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Centre Amends Rules for Receiving Foreign Funds
The Ministry of Home Affairs amends the Foreign Contribution Regulation Act (FCRA) Rules, 2011, tightening accountability and disclosure norms for NGOs and associations receiving foreign funds. The amendment introduces new requirements on activities selection, operational locations, key functionaries, spending thresholds, fund release conditions, and disclosures.
FCRA Rules, 2011: 2026 Amendment (Receiving Foreign Funds)
| Dimension | Key Details |
|---|---|
| Parent law and subject | Foreign Contribution (Regulation) Act (FCRA), 2010 regulates the acceptance and utilization of foreign funds or hospitality. |
| Enforcing authority | The FCRA is enforced by the Ministry of Home Affairs. |
| NGO legal structures | NGOs are typically registered under 3 legal structures: societies, trusts, or Section 8 companies. |
| Activities selection for NGOs | NGOs must choose activities only from a predefined Schedule: religious, cultural, economic, educational, and social. |
| Operational location disclosure | NGOs must specify exact States or UTs of operation. |
| Religious activities scope | Religious education, documentation, and preservation of indigenous faith practices are allowed, excluding proselytisation, explicitly mentioned for satsangs, discourses, meditation retreats, and tribal rituals. |
| Associations with foreign nationals as key functionaries | Associations with foreign nationals, other than persons of Indian origin, as key functionaries will ordinarily not be considered, unless specially permitted by the Centre. |
| Definition of key functionary | Key functionary is broadened to include directors, partners, trustees, Karta of HUF, or anyone controlling management. |
| Minimum spending requirement for renewal | NGOs must have spent at least ₹10 lakh of foreign contribution in the last 2 financial years to retain or renew registration. |
| Release of funds threshold | The next instalment is released only after 75% utilisation of the previous instalment, verified by field inquiry. |
| Disclosure requirements | NGOs must disclose social media accounts, the ultimate donor if funds are routed via intermediaries, and submit detailed activity reports. |
| Media restriction | NGOs and key functionaries are prohibited from publishing or broadcasting news or current affairs. |
| Ultimate donor disclosure via intermediaries | NGOs must disclose the original source or ultimate donor if funds come via intermediary remittance vehicles or Donor Advised Funds. |
| Transition window for existing NGOs | Existing NGOs get 1 year to disclose their specific purposes and States in registration. |
| Definition (term used) | Proselytization, or proselytism, is the act of attempting to convert someone from one religion, belief, or opinion to another. |