The Foreign Contribution (Regulation) Act, 2010, is intended to consolidate the law regulating the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith. The Act extends to the whole of India, to its citizens outside India and also to associate branches or subsidiaries outside India, of companies or body corporate, registered or incorporated in India.
The organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may either obtain registration to receive foreign contribution from Ministry of Home Affairs by making application in the prescribed format and furnishing details of the activities and audited accounts. The FCRA registration is granted only to such association, which has proven track record of functioning in the chosen field of work during last three years, and after registration, such organization is free to receive foreign contribution from any foreign source for stated objectives. The FCRA registration is granted thorough security vetting of the activities and antecedents of the organization and office bearers thereof. On the other hand, such organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose from a specific source after seeking project based previous permission (PP) from the Ministry of Home Affairs.