attached to FC-3.

1. Balance Sheet

This should show position of accounts as at 31st March. It should be prepared from accountsmaintained for FCRA.

2. Receipts and Payments

The Statement of Receipts and Payments should reflect all receipts of foreign grants / FCRAreceipts (cash/ cheque). The payments side would reflect all payments made out of FCRA funds(including purchase of assets, creation of revolving funds, loans, advances, etc.).A practising Chartered Accountant should sign both. He / she would put the firm’s seal, nameand signatures under a suitable audit statement. Normally, the audit statement would be “Asper our separate report of even date in Form FC-3 attached”.Chief Functionary should also sign both the Annexures.

CA Certificate

The auditor also has to certify the figures of opening balance, receipts during the year andclosing balances. These figures appear in the certificate at end of form FC-3. The openingbalance should be taken from the previous FC-3. Receipts during the year include currency

31

as well as material

32

. These three figures should also match table 2 as follows:

FC Figure in certificateShould match with Table 2

Brought forward – at the beginning of the yearTotal of columns three and fourReceived during the yearTotal of column 9Unutilised balance at the end of the yearTotal of columns 12 and 13The certificate can be typed on plain paper. However, it would be better, if the certificate isissued by the auditor on their firm’s letterhead. The auditor is also free to give any clarificatorynotes or qualification in the certificate.

Accounting Standards

If the NGO has any income generation project

33

, then the following Accounting Standardsshould be considered when preparing FCRA accounts

34

:

31

Taken from Receipts & Payments Account

32

Taken from FC-6

33

Refer ICAI clarification titled ‘Accounting Standards for NGOs’; The Chartered Accountant, Sep-95,Page 79.

34

Receipts & Payments Account and Balance Sheet

































82

ASTitleEffective Date

AS-1Disclosure of Accounting Policies1-Apr-93AS-2Valuation of Inventories1-Apr-99AS-3Cash Flow Statements1-Apr-01AS-4Contingencies and events occurring after the Balance Sheet Date1-Apr-95AS-5Net Profit or Loss for the period, Prior Period Items and changesin Accounting Policies1-Apr-96AS-6Depreciation Accounting1-Apr-95AS-7Accounting for Construction Contracts1-Apr-93AS-8Accounting for Research and Development1-Apr-93AS-9Revenue Recognition1-Apr-93AS-10Accounting for Fixed Assets1-Apr-93AS-13Accounting for Investments1-Apr-95AS-15Accounting for retirement benefits in the FinancialStatements of Employers1-Apr-95AS-18Related Party Disclosures1-Apr-01AS-19Leases1-Apr-01

Proof of posting

Keep the proof of posting (Post Office receipt) carefully on file. This comes in useful if youreceive a letter from FCRA for non-filing of return.

Copy to Donors

After filing the form FC-3, send a copy (with Balance Sheet and Receipts and Payments andother Annexures) to your Funding Agency’s local office, according to their reporting requirements.

Filing Nil FC-3

You are required to file the FC-3 even if you have not received any foreign contribution duringthe year. In such cases also, the Balance Sheet and Receipts and Payments Account shouldbe attached to the FC-3.

Penalty for not filing FC-3

What happens if you do not file FC-3? The law on this is fairly strict: your FCRA registrationcan be cancelled, you can be fined and you can also be sent to prison

35

.However, in practice, the FCRA department treats these cases rather benevolently

36

. The NGOin default is given several chances to file the FC-3. If there is no response from the NGOdespite follow-up, then the department proceeds to cancel the FCRA registration.

35

See item 8 under heading ‘Offenses and Penalties: Ready-Reckoner’ on page 95.

36

Only about 70% NGOs file FC-3 regularly.

































83

Concealing Information

FCRA department has now added a warning at the end of the table in Heading 2. Read thiscarefully before you sign the form FC-3 – any concealment or falsification may prompt theDepartment to initiate ‘appropriate action’.While the Department does not say here what ‘appropriate action’ can be taken, this includessuspension / cancellation of registration, fine and jail

37

.

Revising your FC-3

If you make a mistake in your FC-3, then you can revise it and file it on your own

38

. Send acovering letter with the revised FC-3 explaining the reason for revision.

37

See item 9 under heading ‘Offenses and Penalties: Ready-Reckoner’ on page 95

38

Balance Sheet and Receipts & Payments Account should also be attached.

































84

Maintaining Form FC-6

39

Foreign Contribution

Foreign contribution can be in cash or cheque. For this, you maintain a cash book and ledger.Foreign contribution can also be given as physical articles

40

. This is known as ‘foreign contributionin kind’. Examples are blankets, food, boats, plastic sheets, etc. You can not record these incash book or ledger. Therefore, FCRA rules say that you should maintain a separate stockregister for these [rule 8(1)(a)].

What is FC-6

The format for this stock register is called FC-6. This shows all foreign contribution receivedas articles and distributed by an NGO.

But our Donors maintain it…

Some people think that it is enough if form FC-6 is maintained by the donor agency or firstreceiver. This is not correct.Every NGO that receives and handles foreign contribution in kind should maintain form FC-6.

Ok, where can we get the form?

The form is given on page 149. It is also available in FCRA Rules and on the AccountAid website (www.AccountAid.net).You will have to xerox or print 50-200 copies of the form. After this, the sheets can be boundto make a register.

How do we maintain it

The step-by-step procedure is given on page 85. But first let us understand some main issues:

Only for non-cash stuff

FC-6 is used only when an item is received as foreign contribution. It should not be used whenyou use foreign funds to buy an item. This is slightly tricky. So let’s look at an example:

"

The Donor gives you Rs.300,000 as a grant. Out of this you buy a motor-cycle. This costyou Rs.40,000. Will you enter this in FC-6? No. You will enter it in your FCRA cash book / bank book.

"

Now suppose the Donor gives you only Rs.260,000 as grant. In addition, they purchase amotorcycle for you and send it to you. Will you enter this in FC-6? Yes. Will you also enterit in your FCRA cash book? No.

One page for each item

FC-6 is just like a stock register. So you have to open a separate page for each article. Thisalso means that if you regularly receive two sizes of blankets, then you should open separatesheets for each.What happens if you receive a lot of assorted material? For example, these may be used toys,shoes, shirts, etc. Well, you should probably have these sorted and open one sheet for eachcategory.

