Sometimes taxes tend to deter a lot of foreign national to apply for donations. To that end, you need to provide them with some incentives, and assuring them that their donations would be completely provided to you and not most of that is directed towards the taxes. For this very reason, the FCRA registration comes into picture.
The purpose of FCRA is to regulate the foreign money and foreign hospitality to various NGOs. This form of registration is a necessity if you are opting to get money from foreign institutes and foreign nationals. The FCRA regulates the fact that the domestic political scenario is not affected by the foreign donations.