India’s Amended Foreign Contribution Regulations: What You Need to Know

Caring and Funding Podcast powered by CAF America

This podcast reviews the 5 important changes that have been made to India's FCRA law as a result of the September 28, 2020 Amendment. CAF America will review the new prohibition on Indian nonprofits re-granting funds received from foreign donors to other FCRA registered nonprofits. The Amendment reduces the cap on the use of foreign funds for administrative expenditure to a maximum 20%, requires Indian nonprofits wishing to receive foreign funds to open an FCRA Bank Account with State Bank of India, it grants the power to FCRA to freeze the funds in the FCRA bank account in case of non-compliance with the FCRA requirements, and enables the Ministry of Home Affairs to suspend FCRA registration of an organization for more than 6 months. Also, the provisions of the Amendment state that renewal of the FCRA license will happen every six months provided the applicant is not fictitious, not convicted for triggering communal tension, and not guilty of diversion of funds. These provisions will greatly impact cross-border giving to India. CAF America is committed to keeping abreast of the changing regulatory environment and to maintaining full legal compliance within Indian laws. What do donors need to know to navigate the new provisions? Join Ted Hart, CEO of CAF America and Jessie Krafft, Senior VP of External Affairs to learn how the new requirements and restrictions affect US donors interested in supporting the work of nonprofits in India.