39

Based on AccountAble 58: Maintaining FC-6

40

Section 2(1)(c)(i)

































85

What if some of the stuff has to be sold…

Sometimes the material can not be used by the people directly. In such case, the NGO maysell the material. The money collected from the sale becomes FCRA money. This sale shouldbe recorded in FC-6.

Items less than Rs.1,000

Items less than Rs.1,000 are also foreign contribution, if these are received by an NGO.It is only personal gifts below Rs.1,000 each that fall under exemption of section 2(1)(c)(i).

Where do we file FC-6

You do not have to file FC-6 with the FCRA Department. This is like your stock register – youshould keep it with you.Only the information extracted from this should be entered in FC-3. The FC-3 is later filed withthe FCRA Department.

How long should we keep it

FCRA Act and rules are silent on this. Still, to be on the safe side, keep the register for 10years.

Step-by-step procedure

The following explains how stock register in form FC-6 should be maintained:

Description of Article

Start with a fresh sheet for each type of item. Remember to open different sheets for differentsize / packing of the same item.Write the name of the article on top. For example, ‘Blankets – large size’ or ‘Cooking Oil – 200ml. Tins’. If you also receive Cooking oil in 500 ml tins, open a separate account for these.

Receipts

Numbers refer to column numbers in the form. Enter each transaction separately, in separatelines.

1. Date

Date on which you received the consignment.

2. Donor

Who sent you these items? Give the name and address of the donor here. If you received theitems through another NGO, just give the name and address of that NGO.

3. Mode

How did the items reach you? This could be by road, rail or in some cases by air. Write themode here – also give truck / train number, if feasible. In case of some small items, the donormay have just given these to you by hand also. In this case, the mode will be ‘by hand’.

4. Purpose

Why have these items been sent to you? For distribution among people? For use at your office(e.g. a vehicle). Write the purpose of this donation here.































86

5. Quantity

The number of units (tins, blankets, etc.) received. If you received 200 tins of 200 ml. each,write 200 tins. Do not write 40 litres.This can be tricky. For example, you have received 4 truck-loads of wheat. Each truck had 1tonne of wheat. That means 4,000 Kgs of wheat. You are going to give each family 1 kilogram(kg). What should you do?In this case, you should keep the unit as KGs. Say this on top, where you write descriptionof the item. Then write 4,000 in the quantity column (column # 5).

6. Approximate Value

Here you have to write the value of the items received. This does not have to be accurate – a near-about value is good enough.You can get this from the documents (Bill of lading, shipping declaration, insurance papers,etc.). Or you could ask the donor to give you a rough figure. If it is an item available in thelocal market, you can also use this price as the basis.

7. Intimation

This column is slightly confusing. No separate intimation should be sent to the Government.What you have to give is the date of mailing FC-3.However, the FC-3 will be filed after the end of the year. So leave the column blank now. Fillit up after you have sent the FC-3 to the FCRA Department.

Utilisation

Each issue of items should be recorded in a separate line.

8. Date

Date of issue should be given here.

































87

9. Beneficiary

Who received the items that were issued? In most cases, this would be a beneficiary. His / her name and address should be given. Each beneficiary should be listed separately, in onerow.Sometimes, the items are issued to another NGO. This NGO will then distribute the items intheir area. If so, give the name and address of the NGO here.In some cases, the items are sold. In such a case, write the name and address of the personwho bought these items.

10. Purpose

If the items are sold, then there is no need to write any purpose. In other cases, you shouldgive the purpose. In case of food items, the purpose will mostly be ‘relief’. In case of constructionitems, it could be ‘rehabilitation’.If the items were issued to another NGO, the purpose could be redistribution.

11. Utilised by NGO

Beneficiaries:

Quantity distributed to beneficiaries should be entered here. Make sure that youare using the correct unit (see comment on column 5).

Damages:

If some of the items were damaged or pilfered, then these should also be enteredhere.

Totals:

At the end of the year, total up column 11. Work out a rupee value for this. Use thesame basis for valuation as in column 6.

Linking to FC-3:

Enter the final value in column 11 of FC-3. You will need to select a suitablepurpose in FC-3. For example, this could be ‘5. Rural Development’ or ‘23. Relief for naturalcalamities’.If the items were used for mixed purposes, you can split the value and show it in severaldifferent rows in form FC-3.

12. Sold off

If the goods were sold, enter the quantity here. The value of sales will be shown as receipt inform FC-3 in column 7. At the same time, the value of sale will also be shown in column 11of FC-3.

13. Transferred

If these were returned to donor or given to another NGO, enter the quantity in this column.

14. Sale recovery

In case the items were sold, enter the value (in Rupees) of sale here.

15. Entry reference

This applies only if items were sold and money was recovered for these.Here you have to give reference of the FCRA cash book page and date on which this recoveryis shown.

16. Closing Balance

This should be recalculated whenever you make an entry for receipt or for issue.































88

Declaration and Signature

Each filled up sheet of form FC-6 should be signed at the end of the year. However, the rulesdo not say who should sign the declaration. Therefore, the chief functionary or an equallyresponsible person can sign it.

Open a new account each year

Financial year for FCRA ends on 31st March. When you start the register for next year, openup a fresh sheet for each item. This is just like opening new ledger accounts.The closing balance of the previous year should be brought forward to the new year as openingbalance.

Auditing FC-6

Should the auditors check FC-6 also? Yes:

"

Clause (iv) of the certificate given by the auditors covers all records maintained under rule8(1) of FCRA. These include the FCRA cash book, ledger, and registers in form FC-6 andform FC-7

41

.

"

The figures of foreign contribution (received and utilised) also include value of FC-6 items.

41

Used to maintain records of foreign contribution recieved in the form of foreign secuities (shares, bonds,debentures, etc.)

































89

FCRA Fellowships

42

Fellowships are common in the development sector. Quite often these are funded from FCRAgrants. However, in most cases, the Agencies and the individuals concerned are not aware thatcertain FCRA formalities are required. Here we deal with the FCRA implications of a fellowshipgrant.In the development sector, fellowship generally means a regular payment to an individual forsome research or study. The topic of the study is clearly defined. Some sort of output (a reportor a book) is also expected at the end of the study. Normally, the work is that it can be doneby one person — an organization is not required for the work.

