Home→📚 Civic Action→Article
📚Civic Action

How to get FCRA registration to accept foreign funds for your NGO

Read in
Englishहिन्दी
Jump to templates ↓

Want to accept international donations for your social project? Learn how to navigate the FCRA 2010 rules, open the mandatory SBI account, and get your NGO registered.

HowToHelp Editorial
•
•
10 min read
#FCRA registration process#foreign funds for NGO India#SBI New Delhi Main Branch FCRA#Form FC-3A#NGO Darpan ID#Section 11 FCRA#foreign contribution regulation act#MHA FCRA online

The "global donation" dilemma

Imagine you and your college friends start a project to provide solar lamps to rural students. Your work goes viral, and an environmental foundation in Sweden wants to donate ₹10 lakh to help you scale up. You are ready to share your bank details, but stop. In India, taking money from a "foreign source"—even if it is for a good cause—without the government’s green light is a fast track to legal trouble. Whether it is a grant from a global NGO or a donation from an NRI (in specific cases), you must follow the FCRA rules before that money touches an Indian bank account.

What the law actually says

The Foreign Contribution (Regulation) Act, 2010 (FCRA) is the primary law governing international money coming into Indian non-profits. It is managed by the Ministry of Home Affairs (MHA). Under Section 11 of the Act, no organisation with a "cultural, economic, educational, religious or social programme" can accept foreign money unless it is registered with the Central Government.

Here are the non-negotiable rules as of 2024:

  1. The 3-Year Track Record: To get a permanent registration (valid for 5 years), your NGO must usually have been active for at least 3 years and spent at least ₹15 lakh on its core activities during that period (Rule 9 of the FCRA Rules, 2011).
  2. Prior Permission: If you are a new NGO and do not meet the 3-year/₹15 lakh mark, you can apply for "Prior Permission" under Section 11(2). This allows you to receive a specific amount from a specific donor for a specific project.
  3. The Mandatory SBI Account: Following the 2020 amendment to Section 17, every single rupee of foreign contribution must first land in a dedicated "FCRA Account" opened at the State Bank of India (SBI), New Delhi Main Branch (NDMB), Parliament Street. You cannot use your regular local bank account as the primary entry point.
  4. No Sub-granting: You cannot take foreign funds and then give them to another smaller NGO. The organisation that receives the money must spend it directly on its own projects.
  5. Aadhaar Requirement: The Supreme Court in Noel Harper vs. Union of India (2022) upheld that the government can require Aadhaar numbers for all office bearers/directors of the NGO applying for FCRA.

Step-by-step playbook

  1. Verify your NGO's legal status

    Before applying, ensure your organisation is registered as a Trust, Society, or a Section 8 Company. You must also have a valid NGO Darpan ID from the NITI Aayog portal (ngodarpan.gov.in). If you are worried about internal governance or compliance, you might want to check if you need to implement POSH at workplace and college protocols first.

  2. Open the "FCRA Account" at SBI New Delhi

    You do not need to travel to Delhi for this.

    1. Go to your nearest SBI branch where your NGO already has an account (or any SBI branch).
    2. Request to open an "FCRA Account" to be maintained at the New Delhi Main Branch (NDMB).
    3. What to bring: NGO Registration Certificate, PAN card of the NGO, and KYC documents (Aadhaar/PAN) of all office bearers.
    4. Timeline: This usually takes 15–30 days for the backend coordination between your local branch and the Delhi branch.

  3. Prepare the digital documentation

    Scan the following documents (ensure each file is under 1MB and in PDF format):

    • Certified copy of the Registration Certificate (Trust Deed, MOA, or Bye-laws).
    • NGO PAN Card.
    • Audited statements of income and expenditure for the last 3 years (to prove the ₹15 lakh expenditure for registration).
    • Annual Activity Reports for the last 3 years.
    • A signed "Affidavit" from each office bearer (as per the format in the FCRA Rules) declaring they are not involved in any activities likely to cause communal disharmony or forced conversions.

  4. File Form FC-3A online

    All applications are handled through the FCRA Online Portal.

