Proselytisation excluded from faith-based activities as govt amends FCRA rules

THe unification place ministry has amended the rules for non-government organisations (NGOs) to have strange pecuniary resource, allowing a range of faith-based activities while excluding proselytisation from categories eligible for registration under the Foreign Contribution Regulation Act (FCRA). A gazette notification for the new rules was issued late on Monday.The amended rules say that any association having foreign nationals, other than those of Indian origin, as its key functionaries will “ordinarily not be considered” for registration or prior permission to receive foreign funds. They have an exception allowing the central government to specify cases or circumstances, through an order, in which foreign nationals may be permitted to be key functionaries of an association for registration or prior permission under FCRA.The government has issued a series of amendments tightening the FCRA Rules, 2011, for NGOs and associations in India on receiving and using foreign money.The amendments have broadened the definition of key functionary in relation to a person other than an individual” to cover a wide range of roles, including company directors, partners in firms, trustees, the ‘Karta’ of a Hindu Undivided Family, and any person who has control over the management of the association.The government has introduced a new clause, wherein NGOs seeking registration for foreign funds will have to specify the exact purpose and state or Union Territory of their operations.“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 issued on Monday said.It said that the details shall be specified on the certificate issued to the NGO. The notification said the applicants must now choose their activities from a “Schedule” provided in the rules, covering religious, cultural, economic, educational, and social categories as purposes.Under the religious purposes, activities range from construction, renovation, and maintenance of religious places, religious education, and promotion of devotional music, among others.The rules specify religious education, documentation of faith traditions, and preservation of indigenous beliefs, “excluding proselytisation”.The condition has also been mentioned in “documentation, preservation, and revival of indigenous and tribal faith practices, rituals, and systems of worship” and “conduct of religious education, moral instruction, satsangs, discourses, and meditation retreats”.The rules give one year to all associations registered before 2026 to disclose their specific purposes and states they want to keep in their registration.The government has introduced a fee structure through the amended rules. An additional ₹300 will be charged for every extra state or purpose added to the application.To prevent inactive NGOs from holding on to licences, the government has introduced a minimum spending limit of ₹10 lakh of foreign contributions on chosen activities over the last two financial years.For an NGO to renew its registration or avoid cancellation, it must have spent the amount of foreign contribution over the last two years on its chosen activities.The rules state that NGOs receiving foreign funds for a specific purpose under “Prior Permission”, the second or any later instalment of funds will only be released after it has utilised at least 75% of the previous instalment.To verify the utilisation, the government will conduct field inquiries.The NGOs receiving foreign funds must now provide details of their social media accounts in their applications for registration or renewal under FCRA. If money comes through intermediary remittance vehicles or “donor-advised funds”, the NGO must disclose the ultimate donor (the source of the money) in its applications. Subsequently, the annual returns must now include a “detailed activity report” alongside financial statements.The NGOs will also have to declare if they publish any books or articles, as they are prohibited from producing or broadcasting “news or current affairs”.The FCRA, 2010, which came into effect in 2011, regulates the acceptance and utilisation of foreign contributions and foreign hospitality to ensure that such inflows do not adversely affect national interest, public order, or national security. The law was amended in 2016, 2018, and 2020.In March, the government introduced the Foreign Contribution (Regulation) Amendment Bill, 2026, to introduce changes allowing the government to appoint a “designated authority” to take over, manage, or sell assets created from foreign funds of an NGO whose licence under the FCRA is cancelled, suspended, or not renewed. The bill is likely to be taken up in the monsoon session.