Key features of a fellowship

If you want to check whether a payment is fellowship or not, use the following checklist:

!

Payment is made to an individual.

!

The person is qualified to do the research.

!

The money is deposited in the individual’s personal bank account.

!

The individual pays income tax on the payment, if it exceeds taxable limit.

!

The objective of the exercise is research/ study or development of a new concept.

!

A report or a thesis will be available at the end of the exercise.

!

The work does not involve active use of an organization.

!

The amount is reasonable for a fellowship or research grant.It is difficult to work out a similar checklist for scholarship or stipend payments. These are notcommon.However, requirements of FCRA apply equally to all similar payments (made to an Indiancitizen), including scholarships and stipend.

Valuing the Fellowship

If you get a fellowship out of FCRA funds, the following are included in the fellowship:

!

the basic amount of fellowship

!

the amount received for purchase of books, clothing, equipment, etc.

!

the amount received for sight-seeing in a foreign country

!

Air (or other) travel expenses within IndiaFollowing are excluded:

!

Amount spent by the Agency on Air fare (economy or tourist class) to and from the foreigncountry

!

Amount spent by the agency on tuition fees and other similar feesIf the air travel is by a higher class (first or executive), then:

42

Based on AccountAble 35: FCRA Fellowships

































90

!

either the entire air fare may be included in the fellowship; or,

!

the net difference between economy and first class may be added.This will depend on the facts of the case and the person interpreting the law.

Splitting Hairs

The word ‘fellowship’ has not been defined or used in FCRA, which uses the words ‘scholarship’or ‘stipend’. Even these two words have not been defined in the Act.Commonly, these words mean the following:

Fellowship:

Webster 4.a: the position of a fellow (as of a university) b: the funds granted toa fellow; Oxford 3: income of a fellow of a college or society.

Scholarship:

Webster 1: the financial aid given to a student (as by a college or foundation) toassist in the cost of education; Oxford 2: financial award for a student, etc. given for scholarlyachievement.

Stipend:

Webster: a fixed sum of money paid periodically for services or to defray expenses;Oxford: salary, especially of a clergyman.

FCRA: Issues and Formalities

Routed fellowships

Remember that foreign contribution can never be converted into Indian funds

43

[explanation tosection 2(1)(c)].If your fellowship originated with a foreign agency but has been routed through one or moreIndian agencies, it will still remain FCRA fellowship.An Indian Agency or NGO, which does not have FCRA or prior permission, should not receiveor disburse any FCRA amount for fellowship.

No permission or registration

No FCRA registration or prior permission is required for giving or accepting a fellowship,scholarship or stipend to an individual. However, if this provision is wrongly interpreted to makeprogram grants to an organization as fellowship payments to its workers, you may attractprosecution.

Prohibited

Fellowship, scholarship or stipend can not be paid from FCRA funds (section 4) to:

!

Election candidates

!

Employees of a Government corporation or Government Company

!

Accredited journalists

!

MPs, MLAs, etc.

!

Judges

!

Office bearers of political parties

!

Government servants

43

See ‘13. When do FC funds become Indian’ on page 117.



































































































































































































97

"

Additional fine (upto five times invalue) if original foreign contributionspent [sec. 24]19.A person is convicted second

"

Association

"

Prohibition on accepting foreigntime for offense under sec. 23

"

Personcontribution for three years(1) or 25 [sec. 25 A][sec. 25 A]

OffenseWho may be penalizedPenalty

































98































99

Section III: Intricacies

The word ‘intricate’ comes from the English word ‘trick’. Intricacies are, therefore, the tricks thatthe law plays on you. Of course, the law itself becomes trickier as time passes, learninglessons from all the tricks that we play on it!This section is for advanced readers. It tries to go into the nitty-gritty of the law as alsounderstanding the intention of the law. As the overall design of the Act becomes clearer, it maybe easier for us to see whether a particular way of looking at it may be right or not.This section is divided into following chapters:Understanding FCRA101Mysteries of FCRA111Puzzles of FCRA115Fund-raising and FCRA120The first chapter offers an overview of sorts. The next three deal with specific points on whichconfusion exists or where a provision of the Act causes difficulties. There is a general expectationthat a new FCRA law will be passed soon – let us see whether the new Act will resolve theseissues or cause further complications.At this point, it is also worthwhile to quote from Khalil Gibran’s ‘The Prophet’:“Then a lawyer said, But what of our Laws, Master?And he answered:You delight in laying down laws,Yet you delight more in breaking them.Like children playing by the ocean who build sand-towers withconstancy and then destroy them with laughter.But while you build your sand-towers, the ocean brings more sandto the shore,And when you destroy them the ocean laughs with you.Verily the ocean laughs always with innocent.But what of those to whom life is rock, and the law a chisel withwhich they would carve it in their own likeness?…What of the ox who loves his yoke and deems the elk and deer ofthe forest stray and vagrant things?…And of him who comes early to the wedding-feast, and when over-fed and tired goes his way saying that all feasts are violation andall feasters law-breakers?…What shall I say of these save that they too stand in the sunlight,but with their backs to the sun?They see only their shadows, and their shadows are their laws….”

































100































101

Understanding FCRA

Foreign Contribution (Regulation) Act, 1976 is a very short Act. However, there is an enormousamount of confusion about its provisions. Also, there is very little literature on the law itself.Most of the available material relates to practical procedures only.In these paragraphs, we have tried to put down some of the understanding of FCRA law thatwe have gained over the years.

