—Guide
FCRA Compliance After the 2020 Amendment: SBI Account, Admin Cap and FC-4
The ongoing FCRA rules NGOs must follow since the 2020 amendment — the SBI New Delhi account, the 20% administrative cap, the bar on sub-granting, disclosures and the FC-4 return.
The FCRA amendment of 2020 changed how foreign contributions are received and used. Registrations have been cancelled for breaches, so NGOs receiving foreign funds need tight compliance. This guide covers the main rules.
The SBI New Delhi Account
All foreign contributions must first be received in the designated FCRA account at the State Bank of India's New Delhi Main Branch. From there, funds can be moved to one or more utilisation accounts at other banks for spending.
The Administrative Cap
Administrative expenses from foreign contribution are capped at 20% of the foreign contribution received in the year (reduced from 50% before 2020). Track administrative spending carefully and classify costs consistently.
No Transfers
Foreign contribution can't be transferred to any other person or organisation, even another FCRA-registered NGO. This ended the common sub-granting model.
Separate Books and Accounts
- Maintain separate books for foreign contribution.
- Don't mix foreign funds with domestic funds.
- Keep assets bought with foreign funds identifiable.
Disclosures and Returns
- Disclose foreign contributions received as required, including on the organisation's website where applicable.
- File the annual FC-4 return with audited statements of receipts, payments and assets, generally by 31 December after the year-end.
- Report changes in key functionaries, address or bank accounts within the time allowed.
Renewal
Apply for renewal well before the five-year validity ends. Late or rejected renewals leave the organisation unable to use foreign funds.
Getting Help
Think Filing handles FCRA books, disclosures, FC-4 returns and renewals.