NGOs with foreign funding won’t be able to publish news content: MHA

The Centre has asserted that the NGOs engaged in publication-related activities and receiving foreign contributions will not be able to publish any newsletters and must get a certificate from the Registrar of Newspapers for India to say they do not circulate any news content.

NGOs seeking registration under the Foreign Contribution (Regulation) Act must abide by the new rule, it said.

In a notification, the ministry of home affairs (MHA) said it has amended the rules made under the FCRA and henceforth, NGOs which are seeking permission to get foreign funding must give an undertaking that it will adhere to the Good Practice Guidelines of the Financial Action Task Force (FATF), the global watchdog for terror financing and money laundering.

The MHA said such bodies or NGOs which are seeking registration must enclose financial statements and audit reports of the last three financial years, including the statement of assets and liabilities, receipts and payments account, and income and expenditure account.

If the audit reports and financial statements do not contain activity-wise expenditure for the last three financial years, a chartered accountant's certificate specifying the activity-wise amount spent by the association, duly reconciled with the income and expenditure account and the receipt and payment account must be submitted.

In case the association or the NGO is engaged in publication-related activities or if publication activities are among its aims and objectives as stated in its Memorandum of Association or trust deed, an undertaking from the chief functionary regarding compliance with the FCRA, 2010, must be given.

The MHA said that if the association's publication is registered with the Registrar of Newspapers for India, a 'Not a Newspaper' certificate from the RNI must be submitted as well.

If the NGO was previously registered under the FCRA, it will be required to submit an affidavit regarding receipt and utilisation of foreign contributions after expiry or cancellation of its registration certificate.

If the expenditure on aims and objects is less than Rs 15 lakh in the last three financial years, an affidavit regarding the inclusion of capital investments must be submitted, it said.

The government stipulated that the NGOs which are seeking permission to receive foreign contributions must enclose a commitment letter from the donor, with the amount committed in the letter matching the donation amount; a project report, including a detailed breakup of proposed expenses to be incurred from the foreign contribution to be received; along with a declaration that the administrative expenses shall not exceed 20 per cent of the foreign contribution.

All NGOs receiving foreign funds have to mandatorily be registered under the FCRA and must utilise such funds only for the purposes it has been received.

Any association wishing to receive foreign contributions must have a definite cultural, economic, educational, religious or social programme, the government said.

The organisation must neither receive, nor utilise any foreign contributions without obtaining permission or registration from the Centre, it said.