Foreign Source

Foreign source is defined in section 2(1)(e). However, the definition is an ‘inclusive’ definition

1

.This means that the list provided in section 2(1)(e) is not complete or exhaustive.This is a very important feature. Suppose there is a source ‘xyz’ which appears to be foreign,based on common sense. However, it is not listed in section 2(1)(e). How will ‘xyz’ be treated?It will be treated as a foreign source. Why? Because the definition is not exhaustive. It allowsthe courts to treat other sources also as foreign.There are five main categories listed in the ten clauses of this section. Going through these,you get the sense that anything under foreign control may be a foreign source. These categoriesare discussed below:

1. Individuals

How do you know whether a person is foreign or not? This is based on his or her citizenship

2

.The country of stay is not important.This means that a foreigner staying in India, working in India, earning money in India, will stillremain a foreign source. On the other hand, an Indian working abroad, getting salary from aforeign company, will not be a foreign source. An example of this category is Mr. Amartya Sen.On the other hand, if a foreigner acquires Indian citizenship, then he or she will become anIndian source. Similarly, if an Indian becomes a foreign citizen, then he or she will become aforeign source.A common area of doubt is NRIs and PIOs:

a. Non-resident Indians (NRIs)

Are NRIs a foreign source or Indian source? In general, NRIs are not a foreign source. Theyare settled abroad but are still Indian citizens.However, the term NRI is sometimes used very casually. Therefore, it is best to confirm thisby asking whether the person has become a foreign citizen. If the answer is ‘no’, then the fundswill be treated as Indian.

b. Persons of Indian Origin (PIOs)

Who are persons of Indian origin? One example is Shri V. S. Naipaul, nobel laureate. Hisgrandfather left India to settle in Trinidad. Both his father and Shri Naipaul were born in Trinidad.Later, he became a British citizen.

1

It uses the word ‘includes’ instead of ‘means’.

2

Sec. 2(1)(e)(x). India does not recognize dual citizenship. An Indian who acquires foreign citizenshippromptly loses his or her Indian citizenship.

































102Shri Naipaul is eligible to apply under the Indian Government’s PIO Card scheme. If he appliesand gets this card

3

, then he will get some extra facilities, such as visa-free travel to India.However, he will not get any political rights, such as right to vote in India.Persons of Indian origin are treated as a foreign source. It does not matter whether they holdthe PIO card or not.

c. Dual Citizenship

The Government is now also seriously talking about dual-citizenship. This means that an Indiancan remain an Indian citizen, even though he or she becomes a foreign citizen.Will this make a difference so far as FCRA is concerned? Surprisingly, the answer is ‘no’.Section 2(1)(e)(x) says clearly that a citizen of a foreign country is a foreign source. In the caseof dual-citizenship, a person will be an Indian citizen but will also be a foreign citizen. Thus,he or she will attract clause (x) and will be treated as a foreign source!

2. Government

Government of a foreign country or territory is a foreign source

4

. When does a group becomegovernment of a foreign country? When the Indian Government recognizes it. For example, Indiadid not recognize

Taliban

as government of Afghanistan

5

during the years it was administeringlarge parts of Afghanistan.This distinction is more important for diplomatic relations than for FCRA. So far as FCRA isconcerned, both (recognized Government and unrecognized one) will be treated as a foreignsource.Agencies of a foreign government are also treated as a foreign source.

3. International Agencies

All international agencies are a foreign source. However, multilateral agencies such as UNO, itsspecialized agencies, IMF, World Bank are not treated as a foreign source. Apart from these,Government can also exempt other international organizations from the definition

6

.Why this ‘discrimination’? Well, the reason appears to be that multilateral agencies such as UN,etc. are not under control of a single nation or group. It is assumed, therefore, that their fundscan not be used to subvert Indian institutions.But what is an international agency? The Act does not say anything on this. In common usage,‘agency’ means an organization providing a public service. In some cases, agency may alsomean a special Government Department (e.g. USAID) concerned with a specific field. Whensuch an organization operates on an international scale, it is called an ‘international agency’.

4. Non-profit organisations

Foreign trusts, foundations, societies, clubs and other associations also are foreign sources.These are discussed on next page in more detail:

3

The PIO card fees is US$ 1,000.

4

Sec. 2(1)(e)(i)

5

This merely means that

Taliban

will be categorized as a non-governmental foreign source.

6

At present more than 104 organisations are exempt from this definition.

S.O. 1014(E) dated 13-Nov-00.Gazette of India, Extraordinary. Part 2, sec. 3, sub-section (ii)

































103

a. Trusts

What is a foreign trust? The Act does not say about this. However, normally a trust

7

formedabroad would be a foreign trust. Also, a trust formed in India by a foreigner could be a foreigntrust. Foreign trusts are a foreign source

8

.

b. Foundations

Foundations are also like trusts, though sometimes the term is also applied to other type oforganisations. The section talks about two types of foreign foundations:a.a foreign foundation which is in the nature of a trust; and,b.a foreign foundation which is mainly financed by a foreign country is a foreign source

9

.Now a doubt arises. What would be the status of a foreign foundation, which is

not

in the natureof a trust, and is

not

supported by a foreign country? It is possible that such a foundation willnot fall within this clause

10

.

c. Society, clubs, etc.

In the case of societies

11

, the Act is clearer. Societies, etc. formed or registered outside Indiaare treated as foreign source

12

. What if the society was formed by Indians living abroad? Thesociety will still be treated as a foreign source.What about a society formed in India by foreigners? This is also not clear from the Act.

d. Corporations

In some countries, non-profit organizations are registered as charitable corporations. These arealso treated as foreign source

13

.

e. Trade Unions

A trade union formed or operating in a foreign country (or territory) is a foreign source

14

. It doesnot matter whether it is registered there or not.What is a trade union? Trade Union is defined in sec. 2(k) of the FCRA. However, this definitionis relevant for Unions registered in India only. It is, therefore, not valid for interpreting sec.2(1)(e)(vii). FCRA provides another definition in sec. 2(1)(k). This one refers to unions registeredunder Trade Unions Act, 1926. Therefore, even this does not appear to be relevant for foreigntrade unions discussed in section 2(1)(e)(vii).The definition of a Trade Union will vary from country to country. For example, the standardreference Black’s Law Dictionary

15

defines it as ‘a union composed of workers of the same orof several allied trades’. This may perhaps be relevant in some Western countries. But whatabout a Trade Union formed and registered in an Arabian country? Or in Russia?This is an issue which the Government may perhaps rectify when it next amends the FCRA.

7

A trust is formed by attaching a legal obligation to a property. This is done by the owner of the propertywho makes a Trust Deed. Trustees are also nominated and are responsible for fulfilling the legal obligation.

