Every asset acquired out of foreign contributions should be acquired and possessed in the name
of the association and not in the name of its office bearers. The foreign contributions received
after prior permission or permanent registration under the Act are to be utilized for the
purpose for which they have been received. These are not to invested in any speculative
investments including Mutual Funds or share markets. However, foreign donations may be utilized
for self sustaining activities which is not meant for commercial activities. Under FCRA , there
are various categories of recipients of international funds and Foreign Contribution Regulation
Act has different stipulation for each of them. For instance, political parties cannot receive
foreign funds but an organisation of political nature can receive foreign funds on case to case
basis after obtaining prior permission. But an organisation of political nature cannot get
registered with FCRA. An organisation having a definite cultural, economic, educational,
religious or social programme can receive foreign contribution after it obtains the prior
permission of the Central Government, or gets itself registered with the Central Government.
Associations which are not registered or which have been denied registration may receive foreign
contribution with specific prior permission of the Central Government.