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*This article was last updated on November 19th at 4:32 PM IST.
A centralised body, instituted by the government, will set standards for receiving foreign funds by nonprofits. It will also convene national and state commissions responsible for awarding grants to nonprofits. Read this article to know more.
With new, stricter rules around the FCRA, nonprofits are further deprived of clarity and respite. Notified on November 10th, the new rules relate to a range of issues—organisations of a ‘political nature’, eligibility criteria, bank accounts, and more. Read a simple, demystified analysis of the updates here.
The provisions of the FCRA amendment prevent nonprofits from accessing foreign contributions and collaborating with other civil society organisations. It also threatens democratic spaces and dissent by restricting the scope to challenge these provisions. Read this article to know how the FCRA has created a climate of fear among non profits.
Under the amended Section 17 of the FCRA Act, 2020, foreign contributions can only be received through a designated ‘FCRA account’ opened in the SBI’s New Delhi Branch. Read this public notice detailing the procedure here.
The FCRA Act 2020 adds to the systemic repression of dissent and public debate in India. It is imperative that the government permit ongoing grants to be completed (as per terms prevalent prior to the amendments). Read this article to understand why this is crucial to the well-being of Indian democracy.
Civil society often plays the role of a permanent opposition, holding those in power accountable, and bringing in the perspective of the most marginalised. The FCRA Act 2020, passed in both Houses of Parliament without any deliberations, deepens a licence raj that could throttle this role. Read this article to learn more about how the act reflects a deeply flawed understanding of democracy.
The FCRA Amendment Act, 2020 continues the pattern of raising compliance costs for nonprofits. This article uses data to illustrate the decline in FCRA-registered nonprofits, the decline in the quantum of foreign grants, and the implications for the sector at large.
Despite appeals to the President of India to withold passing the FCRA Bill 2020 into law, it has just been published in The Gazette Of India as an act. Read the announcement from the Minsitry of Law and Justice here.
The FCRA Bill 2020 is being used to crackdown on nonprofits, while a lack of transparency continues to surround PM-CARES. The Wire explores the issue in this article, with statements from Poonam Muttreja, Ingrid Srinath, Harsh Jaitli, AK Singh, and others.
The International Commission of Jurists (ICJ) has condemned the adoption of the FCRA Bill 2020, stressing that the bill’s provisions will impose arbitrary obstacles for human rights defenders and civil society. The ICJ urged the President of India to withhold assent to pass the Bill into law. Read their statement to understand how the FCRA Bill 2020 is incompatible with international law.
Questioning regulatory changes being imposed amidst a pandemic, grassroots organisations and prominent members of civil society appeal to the President of India to send the FCRA Bill 2020 back for a parliamentary committee consultation. Read their statement here.
A step by step analysis analysis of implications of the amendment bill on the different players in the nonprofit sector, along with a way forward.
A technical panel, along with voices from civil society, will come together to discuss and decode the FCRA Bill 2020 on September 29th, 2020.
The FCRA Bill 2020 which was passed by the Rajya Sabha has to be understood in a political context. The message is loud and clear: A single narrative being crafted in India and any challenge to power is seen with suspicion and crushed with brute force. Amitabh Behar writes about the issue in this article.
There is a thin line between enforcing transparency and using rules to allow official interference and harassment in the sector. Much of the present bill crosses that line and moves toward a licence-raj on nonprofits. Read this article in the Hindustan Times for more.
The FCRA Bill 2020 was passed by the Lok Sabha with minimal debate. More nuanced discussion, in a select committee for instance, would have thrown light on the potential hazards to development and democracy. Ingrid Srinath explains further in this article.
Voluntary Action Network India (VANI)—an apex body of Indian voluntary development organisations has issued a press release asking for the FCRA Bill 2020 to be referred to a parliamentary standing. Below is the press release issued by them:
Related article: IDR Explains | FCRA
The new FCRA Bill throttles the spirit of cooperation that had been ushered in earlier this year by the positive role played by development organizations in mitigating the lockdown and COVID-19 pandemic by virtually making it impossible for NGOs to function.
Under FCRA 2011, institutions are allowed to spend up to 50 percent of their foreign funds on administrative expenditure. The FCRA Bill 2020 proposes to reduce this to 20 percent. Rule 5 of FCRA 2011 defines the administrative expenses as:
Provided that the expenditure incurred on salaries or remuneration of personnel engaged in training or for collection or analysis of field data of an association primarily engaged in research or training shall not be counted towards administrative expenses.
Provided further that the expenses incurred directly in furtherance of the stated objectives of the welfare oriented organisation shall be excluded from the administrative expenses such as salaries to doctors of hospital, salaries to teachers of school, etc.
The FCRA Bill 2020 proposes a number of drastic changes to the law governing receipt of foreign contributions and which will have a detrimental impact on charitable institutions in India. Noshir Dadrawala explains further in this article.