8

Sec. 2(1)(e)(viii)

9

Sec. 2(1)(e)(viii)

10

However, it may be that it will be caught by another clause because it’s registered as a corporation,society or a company. If everything fails, then it will be probably be netted by the fact that the definition insection 2(1)(e) is merely an inclusive one!

11

Also clubs or other associations of individuals

12

Sec. 2(1)(e)(ix)

13

Sec. 2(1)(e)(iv)

14

Sec. 2(1)(e)(vii)

15

7th Edition, 1999. p.1532

































104

5. Business Organisations

Five types of business organizations are listed: 1. a foreign company, 2. subsidiary of a foreigncompany, 3. a foreign corporation, 4. a multi-national corporation, and 5. a company controlledby foreigners. All five are treated as foreign source.

a. Company

What is a foreign company? It is defined in section 591 of the Companies Act, 1956. Anycompany incorporated

16

outside India is a foreign company

17

.

b. Subsidiary

Any subsidiary

18

of a foreign company is also treated as a foreign company. It does not matterif the subsidiary is formed in India.

c. Corporation

As discussed above, a corporation formed in a foreign country is a foreign corporation. Whatis a corporation? It has four key features

19

:(i) It is an entity recognized by law;(ii) It has a personality of its own, distinct from the persons who formed it;(iii) It has only those powers which its constitution gives it;(iv) It has perpetual succession.Sounds complicated? Well, a company and a society are both examples of corporations.

d. Multi-national Corporation (MNC)

MNCs

20

are treated as a foreign source. However, the term MNC has a special meaning underFCRA.The definition

21

of an MNC has two parts. First, that the corporation should have an office orbusiness in two or more countries. Second, the corporation should have been formed in aforeign country.What does this mean? If an Indian corporation

22

starts operating in a foreign country, it will notbecome an MNC for the purpose of FCRA.

Permitted institutions

The last para of section 2(1)(e) provides a special exemption. Any foreign institutions permittedto work in India by Indian Government are not a foreign source.What does this mean? There are many foreign organizations working in India. The Governmentmay have a special agreement with some of them. Others may have been given permissionby RBI or other Government agencies. Are these a foreign source or not?

16

Formed

17

There is a quirk in the definition given in section 591: the company should have an office in India. If weinterpret this literally, it may appear that a company registered in Belgium will not be a foreign company,if it does not set up an office in India!

18

When does company A become a subsidiary of company B? There are four ways: (i) B controls the boardof A; (ii) B controls more than 50% of the voting power (in general meetings) in A; (iii) B holds more than50% of the equity shares in A; (iv) B is a subsidiary of A under the laws of B’s home country (the countrywhere B was formed).

19

Based on Black’s Law Dictionary, 1999, p.341

20

Multi-national corporation

21

Explanation to section 2(1)

22

or company

































105Such permissions or agreements mean nothing for FCRA. This exemption is available only ifthe Government has issued a notification in the official Gazette permitting the organization towork in India.

FC Receivers

There are six categories of receivers under FCRA:

1. Political parties

‘Political party’ is defined in section 2(1)(g) of FCRA. Political parties can not receive foreigncontribution under any circumstances. There is no case by case prior permission or exemptionfrom this rule.

2. Organisations of a political nature

‘Organisations of political nature’ are defined in explanation to section 5(1). These can not getFCRA Registration. However, these organisations can receive foreign contribution on a case bycase basis after getting prior-permission

23

. The central government issues notifications fromtime to time naming such organisations

24

.

3. Individuals in public life

These are listed in section 4(1) as follows:1.Election candidates

25

2.Employees of a Government corporation or Government Company3.Accredited Journalists i.e. correspondent, columnist, cartoonist, editor, owner, printeror publisher of a registered newspaper.4.MPs, MLAs, etc.5.Judges6.Office bearers of political parties7.Government servantsIn general, none of these can get foreign contribution. However, the restriction does not applyto journalist working with electronic media including TV news channels

26

. Other exceptions aregiven in section 8 (salary, business receipts, personal gifts from relatives, etc.).

4. NGOs

The Act regulates receipt of foreign contribution by any association

27

which has definite program

28

.Such organisations are commonly refered as NGOs

29

, NPOs

30

, PBOs

31

, or DevelopmentOrganisations. These organisations can get foreign contribution after registration under FCRAor getting prior permission on a case by case basis. Mostly, this foreign contribution is exemptfrom income tax.

23

Form FC-1

24

See Table ‘Organisations of a Political Nature’ on page 106

25

‘Candidate for election’ has been defined in section 2(1)(b). Election means election to a ‘legislature’The word ‘legislature’ itself has been defined in section 2(1)(f)].

26

Electronic media was under government control till early 90’s, and the Act has not been amended since1985.

27

Defined in section 2(1)(a)

28

See section 6(1)

29

Non-governmental Organisations

30

Non-profit Organisations

31

Public Benefit Organisations

































106

5. Private individuals

Private individuals can get foreign contribution freely. However, this is subject to applicabletaxation laws. Private individuals must report receipt of foreign contribution in the nature ofscholarship or stipend, etc. if it exceeds Rs.36,000/- per year.

6. Business organisations

Business organisations can get foreign contribution

32

freely without any registration or reporting.This is subject to normal taxation laws.

Business Transactions

Are business transactions of NGOs outside FCRA? Section 2 defines ‘foreign contribution’ usingthe words ‘donation, delivery or transfer’. Some people argue that the word ‘donation’ definesthe types of delivery or transfer that law-makers had in mind. If this is correct, then businesstransactions of NGOs would not be covered.Before concluding this, let’s look at sections 4 and 8 also. Section 4 says that politicians, journalists, etc. will not accept foreign contribution at all. However, section 8 says that thesepeople are allowed to accept some types of foreign contribution. The section gives a list, whichincludes salary, wages, ordinary business remittances, some gifts, etc.If this argument is correct, then what was the need for section 8?Therefore, our view is that to begin with foreign contribution includes practically every remittancefrom a foreign source. Even ordinary business remittances to business houses are foreigncontribution. However, the Act does not restrict acceptance of foreign contribution by businesshouses. Restrictions are placed only on people in sensitive positions (political parties, politicians, journalists, etc.) and NGOs.

