The Government of India has introduced significant amendments to the Foreign Contribution (Regulation) Rules (FCRR), 2011, strengthening oversight of how non-governmental organisations (NGOs) receive and use foreign donations. This move reflects the Centre’s continued focus on transparency, accountability, and compliance in the NGO sector.

🔑 Key Changes in the Rules

An association having foreign nationals, other than those of Indian origin, as its key functionaries will ordinarily not be considered for the grant of registration or prior permission, with the exception, as may be allowed by the central government.

Definition of “key functionary” detailed to cover a wide range of roles, including company directors, office bearers, members of GB/MC or other controlling authority of society, trust, trade union or AOP and any person who has control over the management of the association.

NGOs seeking FCRA registration will have to specify exact purpose(s) and state or Union Territory of their operations, which will be specified on the FCRA registration certificate. The applicant must choose a purpose from a “Schedule-Purpose of Registration” provided in the rules for religious, cultural, economic, educational, and social categories. Change of scope of registration would require a fresh filing of Form FC 6F with BR and fees.

Existing registered entities have been given one year to disclose specific purposes and states they want to keep in their registration by submitting Form FC-6F, subject to approval. An additional amount of Rs 300 will be charged for every extra state or purpose added to the application.

FC received should be utilised for activities in India for the purpose for which it has been received.

A minimum FC spending limit of Rs 10 lakh on ‘reasonable activity’ over the last two financial years has been introduced for a decision on cancellation or non-renewal of registration.

Under the Prior Permission category, the second/subsequent instalment of funds will only be released after it has utilised at least 75 per cent of the previous instalment, filed Form FC 3BB and a field inquiry conducted to verify the utilisation.

NGOs receiving foreign funds must now provide details of their official website and social media accounts in FC-4.

If FC funds come through “intermediary remittance vehicles” or “donor-advised funds”, the NGO must disclose the ultimate donor (the original source of FC funds) in FC-4.

FC-4 Annual returns must include a detailed activity report as an attachment and a breakup of utilisation by a. project activity b. Assets and c. admin expense for each project. Further, in FC-4, details of publications by the entity or key functionary will be provided, with producing or broadcasting news or current affairs through mass communication being prohibited.