Indian NGOs, charitable trusts, and associations wanting to accept donations from international donors face a specific regulatory framework that is completely different from standard cross-border payment processing. This guide covers FCRA requirements, what payment infrastructure applies, and how NGOs with commercial arms can use standard cross-border gateways.
The FCRA Framework: What Every Indian NGO Must Know
FCRA (Foreign Contribution (Regulation) Act, 2010) governs the receipt of foreign contributions by Indian persons, associations, and companies.
Key rule: Indian NGOs, trusts, and societies cannot accept foreign donations without FCRA registration from the Ministry of Home Affairs. This is non-negotiable.
FCRA registration requirements:
- Organisation must be registered under FCRA
- Designated FCRA bank account at State Bank of India, New Delhi Main Branch (mandatory after FCRA 2020 amendment)
- All foreign contributions must first credit to the designated SBI FCRA account
- Funds can be transferred to utilisation accounts in other banks afterward
- Annual FCRA return (FC-4) filing mandatory
What Standard Cross-Border Payment Gateways Cover (and Don't Cover)
Playto Pay, Skydo, Wise, Razorpay International are PA-CB (Payment Aggregator - Cross Border) licensed platforms for commercial cross-border transactions — service exports, product sales, subscription billing.
Foreign donations to Indian NGOs are NOT commercial transactions. They fall under FCRA's "foreign contribution" definition. Routing foreign donations through standard payment gateways without FCRA compliance is a violation of FCRA.
What this means practically:
- An international donor sending money to support your NGO's cause: must go through FCRA-designated SBI account
- An international organisation paying your NGO for training delivery services: commercial transaction, can use Playto Pay
- An international foundation's grant to your NGO: FCRA territory, must go to FCRA account
How FCRA-Registered NGOs Receive International Donations
Step 1: Get FCRA registration. Apply via Ministry of Home Affairs FCRA online portal (fcraonline.nic.in). Processing takes 90+ days.
Step 2: Open designated FCRA bank account at SBI New Delhi Main Branch. Mandatory per 2020 amendment. No other bank accepted for initial receipt.
Step 3: Provide donors with FCRA account SWIFT details.
- Bank: State Bank of India, New Delhi Main Branch
- SWIFT: SBININBB104
- Your FCRA account number
- IFSC: SBIN0000691 Step 4: Donor sends international wire to your FCRA SBI account. Standard SWIFT from any international bank.
Step 5: File FC-4 annual return reporting all foreign contributions received, purpose, and utilisation.
International Donation Platforms for Indian NGOs
Some international platforms facilitate donations to Indian NGOs with FCRA compliance:
GiveIndia (giveindia.org): India's largest donor platform. Handles FCRA compliance for listed NGOs. International donors can give via credit card.
GlobalGiving: International fundraising platform. FCRA-compliant for listed Indian NGOs. International donors in US can get US tax deduction.
CAF India (Charities Aid Foundation): UK-India philanthropy bridge. UK donors get Gift Aid; Indian NGO receives FCRA-compliant.
Donating via these platforms: They handle FCRA routing. Your NGO must be listed/approved on each platform.
NGOs with Commercial Arms: Where Playto Pay Applies
Many NGOs also run commercial activities:
- Selling publications, research reports, training programs
- Consulting and advisory services for international organisations
- Charging fees for certification programs
- Revenue-generating social enterprises These commercial revenues are NOT foreign contributions. They are service exports, governed by standard FEMA/PA-CB rules.
For commercial revenues from international clients: Playto Pay applies normally.
- International client pays for training program: card at 4% flat
- International client wire for consulting: VBA at 1% flat
- FIRA auto per commercial transaction
- Must be clearly documented as payment for services, not donation
What Happened to NGOs Under FCRA Scrutiny
FCRA scrutiny has intensified since 2020. Common violations:
- Accepting foreign donations into regular bank accounts (not SBI FCRA account)
- Routing donations through commercial payment gateways
- Not filing FC-4 returns on time
- Sub-granting to non-FCRA entities without permission Penalties: FCRA cancellation, asset freezing, prosecution. Indian NGOs in this space must work with legal advisors specialising in FCRA compliance.
FAQ
Can Indian NGOs use Playto Pay to accept international donations? No. International donations to Indian NGOs fall under FCRA, not standard FEMA/PA-CB commercial payment processing. FCRA-registered NGOs must receive foreign contributions through their designated SBI FCRA account via SWIFT wire.
What if our NGO is not FCRA registered? Without FCRA registration, Indian NGOs cannot legally accept foreign contributions (donations). Accepting foreign donations without FCRA registration is a criminal offense under FCRA.
Can Indian NGOs use Playto Pay for commercial service revenues? Yes. Revenue from international clients for services delivered (training, consulting, publications) is a commercial transaction, not a foreign contribution. Use Playto Pay for commercial revenue; FCRA-designated SBI account for donations.
Which platforms help Indian NGOs receive international donations compliantly? GiveIndia, GlobalGiving, and CAF India facilitate FCRA-compliant international donations for listed NGOs.