How to Get Foreign Donations Legally After NGO Registration?

Starting an NGO is a noble initiative to drive social change, but financial support is essential to sustain its mission. Many NGOs look for foreign donations to fund their activities. However, receiving foreign contributions in India is regulated by the Foreign Contribution (Regulation) Act (FCRA), and NGOs must comply with legal requirements to accept international funding.

In this guide, we will discuss the legal way to get foreign donations after NGO Registration, including the necessary approvals, compliance requirements, and key steps to follow.

Understanding NGO Registration in India

Before we dive into foreign donations, let’s understand How to Register an NGO In India. NGOs in India can be registered under three structures:

1. Trust – Registered under the Indian Trusts Act, 1882.
2. Society – Registered under the Societies Registration Act, 1860.
3. Section 8 Company – Registered under the Companies Act, 2013.

Among these, a Section 8 Company is considered the most structured and transparent form of NGO. It is registered under Section 8 Company Registration and is ideal for organizations focusing on charitable activities while maintaining a corporate-like governance system.

What is FCRA Registration?

To legally receive foreign donations, an NGO must obtain FCRA Registration under the Foreign Contribution (Regulation) Act, 2010. This registration ensures that foreign contributions are used only for legitimate social and charitable purposes.

Without FCRA Registration, no NGO, trust, or society in India can accept donations from foreign sources. Any violation of this rule may lead to legal consequences.

FCRA Registration Requirements

To apply for FCRA Registration, an NGO must meet certain eligibility criteria and submit specific documents. Here are the key FCRA Registration Requirements:

1. Eligibility for FCRA Registration

• The NGO must be at least three years old from the date of its registration.
• It must have spent a minimum of ₹15 lakh in the past three years on its activities.
• If the NGO is newly registered and does not meet the three-year requirement, it can apply for prior permission instead of full FCRA registration.

2. Documents Required for FCRA Registration

• NGO Registration Certificate (Trust Deed, Society Registration Certificate, or Section 8 Incorporation Certificate).
• PAN Card of the NGO.
• Audited financial statements for the past three years.
• Activity report detailing the NGO’s work over the past three years.
• Details of key functionaries (Name, Aadhaar, PAN, and Address).
• Bank account details of the NGO (specific FCRA-designated bank account).

Step-by-Step Process for FCRA Registration

Here’s a simple guide on how to get FCRA Registration after NGO registration:

Step 1: Register Your NGO

First, you need to complete your NGO registration as a Trust, Society, or Section 8 Company Registration. Ensure that your NGO has a clear mission and operates legally.

Step 2: Open a Bank Account in SBI, New Delhi

All NGOs applying for FCRA Registration must open a dedicated FCRA bank account at the State Bank of India (SBI), New Delhi Main Branch. This account is mandatory for receiving foreign funds.

Step 3: Apply Online for FCRA Registration

• Visit the FCRA website (fcraonline.nic.in) and create an account.
• Fill out Form FC-3A (for full FCRA Registration) or Form FC-3B (for prior permission).
• Upload the required documents and apply.
• Pay the prescribed fee online.

Step 4: Verification and Approval

After submission, the Ministry of Home Affairs (MHA) will review the application. They may conduct a background check or seek additional information. If everything is in order, the NGO will receive FCRA Registration, which is valid for five years.

Alternative: Prior Permission for New NGOs

If your NGO is less than three years old, you can still receive foreign donations by applying for Prior Permission under FCRA. This permission is granted for a specific donor and purpose. You must submit details of the donor and the donation purpose along with your application.

Compliances After FCRA Registration

Once your NGO receives FCRA Registration, it must comply with certain legal requirements:

1. Annual Filing – File an FCRA return (Form FC-4) every year.
2. Utilization of Funds – Foreign donations must be used strictly for the purpose mentioned in the FCRA application.
3. Renewal of FCRA Registration – FCRA registration must be renewed every five years.

Non-compliance with FCRA regulations can result in penalties, cancellation of registration, or legal action.

Tips to Secure Foreign Donations for Your NGO

Once your NGO is legally eligible to receive foreign funds, here are some ways to attract international donors:

• Build a Strong Online Presence – Create a website and highlight your NGO’s activities.
• Partner with International Organizations – Collaborate with global NGOs and funding agencies.
• Apply for Grants – Many international organizations offer grants to registered NGOs.
• Crowdfunding Platforms – Use platforms like GlobalGiving, Ketto, or Milaap to raise funds.
• Engage with Foreign Donors – Use social media and email campaigns to reach potential donors.

Conclusion

Receiving foreign donations legally after NGO registration is possible if your organization follows the right steps. The most important requirement is obtaining FCRA Registration, which ensures that your NGO can accept international funding while complying with Indian laws.

By maintaining transparency, fulfilling compliance obligations, and actively engaging with potential donors, your NGO can successfully raise foreign funds to support its social mission.

FAQs

1. Can a newly registered NGO receive foreign donations?

A newly registered NGO cannot receive foreign donations unless it applies for Prior Permission under FCRA. Full FCRA Registration requires at least three years of existence.

2. How long does it take to get FCRA registration?

The FCRA registration process can take 3 to 6 months, depending on the verification process by the Ministry of Home Affairs.

3. What happens if an NGO receives foreign donations without FCRA registration?

Receiving foreign donations without FCRA Registration is illegal in India and can lead to penalties, cancellation of registration, or legal action against the NGO.

This guide covers all the essential steps to legally receive foreign donations for your NGO. If you need assistance with NGO registration, FCRA registration, or Section 8 Company Registration, feel free to reach out to experts for guidance.