Government big order for NGOs receiving foreign contributions, those seeking registration will have to do this work

The central government of India has announced that non-governmental organizations (NGOs) involved in publishing and accepting foreign funding will no longer be able to publish a newspaper and will be required to produce a certificate from the Newspaper Registrar of India stating that they have never broadcast any news.

The Center announced that NGOs that want to register under the Foreign Contribution Regulation Act (FCRA) will have to adhere to new guidelines.

In a release, the Home Ministry announced that it has made changes to the rules notified under the FCRA and from there on, NGOs which are looking to obtain permission for receiving overseas funds will need to provide an affidavit that they will abide by the code of good conduct of the Financial Action Task Force (FATF). FATF is the world's terror funding and money laundering regulator.

Those organizations or NGOs intending to register themselves will have to annex financial statements and audit reports of the past three financial years, including a statement of assets and liabilities, receipts and payments account, and income-expenditure account.

If the audit report and financial statements do not include activity-wise expenditure of the last three financial years, then a chartered accountant's certificate showing the amount spent by the NGO activity-wise, duly reconciled with the income-expenditure account and receipts and payment account, has to be filed.

If the association or NGO is involved in publishing activities or publishing activities are included in its objects as stated in the Memorandum of Association or Trust Deed of the association, the chief office bearer must submit an affidavit regarding compliance with FCRA-2010.

If the publication of the association is registered with the Registrar of Newspapers of India, it must submit a certificate of 'not being a newspaper' from the Registrar of Newspapers of India, the Home Ministry said. If the NGO was previously registered under FCRA, it must submit an affidavit regarding receipt and utilisation of foreign contribution after expiry or cancellation of the certificate of registration.

It said if the expenditure on goals and objectives in the last three financial years is less than Rs 15 lakh, an affidavit regarding inclusion of capital investment must be submitted.

The government has laid down a condition that NGOs seeking permission to receive foreign contributions must attach a commitment letter from the donor, in which the commitment amount mentioned in the letter should match the amount of donation.

A project report must also be mentioned, detailing the proposed expenditure to be incurred from the foreign contribution and a declaration that administrative expenses will not exceed 20 per cent of the foreign contribution. All NGOs receiving foreign funds must mandatorily register under the FCRA and use such funds only for the purpose for which it has been received.

The government has said that any organisation seeking foreign contribution should have a definite cultural, economic, educational, religious or social programme. The organisation should neither receive nor use any foreign contribution without obtaining permission or registration from the Centre.