The Foreign Contribution (Regulation) Act (FCRA) is India's principal legal framework governing the acceptance and utilisation of foreign contribution and foreign hospitality by specified individuals, associations, companies and other entities. Administered by the Ministry of Home Affairs (MHA), the law seeks to ensure that foreign funding is received and utilised transparently and does not adversely affect India's sovereignty, security, public order or other national interests (Ministry of Home Affairs [MHA], 2010).
For churches, charitable societies, educational institutions, humanitarian organisations and NGOs, FCRA is therefore much more than a registration requirement. It establishes a continuing regulatory framework covering registration, renewal, banking, accounting, utilisation, audits, annual returns, governance, donor compliance and the consequences of non-compliance.
