Donate::FCRA & MF Action

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Government of India’s New Strict requirements for Foreign Contribution Receipt Act Certificate (FCRA) and Maharashtra Foundation’s Action Plan.

Background:
Under the new anti-terrorist measures, the GOI has made it mandatory that all charitable Organizations in India, receiving foreign originated funds must have the FCRA certificate. Most of the organizations receiving donations from MF do not have the required FCRA certificate. Thus MF has to take some decisive action.

Further, the U.S. government has also increased the scrutiny of organizations sending dollars to charitable organizations, as those may be diverted to or sent under the guise of charity to suspected violent or terrorist organizations

How does it affect Maharashtra Foundation?
Every year MF sends donations to over 100 organizations in dollars. Out of these organizations, only a dozen organizations have the FCRA certificate. The vast majority – 90% only have the 80-G Tax Exempt Certificate (akin to 501-(C) (3) in U.S.A.) but not the FCRA – permission to receive foreign origin funds.

Although it is the primary responsibility of the recipient organization to obtain the FCRA, it is also a pro-active responsibility of the donor organization like MF to make sure that they have the FCRA before sending the dollars or Rupees. This becomes an even more serious responsibility in light of the focus and attention the U.S. Homeland Security Department has placed on the dollars given abroad under charitable cover.

Many Indian charitable organizations have not acquired such an FCRA certificate because it is a cumbersome and expensive procedure.

Courses of Action MF has already taken and continues to take:
• Maharashtra Foundation has formed and registered an organization called ‘Maharashtra Foundation, India’ (MFI) in India. It has acquired the 80-G and the FCRA certificates. MFI in turn will be able to help all organizations in India.

• Pro-actively worked with receiving organizations in India to obtain FCRA certificates and refresh the 80-G certificate.

• Maintain a list of organizations that have all the necessary certificates. The cost of these actions was $3,000. Courses of Action MF will undertake in near future:

• Continue our efforts to identify Indian organizations about the FCRA requirement and work with them
to get them the FCRA certificate.

• Inform and educate MF donors about the FCRA issue and convey to them that MF cannot transfer funds without the FCRA certificate. Encourage them to convey the message to the receiving organizations.

• Maintain an updated list of FCRA eligible organizations in our records and MF web site. Make this list available to the donors. Make every effort to reach out to the donors via mail, articles and advertising in Marathi newspapers.