Last reviewed: 25 September 2026. If your NGO wants to receive donations from abroad, doing it legally means registering under the Foreign Contribution Regulation Act (FCRA). The 2020 amendment tightened the rules significantly - a mandatory SBI account, a ban on passing funds to other NGOs, and a 20% cap on administrative spend. This guide walks through who is eligible, the documents needed, the step-by-step registration process, the prior-permission route for newer NGOs, and what happens after registration.
Quick summary
What FCRA is, and who needs it
FCRA regulates the receipt and use of foreign contributions by persons and organisations in India. Any NGO that wishes to accept foreign donations - from an overseas individual, foundation or company - must either be registered under FCRA or hold prior permission (section 11 of the Act). Receiving foreign funds without one is a serious offence.
Who counts as a foreign donor matters. MHA does not treat a donation by an Indian citizen living abroad (an NRI), made from personal savings through normal banking channels, as foreign contribution. A donation from an Overseas Citizen of India (OCI) card holder, or anyone of Indian origin who has taken another country's citizenship, is foreign contribution. NGOs with a diaspora donor base should record each donor's citizenship before the money is received.
Eligibility for registration
- Registered as a trust, society or Section 8 company.
- In existence and working for at least 3 years.
- Spent at least Rs 15 lakh over the last three years on its main charitable objects (excluding administrative costs), as required by Rule 9 of the Foreign Contribution (Regulation) Rules, 2011.
- Audited financial statements for those three years.
Registration or prior permission?
An NGO that does not yet meet the three-year and Rs 15 lakh tests can still receive a specific foreign grant through prior permission. The two routes compare as follows.
| Point | Registration (Form FC-3A) | Prior permission (Form FC-3B) |
|---|---|---|
| Who it suits | Established NGOs with a 3-year track record | Newer NGOs, or a one-off grant |
| Scope | Foreign contribution from any lawful donor for the NGO's registered purposes | A specific amount, from a specific donor, for a specific purpose |
| Key document | Three years' audited accounts and activity reports | Commitment letter from the foreign donor and the project proposal |
| Validity | 5 years, renewable (section 16) | Until the permitted amount is received and used for that purpose |
| Decision time | Section 12(2) of the Act asks MHA to decide an application ordinarily within 90 days | |
Both routes carry a prescribed application fee paid online on the FCRA portal. Check the current amount on the portal when you file, as it is revised from time to time by notification.
The mandatory SBI account
Since the 2020 amendment, every FCRA holder must receive all foreign contributions first into a designated FCRA account at the State Bank of India, New Delhi Main Branch (section 17). You can open a separate FCRA utilisation account at your own bank to spend from, but the money must land in the SBI account first.
Documents required
- Registration certificate and trust deed / MOA of the organisation.
- Audited accounts and activity reports for the last three years.
- PAN of the organisation and Aadhaar of all office bearers.
- Details of the SBI FCRA account, and the NITI Aayog Darpan ID.
- A note on the organisation aims and key activities.
Step-by-step process
- Obtain a Darpan ID from the NITI Aayog NGO portal.
- Open the designated FCRA account at SBI New Delhi Main Branch.
- File the online application (Form FC-3A) on the FCRA portal with the documents and the prescribed fee.
- The Ministry of Home Affairs reviews the application (and may seek clarifications).
- On approval, the FCRA registration certificate is issued, valid for five years.
After registration: the 20% administrative cap
Section 8(1) of the Act, as amended in 2020, limits administrative expenses met from foreign contribution to 20% of the foreign contribution received in the financial year.
Worked example. An education NGO receives Rs 50 lakh of foreign contribution in FY 2026-27. Its administrative spend from that money, such as office rent, accounts staff and audit fees, can be at most Rs 10 lakh (20% of Rs 50 lakh). If it books Rs 13 lakh of administrative cost against foreign funds, the excess Rs 3 lakh breaches section 8(1). It must either be met from the NGO's domestic funds or be justified as programme cost with supporting records. Salaries of staff who deliver the programme, such as teachers in this case, are programme cost, not administrative cost. Classify them in the books from day one.
Ongoing compliance at a glance
- Annual return: Form FC-4 for every financial year, including a nil year, is due within nine months of the year end, that is by 31 December.
- No onward transfer: foreign contribution cannot be passed to another person or NGO, even an FCRA-registered one.
- Renewal: file Form FC-3C within the six months before expiry, and early in that window. See our guide to FCRA renewal in Form FC-3C.
- Income-tax status: FCRA does not replace 12A/80G. From 1 April 2026, registration is under section 332 and 80G approval under section 354 of the Income-tax Act, 2025.
For more on the two routes and on annual filing, see FCRA prior permission vs registration and FCRA compliance and the FC-4 return. NGOs whose donors are NRIs or foreign nationals can find the donor-side tax and remittance rules in our NRI tax hub, and our CA for NRIs team handles the NRI donor's own India filings.
Official sources: FCRA Online portal (MHA) · MHA FAQs on FCRA (PDF)
Frequently asked questions
What is FCRA and who needs it?
FCRA (the Foreign Contribution Regulation Act) governs how Indian organisations receive foreign donations. Any NGO, trust, society or Section 8 company that wants to legally accept foreign contributions must be registered under FCRA or have prior permission.
Who is eligible for FCRA registration?
A trust, society or Section 8 company that has been in existence for at least 3 years and has spent at least Rs 15 lakh over the last three years on its core charitable activities, with audited accounts to show it.
Why does the money have to go to an SBI account?
Since the 2020 amendment, all foreign contributions must first be received in a designated FCRA account at the State Bank of India, New Delhi Main Branch. You may then transfer to a utilisation account for spending.
How long is FCRA registration valid?
Five years. Section 16 of the Act requires the renewal application to be made within the six months before the certificate expires, and MHA has asked associations not to leave it to the last few months. An association whose certificate lapses cannot receive or use foreign contribution until it is renewed.
Can a new NGO get FCRA registration?
A brand-new NGO usually cannot meet the three-year and Rs 15 lakh conditions, so it applies for prior permission for a specific project and donor instead, and moves to full registration later.
What is a Darpan ID?
It is a unique ID from the NITI Aayog NGO Darpan portal that FCRA applicants must obtain before applying. Aadhaar of all office bearers is also required.
Is a donation from an NRI foreign contribution?
No, if the donor is an Indian citizen living abroad and gives from personal savings through normal banking channels. MHA does not treat such a donation as foreign contribution, so it can go to the NGO's regular account. Keep the donor's passport copy on file to show citizenship.
Is a donation from an OCI card holder foreign contribution?
Yes. An Overseas Citizen of India, or any person of Indian origin who has taken foreign citizenship, is a foreigner for FCRA purposes. The NGO needs FCRA registration or prior permission, and the money must come into the SBI FCRA account.
How is the 20% administrative expense limit worked out?
Under section 8(1) of the Act, administrative expenses met from foreign contribution cannot exceed 20% of the foreign contribution received in the financial year. An NGO that receives Rs 50 lakh of foreign contribution in a year can spend at most Rs 10 lakh of it on administration. The rest must go to the programmes for which it was received.
We check eligibility, set up the SBI account and Darpan ID, and file your FCRA application correctly.
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