FCRA Compliance

• FC-4 Annual Return: File by 31st December each year on MHA Seva portal — reporting all foreign receipts, utilisation, and beneficiary details
• Designated Account Maintenance: Keep SBI New Delhi Main Branch FCRA account active and operational at all times
• Fund Utilisation Cap: Maximum 20% of FCRA receipts on administrative expenses; at least 80% on charitable activities
• Sub-granting Restriction: Foreign funds cannot be transferred to another NGO without prior MHA approval
• Change Reporting: Report any change in office bearer, registered address, or bank account to MHA within 15 days
• Foreign Hospitality: Key office bearers must report acceptance of foreign hospitality within 30 days
• Investment Restrictions: FCRA funds cannot be invested in speculative activities or mutual funds
• FCRA Renewal: Apply for renewal via Form FC-3C at least 6 months before expiry

• Suspension of FCRA registration — immediate freeze on all foreign contribution receipts
• Cancellation of registration — permanent bar on receiving foreign contributions
• Confiscation of foreign contributions received in violation of FCRA provisions
• Criminal prosecution under FCRA 2010 — imprisonment up to 5 years and fine
• Public listing on MHA's cancelled organisations list — severe reputational damage
• Scrutiny of key office bearers — personal liability for wilful violations

• Annual FC-4 return preparation and filing on MHA Seva portal
• Foreign receipt and utilisation accounting as per FCRA requirements
• Change reporting to MHA (office bearer, address, bank account changes)
• Foreign hospitality reporting for key office bearers
• FCRA renewal application preparation and filing
• Response to MHA notices, queries, and information requests
• Annual FCRA compliance calendar and deadline tracking
• Coordination with statutory auditors for FCRA-specific audit requirements

FCRA violations are among the most severe in Indian regulatory law. Unlike Income Tax penalties that can be paid and regularised, serious FCRA violations result in registration cancellation that is permanent and criminal prosecution of key functionaries. Understanding what constitutes a violation is as important as understanding the compliance requirements.

FCRA Violations Under Section 11 (Criminal Offences):

• Receiving foreign contribution without FCRA registration or prior permission — imprisonment up to 5 years, or fine, or both
• Utilising foreign contribution for purposes other than stated in the application — cancellation and possible prosecution
• Transferring FCRA funds to a non-FCRA registered organisation — cancellation plus Rs.5 lakh penalty on recipient
• Accepting foreign contribution in a bank account other than the designated SBI FCRA account
• Using more than 20% of FCRA receipts for administrative expenses
• Knowingly making false declarations in FC-4 or FC-3A/3C applications

Administrative Penalties Under Section 12(4):

• Cancellation of FCRA registration — no appeal to courts except High Court; process is largely MHA-discretionary
• Suspension pending investigation — organisation cannot receive or utilise foreign funds during suspension
• Compounding of offences for minor procedural violations — subject to MHA discretion

MFiling FCRA Compliance Management prevents all common violations through proactive monitoring, timely filings, and ongoing advisory on fund utilisation decisions.