Centre amends rules for receiving foreign funds
The government changed the rules for receiving foreign funding, requiring NGOs to choose from a predefined list of purposes and areas of activity; While allowing a range of faith-based activities, it expressly excluded proselytizing from several categories eligible for registration under the Foreign Contribution Regulation Act (FCRA).
In a gazette notification published on Monday, June 22, 2026, the Union Ministry of Home Affairs also said that key functionaries of any association of foreign nationality, other than those of Indian origin, “will not normally be considered” for registration or grant of prior permission under the Act.
The notification said the amended rules include an exception allowing foreign nationals to identify such cases or circumstances through an order under which they may be permitted to become “key officers” of an association for registration or prior authorization under the FCRA.
The government made a series of changes to FCRA rules in 2011, tightening liability for how non-governmental organizations (NGOs) and associations in India receive and use foreign money.
The amendments expanded the definition of “key officer in relation to a person other than an individual” to a wide range of roles, including company directors, firm partners, trustees, the ‘Karta’ of the Undivided Hindu Family and any person having control over the management of the association.
The government has introduced a new clause that NGOs seeking registration to receive foreign funds must specify the precise purpose of their activities and the state or Union Territory.
“Each application for registration shall state only the purpose or purposes for which registration is sought, selected from the list of purposes specified in the Schedule annexed to these rules, and the states or Union territories in which the society proposes to undertake activities,” the notification said. It was said.
It was stated that the details will be stated in the certificate issued to the NGO.
Applicants must now choose their activities from a “Programme” specified in the rules, covering religious, cultural, economic, educational and social categories as purposes.
Various activities are listed within the scope of religious purposes, from the construction, renovation and maintenance of religious places, from religious education to the promotion of worship music.
The rules state that three objectives (religious education, documentation of faith traditions, and preservation of indigenous beliefs) must be achieved “with the exception of religious propaganda.”
This has also been mentioned in “documenting, preserving and revitalizing indigenous and tribal belief practices, rituals and systems of worship” and “conducting religious education, moral education, satsangs, discourses and meditation retreats”.
The rules give all associations registered before 2026 one year to disclose to the government their specific purpose and the states they wish to keep on their register.
The Center has also introduced a fee structure, through the amended rules, under which an additional fee of Rs 300 will be charged for each extra circumstance or purpose added to the application.
To prevent inactive NGOs from obtaining licences, the government has imposed a minimum spending limit of Rs 10 lakh on foreign contributions on selected activities in the last two financial years.
In order for an NGO to renew its registration or avoid cancellation, it must have spent the amount of contribution from abroad in the last two years on its chosen activities.
In the statement, it was stated that the second or subsequent funding installments will be released to NGOs that receive foreign funds for certain purposes within the scope of “Preliminary Authorization” only after at least 75 percent of the previous installment is used.
It was stated that the government will conduct a field study to verify the use.
NGOs receiving foreign funding are now required to provide details of their social media accounts when applying for registration or renewal under the FCRA.
If the money comes through “intermediary remittances” or “Donor Advised Funds”, the NGO must disclose the ultimate donor (original source of the money) in its applications.
Under the rules, annual returns must now include a “detailed activity report” as well as financial statements.
Since NGOs are prohibited from producing or publishing “news or current affairs”, they will have to declare whether any books, articles or keys thereto have been published by them.
It was published – 23 June 2026 01:59 IST
