New Delhi: The Government of India has introduced significant changes to the Foreign Contribution (Regulation) Act (FCRA) framework, tightening oversight of foreign-funded activities carried out by NGOs, religious institutions, and charitable associations across the country. Through the Foreign Contribution (Regulation) Amendment Rules, 2026, notified on June 22, the Centre has explicitly excluded religious conversion from the list of faith-based activities that can receive foreign funding under the FCRA.
Under the revised rules, organisations seeking FCRA registration will no longer be allowed to apply under a broad religious category. Instead, they must choose from a detailed list of approved activities and clearly specify the states and Union Territories where the foreign-funded projects will be implemented. These approved purposes and operational areas will be recorded on the organisation’s FCRA registration certificate.
A major highlight of the amendment is the government’s decision to separate religious conversion from other faith-based activities eligible for foreign funding. The newly introduced schedule identifies 16 religious purposes under which organisations may receive foreign contributions. These include construction, renovation and maintenance of places of worship such as temples, mosques, churches, monasteries and gurudwaras; printing and translation of sacred texts; preservation of religious heritage; operation of pilgrim facilities; community kitchens; and promotion of devotional music and spiritual traditions.
Religious organisations may also receive foreign funds for conducting religious education programmes, sermons, satsangs, discourses, meditation retreats and moral instruction. However, the rules clearly state that such activities must not involve religious conversion. Similar restrictions apply to projects related to theology, religious philosophy, religious history and the documentation or preservation of indigenous and tribal faith traditions.
The government has clarified that organisations cannot seek foreign funding in the name of preserving traditional or tribal religious practices and subsequently use those funds to conduct conversion-related activities. Likewise, foreign contributions received for religious education or spiritual programmes cannot be diverted towards conversion campaigns.
Officials argue that the amendment does not prohibit religious conversion in general but only regulates the use of foreign contributions for such purposes. The revised framework focuses specifically on ensuring that foreign funds are utilised only for the purposes declared before the government and approved under FCRA registration.
Beyond religious activities, the amendments introduce a more structured system for all organisations receiving foreign contributions. NGOs will now be required to declare their exact purpose from categories such as religious, educational, cultural, economic and social activities. Rather than broad classifications, the schedule provides detailed descriptions of eligible activities, enabling authorities to more accurately assess and monitor how foreign funds are being used.
Another key change requires organisations to specify every state and Union Territory where they intend to undertake foreign-funded work. Existing FCRA-registered associations have been granted a one-year period to notify the government of the approved purposes and geographical areas for which they wish to retain their registration.
Any organisation seeking to expand or modify its activities or operational territory must first obtain approval from the government. Such requests must be accompanied by a formal resolution passed by the organisation’s governing body. The Centre will have the authority to approve or reject these applications after conducting the necessary inquiry.
The amended rules also introduce additional financial obligations. While the existing application fee will cover one approved purpose in a single state or Union Territory, organisations will be required to pay an additional fee of ₹300 for each extra purpose and each additional state or Union Territory included in their application.
The government has also widened the definition of “key functionary” under the FCRA framework. The term will now include company directors, trustees, partners of firms, members of governing bodies and managing committees, Kartas of Hindu Undivided Families, and other individuals responsible for managing an organisation’s affairs.
In another significant provision, organisations with foreign nationals serving as key functionaries, except persons of Indian origin, will generally not be considered eligible for FCRA registration or prior permission. However, the government has retained the power to permit such appointments in specific cases through separate orders and subject to prescribed conditions.
To strengthen monitoring of fund utilisation, the amendments introduce stricter spending and verification requirements. For renewal and cancellation proceedings, organisations will be considered to have undertaken reasonable activity only if they have spent at least ₹10 lakh in foreign contributions on their approved purpose during the preceding two financial years.
Additional checks have been introduced for organisations receiving foreign funds in instalments under prior permission. Any second or subsequent instalment will be released only after at least 75 per cent of the previous instalment has been utilised. Before approving further releases, authorities will conduct field verification to assess actual utilisation of funds.
Organisations will also need to submit applications through the newly introduced Form FC-3BB, along with Chartered Accountant-certified utilisation statements, bank records, activity reports and supporting documentation. Authorities may additionally seek photographs and other evidence related to project implementation.
Further, applicants and registered organisations must now disclose details of their official websites and social media accounts. Annual returns will include project-wise and location-wise reports explaining how foreign contributions were used, along with separate disclosures for assets created, programme expenditure and administrative expenses.
Where donations are routed through intermediary channels such as Donor Advised Funds, organisations will also be required to disclose details of the ultimate donor, including identity, address, email and contribution amount. Furthermore, annual filings must contain information regarding books, newspaper articles, magazines and other publications produced by the organisation or its key functionaries during the reporting period.
The latest amendments come amid continuing debates over the regulation of foreign-funded organisations in India. Earlier this month, some US lawmakers had raised concerns regarding recent changes to the FCRA framework, arguing that stricter provisions could adversely affect civil society organisations, including Christian groups operating in India. The comments followed discussions around provisions that could enable the government to take control of assets belonging to organisations found in violation of FCRA regulations.
Despite international criticism, the Centre maintains that the revised framework is intended to improve transparency, ensure compliance with declared objectives, and prevent misuse of foreign contributions.
