The Foreign Contribution Amendment Rules, 2026, issued on 22 June, amend the 2011 rules framed under the Foreign Contribution Act, 2010. The changes come as the Government moves to close gaps in foreign-funding oversight, especially in cases where money is routed through intermediaries, used beyond approved objectives or linked to activities not declared at the time of registration.
A central feature of the amended rules is that every FCRA registration certificate must now specify the exact purpose or purposes for which permission is granted and the states or Union Territories where the organisation may operate. Fresh applicants must choose their objectives only from a prescribed schedule and identify the geographical areas in which they intend to work. Existing FCRA-registered associations have been given one year to submit an intimation in Form FC-6F, declaring the purposes and locations for which they want to retain registration.
The rules also broaden accountability by introducing the term “key functionary”. It covers directors, partners, trustees, the karta of a Hindu undivided family, office-bearers, members of governing bodies or managing committees, and any person exercising management or control over an association. References in the rules to office-bearers and governing council members have been aligned with this broader definition, bringing more people within the compliance net.
Foreign nationals, other than those of Indian origin, will ordinarily not be considered eligible to act as key functionaries of an association seeking FCRA registration or prior permission. The Centre may, however, specify circumstances in which such individuals can be permitted, subject to conditions.
The amended framework makes it clear that foreign contribution must be used only for activities carried out in the country, in line with the association’s stated objectives and the purpose for which the money was received. This provision is aimed at curbing diversion of funds, vague programme descriptions and activity expansion beyond approved mandates.
Organisations seeking release of a second or later instalment under prior permission will face a tighter test. They must file Form FC-3BB, and release will be allowed only after 75 per cent of the previous instalment has been utilised and a field inquiry into such utilisation is completed. The form requires details of the foreign source, country of origin, value of the permitted contribution, project-wise use of funds, bank statements, assets created and certification by a chartered accountant.
Annual returns have also been expanded. Form FC-4 will require an organisation to disclose its official website and social media accounts. Where donations are routed through donor-advised funds or other intermediary remittance vehicles, the association must provide details of the ultimate donor, including name, address, email and amount. This change targets a growing area of concern in which the immediate remitter may not reveal the real source of the contribution.
The rules require detailed activity reporting, including project names, locations and utilisation split across project activity, fresh assets and administrative expenditure. Associations must also disclose publications brought out during the year, including books, magazines, newspaper articles and material hosted online. A specific note reiterates that organisations covered by the bar on news or current affairs activity cannot engage in production or broadcast through any mode of mass communication.
The amended rules define “reasonable activity” for the purpose of renewal or cancellation proceedings. An association will be deemed to have undertaken reasonable activity in its chosen field if it has utilised at least ₹10 lakh of foreign contribution in the last two financial years for that purpose. This may affect dormant entities or those holding registration without demonstrable programme activity.
The new schedule gives detailed treatment to religious activities. It permits activities such as construction, renovation and maintenance of places of worship, preservation and digitisation of scriptures, religious education, pilgrim amenities, community kitchens, meditation retreats and documentation of indigenous and tribal faith practices. Proselytisation is excluded from the permitted category.