Organizations of a political nature

[As per notifications issued by Government of India under section 5 of the Foreign Contribution(Regulation) Act, 1976]

NameAddress

A.K. Gopalan Bhavan Trust27-29, Bhai Veer Singh Marg, Gole MarketNew DelhiAkhand Kirtni JathaAkhil Bhartiya Vidyarthi ParishadMumbaiAll Assam Students UnionGauhati University Campus, Jhalukhari,Gauhati, Kamrup District, AssamAll India Agricultural Workers Union12-B, Feroze Shah Road, New DelhiAll India Bank Employees FederationDelhiAll India Confederation of Bank OfficerPandyan House, Ferere Road, Mumbai-38OrganisationsAll India Defence Employees FederationPune

32

‘Foreign contribution’ as defined in section 2(1)(c) includes both commercial as well ascharitable

transactions.

































107

NameAddress

All India Democratic Student Organisation48, Lenin Sarani, KolkataAll India Democratic Women’s AssociationAll India Democratic Women’s Association23, Vithal Bhai Patel House, Rafi Marg,New DelhiAll India Federation of Electricity EmployeesResidency Road, Sadar, NagpurAll India Federation of University & collegeTeachers OrganisationsKolkataAll India Insurance Employees AssociationKolkataAll India Kisan Sabha4, Windsor Place, New DelhiAll India Kishan Sabha4, Ashoka Road, New DelhiAll India LIC Employees FederationMumbaiAll India Loco Running Staff AssociationLumding, AssamAll India Mazdoor SanghMumbaiAll India Milli Council161/32, Joga Bhai, Jamia Nagar,New Delhi-25All India Muslim Majlis-e-MusharatE-3, Abul Fazal Enclave, Okhla,New DelhiAll India National Life Insurance EmployeesFederationMumbaiAll India Peace and Solidarity OrganisationK-1/16, Chitaranjan Park, Main Road, NewDelhiAll India Railway Employee Confederation26/12, Railway Colony, Kisanganj, Delhi-7All India Railway Worker’s FederationNew DelhiAll India Railwaymen’s FederationNew DelhiAll India Sikh Students FederationAmritsarAll India State Government EmployeesFederationHyderabadAll India Student FederationNew DelhiAll India Trade Union CongressNew DelhiAll India Youth FederationDelhiAll India Youth League62, North Avenue, New DelhiAll Indo Korean Friendship AssociationNew DelhiAnand MargKolkataAnand Marg Universal Relief TeamKolkataAnjuman Nasrat-UI- IslamSrinagarAnna Thozhir Sangha PeravaniMadrasAssam Jatiyatabadi Yuba Chhatra ParishadSilpukuri, Gauhati, AssamAwami Action CommitteeJ & K

































108

NameAddress

Bharatiya Khet Mazdoor Union4, Windsor Place, New DelhiBharatiya Mozdoor SanghRam Naresh Bhawan, Pahargunj, New DelhiBhartiya Kamagar SenaMumbaiCentre for Indian Trade Unions15, Talkatora Road, New DelhiCitizen’s for DemocracyNew DelhiComsomalKolkataDal KhalsaChandigarhDalit PantharaBhawani Path, PuneDalit PanthersWadala, MumbaiDamdami TaksalGurudarshan Prakash Mehta Chowk, NewDelhiDelhi Gurudwara Prabhandhak CommitteeMata Sundri Lane, New DelhiDemocratic Youth Federation of India11, Windsor Place, New DelhiDennai Talimi CouncilLucknowDravida KazhagamPeriyar Thaidal, 50, EVK, Sampath Road,Madras-7Education Relief And Welfare SectorPanditya Road, KolkataHind Mazdoor SabhaMumbaiIndia Society for Cultural Co-operation and1, Lady Hardinge Road, Opp. Marina Hotel,FriendshipConnaught Place, New DelhiIndian National Plantation Workers FederationDibrugarh, AssamIndian national Plantation Workers FederationSuite 125, 25-A, Parl Street, Kolkata-16Indian National Trade Union Congress4, Bhai Veer Singh Marg, New DelhiIndian Youth Congress (I)New DelhiIndo - China Friendship AssociationNew DelhiInstitute of Indian LabourKolkataIqbal Memorial TrustBemina, Srinagar, KashmirIranian Students Islamic Association or Unionof Iranian Students Islamic AssociationBangaloreIshaat-e-Islam Trust1353, Chitli Qabar, DelhiIslamic Study CircleRed Cross Road, Opp. Hazi Masjid,Maisuma, SrinagarIslamic Welfare TrustPO Omessary, via Kottuwalli, Calicut Distt.J & K People’s LeagueSrinagarJamat Ahle Hadis or All India Ahle Hadis4116, Ahle Hadis Manzil, Urdu bazaar, DelhiJamat-e-Islami HindDawat Nagar Abul Fazal Enclave, Okhla,New Delhi

































109

NameAddress

Jammat Ahle-e-HadisJ&KJammat-e-IslamiBulbul BagullahJammu & Kashmir Muslim Augaf TrustZero Brigade, SrinagarJammu & Kashmir Muslim Auqaf TrustSrinagarJanta Yuva MorchaNew DelhiKerala Trade Union FrontChettiangadi, TrichurKisan Seva SamitiChhatarpur, M.PLabour Progressive FederationArivagam, Rayapuram, MadrasMaharashtra Ekikaran SamitiSahar Samiti Karyalya, Jalti math, NearKapil Theatre, Kirloskar Road, BangaloreMahase-e-AzadiJ&KMarathwada Janta Vikas ParishadSaraswati Bhavan, Sikshan PrasarakMandal College, Aurangpura, AurangabadNag Vidharbha Andolan SamitiNagpurNational Federation of Indian RailwaymenNew DelhiNational Federation of Indian WomenNew DelhiNational Federation Of Post & TelegraphEmployees (K.L. Moja Group)New DelhiNational Federation of Posts & Telegraph(Shashi Bhushan Group)New DelhiNational Federation of Progressive Writers11, Kansal Bhawan, K.G. Marg. New DelhiNational Front Indian Trade Unions10, Government Place East, Ezra Mansion,KolkataNational Labour Co-ordination CouncilKolkataNational Labour OrganisationAhmedabadNational Students Union of India (I)5, Raisina Road, New DelhiNikhil Banga Mahila SanghaKolkataOrissa Gramin Mazdoor SanghSantapur, Bhubaneswar, OrissaPeople’s Union For Civil Liberties8, Sahayog Apartments, Mayur Vihar,Phase-I, New DelhiPeople’s Union For Democratic RightQuarter No. 4, IP College, Delhi University,DelhiProgressive Democratic Students UnionHyderabadProgressive Labour UnionDurgapur, West BengalProgressive Student UnionKolkataProutist UniversalNew DelhiPunjab Student UnionRadical Student UnionHyderabad

