    1. Create a user ID and login.
    2. Select "Registration" (Form FC-3A). If you are a new NGO applying for a one-time grant, select "Prior Permission" (Form FC-3B).
    3. Fill in the details exactly as they appear on your official documents. Any mismatch in names or addresses can lead to instant rejection.
    4. Upload the documents prepared in Step 3.
    5. The Fee: Pay the application fee via the portal. As of 2024, it is ₹10,000 for Registration and ₹5,000 for Prior Permission.

  5. The Field Verification

    Once the MHA receives your application, they will refer it to the Intelligence Bureau (IB) or the state’s Local Intelligence Unit (LIU).

    • What happens: Officers may visit your registered office to check if you actually exist and are doing the work you claim. They will verify your original books of accounts and interview the founders.
    • If you face delays: You can File an RTI online to ask about the status of your application if it exceeds the 90-day processing period mentioned in the rules.

  6. Receipt of Certificate

    If the MHA is satisfied, you will receive a Digitally Signed Registration Certificate. You can now share your SBI NDMB account details with your foreign donors.

    • Warning: Be wary of "consultants" promising guaranteed FCRA numbers for a fee. If you suspect a scam or financial fraud during this process, report it via the Cyber Crime reporting portal.

    Browse all civic-action playbooks

Where it usually breaks

Getting the certificate is only half the battle; keeping it is where most young NGOs trip up. The Ministry of Home Affairs (MHA) keeps a very tight leash on these funds, and a single clerical error can lead to your registration being suspended or cancelled under Section 13 or 14 of the FCRA.

  1. The "Local SBI" Confusion: While you can technically open the mandatory FCRA account at any SBI branch, many local branch managers are clueless about the backend link to the New Delhi Main Branch (NDMB). They might try to open a regular savings account instead.

    • Workaround: Carry a printout of the MHA Notification dated May 18, 2021, which clearly explains the procedure for opening the "FCRA Account" at NDMB through any SBI branch. If they still refuse, escalate to the SBI Regional Manager or use the SBI CMS (Complaint Management System) portal.

  2. The 20% Admin Cap Trap: Under Section 8 of the FCRA (as amended in 2020), you cannot spend more than 20% of your foreign funds on "administrative expenses." If you get ₹10 lakh, you can only spend ₹2 lakh on rent, electricity, and salaries of non-field staff.

    • Workaround: Be very careful with your accounting. Salaries of people actually doing the work (e.g., teachers, doctors, field volunteers) are "programme expenses," not admin. Keep detailed job descriptions to prove this during an audit.

  3. The IB Verification Surprise: Once you apply, an officer from the Intelligence Bureau (IB) or local CID will likely visit your registered office address. If your "office" is just your hostel room or a locked house, they will report that the NGO is non-functional.

    • Workaround: Ensure someone is present at the registered address during business hours after you file Form FC-3A. Keep your board meeting minutes, project photos, and registers ready for inspection.

  4. Ghosting the MHA (The "Zero Return" Error): Even if you receive ₹0 in foreign funds in a year, you must file an Annual Return (Form FC-4) online. Forgetting this is the #1 reason registrations get cancelled.

    • Workaround: Set a recurring calendar invite for December 31st every year (the deadline for filing the previous financial year's return).

  5. Change in Board Members: If your college senior graduates and leaves the NGO board, you cannot just replace them internally. Any change in over 50% of your office bearers or any change in key positions (President/Secretary) must be reported to the MHA within 15 days via Form FC-6.

Templates & scripts

Copy, fill in the [highlighted] bits, and send.

A. Script for calling the FCRA Helpdesk

If your application status hasn't moved in 60 days, call the MHA FCRA Support Wing (011-23077504 / 23077505).

You: "Namaste, I am calling from [Your NGO Name]. We filed an FC-3A application for [Registration/Prior Permission] on [Date]. Our Application ID is [Number]. It has been over two months and the status on the portal still shows 'Under Process'. Could you please check if there is a 'Query' raised by the section officer that hasn't appeared on our dashboard yet?"

B. Donor Commitment Letter (Required for Prior Permission)

If you are applying for Prior Permission (Form FC-3B), you need a letter from your foreign donor. Use this format:

Subject: Commitment to provide foreign contribution for [Project Name]

To, The Secretary, Ministry of Home Affairs, New Delhi.

