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June 12, 2023
What are the Differences Between FCRA Registration & Accreditation?
Introduction
The Foreign Contribution (Regulation) Act, 2010 (FCRA) is an important legislation enacted by the Indian government to regulate the inflow of foreign funds into the country. Organizations aiming to receive foreign contributions must acquire either FCRA registration or accreditation as mandated by this act. Organizations that receive foreign funds have the option to register themselves with the Ministry of Home Affairs (MHA). However, there is often confusion regarding the difference between FCRA registration and accreditation. In this article, we will explore the key differences between the two.
What is FCRA Registration?
FCRA Registration is a process by which an organization seeking to receive foreign funds contributions can register itself with the Ministry of Home Affairs (MHA). This registration is mandatory for all organizations that wish to receive foreign funds or contributions, regardless of the quantum of the contribution. It is valid for a period of five years, after which it needs to be renewed as per the provision of the Foreign Contribution (Regulation) Act, 2010.
What is Accreditation?
Accreditation is a process by which an organization seeking to receive foreign funds or contributions can get itself accredited by a specific ministry or department of the Indian government. It is not mandatory for all organizations and is only required for organizations that wish to receive foreign contributions from specific donors or for specific purposes. It is also valid for a period of five years, after which it needs to be renewed.
What are the key differences between FCRA Registration and Accreditation?
Foreign Contribution (Regulation) Act, 2010 (FCRA) is an act that governs the inflow of foreign funds into India. Organizations seeking to receive foreign funds or contributions need to either obtain FCRA registration or accreditation. Here are the key differences between FCRA Registration and accreditation:
|
Key Differences |
FCRA Registration |
Accreditation |
|
Mandatory vs Optional |
It is mandatory for all organizations seeking to receive foreign contributions. |
Accreditation is optional and is only required in certain cases. |
|
Eligibility Criteria |
It is required for all organizations seeking to receive foreign contributions. |
It is required only for specific purposes or for donors. |
|
Approval Process |
It is done with the Ministry of Home Affairs (MHA). |
It is done with a specific ministry or department of the Indian government. |
|
Documentary Requirements |
The documentary requirements for FCRA registration are more stringent than those for accreditation |
Documentary requirements for accreditation are comparatively relaxed |
|
Penalty for Non-Compliance |
Non-compliance with FCRA registration requirements can result in penalties, including fines and imprisonment |
Non-compliance with accreditation requirements can result in suspension or cancellation of the organization’s accreditation. |
|
Application fees |
The application fees for registration range from Rs. 1,000 to Rs. 2,000, depending on the type of organization. |
Accreditation application fees range from Rs. 1,00,000 to Rs. 10,00,000, depending on the type of organization. |
Similarities Between FCRA Registration and Accreditation
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Both registration and accreditation processes involve a review of the organization’s compliance with the provisions and guidelines outlined in the Foreign Contribution (Regulation) Act.
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Both FCRA registration and accreditation provide legal recognition to organizations to receive and utilize foreign contributions in accordance with the regulations and purposes specified under the act.
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Both FCRA registration and accreditation require organizations to adhere to the reporting and accountability obligations outlined in the act, including the submission of annual returns and financial statements.
Conclusion
In conclusion, while both FCRA registration and accreditation are important processes that enable organizations to receive foreign contributions, they are fundamentally different. Registration under the Foreign Contribution (Regulation) Act, 2010 is mandatory for all organizations seeking to receive foreign contributions, whereas accreditation is only required in specific cases. Both processes are valid for five years and must be renewed afterward. It is important for organizations to evaluate their requirements carefully and choose the appropriate procedure for them.
Suggested Read: Renewal Process of FCRA Registration
FCRA Registration for Your NGO
Charitable Trusts, Societies and Section 8 Companies are required to get FCRA Registration. If they wish to receive Foreign Contributions or Donations from Foreign Sources.
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