The government has revised the Foreign Contribution Regulation Act (FCRA) rules, making it mandatory for NGOs to select their activities and areas of operation from a fixed list while applying for foreign funding approval. The changes also allow certain faith-based activities but clearly exclude proselytisation across multiple categories.
Restrictions on Foreign Nationals in Key Roles
A gazette notification issued by the Union Home Ministry states that organisations with foreign nationals (except those of Indian origin) in key positions will generally not be eligible for registration or prior permission to receive foreign funds. However, the Centre may allow exceptions through specific orders.
Wider Definition of Key Functionaries
The amended rules expand the definition of “key functionary” to include directors, partners, trustees, Karta of Hindu Undivided Families, and anyone involved in managing or controlling an organisation.
Mandatory Disclosure of Purpose and Location
NGOs applying for FCRA registration must now clearly specify their exact objectives and the states or Union Territories where they plan to operate. These details will be recorded on their registration certificates.
Applications must choose from a predefined schedule of activities covering religious, cultural, economic, educational, and social purposes.
Religious Activities and Prohibition on Proselytisation
The rules list several religious activities such as construction and maintenance of places of worship, religious education, devotional music, and spiritual practices. However, they explicitly state that proselytisation is not permitted under categories related to religious education, documentation of faith traditions, and preservation of indigenous beliefs.
Compliance and Financial Requirements
Existing organisations registered before 2026 must update their declared purposes and operational areas within a year. A fee of ₹300 will be charged for each additional state or activity included in an application.
To retain eligibility, NGOs must also show that they have spent at least ₹10 lakh of foreign funds on approved activities over the past two financial years. Renewal of registration will depend on meeting this requirement.
For organisations receiving funds under prior permission, the next instalment will be released only after at least 75% of the previous tranche has been used, subject to verification and field inspection by authorities.
Greater Transparency and Reporting Norms
NGOs must now disclose social media accounts, provide details of ultimate donors in cases involving intermediary funding channels, and submit detailed activity reports along with annual financial returns.
They are also required to declare any publications or content produced, as organisations registered under FCRA are prohibited from publishing or broadcasting news or current affairs content