This is to certify that [Donor Name/Organization], located at [Foreign Address], hereby commits to provide a sum of [Amount in Foreign Currency], equivalent to approximately ₹[Amount in INR], to [Your NGO Name] for the purpose of [Specific Project Title, e.g., 'Providing 500 solar lamps to students in Bastar'].

We confirm that these funds are not being sent from any prohibited source as defined under the Foreign Contribution (Regulation) Act, 2010. The funds will be transferred once the NGO obtains Prior Permission from the Ministry.

Signed, [Authorized Signatory of Donor] [Date & Seal]

C. Internal Memo for "Admin vs. Programme" Expenses

Give this to your treasurer to ensure you don't cross the 20% limit.

  • Programme (Unlimited): Field staff salaries, purchase of relief materials, training workshop venue rentals, travel for project implementation.
  • Administrative (Max 20%): Office rent, electricity/water bills, auditor fees, legal fees, salaries of accountants/HR/Peons, postage, and stationery.

Frequently Asked Questions

1. Can I receive foreign money from my NRI cousin into my NGO?

It depends. Under **Section 2(1)(j)** of the FCRA, an NRI (Indian citizen living abroad) is *not* considered a foreign source. You can take money from them like any other Indian donation. However, if your cousin has a foreign passport (OCI/PIO cardholder), they *are* a foreign source, and you need FCRA registration to accept their money.

2. What are the government fees for the application?

As of 2024, the fee for **Registration (FC-3A)** is ₹10,000. The fee for **Prior Permission (FC-3B)** is ₹5,000. These must be paid online through the [fcraonline.nic.in](https://fcraonline.nic.in) portal via the 'Pay.gov.in' gateway. Always verify the latest fee on the portal before paying.

3. How long is the registration valid?

Once granted, FCRA registration is valid for **5 years**. You must apply for renewal (Form FC-3C) at least six months before the expiry date. If you miss this window, your "FCRA Account" will be frozen, and you won't be able to spend even the money already sitting in the bank.

4. Can my NGO use foreign funds to print posters for a political protest?

No. **Section 3** of the FCRA strictly prohibits "organisations of a political nature" from receiving foreign funds. If your NGO is found participating in *dharnas*, strikes, or "political action" (as defined in Rule 3 of the FCRA Rules, 2011), the government can cancel your registration and seize your assets.

5. What happens if the MHA rejects my application?

If rejected, the MHA will usually send a "Standard Questionnaire" or a "Reason for Rejection" via the portal. You can file a **Revision Application** under **Section 32** of the Act to the Secretary, Ministry of Home Affairs, within one year of the rejection date. Ensure you address the specific reason (like "insufficient field activity") with fresh evidence.

6. Can I transfer foreign funds to another NGO that doesn't have FCRA?

Absolutely not. The 2020 amendment to **Section 7** completely banned "sub-granting." Even if the other NGO has an FCRA registration, you cannot transfer funds to them. Your NGO must be the one spending the money on the ground.

📮

One civic-action playbook a week

RTI templates, FIR scripts, real escalation ladders — the same kind of thing you just read. Sundays only. No spam.

We don't share your email. Unsubscribe any time.

Related Articles

📚 Civic Action

How to use Right to Service Acts to get your documents on time

Tired of government delays? Learn how to use Right to Service (RTS) Acts to ensure your certificates and licenses are delivered within fixed timelines or officials get fined.

📚 Civic Action

How to use CPGRAMS to lodge a complaint against any central ministry

Tired of government departments ghosting you? CPGRAMS is your direct line to the PMO. Learn how to file a grievance that officials actually have to answer.

📚 Civic Action

How to file a corruption complaint with your State Lokayukta

Tired of ghost road projects or bribe demands? Learn how to use the State Lokayukta to hold corrupt public servants accountable with this step-by-step playbook.

📚 Civic Action

How to claim a post-matric scholarship for SC, ST, and OBC students

Don't let college fees stop you. Learn how to navigate state portals, fix Aadhaar-seeding issues, and claim your SC/ST/OBC scholarship before the deadline.

How to get FCRA registration for NGO foreign funds · HowToHelp