The revised rules require NGOs to disclose specific objectives, operational areas, social media accounts and the ultimate source of foreign donations
The Centre has amended the Foreign Contribution Regulation Act (FCRA) Rules, introducing stricter compliance requirements for non-governmental organisations (NGOs) and associations receiving foreign funds.
Under the revised rules notified by the Union Home Ministry, organisations seeking FCRA registration must now select their objectives from a predefined list of approved purposes and specify the states or Union Territories where they intend to operate.
The amendments also state that associations with foreign nationals, other than persons of Indian origin, serving as key functionaries will ordinarily not be considered for FCRA registration or prior permission to receive foreign contributions. However, the Centre may grant exceptions in specific cases through a separate order.
Purpose-based registration
NGOs applying for registration will now have to clearly indicate the purpose for which foreign funds will be used. These purposes fall under categories such as religious, cultural, educational, economic and social activities.
While the rules permit a range of faith-based activities, including the construction and maintenance of religious places and religious education, certain categories must be carried out “excluding proselytisation“. These include religious education, documentation of faith traditions and preservation of indigenous beliefs and practices.
All organisations already registered under FCRA before 2026 have been given one year to update the government about their approved purposes and operational areas.
New compliance measures
The amended rules require NGOs to disclose their social media accounts while applying for registration, renewal or prior permission.
Organisations receiving funds through intermediary remittance channels or donor-advised funds must now reveal the ultimate source of the contribution.
Annual returns will also need to include a detailed activity report in addition to financial statements.
Spending threshold and renewal norms
To prevent inactive organisations from retaining licences, the government has introduced a minimum utilisation requirement. NGOs seeking renewal or continuation of registration must have spent at least ₹10 lakh of foreign contributions on their approved activities during the previous two financial years.
For organisations receiving foreign funds under prior permission, subsequent instalments will be released only after at least 75 per cent of the previous instalment has been utilised. The government may also conduct field inquiries to verify fund usage.
Additional fees
The revised framework introduces an additional fee of ₹300 for every extra state or approved purpose added to an application.
The amendments also expand the definition of “key functionary” to include company directors, trustees, partners, karta of a Hindu Undivided Family and others exercising control over the management of an organisation.
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