Foreign Contribution Regulation Act (FCRA):
FCRA act was first enacted in 1976, to regulate the acceptance and usage of foreign contribution (funds) and foreign hospitality (lodging, transport etc) by associations (like NGOs) and persons.
Those receiving foreign funding need to obtain a FCRA certificate from the Home Ministry, and their accounts are open to inspection.
The returns of the FCRA accounts need to be reported to income tax authorities annually.
The focus of this Act is to make sure that the foreign contribution and foreign hospitality are not used to influence important fields like electoral politics, public servants, judges etc
Amended FCRA:
It was amended in 2010 to regulate the acceptance of foreign contributions by associations and also prohibit utilisation of these funds for any activities detrimental to national interest.
It also put a restriction (50%) on the proportion of foreign funds that could be used for administrative expenses.
It was further amended in 2015 to make mandatory online filing of annual returns for NGOs and other associations accepting foreign contributions.
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