Foreign Contribution Regulation Act (FCRA) registration is mandatory for any non-profit organization, trust, society, or Section 8 company in India that intends to receive foreign donations or contributions. The primary objective of the FCRA is to regulate and monitor the acceptance and utilization of foreign funds to ensure they are not used for activities detrimental to national interest. Under the FCRA, there are two types of registrations available: Permanent Registration and Prior Permission. Both serve different purposes depending on the status and objectives of the applicant organization.

Let’s explore in detail the two types of FCRA registration and understand their eligibility, application process, and key differences.

1. FCRA Registration (Permanent Registration)

This type of FCRA registration is granted to organizations that have a proven track record of functioning for a minimum of three years and have undertaken substantial charitable work during this period. Such organizations must also have received and utilized a minimum of ₹10 lakhs in donations from Indian sources during these three years.

Eligibility for Permanent FCRA Registration

• The organization must be a registered Trust, Society, or Section 8 Company.

• It should be in existence for at least three years before applying.

• Must have spent at least ₹10 lakhs on its core activities (excluding administrative expenses) in the last three years.

• Submission of audited financial statements for the previous three financial years is mandatory.

Application Process

• The organization must apply online through the FCRA portal of the Ministry of Home Affairs.

• Fill Form FC-3A with accurate details.

• Attach necessary documents like:

  • Registration Certificate of the entity

  • PAN of the entity

  • Audited statements of the past three years

  • Activity reports

  • Board member details with KYC

• Payment of the prescribed fee online

Once the FCRA registration is granted, it is valid for five years and can be renewed thereafter.

2. FCRA Registration (Prior Permission)

Prior Permission is a provisional type of FCRA registration granted to organizations that are newly established and do not qualify for permanent registration. It is granted project-wise or donor-wise for receiving a specific amount from a specific foreign donor for a defined purpose.

Eligibility for Prior Permission

• Newly registered NGOs (Trust/Society/Section 8 Company) that have not completed three years of operation.

• The organization should have a clear and defined proposal with a specific foreign donor.

• The donor must issue a commitment letter for funding the project.

• A detailed project report stating the objective, location, budget, and expected outcomes is required.

Application Process

• Apply through the FCRA portal using Form FC-3B.

• Attach:

  • Certificate of incorporation

  • PAN of the entity

  • Project report

  • Commitment letter from the foreign donor

  • Details of office bearers with KYC

• Pay the applicable government fee

The permission is limited to the specific project and donor mentioned in the application. If the organization receives more foreign contributions or wants to deal with another donor, it must apply separately.

Key Differences Between Permanent FCRA Registration and Prior Permission

Why is FCRA Registration Important?

FCRA registration is essential for any NGO or charitable organization that aims to raise funds from international sources. Without a valid FCRA registration, it is illegal to accept foreign contributions, and doing so can attract heavy penalties and cancellation of NGO registration.

Both types of FCRA registration ensure that foreign donations are used transparently and for the intended social cause. The government closely monitors these contributions to prevent misuse and to safeguard national security and integrity.

Compliance After FCRA Registration

Once an organization obtains FCRA registration, whether permanent or prior permission, it must comply with certain legal obligations:

• Maintain a separate bank account in a scheduled bank to receive foreign funds.

• File annual returns in Form FC-4 online.

• Maintain proper books of accounts.

• Ensure funds are used only for permitted activities.

• Intimate the Ministry of Home Affairs about any changes in key functionaries, address, or bank account.

Non-compliance with FCRA regulations may result in cancellation or suspension of the FCRA registration.

Conclusion

Understanding the two types of FCRA registration—Permanent Registration and Prior Permission—is crucial for NGOs planning to work with international funding. While permanent registration is ideal for established NGOs with a good track record, prior permission is a viable entry point for newer organizations with specific project-based funding.

Whether you're a grassroots NGO or an expanding charitable organization, obtaining the appropriate FCRA registration opens the doors to global collaboration and impactful social work. However, it is equally important to stay compliant with all FCRA laws and regulations to retain the benefits and avoid legal consequences.

If your organization is planning to apply for FCRA registration, ensure all documentation, eligibility criteria, and regulatory norms are carefully followed. This will ensure a smooth approval process and help build credibility among international donors.