A Presentation on FCRA and Bilateral Development Assistance

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A Presentation on FCRA and Bilateral
Development Assistance
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Foreign Contribution Regulation Act, 1976

• An act to regulate the acceptance and utilization
  of foreign contribution or foreign hospitality by
  certain persons or associations, with a view to
  ensuring that parliamentary institutions,
  political associations and academic and other
  voluntary organizations as well as individuals
  working in the important areas of national life
  may function in a manner consistent with the
  values of a sovereign democratic republic, and
  for matters connected therewith or incidental
  thereto.

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Need for Foreign Contribution Regulation Act, 1976

• Regulating acceptance and utilization of Foreign
  contribution and Foreign hospitality by
  individuals and associations working in important
  areas of national life.
• Not meant to prohibit receipt of foreign
  contribution for genuine purposes.
• Security considerations.

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Stakeholders
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Focus

• Facilitate receipt of Foreign Contribution for
  genuine purpose without compromising National
  security concerns

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Foreign contribution

•  Foreign contribution means the donation,
  delivery or transfer, made by any foreign source
  of any
•  a)article, not given to a person as a gift, for
  personal use, if the market value in India of
  such article exceeds one thousand rupees
• b)currency, whether Indian or foreign or
•  
• c)foreign security

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Foreign Source

• Government of foreign country or any agency of
  such Government.
• International agencies, not being of
• a) United Nations or its specialized agencies
• b) World Bank Group
• c) International Monetary Fund
• d) Such other agencies so notified by the
  Central Government.
• Foreign company or Corporation incorporated in
  foreign country
• Trade Union in a foreign country
• Foreign Trust or Foundation or Society or Club
  formed or registered outside India
• Company where more than half of shareholding held
  by foreign Govt., foreign citizens, foreign
  corporations
• Citizens of foreign countries

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Who cannot accept Foreign Contribution

• Candidate for elections.
• Correspondents, columnists, cartoonists, editor,
  owner, printer.
• Judge, Government servant or employee of any
  corporation
• Member of any Legislature
• Political party or office-bearer thereof.

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Types of permission

• An association having a definite cultural,
  economic, educational, religious or social
  programme can receive foreign contribution after
  it obtains
• -the prior permission of the Central
  Government, or
• -gets itself registered with the Central
  Government.

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Registration

• Means permanent permission to accept foreign
  foreign contribution from any foreign source.
• Granted to associations with proven track record
  
• Reasons for rejection of Registration
• Association being in formative stage
• Association formed for personal gain
• Association involved in proselytisation
• Members of Executive Committee involved in
  illegal/criminal activities
• Sister association prohibited under the act
• Applicant association prohibited
• Association involved in anti-national activities
• Stated objects of the association not being
  pursued.

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Must DOs for the Registered Association

• Designated exclusive Bank account for receipt and
  utilization of foreign contribution.
• Submission of annual FC-3 returns.
• Change in members, address, objectives of the
  association to be reported to Central Government
  within 30 days.
• Change in the O.Bs by 50 or more with prior
  permission only
• Exclusive accounts for receipt and utilisation of
  foreign contribution and audit by the Chartered
  Accountant.
• Substantial proportion of foreign contribution to
  be spent on welfare activities
• Reduction in Administrative expenses

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Prior Permission

• When required
• Where the association does not have a FCRA
  registration
• Where the association is placed under prior
  permission category
• Where registration is frozen
• Associations of political nature, not being
  political party
• Essentials of prior permission
• Donor specific
• Donee specific
• Amount specific within overall limits
• Purpose specific

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RECEIPT OF FOREIGN CONTRIBUTION

• Year Amount Increase over
  Rs/ crores Previous Year
• 2000-01 4535.2 15.5
• 2001-02 4870.5 7.4
• 2002-03 5046.5 3.5
• 2003-04 5105.5 1.2
• 2004-05 6256.6 22.5

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Amount wise break-up of reporting association
Foreign Contribution

