What is Foreign Contribution

As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution" means the donation, delivery or transfer made by any foreign source ─
(i) of any article, not being an article given to a person* as a gift for his personal use, if the market value, in India, of such article, on the date of such gift is not more than such sum as may be specified from time to time by the Central Government by the rules made by it in this behalf;
(ii) of any currency, whether Indian or foreign;
(iii)of any security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of Section 2 of the Foreign Exchange Management Act,1999.
Explanation1–A donation, delivery or transfer of any article, currency or foreign security referred to in this clause by any person who has received it from any foreign source, either directly or through one or more persons, shall also be deemed to be foreign contribution within the meaning of this clause.
Explanation 2 ‒ The interest accrued on the foreign contribution deposited in any bank referred to in sub-section (1) of Section 17 or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.

Who can receive foreign contribution?

Any “Person” can receive foreign contribution subject to the following conditions:-
a) It must have a definite cultural, economic, educational, religious or social programme.
b) It must obtain the FCRA registration/prior permission from the Central Government
c) It must not be prohibited under Section 3 of FCRA,2010.

Who cannot Receive foreign contribution

As defined in Section 3(1) of FCRA, 2010, the following are Prohibited to receive foreign contribution:
(a) Candidate for election;
(b) Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
(c) Public Servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;
(d) Member of any legislature;
(e) Political party or office bearer thereof;
(f) Organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government.
(g) Association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication;
(h) Correspondent or columnist, cartoonist, editor, owner of the association or company referred to in point.
(i) Individuals or associations who have been prohibited from receiving foreign contribution.