The new policy of the Centre has tightened rules for organisations in connection to seeking funds from foreign organisations. On Wednesday, the Centre notified the new rules that state that any organization which is trying to seek foreign funds must be operating for three years.
Organisations seeking registration under the Foreign Contribution Regulation Act (FCRA) also must have spent “a minimum amount of Rs 15 lakh on its core activities for the benefit of society during the last three financial years”.
The policy guides the organisations seeking permission from a donor for a specific amount for carrying out a specific activity must “submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given.”
The Centre has also stated that any amount greater than Rs 1 crore must be given in installments. It stated, “provided that the second and subsequent installment shall be released after submission of proof of utilisation of 75 per cent of the foreign contribution received in the previous installment and after field inquiry of the utilization of foreign contribution.”
The rules for declaring organisations as political organisations however, have been relaxed. Organisations run by students, farmers, workers and youth organisations will not be considered to be associated with politics unless they engage actively in politics or with political parties. The definition of political activity in the new rules indicate that organisations participating in civil demonstrations that are political in nature cannot be considered to be non-political in any case. Political organisations cannot receive funds from foreign sources.