The amount of foreign contributions received under FCRA has been steadily increasing though there has been a slight dip in recent years. Over Rs. 1.73 lakh crores of foreign donations were received between 2006-07 and 2018-19. Few states have received the bulk of these donations. In this article, we briefly look at some of the important definitions and processes under Foreign Contribution (Regulation) Act (FCRA) and analyse the trends in Foreign Contribution received under the Act for the period 2006-07 to 2018-19. The flow of foreign contribution to India is currently regulated under Foreign Contribution (Regulation) Act, 2010 read with other notifications/orders, etc., as issued from time to time, along with the recent amendments introduced by the Foreign Contribution (Regulation) Amendment Bill, 2020. The Foreign Contribution (Regulation) Act was first enacted in 1976. In our earlier article, we looked at the major amendments to the FCRA and the changes brought about by the amendments in 2010 and 2020. We also analysed the trend in the cancellation of FCRA registrations from 20011 to 2019. With respect to the regulation of foreign contribution to non-profit organisations, the 1976 Act allowed non-profit organisations to receive foreign donations freely, although they were required to annually report the amount received and spent. In 1984, the law was amended to make it mandatory for non-profit organisations to register before receiving any foreign donations. In 2010, the 1976 Act was repealed and replaced by the Foreign Contribution (Regulation) Act, 2010 where FCRA registration (which was a permanent registration earlier) became valid for a period of five years and must be renewed thereafter. With respect to the renewal process every five years, the 2020 amendments also add that the Central Government can initiate a fresh inquiry into the workings of the applicant before renewing the registration. What is Foreign Contribution? As defined in Section 2(1)(h) of FCRA, 2010, “foreign contribution” means a donation, delivery, or transfer of any article, currency, or foreign security from any foreign source, either directly or through one or more persons. The interest accrued on the foreign contribution deposited in any bank or any other income derived from the foreign contribution is also be deemed to be a foreign contribution. However, any amount received by any person from any foreign source in lieu of goods & services rendered during the course of business is excluded from the definition of ‘foreign contribution’. What it means is that for-profit organizations receiving foreign money for goods or services rendered need not register and are not bound by this act. What is a Foreign Source? As defined in Section 2(1) (j) of FCRA, 2010, a foreign source includes: Who can receive foreign contributions? For an entity to receive a foreign contribution, it must fulfill the following conditions: FCRA 2010 and its subsequent amendments prohibits certain individuals and organisations from accepting any foreign contribution, which includes government employees, print or visual media outlets, and so on. Registration, Prior Permission, Renewal and Filing of Returns under FCRA There are two modes of obtaining permission to accept foreign contributions: i) Registration ii) Prior Permission. Under the 2010 Act, FCRA registration is valid for five years and must be renewed thereafter, whereas under the 1976 Act it was a permanent registration. Any application for a grant of registration or prior permission is to be submitted on the FCRA Online Portal. Specific instructions and the list of required documents to be uploaded are available on the portal. For grant of registration under FCRA, the association should meet the following criteria: As mentioned above, an organization in the formative stage is not eligible for a certificate of registration. However, such organizations can apply for a grant of prior permission for receipt of a specific amount from specific donor/donors for carrying out specific activities/projects. For this purpose, the association should meet the following criteria: With respect to the renewal of registration, associations are to apply on the FCRA Online Portal within 6 months of the expiry of their existing registration certificate. With respect to the filing of annual returns, associations are to file the return on the FCRA Online Portal for every financial year (01 April to 31 March) within a period of nine months from the closure of the year i.e., by 31st December each year, duly accompanied by balance sheet and statement of receipt and payment.