How FCRA regulations are affecting COVID-19 relief work

Small NGOs, private individuals have to jump through hurdles to channel international funds

Vinay Kumar, a patent consultant from Bengaluru, who has been raising funds to provide COVID-19 relief material to remote areas in the country said he has pledges to the tune of 50,000 Euros but is finding it a nightmare to get the money into the country. The problems that NGOs and registered organisations are facing due to the strict regulations of the Foreign Contribution (Regulation) Act (FCRA), 2010, are magnified when individuals like him attempt to channel international funds to help people in the country during this humanitarian crisis. “It is almost impossible for an individual to bring foreign funds even if it is readily available,” he said in frustration. To receive the money, he had to partner with a German NGO. “They have never met me in person, and it was a partnership based on trust. The NGO had to purchase everything there and send it to India as a ‘gift’, for which I had to pay GST,” he said, stressing on the need for special relaxations to put the funds raised abroad to good use here. “It is a no-brainer that relaxations are needed, especially now when the pandemic is raging in the country. Saving lives is far more important,” he said.