NGO Consultant

NGO Consultant
Odisha NGO Consultancy Services

Monday, October 5, 2015

Modi government to ease foreign funding rules for NGOs

NEW DELHI: NGOs, many of which have faced strong scrutiny from the Modi government, are about to get abreak - the amended Foreign Contribution Regulation Rules (FCRR), 2015 will give the Intelligence Bureau no more than three months for verification, and if an IB clearance doesn't come within that period, the NGO will be automatically granted an FCRA licence.

The new rules will also simplify the system for seeking approvals for utilisation of foreign contributions. Online filing of information, and fewer forms for registration and renewal are among the proposed new rules designed to reduce bureaucratic hassle for NGOs. An authorised NGO representative will file a digitally signed report to the government.

Top home ministry officials told ET these rules will soon be notified. These officials spoke on the condition they not be identified. They said the easing of rules is both a response to complaints as well as an attempt by the government to present a softer face to NGOs.

Prominent NGOs like Greenpeace and Ford Foundation faced government action, with Greenpeace losing its registration. That government move has for now been stayed by the Madras high court. And Sabrang Trust, an NGO run by Teesta Setalvad, is under CBI investigation for alleged violation of FCRA rules. Ford Foundations was one of the donors to Sabrang. A home ministry official said there are many complaints from NGOs on the delay in granting FCRA licences.

"On an average there was a delay of more than 1 year from the date of application by NGO as the process requires a detailed scrutiny of records. To overcome this, we are going to set a deadline of 3 months for IB...failing which the permission will be granted," this official told ET.

The home ministry consulted several NGOs on proposed amendments in rules, officials said. Under the new rules, NGOs will have to state whether they have a particular religious affiliation - Hindu, Muslim, Sikh, Buddhist etc. Other categories for NGOs are cultural, economic, educational and social.

Source: http://economictimes.indiatimes.com/news/politics-and-nation/modi-government-to-ease-foreign-funding-rules-for-ngos/articleshow/49200520.cms