A trust, society or Section 8 company in India may receive foreign contributions (donations from abroad, from foreign sources, or from foreign-registered entities) only if it holds registration or prior permission under the Foreign Contribution (Regulation) Act, 2010. This is a separate Central Government regime under the Ministry of Home Affairs, with strict conditions. This guide sets out the basics a Mumbai trust needs before it starts.
Registration or prior permission?
| Registration | Prior permission | |
|---|---|---|
| Who it suits | An established organisation that expects foreign contributions regularly | A newer organisation, or one receiving a specific grant from a specific donor |
| Track record | Ordinarily at least three years in existence, with a minimum spend on its core activities over that period (Rule 9 sets the amount) | No three-year requirement, but a commitment letter from the donor for a specific purpose and amount |
| Scope | Foreign contributions for the registered purposes | Only the amount, donor and purpose permitted |
Rules every FCRA organisation must follow
- Designated FCRA account. Foreign contributions must first be received in the designated “FCRA account” at the State Bank of India, New Delhi Main Branch. Other accounts can be opened for utilisation.
- No transfer onward. Since the 2020 amendment, foreign contribution cannot be transferred to another person or organisation.
- Cap on administrative expenses. Administrative expenses from foreign contribution are capped at a percentage of the contribution received in a year, 20% since the 2020 amendment.
- Aadhaar of office bearers. Key functionaries must provide identification, including Aadhaar for Indian citizens.
- Annual return. An annual return of foreign contributions received and used is filed every year.
- Validity and renewal. Registration is valid for five years; the renewal application is filed online well before expiry (the portal asks for it at least six months ahead; check the current rule).
Get the basics right first
The FCRA application is examined closely, and the details are compared with the organisation’s other records. Before applying:
- Make sure the Charity Commissioner’s register names the current trustees. File any pending change reports.
- Keep audited accounts for the last three years filed with the Charity Commissioner.
- Keep income tax registration and approval current.
- Register on NGO DARPAN, and keep its details identical to the register and PAN.
- Check that the deed’s objects match the activities the foreign contribution will fund.
The rules are changing
The Ministry of Home Affairs revises the FCRA rules and forms regularly, and further changes were made and proposed in 2026, including on the scope of registration and on key functionaries. Always check the current Act, rules, forms and fees on the official FCRA portal (fcraonline.nic.in) before applying, and take advice on any foreign contribution received without registration or permission, which is a serious matter.
Frequently asked questions
Can a new trust receive foreign donations?
Not freely. A new trust may apply for prior permission for a specific contribution from a specific donor. Registration generally needs a three-year track record.
Can we receive foreign donations in our ordinary bank account?
No. Foreign contributions must come into the designated FCRA account at SBI, New Delhi Main Branch.
Does a donation from an Indian living abroad count?
It depends on the donor’s status and the source of funds. Take advice before accepting it.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide gives general information as understood in October 2026. FCRA rules change frequently; it is not legal advice, and the current Act, rules and MHA notifications must be checked before any step is taken.