As per FCRA latest notice, all the NGOs now need to acquire DARPAN Unique ID. This it the portal offered by NITI Aayog in association with National Informatics Center.
Also, it is mentioned in the notice, that all the all FCRA related services like Registration, Renewal, Filling of Return etc.. shall require DARPAN Unique ID.
Public Notice for DARPAN ID
How to Register for DARPAN ID
Step 1 – Login
Click on “Register” button on right corner.
Step 2 – Enter Details
You have to give details of your organization – NAME, MOBILE and EMAIL. OTPs will be sent to given Mobile number and email.
Step 3 – Verify OTPs
Once you submit, OTPs will be send to your email and mobile. Also, here you need to provide PAN of your Organization and Name of mentioned in the PAN.
Step 4 – Create Password
Once your PAN is verified, Unique ID is generated and you need to create your own password for the login. Thereafter, it re-direct you to login page
How to give this Unique ID to FCRA
Once you get the Unique ID, you need to login to your FCRA account, where a pop up form appear, you need to provide Unique ID there. Refer our last blog.
Recently FCRA department has update the website and now when you login to your account, a page is loaded where it is asking for details regarding key functionaries and Darpan ID. Look at the below screenshot :
Step 1 – visit https://fcraonline.nic.in/home/index.aspx
Step 2 – Click on “Intimation on Quarterly Receipt” tab.
Step 3 – Give details of your userid and password
Step 4 – A page given in the above image is loaded. Fill all the information regarding members.
- Email ID of Member
- Mobile of Member
- Aadhar of Member
- PAN of Member
Step 5 – Fill information regarding Darpan ID
5. Darpan ID
6. PAN of Organization given in Darpan Registration
For more information on what is Darpan ID and how to create it, click below link.
Recently, FCRA has issued show cause notice to 5992 NGOs asking for reasons why their FCRA registration may not cancel.
Earlier in this May, FCRA has issued list of organizations, who have not filled FC returns online for previous year or years. And give them opportunities to update the same as early as possible. Also after that, 5992 organizations have not updated their FC returns and thus final show cause notice issued to them.
It is also mentioned that, these organization have to give their reply in email to email@example.com within 15 days.
We have seen in last blog here (How to get CSR Funding for NGO?) , what NGO should not do to get CSR funds. Let us see now what NGO should do to get CSR funding. How your should prepared your NGO for CSR funding. One of the important aspect is how effectively your NGO implement the given project i.e. Program Quality.
Obviously, as a Chartered Accountant, I can not suggest about how to implement program effectively, but yes, I can suggest on how to maintain documents in such a manner, so that it can easily draw an idea about NGO working.
Past and Current Programs
Programs, which are completed in last five years should have been documented properly. There has to be proper file for each program containing all the documents starting from agreement, budget, all financial utilization certificates, quarterly reports, photographs and note on impact of the program. I suggest to have a “Program Closure Card”, a brief summary of Program. Please see below example.
Every company ask full project plan for which you need CSR fund. Thus, NGO should have keep ready such kind of different project plans – mainly divided in two parts, short term plans and long term plans. Many CSR companies even provide funding for ongoing project or contribute in Long Term Project Plan of NGO.
Coming Soon – How to get CSR funding for your NGO? – PART 3
The Centre filed in Supreme Court on Wednesday its draft guidelines providing stringent regulatory mechanism for NGOs. Earlier, in January 2017, famous lawyer for his PILs, Advocate Mr. Manohar Lal Sharma, filled a PIL to regulate the unorganized NGOs ecosystem in the country. SC had asked the Centre to prepare guidelines to regulate NGOs and Voluntary Organisations after finding that nearly 30 lakh of them were operating in India.
In its order, the Court noted that substantial funding is allowed for NGOs and voluntary organisations. Further, Rules 210-212 of the General Financial Rules, 2005 provide for a regulation mechanism for NGOs, though the respondents are not aware of the same. The court noted,
“There are 32 lakh NGOs out of which nearly 3 lakh are filing balance sheets. The respondents are not aware of the responsibility of audit in the General Financial Rules…There can be no doubt that the funds disbursed by CAPART [to NGOs] is public money and needs to be accounted.”
It, therefore, directed the Centre to complete the exercise of audit and submit a report by March 31 this year. It was directed,
“In case of non-compliance, it is essential to initiate civil and criminal action immediately after the completion of the exercise.”
Most importantly, the Court also directed the Centre to lay down guidelines/rules for accreditation of NGOs, the manner in which they shall maintain accounts and auditing of the same.
Centre proposes stringent guidelines for NGOs and VOs requiring all existing ones to register afresh online with Niti Ayog‘s NGO-Darpan. The guidelines submitted by additional solicitor general Tushar Mehta to a bench headed by CJI J S Khehar required them to register afresh if they wish to get govt grants.
It said NGOs will be provided unique ID and subjected to income tax act and foreign contribution regulations act. Centre’s draft guidelines say NGOs/VOs past track record and performance will be put under scrutiny before grant of accreditation. The NGOs and VOs getting govt funds are required to execute a bond to refund the amount with 10% interest if work not done.
However, detailed draft copies of guidelines not available so that can not comment on in dept detail.
