Types of Permission i Fvra under section 6 1 a ; and, ii Prior permission under section 6 1A. In such cases, the NGO has to apply for prior permission for any funds that it is likely to receive. Organization of a political nature not to accept foreign contribution except with the prior permission of the Central Government. Work From Home Seizure of article or currency received in contravention of axt Act.
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In India, funding by foreign development agencies is covered by the Foreign Contribution Regulation Act, and the nodal ministry for regulating this Act is the Ministry of Home Affairs. The objectives of the Act are as stated in its preamble. These can be briefly summarized as an Act to regulate the acceptance and utilization of foreign contribution by certain persons or associations so that such persons or associations may function in a manner consistent with the values of a sovereign democratic republic.
This is easier said than done. The department as a practice does not register organizations which come to it for the first time. In such cases, the NGO has to apply for prior permission for any funds that it is likely to receive. The department invariably gets a survey done of the applicant organization by state intelligence agencies.
Explanation: A donation, delivery or transfer of any article, currency or foreign security referred to in this clause by any person who has received it from any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution within the meaning of this clause.
It did not include donation or contribution received by an organization from another organization from out of foreign contribution received by the latter organization. The definition was enlarged to include such contributions also for the purpose of tracing the utilization of foreign contribution down the line. What is Assocation? Two or more persons can form an association by resolving to act as an association. The following forms of associations are recognized in law: a. The Trust may be registered under the Indian Trusts Act, Usually clubs, associations of provision of the Companies Act, It is not necessary that the association should be registered one but there must be some document to show its existence and working.
But it must have an office in India in order to come within the perview of this Act. It is also an association and is usually registered under the Partnership Act, with the Registrar of the Firms.
A co-operative society formed and registered under the co-operative Societies Act, is an association. A trade union of employees or employers formed and registered under the Trade Union Act, is an association. A chit fund society created under the Chit Funds Act, , is an association. A multi state chit fund society created under the Multi State Chit Funds Act, , is an association.
A company including its subsidiaries and a group companies registered under the Companies Act, , is an association.
Foreign Contribution Regulation Act 1976
The focus of this Act is to ensure that the foreign contribution and foreign hospitality is not utilized to affect or influence electoral politics, public servants, judges and other people working the important areas of national life like journalists, printers and publishers of newspapers, etc. The Act also seeks to regulate flow of foreign funds to voluntary organizations with objective of preventing any possible diversion of such funds towards activities detrimental to the national interest and to ensure that such individuals and organizations may function in a manner consistent with the values of sovereign democratic republic. The organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may either obtain registration or prior permission to receive foreign contribution from Ministry of Home Affairs by making application in the prescribed format and furnishing details of the activities and audited accounts. The registration is granted only to such association, which has proven track record of functioning in the chosen field of work during last three years, and after registration, such organization is free to receive foreign contribution from any foreign source for stated objectives. Registration is granted only after thorough security vetting of the activities and antecedents of the organization and office bearers thereof. However, such organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose and from a specific source after seeking project based prior permission PP from the Ministry of Home Affairs. Citizens Charter Receipt of Foreign Contribution The provisions of the Foreign Contribution Regulation Act, regulate the receipt of foreign contribution in the country.