FCRA Applicablity

What is foreign contribution ?
As defined in Section 2(1)(h) of Foreign Contribution (Regulation) Act , 2010,(FCRA) "foreign contribution" means the donation, delivery or transfer made by any foreign source, ─ (i) of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum** as may be specified from time to time by the Central Government by rules made by it in this behalf; (ii) of any currency, whether Indian or foreign; (iii) of any security as defined in clause (h) of section 2 of the securities Contracts(Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act, 1999.

In terms of FCRA, 2010 "person" includes ‒
(i) an individual;
(ii) a Hindu undivided family;
(iii) an association;
(iii) an association;
(iv) ) a company registered under section 25 of the Companies Act, 1956 (now Section 8 of Companies Act, 2013).

Who can receive foreign contribution ?
A ‘person’, as defined in Section 2(1)(m) with the exclusion of those mentioned in Section 3 of FCRA, 2010, having a definite cultural, economic, educational, religious or social programme can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with the Central Government.

Who cannot receive foreign contribution ?
As defined in Section 3(1) of FCRA, 2010, foreign contribution cannot be accepted by any:
(a) a candidate for election;
(b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
(c) Judge, government servant or employee of any Corporation or any other body controlled on owned by the Government;
(d) member of any legislature;
(e) political party or office bearer thereof;
(f) organization of a political nature as may be specified under sub- section (1) of Section 5 by the Central Government.
(g) association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (i) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication;
(h) correspondent or columnist, cartoonist, editor, owner of the association or company referred to in clause (g).