Impact of the 22nd June 2026 Amendments to Foreign Contribution (Regulation) Rules, 2011
The Ministry of Home Affairs has amended the Foreign Contribution (Regulation) Rules, 2011, with effect from 22nd June 2026. Organizations registered under FCRA or seeking renewal of registration or having prior permission to receive foreign contributions will be required to submit several new disclosures and comply with some new stringent rules and regulations.
The Notification can be read or downloaded by going to this link: https://fcraonline.nic.in/home/PDF_Doc/fc_gaz_23062026.pdf
The Notification is in Hindi up to page 17 and in English from the end of page 17 to page 27.
Key changes:
Scope of ‘Key functionaries’ widened
Under Rule 2(1) a new clause (ca) has been inserted to expand the scope of ‘Key functionary’ which now includes:
- the Director of a company;
- a partner in a firm;
- a trustee of a trust;
- the Karta of a Hindu undivided family;
- an office bearer, member of the governing body, managing committee or other controlling authority of a society, trust, trade union or association of individuals; and
- any other officer or person, by whatever name called, who has control over, or responsibility for the management or affairs of such person;
Inclusion of “other controlling authority of a society” has vide ramifications. In a society it could include all voting members of the general body. In the case of a non-profit company licensed under section 8, it could include ‘shareholders’ or members considering they have voting powers as also ‘Key Managerial Personnel’ (KMP) like CEO, COO and CFO.
Foreign nationals disallowed as ‘key functionaries’
An association having foreign nationals, other than those of Indian origin (PIO or OCI), as its key functionaries shall ordinarily not be considered eligible for grant of registration or prior permission under the Act. However, the Central Government may, by order, specify such cases or circumstances in which foreign nationals may be permitted to be key functionaries of an association for the purposes of consideration of registration or prior permission, and the conditions to be fulfilled for such consideration.
Disclosure of purpose and geographic outreach
Every application for registration under FCRA 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 the rules; and
- the States or Union territories in which the association proposes to undertake the activities.
Every association registered before the commencement of the Foreign Contribution (Regulation) Amendment Rules, 2026 shall, within one year of such commencement, submit to the Central Government an intimation in Form FC-6F specifying the purpose or purposes and the States or Union territories for which it seeks to retain its registration.
The purpose for registration could be Religious, Cultural, Economic, Education or Social. Under each of these five broad heads specific activities are listed in the Schedule which organizations must choose. Under Religious there as sixteen, under Cultural there are eighteen, under Economic there are nineteen, under Education there are twenty-two and under Social there are thirty.
Change in purpose or geographic outreach
An association registered under FCRA which intends to change its area of operation by including or deleting any purpose or any State or Union territory specified in its certificate of registration shall apply, in Form FC-6F, for such inclusion or deletion, along with:
(a) a resolution of the governing body approving such application;
(b) the prescribed fee.
The Central Government may, after such inquiry as it deems fit, approve or reject the application.
Fees to operate
There shall be a fee for registration to operate in one State or Union territory and to conduct activities for one purpose only. Where the application relates to more than one State or Union territory, an additional amount of rupees three hundred per State or Union territory shall be payable, and where the application relates to more than one purpose, an additional amount of rupees three hundred per purpose shall be payable.
Utilization of FC funds only in India and as per objects
Foreign contribution shall be utilized only for activities carried out in India in accordance with the association’s stated objectives and for the purposes for which such contribution has been received.
New Form for receiving subsequent instalments
Organizations granted prior permission (to receive a specific sum of foreign contribution from one specific donor) shall make an application in a new Form FC-3BB for the second or any subsequent instalment and which shall be released only after utilization of seventy-five per cent of the foreign contribution received in the previous instalment and after field inquiry of such utilization.
“Reasonable activity” defined
An association shall be deemed to have undertaken reasonable activity in its chosen field for the benefit of society only if it has utilized foreign contribution of not less than ten lakh rupees in the last two financial years for such purpose.
The expression “reasonable activity” shall be deemed to include only such activity as is undertaken out of, or by utilizing, foreign contribution received under FCRA. In other words, while the organization may be active using local funds, MHA is focused only on whether the organization has utilized at least ten lakh rupees on activities in the last two financial years out of foreign contributions received. Failure to do so would lead to cancelation of FCRA registration.
The organization would also be required to submit a “detailed activity report.”
More Disclosures (including Social Media Accounts)
In the online application for registration under FCRA, Social Media accounts of the association will also have to be disclosed.
Annual Return in Form FC-4 will also require more details including, website and social media handles, detailed activity report, UDIN on the Chartered Accountant’s Certificate, details of all books, articles, blogs, and social posts published by the organization and all key functionaries during the year.
In case funds are received from an intermediary or aggregator (e.g. a 501C in the USA) name and other details of every donor contributing funds through such intermediary must be disclosed.
What can be published?
While an organization registered under FCRA may publish its own program or impact reports, research studies, awareness or fundraising materials; political commentary or news, reporting current affairs and any material qualifying as ‘news’ should be strictly avoided.