FCRA Prior Permission - when you need it, how to get it

FCRA Prior Permission is the one-time approval that lets a new NGO accept a specific foreign donation before it qualifies for regular FCRA registration. This guide covers when it applies, what's different from full FCRA, the document trail, and processing realities.

Prior permission vs regular FCRA registration

The Foreign Contribution (Regulation) Act 2010 distinguishes two paths:

• Regular FCRA registration - granted to NGOs with 3+ years of existence and demonstrated activity in their stated field. Valid for 5 years. Allows acceptance of foreign donations from any source.
• FCRA prior permission - granted to NGOs that don't yet qualify for regular registration. Tied to a specific donor + specific project + specific amount. One-time clearance.

If your NGO is less than 3 years old, or you haven't yet built an activity track record, prior permission is the only route to legally accept foreign money.

Who can apply

• NGOs registered under 12A (or 12AB)
• NGO Darpan ID already obtained
• Office bearers must not be convicted under any law
• The NGO must not have been blacklisted by any government department

What you need before applying

• Detailed project report - what the foreign funds will be used for
• Donor commitment letter from the foreign source (their name, address, country, the amount, the project)
• Designated FCRA bank account at SBI Main Branch, New Delhi (this is the only branch allowed for FCRA receipts since 2020 - non-negotiable)
• NGO PAN, 12A certificate, Darpan ID, trust deed
• Trustee KYC + photos
• Audited financials (whatever years you have)
• Activities report with photos and beneficiary detail
• DSC of authorised signatory

The designated SBI account - get this right

Since 2020, every NGO with foreign donations must open a designated bank account at the State Bank of India, Main Branch, New Delhi. Not your usual bank branch. Not even another SBI branch. This specific branch.

You can open this account remotely - visit any SBI branch, file the account-opening forms, mark the application as "FCRA designated." Documents flow to New Delhi. Account takes 2-4 weeks to activate.

Without an active designated SBI account in your application, prior permission is denied.

The filing process - Form FC-3A

1. Log into fcraonline.nic.in with your NGO's PAN.
2. Navigate to "Application for Grant of Prior Permission" - Form FC-3A.
3. Fill basic details, donor information, project specifics, planned activities, geographies.
4. Attach all PDFs (project report, donor letter, DSC of all trustees).
5. Pay the ₹3,000 application fee.
6. Submit and download the Acknowledgement.

The Ministry of Home Affairs (MHA) Foreigners Division processes prior-permission applications. Standard processing: 90 days, often extends to 6 months.

What MHA scrutinises

1. Whether the project is consistent with the NGO's stated objects
2. Whether the donor is a legitimate foreign entity (not on any restricted list)
3. Whether the NGO has filed all required compliances (no defaulter status)
4. Whether the NGO's trustees have any anti-national affiliations
5. Whether the foreign funds will be used in India (FCRA forbids foreign-fund onward transfer abroad)

After permission is granted

Once MHA issues the prior-permission letter:

• You can receive the specific donation from the specific donor for the specific project.
• Funds must land in the designated SBI account - not the NGO's main operating account.
• You must file FC-4 quarterly returns while the funds are being utilised.
• Foreign administrative expenses are capped at 20% of total foreign receipts.
• You must apply for regular FCRA registration before this prior permission expires if you want to continue receiving foreign donations.

Common rejection reasons

1. Project scope mismatch - funds claimed for "education" but NGO objects are health-only. Red flag.
2. Donor identity issues - political party affiliation, anti-India advocacy, sanctions-list overlap.
3. Incomplete project report - vague deliverables, no measurable outcomes, no geography specificity.
4. Designated SBI account not active - most common procedural rejection.
5. Pending compliances - if you have unfiled ITR-7 or any IT-department demand pending.

Timeline realism

End-to-end from "we want to apply" to "permission letter in hand":

• SBI designated account opening - 2 to 4 weeks
• Document preparation - 2 weeks
• Filing - 1 day
• MHA processing - 90 to 180 days

Budget 4 to 6 months. If your foreign donor needs the funds disbursed urgently, plan well ahead.

Frequently asked questions

Can I apply for multiple prior permissions? Yes - each one is donor + project + amount specific. You can stack them.

What if my prior permission application is rejected? Same project + different donor often works after addressing the rejection reason. Don't reapply identically - track the MHA's reasoning.

Can I use prior-permission funds for general operating expenses? No. The funds are restricted to the specific project named in the application.

What's the cost? MHA filing fee ₹3,000. Donateazy's done-for-you service: ₹49,999 (includes designated-SBI-account coordination, document drafting, MHA follow-up).