Some FCRA Issues to Take off the Table NCHER Knowledge Symposium November 9, 2012
FCRA 2010: Issues And Challenges
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Transcript of FCRA 2010: Issues And Challenges
FCRA 2010: ISSUES AND CHALLENGES
INDIVIDUALS
Individuals now covered by FCRA
Scholarships exempt
Need FCRA registration / permission for:
Program Activities
Non-academic Fellowships
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FELLOWSHIP
Difference between scholarship and fellowship
Prior-permission for fellowship
Consultancy fees?
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ELECTRONIC MEDIA
Prohibition on media expanded to include:
Organization producing or broadcasting news / current affairs programs through any electronic mode (audio/ video)
Use of Internet as a mode of transmission
Other modes of mass communication
Individuals not covered, except as owners of the organization
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PANCHAYATS
Panchayats defined as legislature
Not eligible to receive foreign funds
Members / candidates
Can not accept foreign funds
Need permission for foreign hospitality etc.
Form FC-9
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POLITICAL ACTIVITIES
Wider coverage of organizational forms
Wider definition of ‘political activity’ …steps towards advancement of larger socio-
economic or political interests of the organisation
…habitually engages itself in , …political action like bandh, hartal, rasta roko, rail roko…in support of public causes
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ADMINISTRATIVE EXPENSES
Capped at 50% of total foreign contribution received in a year
Includes:
Salaries, Fees, Travel
Rent and other Overheads
Excludes:
Salary of field researchers, Doctors, teachers etc.
Direct program expenses(?)
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SPECULATIVE INVESTMENTS
Restrictive definition of ‘speculative activities’
…has an element of risk of appreciation/ depreciation…linked to market forces, incl. investment in mutual funds…
…any scheme that promise high returns like investment in chits, land etc….not directly linked with declared aims…
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INTERESTS OF THE STATE
Registration cannot be granted if it might affect:
the security, strategic, scientific or economic interest of the State Not defined in law
Might include: Nuclear energy Work in border states Internal unrest Defense expenditure / strategy Displacement issues
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SECONDARY GRANTS
Secondary transfer of FC to non-FCRA NGOs:
10% of total FC received
Prior-permission needed
Secondary transfer of FC to FCRA NGOs
Validate FCRA registration of receiver
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RENEWAL
Renewal required every five years
Old registrations valid till 30-Apr-2016
Apply 6-12 months prior to expiry
Delayed application allowed Registration frozen in the meanwhile
Can lapse if no activity for two years
Renewal of FCRA Registration: FC-5
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See page 110 of AccountAble Handbook: FCRA 2010 for more.
FURTHER READING
AccountAble 35: FCRA Fellowships
AccountAble 84: ‘Foreign Source’ in FCRA 2010
AccountAble 96: Introduction to FCRA 2010
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