Keeping the Lights On
Essential Compliance for International NGOs
Let’s be honest: running an NGO means you’re too busy changing the world to get bogged down in paperwork. But when vital funds arrive from global partners, there’s a serious catch—the rules.
Getting foreign funding right isn’t just a legal chore; it’s about protecting your mission and keeping the trust of everyone who believes in you. In many jurisdictions, the Foreign Contribution Regulation Act (FCRA) serves as the roadmap for these compliance essentials.
🛂 1. FCRA Registration & Renewal
Think of FCRA registration as your mandatory passport to accept money from outside your country. Without it, the foreign funds simply cannot come in.
- The Track Record: New organizations usually need a 3-year history of genuine activity.
- The Bank Account: You must designate a specific, FCRA-only bank account where all foreign funds must land.
📊 2. Foreign Contribution Reporting
Reporting is all about transparency. The annual FCRA return (Form FC-4) is the mechanism for demonstrating crystal-clear accountability.
| Accuracy | Receipts must match bank records perfectly. |
| Certification | Must be certified by a Chartered Accountant. |
*Note: You must file every year, even if you received zero foreign funding.
🛡️ 3. Internal Compliance
Internal compliance is the preventative medicine. It’s about building habits before the annual report is due.
- ✅ Dedicated Systems: Use software that separates foreign and domestic funds clearly.
- ✅ Airtight Documentation: Keep every voucher, receipt, and certificate organized.
- ✅ Monthly Reconciliation: Reconcile bank statements every 30 days.
Download it as a PDF form ⬇️