Foreign Contributions
The Foreign Contribution (Regulation) Act 1976 regulates the acceptance and utilization of foreign contributions or foreign hospitality by people and associations in India. The act prohibits acceptance of foreign contribution by any:
a.Candidate for election
b.Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered news paper.
c.Judge, Government servant or employee of any corporation
d.Member of any legislature
e.Political party or office-bearer thereof.
Organizations which are not a political party, but which have a political nature can accept foreign contribution only with prior permission of Central Government.
Associations like trust, society, companies etc with a definite cultural, economic, educational, religious or social program can accept foreign contribution, only if they register with Central Government. Further such associations are permitted to receive foreign contribution only through a particular branch of a bank of their choice. Such an association shall give intimation to the Central Government regarding the amount of each foreign contribution received by it, the source and manner of receipt, purpose and manner for which such foreign contribution was utilized.
Every citizen of India who receives any scholarship or stipend from any foreign source shall give intimation to the Central Government regarding the amount, source and purpose of the said scholarship or stipend. If the amount of such scholarship or stipend does not exceed Rs 36,000/- per annum, the recipient is not bound to give intimation to the central government. No member of a legislature, office bearer of a political party, judge, government servant or employee of any corporation shall, while visiting any country outside India, accept any foreign hospitality except with the prior permission of the Central government. This restriction is not applicable for receipt of emergent medical aid during such visits. Further, a member of an Indian delegation is permitted to accept a gift from a foreign source, during a foreign trip, subject to the regulations made by the Central government in this regard.
A foreign hospitality shall mean any offer made by a foreign source, for providing a person with the costs of travel to any foreign country or with free board, lodging, transport or medical treatment. A foreign source does not include NRIs but the same shall include PIOs.
Associations, organizations, trusts, societies etc. receiving foreign contribution shall maintain proper accounts in that regard.
Acceptance of salary, wages or other remuneration by a person, from any foreign source by way of payment in the ordinary course of business transacted in India is not prohibited by the Act.