Centre revamps FCRA rules; NGOs must declare purpose, area of operation for foreign funds

The government modified the rules governing foreign funding of non-governmental organisations (NGOs) under the Foreign Contribution (Regulation) Act (FCRA), 2010, requiring them to register for specific purposes and specify the states or Union Territories where they intend to operate.

Under the amended Foreign Contribution (Regulation) Rules, 2011, notified by the Home Ministry on Monday, organisations seeking registration will have to select their activities from a predefined schedule and declare the geographical areas in which they propose to undertake them.

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“Every application for registration shall mention the purpose or purposes for which registration is sought, chosen only from such list of purposes as specified in the Schedule appended to these rules; and the states or Union territories in which the association proposes to undertake the activities,” the notification said.

The purpose-based registration framework will apply not only to new applicants but also to existing FCRA-registered organisations. All associations registered before the 2026 amendments have been given one year to inform the government of the specific purposes and states or Union Territories for which they want to retain their registration.

The amended rules also introduce a revised fee structure under which an additional Rs 300 will be charged for every extra state or Union Territory and every additional purpose included in an application.

The schedule of approved activities covers religious, cultural, economic, educational and social purposes. It recognises a range of faith-based activities as eligible for registration, including construction, renovation and maintenance of places of worship, religious education, and the promotion of devotional music.

However, the rules make it clear that several such activities must be carried out “excluding proselytisation”. This condition applies to religious education, documentation of faith traditions, preservation of indigenous beliefs, and the documentation, preservation and revival of indigenous and tribal faith practices, rituals and systems of worship, as well as the conduct of moral instruction, satsangs, discourses and meditation retreats.

The amended rules also introduce a minimum utilisation requirement for organisations seeking renewal of registration or facing cancellation proceedings. An association will be regarded as having carried out reasonable activity only if it has spent at least Rs 10 lakh in foreign contributions on its approved activities during the previous two financial years.

For NGOs receiving foreign funds under prior permission for a specific purpose, the second and subsequent instalments will be released only after at least 75 per cent of the previous instalment has been utilised and a field inquiry has verified the utilisation.

The rules further require organisations to disclose their social media accounts while applying for registration or renewal under the FCRA.

They also state that organisations having foreign nationals as key functionaries, other than persons of Indian origin, will “ordinarily not be considered” for registration or prior permission to receive foreign contributions. However, the Central government may permit such cases through a separate order.

The amendments expand the definition of “key functionary” for entities other than individuals to include company directors, partners in firms, trustees, the Karta of a Hindu Undivided Family, members of the governing body and any other person responsible for or exercising control over the management or affairs of the association.

The rules also strengthen disclosure requirements. If foreign contributions are routed through intermediary remittance vehicles or Donor Advised Funds, organisations will have to disclose the ultimate donor or original source of the money. Annual returns will also have to be accompanied by a detailed activity report along with financial statements.