Centre tightens FCRA rules; NGOs must specify purpose, exclude proselytisation

The government has amended rules governing foreign contributions under the Foreign Contribution Regulation Act (FCRA), requiring NGOs to choose from a predefined list of purposes and clearly define their area of operation while applying for registration or prior permission to receive foreign funds.

According to a gazette notification issued on Monday by the Union Home Ministry, the revised rules also explicitly exclude proselytisation from certain religious categories eligible for registration. However, a range of faith-based activities will continue to be permitted under the amended framework.

The rules state that associations with foreign nationals, other than persons of Indian origin, as key functionaries will “ordinarily not be considered” for FCRA registration or prior permission. However, the Centre may allow exceptions in specific cases through separate orders.

The amendments expand the definition of “key functionary” to include company directors, partners, trustees, the Karta of a Hindu Undivided Family, and any person controlling management of an association.

NGOs applying for registration must now specify the exact purpose of their activities, selected from a government-notified schedule, along with the states or Union Territories where operations will be carried out. These details will also be reflected in the registration certificate.

The schedule includes religious, cultural, economic, educational and social activities. Under religious purposes, activities such as construction and maintenance of religious places, religious education, devotional music, documentation of faith traditions, and preservation of indigenous beliefs are listed, but these must exclude proselytisation. The restriction also applies to activities such as satsangs, discourses, meditation retreats, and preservation of tribal and indigenous faith practices.

Existing registered organisations have been given one year to update their declared purposes and operational areas.

The rules introduce an additional fee of ₹300 for every extra state or purpose added to an application.

To ensure accountability, NGOs must have spent at least ₹10 lakh of foreign contributions on their selected activities over the previous two financial years to qualify for renewal or avoid cancellation. For organisations under prior permission, the next instalment of funds will be released only after utilisation of at least 75 per cent of the previous tranche, subject to verification through field inquiry.

NGOs must also disclose details of their social media accounts in applications and reveal the ultimate donor in cases where funds are routed through intermediary remittance vehicles or Donor Advised Funds.

Annual returns will now require a detailed activity report along with financial statements. NGOs are also required to declare any books or articles published, as organisations are prohibited from producing or broadcasting news or current affairs content.
(With PTI inputs)