In 2010, Mr. P. Chidambaram told the Parliament that the Government does not mind if foreign contribution is used for 'legitimate charitable social, educational, medical and activity that serves any public purpose'. However, it won't allow foreign contribution to 'dominate social and political discourse in India'. However, the FCRA Bill, passed after Mr. Chidambaram's luminous speech, did not say what activities might influence the social and political discourse. The rules also left this undefined (except for a definition of political activities, given in rule 3).
This uncertainty will be cleared up once the FCRA rules are amended (click here to see the proposed draft). NGOs will be asked to tabulate their expenditure against a list of 81 purposes while filing the annual return for foreign contribution (the present list has only 56, including a residual item: other activities).
The new list also contains a useful code hinting at what is acceptable and what is not. The purposes are sub-divided into three categories: service delivery, civil rights advocacy, and research.
A. Service Delivery
This list has 56 activities - mostly around construction, welfare, education, income generation, agriculture, religion, disaster relief, etc. This is the classic formulation of charity, which is focused on helping others directly. Interestingly, the list includes theatre/films, empowerment of women, awareness camps, and seminars. Also included is 'salary / honorarium to non-employees as part of specific projects', whatever that might mean.
B. Civil Rights Advocacy
This, of course, is the bone of contention between government and NGOs. This is suitably limited to 20 activities, including rights, discrimination, justice, natural resources, climate change, and accountability. Child rights also show up here, as do public health, communication strategy and internet freedom. Though empowerment of women is classified as service delivery, violence against women, and sex workers' rights are under civil rights advocacy.
Religious discrimination is listed here, though other religious activities are under service delivery. Capacity building is also included here - it would have to be somehow distinguished from awareness camps, meetings, and seminars, which are listed under service delivery.
C. Research
Research seems to be the new joker in the pack - you never know where it might take you! Therefore, all conferences, lectures, publications, seminars, are in this grey zone. Conferences and seminars are also listed under service delivery, probably due to an oversight.
Therefore, if you spend most of the foreign contribution on service delivery, the FCRA department is unlikely to be bothered. But if your activities include civil rights advocacy or research, you should be prepared for some discomforting scrutiny by the Department!
The complete list is given below.
Category A: Service Delivery
Celebration of national events (Independence/Republic Day), festivals, etc.
Theatre/Films
Maintenance of places of historical & cultural importance
Preservation of ancient/ tribal/ indigenous art forms
Cultural activities
Setting up and running handicraft centre/ cottage & khaki industry/ social forestry projects
Animal husbandry projects
Projects/ schemes for income generation for targeted groups
Micro finance projects, including setting up banking cooperatives and self-help groups
Agricultural activity
Rural Development
Construction and maintenance of school/ college
Construction and running of hostel for poor students
Grant of stipend/ scholarship/ assistance in cash and kind to poor/ deserving children
Purchase and supply of educational material - books, notebooks, etc.
Conducting adult literacy programs
Education/ Schools for the mentally challenged
Non-formal education projects/ coaching classes
Construction/ Repair/ Maintenance of place of worship
Religious schools/ education of priests and preachers
Publication and distribution of religious literature
Religious functions
Maintenance of priests/ preachers/ other religious functionaries
Construction / Running of hospital/ dispensary/ clinic
Construction of community halls etc.
Construction and Management of old age home
Welfare of the aged/ widows
Construction and Management of Orphanage
Welfare of orphans
Construction and Management of dharamshala/ shelter
Holding of free medical/ health/ family welfare/ immunisation camps
Supply of free medicine, and medical aid, including hearing aids, visual aids, family planning
Treatment/ Rehabilitation of persons suffering from leprosy
Treatment/ Rehabilitation of drug addicts
Welfare/ Empowerment of women
Welfare of children
Provision of free clothing/ food to the poor, needy and destitute
Relief/ Rehabilitation of victims of natural calamities
Help to victims of riots/ other disturbances
Digging of bore wells
Sanitation including community toilets, etc.
Vocational training - tailoring, motor repairs, computers, etc.
Awareness Camp/ Seminar/ Workshop/ Meeting/ Conference
Organising sports activities
Treatment and rehabilitation of persons affected by disease
Welfare of the specially/ differently abled, including provision of aids such as wheelchairs, hearing/visual aids, etc.
Welfare of the Scheduled Castes
Welfare of the Scheduled Tribes
Welfare of the Other Backward Classes
Survey for socio-economic and other welfare programs
Establishment expenses
Asset building
Establishment of Corpus Fund
Purchase of land
Construction/ Extension/ Maintenance of office, administrative and other buildings
Payment of salaries/ honorarium to non-employees as part of specific projects
Category B: Civil Rights advocacy
Human rights
Caste Discrimination
Religious Discrimination
Violence Against Women
Child Rights
Human trafficking
Bonded labour
Sex workers rights
Tribal/indigenous peoples' rights
Democratic rights
Public accountability
Capacity building
Communication strategy
Criminal Justice System
Community rights
Issues regarding natural resources
Climate Change
Cyber Security
Internet freedom
Public health
Category C: Research
Research
Seminar
Conference
Publications
Lectures
[FCRA: Foreign Contribution (Regulation) Act, 2010 - Applicable in India]
