9911796707
TMI BlogFCRA Compliance Checklist for NGOsX X X X Extracts X X X X X X X X Extracts X X X X ..... FCRA Compliance Checklist for NGOs X X X X Extracts X X X X X X X X Extracts X X X X ..... nated FCRA bank account in the State Bank of India (SBI) New Delhi branch (if not already done). * Ensure that all foreign contributions are deposited only into this account. 3. Maintain Proper Documentation * Maintain records of foreign contributions received. * Record and track the purpose of each donation to ensure funds are used only for the approved purposes. * Keep all invoices, bills, and supporting documents related to the use of foreign contributions. * Keep updated audit reports. 4. Submission of Annual Returns * File FC-4 (Annual Return) electronically every year before 31st December for the preceding financial year (April 1 - March 31). * Provide accurate details of foreign contributions received during the year, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including: * The name of the donor * The amount received * Purpose of the contribution * Details of how the funds were utilized. 5. Compliance with Utilization Norms * Ensure that foreign funds are used only for the purpose mentioned in the application for registration. * The organization should not divert funds for activities other than the approved ones. * The use of foreign funds must align with the goals and objectives stated at the time of registration. 6. Maintain Records of Key Functionaries * Verify and update details of key functionaries, such as board members and senior staff, and ensure Aadhaar verification for all key functionaries as per the amendments in 2020. * Ensure that none of the functionaries are di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... squalified under the FCRA (e.g., government employees, legislators, media houses). 7. Restriction on Sub-Grants * Do not sub-grant foreign funds to other organizations, unless specifically allowed under the FCRA. 8. Regular Monitoring * Ensure regular internal audits to ensure that foreign funds are used appropriately. * Monitor and update the FCRA records on an ongoing basis, especially when there are changes in leadership, key functionaries, or other significant structural changes. 9. Compliance with the 20% Cap on Administrative Costs * Ensure that administrative expenses (like salaries, overheads, etc.) do not exceed 20% of the foreign contributions received, as per recent amendments. * Report these expenses accurately in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he FC-4 return. 10. Display Foreign Contribution Details on Website * Ensure that the organization's website displays details about foreign contributions received, as per the FCRA requirements. How to File the FC-4 return (Annual Return) The FC-4 return is an annual requirement for organizations registered under FCRA. Here's a step-by-step guide to help you file the FC-4 return: Step 1: Prepare the Necessary Documents * FCRA Registration number (and renewal details if applicable). * Foreign contribution details for the financial year (April 1 - March 31). * List of foreign donors with their respective amounts and purposes. * Audited financial statements of the NGO for the relevant period. * Aadhaar details of key functionari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Step 2: Log into the FCRA Portal * Visit the official FCRA website of the Ministry of Home Affairs (MHA): https://fcraonline.nic.in. * Log in using your FCRA ID and password. Step 3: Go to the "FC-4" Return Section * Once logged in, navigate to the "FC-4" Annual Return section. * Select the financial year for which you are filing the return. Step 4: Fill in the Required Details * Enter the foreign contribution details in the provided sections. This will include: * Total amount of foreign contribution received. * Detailed information on individual donations. * Purpose and usage of foreign funds. * Details of administrative expenses. * Attach the audited financial statements and Aadhaar details of key functionaries. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Step 5: Review the Information * Double-check the accuracy of the data before submitting it. * Ensure that all required sections are completed. Step 6: Submit the Return * Once reviewed, click on submit to send the FC-4 return. * After submission, a confirmation receipt will be generated. * Download and keep a copy of the confirmation for your records. Step 7: Submit Hard Copies (If Required) * In some cases, you might be required to send a physical copy of the FC-4 return or supporting documents to the Ministry of Home Affairs. However, this is generally not required anymore, as the return is filed electronically. Step 8: Confirmation of Filing * After successful submission, ensure that you receive a receipt number for y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our filing.
* This will be your proof of compliance for the financial year.
Important Deadlines:
* Filing of FC-4: Must be submitted within 9 months after the close of the financial year, i.e., by 31st December each year.
* Late Filing Penalty: If you miss the deadline, your FCRA registration may be suspended until the return is filed.
Consequences of Non-Compliance:
* Suspension or cancellation of FCRA registration.
* Penalties or legal action for not filing or misreporting contributions.
By following this checklist and filing the FC-4 return properly, your NGO can ensure compliance with the FCRA regulations and maintain its eligibility to receive foreign contributions. X X X X Extracts X X X X X X X X Extracts X X X X ..... experts, professionals ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
