The Central Government has amended the rules governing Non-Governmental Organisations (NGOs) that receive foreign contributions. Under the new provisions, applicants must now select their objectives and areas of operation from a list prescribed by the government. The Union Ministry of Home Affairs issued a notification to this effect in the official gazette on Monday.
What has changed in the FCRA rules for NGOs?
Organisations seeking registration or renewal under the Foreign Contribution Regulation Act (FCRA) must now provide details of their social media accounts as part of the application process.
According to the amended rules, if foreign contributions are received through “intermediary remittance channels” or “donor-advised funds,” applicants must disclose the identity of the actual donor and the source of the funds, as reported by PTI.
The updated rules permit various faith-based activities but specifically exclude attempts at religious conversion from the categories eligible for FCRA registration.
It is also stipulated that organisations employing foreign nationals (excluding Persons of Indian Origin) as key office-bearers or officials will generally not be eligible for FCRA registration or prior permission to receive foreign funding.
Exceptions in the amended rules
However, the amended rules include an exception allowing the Central Government, through a specific order, to authorise foreign nationals to serve as “key officials” of an organisation for the purpose of obtaining FCRA registration or prior permission in specific cases or circumstances, according to the notification.
Objective of the changes: Strengthening oversight of foreign funding
The government has introduced several amendments to the Foreign Contribution Regulation Rules, 2011. These changes aim to strengthen oversight and ensure greater accountability regarding how NGOs and other organisations in India receive, manage, and utilise foreign funding. A new provision has been added requiring organisations applying for foreign contributions to clearly specify the specific purpose for which the funds will be used and the state or Union Territory where they intend to operate.
Organisation’s purpose must be stated in the registration application
The notification states, “Every application for registration must mention the purpose or purposes for which registration is sought. These purposes must be selected from the list specified in the Schedule attached to these rules; the states or Union Territories where the organisation proposes to carry out activities must also be mentioned.”
This information will be recorded on the registration certificate issued to the organisations.
NGOs must also specify their area of operation and activities
Applicants are required to select their activities from the designated Schedule included in the rules. These categories encompass various objectives, such as religious, cultural, economic, educational, and social activities.
Under the religious category, the rules recognise various activities—such as the construction, repair, and maintenance of places of worship; imparting religious education; promoting devotional music; and other faith-related initiatives.
No room for ‘religious conversion’ in new FCRA provisions
The amended rules state that three activities—”religious education, documentation of faith traditions, and preservation of local beliefs”—may be undertaken, but “religious conversion” is not included.
This same condition applies to categories such as “documentation, preservation, and revival of local and tribal faith practices, customs, and worship systems” and “organisation of religious education, moral education, satsangs, discourses, and meditation camps.”
Mandatory to state the purpose of registration
Organisations registered before 2026 have been granted one year to inform the government which specific purposes and states they wish to retain on their registration certificates.
Additional fee of ₹300 per extra state/purpose
A new fee structure has also been introduced under the revised rules, requiring applicants to pay an additional ₹300 for every extra state or purpose included in their application.
Mandatory minimum expenditure of ₹10 lakh from foreign contributions
To ensure that inactive organisations do not retain their FCRA registration without engaging in meaningful activities, the government has introduced a new condition. Under this rule, organisations must spend at least ₹10 lakh from foreign contributions on their declared activities over the preceding two financial years.
Adherence to this spending threshold is mandatory for organisations seeking to renew their registration or wishing to avoid the cancellation of their license.
According to the notification, for entities receiving foreign contributions for specific purposes via the ‘prior permission’ route, the subsequent tranche of funds will be released only after at least 75 per cent of the previous tranche has been utilised.
The notification further states that officials will conduct field inspections to verify whether the funds have been utilised in the manner specified.
Ban on the creation and broadcasting of news and current affairs content
Additionally, organisations must disclose whether they or their key functionaries have published any books, articles, or similar material, as entities receiving foreign contributions are prohibited from creating or broadcasting “news or current affairs” content.
Apart from financial statements, the revised rules require associations to file a comprehensive activity report along with their annual returns.
These changes expand the scope of the term “key functionary” (in relation to a person other than an individual) to include senior roles such as company directors, partners in a firm, trustees, the Karta of a Hindu Undivided Family (HUF), and any person exercising control over the management of the association.
(With agency inputs)