FCRA Simplified: A Pastor's Guide to Foreign Donations

FCRA (Foreign Contribution Regulation Act) confuses many Indian pastors. If your church receives or plans to receive donations from abroad, this guide is essential reading.

What is FCRA?

FCRA is an Indian law that regulates the acceptance and utilization of foreign contributions by individuals, associations, and companies. For churches, any donation from a non-Indian citizen or a foreign organization is considered a "foreign contribution" and falls under FCRA.

Does Your Church Need FCRA Registration?

You NEED FCRA if: - You receive donations from Indian diaspora settled abroad (US, UK, Gulf countries, etc.) - You receive funding from international Christian organizations - You receive any monetary contribution from any non-Indian source

You DON'T need FCRA if: - All your donations come from Indian citizens living in India - You only receive domestic funding

Types of FCRA Registration

1. FCRA Registration (5-year validity) - For organizations that have been in existence for at least 3 years - Must have spent at least ₹15 lakh in the last 3 years on their core activities - Processing time: 3-6 months typically

2. Prior Permission (One-time) - For organizations less than 3 years old - For a specific project or amount - Valid for receiving one identified foreign contribution - Processing time: 2-4 months

Key FCRA Requirements

1. <strong>Designated Bank Account:</strong> Must open a designated FCRA account at State Bank of India, Main Branch, New Delhi (11, Sansad Marg)
2. <strong>Utilization Account:</strong> A separate utilization account can be in any scheduled bank
3. <strong>Annual Returns:</strong> Must file FC-4 return within 9 months of the end of each financial year
4. <strong>Record Keeping:</strong> Maintain records of all foreign contributions received and utilized
5. <strong>Administrative Expenses:</strong> Cannot spend more than 20% of foreign contributions on administrative expenses

Common Mistakes to Avoid

• Receiving foreign donations in a regular bank account (this is illegal)
• Not filing annual returns (can lead to FCRA suspension)
• Mixing foreign and domestic funds
• Exceeding the 20% administrative expense cap
• Not intimating the MHA about changes in office bearers

How HopeSites Helps

We don't provide legal advice, but we do: - Set up your donation page with separate domestic and international channels - Configure Stripe/PayPal to route international donations correctly - Provide educational materials about FCRA basics - Connect you with FCRA registration consultants if needed - Set up automated reporting for your finance team

FCRA guidance is included in our Kingdom Impact package. Contact us for a free consultation.