Key Points
NGOs must select specific categories and purposes when applying for foreign funding.
Organizations are required to disclose operational states, activities, websites, social media accounts, and publications.
The government has expanded the definition of key functionaries and tightened scrutiny of NGOs with foreign nationals in management roles.
THE CENTRAL GOVERNMENT has laid down new guidelines for receiving foreign funding for non-government organizations (NGOs) and associations under the Foreign Contribution (Regulation) Act (FCRA), 2010. In an official gazette issued by the Ministry of Home Affairs (MHA) on Monday, June 22, 2026, NGOs would be required to choose from a specified list of purposes and reveal the states or Union Territories (UTs) where they will operate.
NGOs which operate in India but wish to seek foreign funding first must register themselves under any of the following five categories — social, economic, educational, cultural, and religious, which specifies the purpose and activities of the organization. Under the “religious” categories, the listed activities include construction, renovation, and maintenance of religious places, religious education and promotion of devotional music, among others.
However, the rules state that religious education, documentation of faith traditions and preservation of indigenous beliefs must be carried out “excluding proselytisation.”
Proselytisation is the active attempt to convert someone from one religious faith, political party, or belief system to another.
When applying for foreign funds, NGOs must also disclose the exact purpose for which they are requesting the aid, and should specify the state or union territory where it would be spending the funds.
Organizations are also required to disclose their activities, the geographical scope of their programs, their websites, social media accounts, and any publications they undertake. They must also pay separate fees for each category, State and Union Territory they operate in, as opposed to the previous single fee for FCRA registrants.
"Every application for registration shall mention the purpose or purposes for which registration is sought, chosen only from such list of purposes as specified in the Schedule appended to these rules; and the states or Union territories in which the association proposes to undertake the activities," the notification stated.
The MHA notification says that any newly-established NGO must comply with these regulations within a year of commencing operation. Failure to do so will result in a minimum monetary penalty of Rs 1 lakh.
See also: Top think tank Centre for Policy Research's FCRA licence suspended by Home Ministry
The new rules have widened the scope of what it means to be a “key functionary” of an organization, with the term now including company directors, partners in firms, trustees, the Karta (head manger) of a Hindu Undivided Family, and any person who has control over the management of the association.
The government has made it clear that any organizations having foreign nationals — other than those of Indian origin — as its key functionaries will “ordinarily not be considered” for grant of registration or prior permission to receive foreign funds. However, the Union Government may allow for exceptions in specific cases through a formal order.
Organizations that receive foreign funding or any other assistance are governed under the FCRA, 2010. Under previous FCRA norms, NGOs that received foreign aid need only to submit an undertaking, which conveyed the organization’s acceptance that the funds they receive are not likely to affect the sovereignty and integrity of India or impact friendly relations with foreign states or disrupt communal harmony.
[Edited by: Vaishnavi Sivadasan]
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