FCRA : Foreign Contribution (Regulation) Act, 1976

It is “An Act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain persons and 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.”

The Act was passed by the Government of India and came into effect from 5th August 1976. The main purpose for the enactment of this was to stop the use of foreign funds and hospitality for anti-national activities.

Thus this act is an internal security legislation governed by the Ministry of Home Affairs, Govt. of India.

An NGO should be registered under the Act to receive foreign funds. These funds can be received only through a specially designated Bank Account.