The Modi government has significantly tightened the regulatory framework governing foreign-funded non-governmental organisations (NGOs) and associations in India, introducing a series of amendments to the Foreign Contribution Regulation Act (FCRA) Rules that impose stricter conditions on the receipt, utilisation and reporting of foreign contributions, as reported in Hindustan Times.
Among the most notable changes is the explicit exclusion of proselytisation from the list of religious activities that can be carried out by organisations seeking registration or prior permission under the FCRA.
The Ministry of Home Affairs issued a gazette notification late on Monday amending the FCRA Rules, 2011. The changes affect the eligibility criteria for registration, operational disclosures, utilisation of foreign funds, reporting obligations and renewal requirements for organisations receiving foreign contributions.
Proselytisation Excluded From Religious Activities
Under the amended rules, associations seeking registration must now specify the exact purposes for which they intend to utilise foreign contributions. These purposes must be selected from a prescribed schedule that categorises activities under religious, educational, cultural, economic and social headings.
While the religious category continues to permit activities such as construction, renovation and maintenance of religious places, religious education, promotion of devotional music, documentation of faith traditions and preservation of indigenous belief systems, the government has explicitly excluded proselytisation from the permitted activities.
The exclusion appears in multiple categories listed under religious purposes, including “documentation, preservation and revival of indigenous and tribal faith practices, rituals and systems of worship” and “conduct of religious education, moral instruction, satsangs, discourses and meditation retreats.”
The amended rules specifically permit religious education, documentation of faith traditions and preservation of indigenous beliefs while stating that such activities must be undertaken “excluding proselytisation.”
Foreign Nationals As Key Functionaries Face Restrictions
The government has also tightened rules relating to foreign nationals holding positions of influence within organisations seeking foreign funding.
Under the amended framework, associations having foreign nationals, other than persons of Indian origin, as key functionaries will ordinarily not be considered eligible for registration or prior permission under the FCRA.
However, the amendments provide an exception empowering the Central Government to permit foreign nationals to serve as key functionaries in specific cases or circumstances through a separate order.
The definition of “key functionary” has also been substantially expanded. It now covers company directors, partners in partnership firms, trustees, the Karta of a Hindu Undivided Family (HUF), and any person exercising control over the management or administration of an association.
Mandatory Disclosure Of Activities And Geographic Areas
In a major procedural change, NGOs applying for registration or prior permission must now disclose not only the purposes for which they seek foreign funding but also the specific states and Union Territories where those activities will be carried out.
According to the notification, every application for registration must mention the purpose or purposes selected from the approved schedule and the states or Union Territories in which the association proposes to undertake those activities.
These details will form part of the registration certificate itself.
The government has also directed all associations that were registered before 2026 to furnish details of their specific purposes and geographical areas of operation within one year in order to continue under the revised framework.
New Fee Structure For Additional Activities And States
The amended rules introduce a fresh fee structure for NGOs seeking to expand their registered activities or geographical reach.
Associations will be required to pay an additional ₹300 for every extra purpose or state added to their registration application.
The measure appears aimed at ensuring greater accountability regarding how and where foreign contributions are utilised.
Minimum Spending Requirement To Retain Registration
To prevent dormant organisations from retaining FCRA licences without meaningful activity, the government has introduced a minimum utilisation requirement.
Under the new rules, an NGO must have spent at least ₹10 lakh of foreign contributions on its approved activities during the previous two financial years in order to qualify for renewal or avoid cancellation of its registration.
Failure to meet the spending threshold could affect an organisation’s ability to continue receiving foreign funds.
Stricter Controls On Release Of Foreign Funds
The amendments also tighten conditions governing NGOs operating under the “Prior Permission” route.
Organisations receiving foreign contributions in instalments for a specific project or purpose will not receive a second or subsequent instalment unless they have utilised at least 75 per cent of the previous instalment.
The government has also empowered authorities to conduct field inquiries to verify utilisation claims before permitting the release of additional foreign funds.
Social Media Disclosure And Donor Transparency
The amended rules significantly expand disclosure requirements for organisations receiving foreign contributions.
NGOs will now be required to provide details of all their social media accounts while applying for registration or renewal under the FCRA.
In addition, organisations receiving funds routed through intermediary remittance channels or donor-advised funds must disclose the identity of the ultimate donor – the original source of the money, rather than merely reporting the intermediary entity.
The move is aimed at improving transparency regarding the origin of foreign contributions entering India.
Detailed Activity Reports And Publication Disclosures
The government has also enhanced annual reporting obligations.
In addition to submitting financial statements, NGOs will now be required to furnish detailed activity reports outlining how foreign contributions were utilised.
Associations will further be required to declare whether they publish books, articles or other publications.
The requirement assumes significance because organisations registered under the FCRA are prohibited from producing or broadcasting “news or current affairs” content.
Broader Push To Strengthen Oversight
The FCRA, 2010, which came into force in 2011, regulates the acceptance and utilisation of foreign contributions and foreign hospitality to ensure that foreign funding does not adversely affect national interest, public order or national security.
The legislation has undergone multiple rounds of amendments in 2016, 2018 and 2020, each aimed at increasing oversight over foreign-funded entities operating in India.
The latest amendments come months after the government introduced the Foreign Contribution (Regulation) Amendment Bill, 2026.
The proposed legislation seeks to empower the government to appoint a designated authority to take over, manage or sell assets created using foreign contributions when an NGO’s FCRA licence is suspended, cancelled or not renewed.
The Bill is expected to be taken up during the upcoming Monsoon Session of Parliament, signalling the government’s continuing efforts to strengthen regulatory control over the foreign funding ecosystem in India.
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