Social media disclosure, donor transparency and more: Key changes for NGOs as government revises FCRA norms

The central government has revised regulations governing the receipt of foreign contributions by non-governmental organisations (NGOs), requiring applicants to select their objectives and operational areas from a prescribed list.

The Union Home Ministry on Monday published a notification in the official gazette.

Organisations seeking registration or renewal under the Foreign Contribution Regulation Act (FCRA) will now be required to disclose details of their social media accounts as part of the application process.

The amended rules mandate that if foreign contributions are routed through "intermediary remittance vehicles" or "Donor Advised Funds", applicants must identify the ultimate donor and the source of the funds in their submissions, reported PTI.

The updated rules permit various faith-related activities but specifically exclude proselytisation or religious conversion efforts from several categories eligible for registration under the FCRA.

It also stated that organisations with foreign nationals, except persons of Indian origin, serving as key office-bearers or functionaries will generally not qualify for FCRA registration or prior approval to receive overseas funding.

The revised rules, however, provide an exception under which the central government may, through a specific order, allow foreign nationals to serve as “key functionaries” of an association in certain designated cases or circumstances for the purpose of obtaining FCRA registration or prior approval, according to the notification.

The government has introduced several changes to the Foreign Contribution Regulation Rules, 2011, aimed at strengthening oversight and ensuring greater accountability in the way NGOs and other associations in India receive, manage, and utilise foreign funding.

It has added a new provision requiring organisations applying to receive foreign contributions to clearly state the specific purpose for which the funds will be used, as well as the state or Union Territory where they intend to operate.

"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 stated.

These details will be recorded on the registration certificate issued to the organisations.

Applicants will also be required to select their activities from the prescribed schedule included in the rules. The categories cover a broad range of objectives, including religious, cultural, economic, educational and social activities.

Within the religious category, the rules recognise a variety of activities, such as building, renovating and maintaining places of worship, providing religious instruction, and promoting devotional music, among other faith-related initiatives.

The revised rules state that three activities—"religious education, documentation of faith traditions and preservation of indigenous beliefs"—must be undertaken, "excluding proselytisation".

The same requirement has also been incorporated into the categories "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".