110

NameAddress

Rashtra Sevika SamitiWardha, MaharashtraRashtriya Swayam Sewak SanghHedgewar Bhavan, NagpurRevolutionary Youth Front124/C, Lenin Sarani, KolkataSarva Shramik SanghMumbaiSeva Dharam MissionVaranasi, U.P.Shiromani Gurudwara Prabhandak CommitteeGolden Temple, AmritsarState Central Labour UnionSrinagarStudent Federation of India11, Windsor Place, New DelhiStudent Islamic Movement in India151-C, Zakir Nagar, New DelhiStudent Islamic Movement in IndiaAligarhSwantantra Thozilai Union, State MuslimLeague officeCalicutSwantantra Thozilali UnionMavoor, CalicutTabligh JammatBangle Wali Masjid, Nizammudin Basti,New DelhiTamilnadu Toilers Progressive PartyMadrasTamir-e- MillatHyderabadThe Kannada Paksha31, Nanje Gowda Road, Mavalli, BangaloreThe NeelchakraDolamundai, CuttakTrade Union coordination Centre28,Gurudwara Rakabganj Road, New DelhiTribal FrontAgartalaUnited Trade Union CongressBipin Behari Ganguly Street, KolkataUnited Trade Union CongressLenin Sarani, KolkataUniversal Proutists Student FederationNew DelhiVishwa Hindu ParishadMumbaiVolunteer Social ServiceAllahabadWest Bengal Chhatra ParishadKolkataWilliam Carey Study & Research CentreKolkataYuva JantaNew DelhiYuva Lok Dal3, Pt. Pant Marg, New Delhi




















































































































































































































































































120

Fund-raising and FCRA

39

FCRA was passed during the Emergency days (5th August 1976). Initially, it only asked NGOsto report how much foreign contribution they receive and spend. The purpose of the Act wasto gather information. You did not need FCRA registration or even prior-permission to receiveforeign contribution.This ‘genial’ regime lasted for a little over eight years. In 1985, compulsory FCRA registrationwas introduced. You could not receive foreign funds if you did not have FCRA registration orprior-permission. However, registration was very easy in those days. People who were alreadygetting foreign funds were sent registration certificates automatically. These days things are alittle different.The main point is that FCRA was originally designed only for gathering information. The provisionsfor compulsory registration were grafted on later. This has produced some strange results.Consider this fictitious dramatization: There is an NGO running an old age home in Delhi. Aforeigner, who has been living in Delhi for several years, drops by one day. She likes the place.So, next time she brings along some old warm clothes. The secretary is delighted and thanksher profusely. The next day, both are arrested and put into jail. Why? The NGO did not haveFCRA registration!Fortunately, FCRA is implemented in spirit and not by the letter of the law. The Departmentunderstands that a rigorous interpretation or implementation will cause injustice. So the abovestory will probably not become news. Nevertheless, the point remains. The law exists and canbe misused. Therefore, it needs to be redesigned.The provisions discussed here are based largely on the existing law. Some of the provisionsmay seem ridiculous or unnecessarily harsh. Therefore, keep the above in mind: FCRA peopleare not planning to put you in jail just because you accepted an old shirt from a well-wisher!The following issues / comments are mainly related to raising of funds. Sections refer to FCRA[Foreign Contribution (Regulation) Act, 1976].

1. Anonymous donations

Electronic banking and Internet fund-raising is here. You suddenly receive a credit of Rs.1.3lakhs in your bank account. The donor does not tell you his or her name. What do you do?Ask your bank to trace back the donation. If it came from an overseas account, transfer it toyour FCRA account. Then report it in FC-3 as ‘Anonymous Donation’. Attach a copy of FIRC(Foreign Inward Remittance Certificate) from the bank.

2. NRI donations

NRI donations to an Indian NGO may be Indian funds or FC funds. If the NRI holds an Indianpassport, then the donation will be Indian funds. If not, then these will be FC funds.The type of bank account or currency does not matter.

3. Charity events

NGOs sometimes organise cultural events for raising funds. At these events, they sell donorpasses. These passes are priced high, to generate a surplus. For example, a ticket for a moviemay normally be priced at Rs.100. If it is organised as a charity event, donor pass may be for

39

Based on AccountAble 54: Fund-raising & FCRA

































121Rs.500 or more. What are the FCRA implications of this?There can be two situations, depending on how the event was funded:Separating guests into Indian and foreigners will not be easy. Therefore, implement this only tothe extent it is practical. For example, do not bother to segregate counter sales, when receivedin Indian currency.

4. Raising funds abroad

FCRA authorities cannot allow multiple accounts for receiving funds [section 6(1)(b)]. Therefore,you cannot open an account abroad in your NGO’s name for raising funds. You then have twooptions:1.Set up an independent sister concern abroad. They will raise funds for you and transferthese to you.2.Make an arrangement with a fund-raising group / attorney abroad. They will raise funds onyour behalf and transfer these to you. Check the local fund-raising laws before you do this.This arrangement should be cleared with RBI and FCRA Department.

5. Consultancy income of NGO

NGOs cannot receive consultancy payments from foreign sources without FCRA registration / prior-permission. Such income is treated as FC income. It should be reported in form FC-3[section 2(1)(c) and section 6].

6. Sale of Publications

If the book has been published with FCRA funds, then the sale recoveries (often termed‘contribution’ or ‘

sahyog rashi

’) should be kept in FC accounts.

