Government Strengthens Oversight of Foreign Funding: Proselytisation Barred from Faith-Based Activities under Revised FCRA Rules

The Union Ministry of Home Affairs has introduced important amendments to the Foreign Contribution (Regulation) Rules, 2011, through a gazette notification issued on June 22, 2026. These changes aim to improve transparency, accountability, and targeted utilisation of foreign contributions received by non-governmental organisations (NGOs) and associations in India. A key highlight of the revisions is the explicit exclusion of proselytisation from permissible faith-based activities eligible for foreign funding under the Foreign Contribution Regulation Act (FCRA).

Amendments to the FCRA Rules, 2011 are aimed at tightening accountability in the way non-governmental organisations and associations in India receive and use foreign money. (Image for representation) | India Today

Permissible Faith-Based Activities

The amended rules broaden the framework for religious and cultural initiatives while setting clear boundaries. Organisations can now pursue activities such as the construction, renovation, and maintenance of places of worship, religious education, promotion of devotional music, and documentation of faith traditions. Additional allowed areas include the preservation and revival of indigenous and tribal faith practices, rituals, systems of worship, moral instruction, satsangs, discourses, and meditation retreats.

Crucially, the rules specify that these activities — particularly religious education, documentation of faith traditions, and preservation of indigenous beliefs — must be carried out excluding proselytisation. This distinction seeks to support genuine spiritual, cultural, and community efforts without extending to religious conversion activities.

Enhanced Compliance and Transparency Measures

The amendments introduce several reforms to ensure more effective monitoring and responsible use of foreign funds. NGOs seeking registration must now clearly specify the exact purposes for which they intend to use the funds, selecting only from a predefined Schedule, along with the states or Union Territories where they plan to operate. These details will be reflected in the registration certificate. Existing registered associations have been given one year to update and disclose their specific purposes and operational areas.

Eligibility criteria have been refined regarding key functionaries. Associations with foreign nationals (other than those of Indian origin) in such roles will ordinarily not be considered for registration or prior permission, though the central government retains the flexibility to allow exceptions in specified cases. The definition of key functionaries has also been expanded to include a wider range of management and control positions.

To promote active utilisation, NGOs must demonstrate spending of at least ₹10 lakh in foreign contributions on approved activities over the last two financial years for renewal or to avoid cancellation. For grants under prior permission, subsequent instalments are linked to at least 75% utilisation of the previous one, supported by field verification. Additional requirements include disclosure of social media accounts, identification of ultimate donors (particularly in cases involving intermediaries), and submission of detailed activity reports alongside financial statements. NGOs are also required to declare any publishing activities, consistent with existing prohibitions on producing or broadcasting news and current affairs.

Broader Context of FCRA Framework

The Foreign Contribution (Regulation) Act, 2010, which came into effect in 2011, regulates the acceptance and use of foreign contributions and hospitality to safeguard national interest, public order, and security. Over the years, the framework has been updated through various amendments to address emerging challenges and strengthen compliance. The latest rules build upon this foundation, introducing a structured Schedule of purposes across religious, cultural, economic, educational, and social categories.

These changes coincide with ongoing discussions around a related amendment bill introduced earlier in 2026, which proposes mechanisms for managing assets of organisations whose registrations face cancellation or non-renewal. The overall direction reflects a continued emphasis on ensuring foreign funds are utilised transparently and for intended developmental and cultural objectives.

The MGMM Outlook 

The Union Government's revised FCRA rules reflect a stronger emphasis on transparency, accountability, and the proper utilisation of foreign contributions received by NGOs and associations. By clearly defining permissible faith-based activities while explicitly excluding proselytisation, the amendments seek to preserve religious and cultural traditions without allowing foreign-funded conversion efforts. The expanded framework supports activities such as the maintenance of places of worship, preservation of indigenous faith practices, religious education, and cultural documentation within clearly laid down boundaries.

The new compliance measures indicate a broader effort to ensure that foreign funds are directed toward genuine developmental, social, and cultural objectives. Requirements related to purpose-specific registration, utilisation thresholds, disclosure of donors and social media accounts, and stricter oversight of key functionaries are aimed at improving accountability across the sector. These reforms reinforce India's continuing focus on safeguarding national interests while enabling legitimate organisations to carry out their work in a transparent and responsible manner.

(Sources: Hindustan Times, OpIndia, India Today)