According to the Ministry of Home Affairs, most NGOs get into trouble with FCRA for one of the following reasons:
1. Clubbing foreign contribution account with domestic accounts i.e. failure to maintain exclusive accounts as required by FCRA,
2. Failure to submit annual accounts within the stipulated period,
3. Transfer of foreign contribution to unregistered NGOs,
4. Utilization of foreign contribution amount for the purposes different from the grant or different from the objectives of the recipient NGO,
5. Registration of assets from foreign contribution in the individual names of office bearers rather than in the name of NGO,
6. Utilization of more than 50% of foreign contribution received in a financial year on administrative expenses, and,
7. change of more than 50% of the office bearers without prior approval
Therefore, if you like your FCRA registration and want to keep it, make sure you don't fall prey to temptation. For temptation leads to sin. And sin can land you in purgatory!
References:
1. 'Home Ministry lists 7 violations for action against NGOs,' Economic Times, 5-May-2015
2. The Holy Bible: Book of Proverbs 6:16-19
3. Foreign Contribution (Regulation) Act, 2010. Applicable in India
1. Clubbing foreign contribution account with domestic accounts i.e. failure to maintain exclusive accounts as required by FCRA,
2. Failure to submit annual accounts within the stipulated period,
3. Transfer of foreign contribution to unregistered NGOs,
4. Utilization of foreign contribution amount for the purposes different from the grant or different from the objectives of the recipient NGO,
5. Registration of assets from foreign contribution in the individual names of office bearers rather than in the name of NGO,
6. Utilization of more than 50% of foreign contribution received in a financial year on administrative expenses, and,
7. change of more than 50% of the office bearers without prior approval
Therefore, if you like your FCRA registration and want to keep it, make sure you don't fall prey to temptation. For temptation leads to sin. And sin can land you in purgatory!
References:
1. 'Home Ministry lists 7 violations for action against NGOs,' Economic Times, 5-May-2015
2. The Holy Bible: Book of Proverbs 6:16-19
3. Foreign Contribution (Regulation) Act, 2010. Applicable in India
