NGO under FCRA Received Average Rs 1.6 cr per year, Many Including RSS
not Registered
·
Purpose of FCRA: Regulates receipt and
utilization of foreign contributions from foreign sources to safeguard India's
sovereignty, security, democratic institutions and public order, while
permitting legitimate foreign-funded activities.
·
Not a Ban on Foreign Funding: NGOs and
civil society organisations can continue to receive foreign donations after
obtaining FCRA registration or prior permission and complying with reporting
requirements. Around 16,200 registered associations received ₹22,963
crore in foreign contributions during 2024-25.
·
Core Objectives:
o
Ensure transparency through mandatory registration
and disclosure.
o
Strengthen accountability via audited annual
returns.
o
Protect sovereignty and national security.
o
Facilitate genuine developmental, educational,
healthcare and charitable activities.
o
Enhance public confidence in the voluntary sector.
·
Evolution of FCRA:
o
Enacted in 1976.
o
Replaced by FCRA, 2010.
o
Amended in 2016, 2018, 2020 and 2026.
o
Successive reforms have strengthened compliance and
governance.
·
Registration Framework:
o
NGOs operating for at least three years may obtain
registration.
o
Others may seek prior permission for specific
projects.
o
All foreign funds must first be received through
the designated SBI New Delhi FCRA account.
o
Registration remains valid for five years and
requires renewal.
·
Financial Discipline:
o
Funds must be used only for declared purposes.
o
Administrative expenses capped at 20% of
annual foreign contribution.
o
Annual audited FC-4 return mandatory with
donor-wise and expenditure details.
·
Permitted Activities: Foreign
contributions may be used for education, healthcare, rural development, social
welfare, environment, culture, disaster relief, faith-based welfare and
scientific research.
·
Who Cannot Receive Foreign Funds: Election
candidates, legislators, judges, public servants, political parties,
organisations of political nature and specified media-related persons/entities
remain prohibited under Section 3.
Major
Changes in the FCRA Amendment Bill, 2026
·
Introduces provisional vesting of assets
upon cancellation, with restoration if registration is renewed.
·
Provides for permanent vesting if
registration is not restored within the prescribed period.
·
Creates a right of revision and judicial appeal
before the District Judge.
·
Reduces maximum imprisonment from five years to
one year.
·
Requires Central Government approval before
State agencies initiate FCRA investigations.
Major
Changes in the 2026 Rules
·
Registration certificates will specify exact purpose(s)
and State(s)/UT(s) of operation.
·
Clearly defines permissible religious purposes.
·
NGOs seeking renewal must demonstrate utilization
of at least ₹10 lakh in foreign contributions during the previous
two years.
·
Annual reporting expanded to include:
o
Project-wise utilisation,
o
Activity-wise reporting,
o
Ultimate foreign donor disclosure,
o
Website and social media details.
Asset
Management after Cancellation
·
Assets created from foreign contributions vest
provisionally with the Designated Authority.
·
Assets are fully restored if registration is
renewed within the prescribed period.
·
If not restored, assets permanently vest and are
transferred for public purposes (e.g., schools, hospitals) or sold with
proceeds credited to the Consolidated Fund of India.
·
Religious institutions retain their religious
character by law.
Automatic
Cessation of Registration
·
Expiry or cessation of registration does not
automatically imply wrongdoing.
·
Registration may lapse due to non-renewal,
surrender or cancellation.
·
Government decisions remain subject to judicial
review.
Central
Approval for Investigations
·
State agencies will require Central Government
approval before initiating investigations under FCRA to ensure coordinated
enforcement of this central legislation.
Geographical
and Purpose-based Registration
·
Certificates will specify approved activities and
geographical areas.
·
Existing NGOs have one year to furnish these
details through Form FC-6F without obtaining fresh registration.
No
Religious Discrimination
·
FCRA applies uniformly to all organisations
irrespective of religion or ideology.
·
Faith-based welfare activities remain eligible for
foreign funding.
·
Restrictions on conversion-oriented activities
apply equally across all faiths.
Minimum
Activity Requirement
·
NGOs renewing registration must have utilised at
least ₹10 lakh of foreign contributions over the preceding two
years to prevent dormant entities from retaining registrations.
International
Comparison
·
India's FCRA is comparable to foreign influence
transparency laws in:
o
United States (FARA),
o
Australia,
o
United Kingdom,
o
Canada,
o
European Union.
·
The document argues that global practice is moving
towards greater regulation of foreign influence rather than less.
Enhanced
Transparency
·
Annual disclosures will now identify the ultimate
foreign donor, even where funds are routed through intermediaries.
·
Reporting becomes more detailed with project-wise
and activity-wise utilisation, improving traceability and accountability.