Sequoia Climate Foundation under Centre’s radar, says report

US-based Sequoia Climate Foundation has been put on the ‘watch list' of the Ministry of Home Affairs (MHA). According to a report in The Economic Times, the climate funder has been put on the government’s ‘prior reference list’ (PRC) of the Foreign Contribution Regulation Act, though the exact reason behind this move is still unclear. 

Last many years, many overseas donors have been put under the Centre’s lens in line with the provisions of the Foreign Contribution (Regulation) Act. The government has said that contributions by  overseas bodies to any non-government and non-profit organisation in the country would be cleared only after the MHA approves a remittance.  

All about Sequoia Climate Foundation 

California-headquartered Sequoia Climate Foundation, which was set up in 2020, basically focuses on bold and ambitious strategies that are needed to avoid dangerous climate tipping points in a world powered by clean energy. 

Sequoia’s website statement says: “Not only do we focus on the strategies, tactics, and geographies where our grantees can have the greatest impact and accelerate a just transition to clean energy— we take calculated risks based on emerging evidence to advance solutions at speed and scale.” 

Sequoia is not related to its namesake venture capital major Sequoia Capital, which is also based in California.  

According to Inside Philanthropy’s description, Sequoia was an offshoot of hedge fund-backed Wellspring Foundation and is a young funder positioned to make a big impact.  

FCRA Act 

The Foreign Contribution Regulation Act is an emergency-era law that was enacted to counter foreign forces suspected to support anti-government movements. The law was amended multiple times and was further tightened in 2020. 

In December 2022, the Centre said that it has cancelled over 6,600 Foreign Contribution (Regulation) Act (FCRA) license of various NGOs across the country between 2017 and 2021. The highest FCRA licenses were cancelled in Tamil Nadu and Maharashtra, followed by Uttar Pradesh, Andhra Pradesh, and West Bengal. The Rajiv Gandhi Foundation and Rajiv Gandhi Charitable Trust are also included in the list.  

This information was shared by Minister of State for Home Affairs Nityanand Rai in a written reply in the Rajya Sabha during the winter session. 

The government said that these NGOs were violating the various provisions of the FCRA Act. “The NGOs whose FCRA registration has been cancelled under the FCRA will not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of registration,” the ministry in the reply.  

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