Yes, earlier donor NGOs used to collect funds from foreign donors and pass them on to smaller NGOs but now, it’s restricted under FCRA.

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The Foreign Contribution (Regulation) Amendment Act, 2020 came into effect on 29th September, 2020 whereby many major amendments done by the Ministry of Home Affairs (MHA) under FCRA. The amended section 7 of the Act prohibits Inter-NGO donations i.e sub-granting. It means one FCRA registered NGO cannot sub-grant, further, to another FCRA registered NGO.

The FCRA law is very particular that there should not be any direct or indirect involvement of any other entity in utilization of FCRA funds. If you need guidance, consultation or legal advisory, please feel free to contact us.

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