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Overview

FCRA Registration for Educational and Religious Institutions

FCRA Registration (Foreign Contribution Regulation Act, 2010) is mandatory for educational and religious institutions, NGOs, and trusts to receive foreign donations or contributions. The registration ensures transparency, accountability, and compliance with laws governing the use of foreign funds. Institutions engaged in religious, educational, charitable, or social activities can use FCRA registration to attract international funding for their operations in India.

Importance

1. Legal Authorization : Enables institutions to receive and utilize foreign contributions lawfully.

2. Credibility with Donors : Builds trust among international donors through compliance with Indian regulations.

3. Global Funding Opportunities : Opens doors to international philanthropic contributions for educational and religious causes.

4. Regulated Fund Utilization : Ensures proper usage of funds strictly for declared objectives.

5. Government Compliance : Aligns with government norms, ensuring uninterrupted operations and foreign funding flow.



Documents Required

For FCRA Registration Application





Features

Features & Benefits of FCRA Registration for Educational and Religious Institutions

Authorization to Accept Foreign
Legally enables institutions to receive funds from abroad.
Dedicated FCRA Account
Ensures all foreign contributions are routed through a single designated account.
Annual Reporting Requirements
Promotes transparency in fund utilization and compliance.
Activity-Specific Use
Funds must be used strictly for the purposes declared in the application.
5-Year Validity
Registration remains valid for five years, with renewal options.

FCRA Registration

Government Oversight
Ensures funds are not misused for unlawful purposes.
Comprehensive Compliance
Covers donation receipts, utilization, and reporting obligations.
Eligibility for Global Donations
Increases opportunities for receiving international contributions for religious or educational purposes.
Transparency in Operations
Builds trust among stakeholders by adhering to FCRA norms.
FCRA Account Monitoring
Allows close tracking of foreign contributions for accountability.



Comparison with 12A and 80G Registration

Feature FCRA Registration 12A Registration 80G Registration
Purpose Receiving foreign contributions Tax exemption for institution’s income Tax benefits for donors
Scope Funds from international donors Domestic income Domestic donations
Validity 5 years (renewable) Lifetime 5 years (renewable)
Mandatory For Foreign funding Income tax exemption Attracting tax-saving donations
Eligibility Educational, religious, or charitable institutions Charitable/religious institutions Donors contributing to registered entities



Frequently Asked Questions

What is FCRA Registration?

It is a legal registration under the Foreign Contribution Regulation Act, 2010, allowing institutions to receive foreign donations.

Who needs FCRA Registration?

Trusts, societies, NGOs, and Section 8 companies receiving foreign contributions for charitable, religious, or educational purposes.

How long does the FCRA registration process take?

It typically takes 3-6 months, depending on document verification and inspection.

What is the validity of the FCRA certificate?

The certificate is valid for 5 years and must be renewed to continue receiving foreign contributions.

Can foreign donations be used for any purpose?

No, funds must be used strictly for the declared purposes in the registration application.

What are the penalties for FCRA non-compliance?

Penalties may include cancellation of registration, fines, or prosecution for misuse of funds.

Is 12A registration required for FCRA?

While not mandatory, 12A registration is advisable for tax exemptions on foreign contributions.

What are the annual compliance requirements under FCRA?

Institutions must file Form FC-4 annually, detailing the receipt and utilization of foreign funds.

Can foreign funds be transferred to other institutions?

Only if the recipient institution is also FCRA registered.

Is there a limit on the amount of foreign contributions?

No specific limit, but all contributions must be declared and used for approved purposes.