7. Staff Recoveries

NGOs sometimes make recoveries for STD calls, room rent, etc. from staff. Where should theserecoveries go?If the related expenditure (phone bill, office rent, etc.) is booked in FCRA, then the recoveriesshould also be credited to FCRA.

Funded withForeign Contribution Implications

FC funds1.All proceeds from tickets or donor passes are FC funds. It isimmaterial whether guest is Indian or foreign.Indian funds1.Proceeds from Indian guests are Indian funds.2.Proceeds from foreign guests are FC funds.3.Sponsorship proceeds from MNCs are FC funds.








122Ideally, these recoveries should be credited to the concerned Agency’s project accounts. If thisis not required, then these can be taken to FCRA unrestricted funds

40

.

8. Hire Charges

If you recover hire charges for an asset from a project, where should the income be shown?If the asset is in FC Balance Sheet, then the income should go to FCRA account. These canbe shown there as unrestricted funds (similar to General Fund).

9. Guest recoveries

If your NGO is not registered under FCRA, do not accept any payments (for food, etc.) fromforeign volunteers who stay. You will be violating FCRA!If you do have FCRA registration, credit these recoveries to the FCRA accounts.

10. Recoveries from Beneficiaries

NGOs sometimes make full or nominal recoveries from beneficiaries. These may be for itemsdistributed (food, blankets, medicines, etc.). Or these may be for services provided (schoolfees, workshop fees, medical services, etc.). How should these be shown?If the recovery is against items purchased from FC funds, then the recovery is FC money. Ifthe recovery is for FC-6 items, then also it is FC money.In case of services, you should see how the related expenses are met. If the clinic or workshopis funded by FC funds, then the recoveries must be reported in FC-3.

11. Endowment Funds

If you receive money for an endowment or corpus from foreign source, it will remain FCRAfunds. Take it into your FC Receipts and Payments Account and report it in FC-3 under headingpurpose, item no. 55 (i)(a). Also show it on the Liabilities side of FC Balance Sheet as‘Endowment Fund

41

’.

12. Endowment Investments

You are free to make investments out of Endowment Funds in the normal way. These can bereported as utilization in FC-3. But you must show these on the assets side of FC BalanceSheet as ‘Endowment Investments

42

’.

13. Endowment Income

When you receive interest or dividend on your endowment investments, report these in FC-3under heading 1A (ii)(b).When you make a ‘profit’ by sale of investments (capital appreciation), show the entire salerealization as ‘receipt’ in FC-3.

14. How much

In case of prior-permission, you can receive amounts up to the limit given in prior-permissionletter.For example, if the permission is in dollars, you can receive that many dollars or equivalentIndian Rupees.

40

Funds that can be spent at NGO’s discretion. See ‘17. Unrestricted FC funds’ on page 118 for moredetails.

41

For example: ‘Ford Endowment Fund’

42

For convenience, you can group these together as, for example: ‘Ford Endowment Investments’

































123

15. Exchange rate variations

Also, in prior-permission cases, you may sometimes receive a little more due to exchange ratevariations.Don’t worry

43

. Just report the actual amounts received. Also give a note in FC-3 saying ‘excessreceived due to change in Exchange Rate’.

16. Unused prior-permission

Suppose FCRA gave you prior-permission for $ 10,000 for a project. But the donor Agencycould not give you the funds at that time. Can you now re-use it for another project?No. Prior-permission is linked to the project and the donor Agency. You can use it only for theapproved project. Also, the donor Agency must remain the same.

17. Foreign Volunteers

A foreigner can come and work in your NGO without any salary. This is not considered asforeign contribution.

18. Items less than thousand rupees

Many people believe that gifts below Rs.1,000 each are not foreign contribution. This is not quitecorrect. This exemption applies when the gift is given to an individual. Secondly, the gift mustbe for his/ her personal use, such as a shirt or a watch.Therefore, if a foreigner gives your NGO a wall clock worth Rs.800, you should record it in FC-6 and report it in FC-3.

19. Old items in FC-6 and FC-3

Sometimes foreign Agencies give away old items to NGOs. Examples are vehicles, refrigerators,computers, fax machines, typewriters, filing cabinets, etc. The Agencies do not charge anymoney for this.These items are foreign contribution. You must record these in FC-6. Later you must reportthese in FC-3 also.

20. PL-480

PL-480 means Public Law number 480. It was passed a long time ago in United States ofAmerica. Indian NGOs have been receiving bulgur, oil and milk powder under PL-480. This isdistributed to beneficiaries.These items are received under an agreement between Indian Government and US Government.However, these are routed through USAID and one or more American donor agencies.When received in India, these are foreign contribution. The NGO receiving and distributing thesemust maintain an FC-6 and report these in FC-3. The NGO must also have FCRA or priorpermission to handle these items.

21. Bilateral funds

Indian Government negotiates bilateral funding with other countries. Such funds are received bythe Central Government. These are then transferred to states, funding bodies or NGOs. FCRAact does not apply to these [section 32].However if you receive funds directly from a bilateral Agency, then these will be FCRA funds.

43

This is not a problem for those who have FCRA registration.

































124































125

Section IV: Forms

Whether you believe it or not, forms were invented to make your life simple! However, as timepassed, people must have found this unsatisfactory and must have started making simplethings complicated.FCRA forms, by and large, are not very complicated. However, there have been frequentchanges in the forms in the last few years. The last change that took place was on 26

th

July2001, when form FC-3 was revised.In this section, we have included the following forms:Form FC-1AFor getting FCRA prior-permission127Form FC-3Annual return of funds and material133received and usedForm FC-5Intimation about foreign fellowship147Form FC-6Stock register for foreign contributionin kind149Form FC-8For getting FCRA registration150Form XNeeded if you are publishing a news-letterregistered under Press and Registrationof Books Act, 1867155The text of the Act and the rules is also given for your convenience.The Foreign Contribution (Regulation) Act, 1976156Foreign Contribution (Regulation) Rules, 1976169Please note that this does not purport to be the authorized or correct text of the Act or theRules, for which you must refer to the text published in the Gazette of the Government of India.

































126