SC asked amicus curiae Rakesh Dwivedi to submit his suggestions on the draft guidelines in two weeks.
Today, FCRA department has issued two lists of the organizations whose Bank Accounts are either not updated with FCRA or not as per Core Banking System format. These organizations are advised to update their Bank Accounts immediately in Form FC6.
As FCRA department is in the process of being paperless department, this is another step to have updated information regarding Bank Accounts of organizations.
List 1 Those NGOs, whose bank account detail is not updated as per core banking format
Before 4-5 years, due to core banking, Bank Accounts are changed to 10 or 12 digits instead of 4 or 5 digits. However, many NGOs have not intimate this change to FCRA department.
Check out the list and your NGOs name here – List 1
List 2 Those NGOs, whose bank account details are not there with FCRA department
Some of the NGOs have change their bank account after registration and not intimated such change to FCRA department. Or simply, FCRA department do not have any information regarding NGOs bank Account.
Check out the list and your NGOs name here – List 2
Action to be taken
Above NGOs have to update their Bank details immediately by filling online form FC-6.
Watch Tutorial Video – How to update Bank Details in Form FC6
For any further query, write in the below comment box.
Have you not filled your organization’s FCRA return or you have filled it in paper format since it is compulsory to file annual return online.
You can file late Return of FCRA by paying penalties.
Penalty for Late filling of FCRA return
As per notification S.O 2133(E) dated 16/06/2016, penalty for late filling of fcra return is as under in the simple manner. (For original notification click here)
Up to 3 from 31/12
2% of FC Amount Received or Rs. 10,000 whichever is less
3 Months to 6 Months from 31/12
3% of FC Amount Received or Rs. 50,000 whichever is less
6 Months to 12 Months from 31/12
4% of FC Amount Received or Rs. 2,00,000 whichever is less
12 Months to 24 Months from 31/12
5% of FC Amount Received or Rs. 5,00,000 whichever is less
24 Months to 36 Months from 31/12
10% of FC Amount Received or Rs. 10,00,000 whichever is less
Procedure for Filling Late FCRA Return
For late filling of FCRA return, you need to write an email to firstname.lastname@example.org from registered address of organization. You will most probably get the link to file late return of fcra and need to pay the above penalty.
Many of the organizations have already received Renewal from FCRA. However, some of the organizations have not apply for renewal or not applied in online format or not paid online fees, may not received FCRA Renewal.
Last date for filling FCRA renewal was 30.06.2016 by online. If your organization fail to do so, your FCRA registration certificate is deemed to have ceased w.e.f. 01.11.2016.
Yesterday, FCRA department has issued a list of total 11319 organizations whose registration certificate is deemed to have ceased w.e.f. 01.11.2016.
Next Course of Action
These organizations have to apply for renewal –
- Login to your account in FCRA website
- File Complete FC3 form online
- Upload the required documents like Trust Deed and Registration Certificate
- Upload a Letter stating reason for not filling renewal earlier
- Pay fees online.
No renewal if not filled Annual Returns
It is also mentioned in the notice that renewal shall not be granted if earlier annual returns have not been filled by the organization.
Last date to file such renewal is 28.02.2017
How to file FC3 Renewal form online ?
Check out this video.
We know the current scenario of demonetization of old currency notes of Rs. 1000 and Rs. 500. As every day new news coming in, it is difficult for us to decided what should be the correct step to deposit old notes.
Earlier, Trust and NGOs were already under the radar of the Government before demonetization, now we can predict that more strict control coming in near future.
Let us discuss today about dos and don’ts by NGOs in a Question Answer Round.
Q – Can old notes be deposited in NGOs Bank Account and what is the time limit?
A – Yes, old notes can be deposited in NGOs Bank Account till December 30.
Q – How much cash can be deposited?
A – As such no limits, but not more than the CASH ON HAND AS ON 8th NOV.
Q – Can we take cash donation in Old notes now?
A – No. After 8th Nov, old Rs. 500 and Rs. 1000 notes are not valid tender.
Q – Can we take donation in cash in back dated and thus create more cash balance as on 8th Nov ?
A – I suggest NO. Just two days back, not confirmed but, IT (Exemption) of Mangalore has issued notices to NGOs to submit authorized copy of cash books as on 8th Nov with denomination.
Q – Can we deposit cash in FC in old notes ?
A – Yes you can deposit old notes in FC account but not more than cash balance of FC books as on 8th Nov. I suggest if the cash balance is not much amount get it exchange with new notes.
Q – What about staff advance already given before 8th Nov in old notes?
A – Do not take bake the advance and deposit in the Bank. It is advisable to ask staff members to exchange it.
Q – What about Donation boxes lying outside the offices like at airports, malls etc..?
A – Immediately get all the donation boxes back and record its cash on books as donation and keep photographs before and after opening of boxes or record a video at the time of opening of boxes with the current date newspaper. So that later, NGO can prove that the donation boxes open after 8th Nov and there were old notes which were deposited in the bank.
Q – What is advisable regarding taking donations between 8th Nov to 30th Dec..?
A – As a genuine NGO, one should not accept any donation in CASH during this period. If you received donation in new notes, kindly take the proof of the donors and keep the bank deposit slips.
All the above answers are purely my opinion. If you have any further questions, kindly ask in the comment section below this blog.