Foreign contribution has been defined under the Foreign Contribution (Regulation) Act, 1976 as the donation, delivery or transfer made by any foreign source, -
(i) of any article, not being an article given to a person as a gift for his personal use, if the market value, in India, of such article, on the date of such gift, does not exceed one thousand rupees; (ii) of any currency, whether Indian or foreign; (iii) of any foreign security (as defined under the Foreign Exchange Regulation Act, 1973. The Foreign Contribution (Regulation) Act, 1976 has been enacted to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain persons or associations, with a view to ensuring that parliamentary institutions, political associations and academic and other voluntary organizations as well as individuals working in the important areas of national life may function in a manner consistent with the values of a sovereign democratic republic, and for other connected and incidental matters.
