Do not mix foreign contribution with domestic receipts
- Bank accounts must be separate (obviously)
- Do not Transfer funds from FC Bank to Non FC (even Direct Bank Transfer)
- Books of Accounts must be separate.
- Keep Separate Cash Box (it shows good cash control system)
Do not approach middlemen
- Any Middlemen, government employees, CAs, other organization person, anybody who claim as consultant regarding getting FCRA work done must be avoided
- For any query, you can approach directly to FCRA department.
Do not deviate from the purpose of the grant
- Make sure while getting FC funds that the purpose is crystal clear for what purpose it is received.
- Make sure that you used these funds for the very specific purpose.
- And, care should be taken that, this specific purpose should even reflect in the books of accounts, FC Annual Returns and Annual Reports.
Do not use ATM or debit cards
- Mostly, Bank is not providing any ATM or Debit Cards for FC Bank Account.
- However, If you have such card for FC Bank Account, do not use for cash withdrawals for online payments.
Do not encourage cash withdrawals
- Yes, Cash is most suspicious area. Avoid Cash Payments.
- This requires extra efforts on the part of the organization to develop Financial Control System in such a way to encourage Bank Payments through “Account Payee” cheques only.
- Also note that Cash Expenses and withdrawals limit is Rs.2,000/-
Do not invest fc funds in mutual funds or speculative investments
- Be safe, invest only in Fixed Deposits.
- Mutual Funds, Shares, Speculative Investments must be avoided.
Do not accept foreign hospitality while visiting aboard (sec.6)
- You cannot accept foreign hospitality without prior permission of the Central Government except for an emergent medical aid needed on account of sudden illness contracted during a visit outside India.
Do not transfer fc funds to unregistered organizations (sec.7)
- The amended section 7 of the Act bars the transfer of foreign contribution to any person, either registered or not registered under the Act.
Do not utilize foreign contribution for administrative purpose (sec.8)
- An organization registered under FCRA shall not utilize more than 20% of foreign contribution, received in a particular financial year towards administrative expenses. In case, an organization wants to spend more than 20% of the contribution towards administrative expenses, it may do so with prior permission of the Central Government.
Do not accept foreign contribution without prior permission or having a certificate of fcra registration (sec.11)
- No association/NGO/Society having a definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless obtains prior permission or a certificate of registration under FCRA from the Central Government
Do not accept foreign contribution during suspension of fcra registration (sec.13)
- No association/NGO/Society, whose certificate of FCRA registration has been suspended, shall receive any foreign contribution during the period of suspension of certificate without prior permission of the Central Government.
- No association/NGO/Society, whose certificate of FCRA registration has been suspended, shall utilize in the prescribed manner, the foreign contribution in his custody without prior permission of the Central Government.
Do not accept foreign contribution during cancellation of fcra registration (sec.14)
- No association/NGO/Society, whose certificate of FCRA registration has been cancelled under Section 14, shall apply afresh for grant of FCRA registration or prior permission to receive foreign contribution before a period of three years from the date of cancellation of its certificate.
Do not accept foreign contribution in undisclosed bank account(s) (sec.17)
- Do not receive foreign contribution in more than one foreign contribution designated account(s).
- Do not receive foreign contribution directly in the utilized account(s) of the association/NGO/Society.
- Do not mix foreign contribution with domestic funds.
- Do not hide amount, source and manner in which the foreign contribution/remittance was received.
Do not avoid filing mandatory FC annual returns (sec.18)
- No association/NGO/Society, who has been granted prior permission or certificate of FCRA registration will avoid filing mandatory FC annual return.
Do not indulge in making of false statement, declaration or delivering false accounts (sec.33)
- No association/NGO/Society, subject to this Act will knowingly gives false intimation under clause (c) of section 9 or section 18 or seeks prior permission or registration by means of fraud, false representation or concealment of material fact.
Do not deliver any article or currency or security obtained in contravention of section 10 (sec.34)
- No association/NGO/Society, upon whom any prohibitory order has been served under section 10 delivers, transfers or otherwise deals with, in any manner whatsoever, any article or currency or security, whether Indian or foreign in contravention of such prohibitory order.
Do not act in contravention of any provision of the FCRA, 2010 (sec.35)
- No association/NGO/Society, will accepts, or assists any person, political party or organization in accepting, any foreign contribution or any currency or security from a foreign source in contravention of any provision of this Act or any rule or order made thereunder.