13 October 2020
In this episode we talk to Ingrid Srinath, Director of the Centre for Social Impact & Philanthropy at Ashoka University about philanthropy and civil society in India and the impact of new restrictions that have come in as part of the Foreign Contributions Regulation Act 2020 (FCRA 2020).
Disclaimer: the views expressed are Ingrid’s own and do not necessarily reflect those of her employer, or of CAF.
We discussed:
The FCRA 2020
- What is the FCRA 2020?
- Why are CSOs in India concerned about the impact it will have?
- How much existing funding will be affected by the new rules?
- What is the rationale from government? Does this stand up to scrutiny?
- Has the Covid-19 pandemic played any role in precipitating this move on the part of the Indian government?
- What is the rationale for prohibiting onward granting? Why is this a particular cause for concern?
- Will this particularly harm smaller organisations and less poplar causes?
- As part of the new FCRA the Indian government has stipulated that no more than 20% of a foreign contribution can be spent on “administrative expenses”. How are these defined? What is the rationale for this?
- Will this new limitation on administrative expenses make it harder to invest in infrastructure, digital capabilities, governance etc.?
- The new law also requires CSOs in receipt of FCRA funds to do so in a dedicated bank account at a New Delhi branch of the State Bank of India- what is the rationale for this?