• Year Below Between Between Above
• Rs. 1 cr Rs 1-5 cr Rs 5-10 cr Rs. 10 cr
• 2000-01 13815 669 62 52
• 2001-02 14761 721 77
  59
• 2002-03 15650 798 76 66
• 2003-04 16187 818
  83 57
• 2004-05 17373 985
  112 70

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TOP DONOR COUNTRIES

• Foreign Contribution Rs/crores
• Country 2002-03 2003-04 2004-05
• USA 1679 1584 1926
• Germany 715 757 930
• U.K. 685 676 764
• Italy 315 350 432
• Netherlands 261 304 353

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Top donor Agencies Foreign contribution (Rs. in
crores)

• DONORS NAME COUNTRY 2002-03
  2003-04 2004-05
• Foundation Vicent E Ferrer, Spain
  79.16 135.15 183.31
• World Vision International, USA
  90.24 94.36 123.25
• Gospel for Asia, USA 50.82
  39.80 110.12
• Foster Parents Plan Intl., USA
  53.73 57.56 65.60
• Compassion International, USA 3.60 40.54
  60.93

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Top Recipient DistrictsForeign Contribution
Rs/crores

• DISTRICT 2002-03
  2003-04 2004-05
• Chennai 363.45 384.53 560.40
• Bangalore 357.66 357.66 376.97
• Mumbai 283.59 299.63 321.82
• Ananthapur 168.95 209.16 287.70
• Kolkata 181.44 179.86 206.35

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TOP RECIPIENT ASSOCIATIONSForeign Contribution
Rs/crores

• NAME OF ASSOCIATION STATE 2002-03
  2003-04 2004-05
• World Vision, Tamil Nadu 98.01
  103.74 133.57
• Rural Develkopment Trust, Andhra Pradesh
  84.66 125.99 118.75
• Sri Sathya Sai Central Trust, Andhra Pradesh
  60.19 49.96 77.57
• Caritas India, Delhi
  49.49 37.54
  65.30
• Foster Parents Plan International Inc. Delhi
  53.65 56.80 64.91

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TOP TEN PURPOSES FOR THE YEAR 2004-05

• PURPOSE Foreign
  Contribution
• 
  (Rs. In
  crores)
• Establishment expenses 948.20
• Relief/Rehabilitation of victims of natural
  calami 655.65
• Rural Development
  582.48
• Welfare of Children
  303.20
• Construction of school/college
  295.94
• Grant of stipend/scholarship/assistance
  210.13
• Welfare of the orphans
  189.37
• Construction/Running of hospital/dispensary/c
  linic 182.69
• Construction/Repair/Maintenance of places of
  worship 137.21
• Holding of Free Medical/Health/Family
  Welfare/ 126.28
• Immunization camps
  

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TOP RECIPIENT STATES/UNION TERROTORY

• Foreign Contribution
• (Rs. in crores)
• State/UT 2002-03 2003-04
  2004-05
• Tamilnadu 774 800 1190
• Delhi 880 857 1075
• Andhra Pradesh 629 684 913
• Maharashtra 505 480 552
• Karnataka 489 528 509

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Bilateral Development Assistance

• Policy for Government and subordinate agencies
  
• Bilateral development assistance to be accepted
  from
• G8countriesnamelyUS,UK,Japan,Germany,France,Italy,
  Canada,Russian Federation and European
  commission
• European Union countries if bilateral annual
  assistance to India exceeds USD 25 million
• Routed through or co-financed with a multilateral
  agency
• Tied aid not to be accepted

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Bilateral Development assistance to
NGOs,autonomous institutions and other such bodies

• Assistance may be accepted from any country
• Assistance to be accepted for projects of
  economic and Social importance only
• Registration or Prior Permission under FCRA
  mandatory
• Proposals to be submitted to DEA through
  concerned development partner
• Bilateral partner may transfer funds after
  approval of DEA
• Bilateral partner may make arrangement for
  monitoring
• Bilateral partner to submit status report to DEA
  in April and October every year

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Some Initiatives

• Empowering the stakeholders by transparency in
  administration
• Online status enquiry
• Management by objectives
• Process standardization
• Revamped monitoring
• G2B partnership

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THANKS