Implication of the Foreign Contribution Regulation (Amendment) Rules, 2025
Ministry of Home Affairs has by Notification dated May, 26, 2025 Amended the Foreign Contribution (Regulation) Rules, 2011. These amendments pertain to additional disclosure of information in online Forms FC-3A (which is the online form for application for registration under FCRA ), FC-3B (which is the online form for application for prior permission to receive foreign contribution under FCRA), FC-3C (which is the online form for application for renewal of FCRA registration) and Form FC-4 (which is the online form for disclosing receipts and utilization of foreign contributions during the financial year)
Link to the Notification: https://fcraonline.nic.in/home/PDF_Doc/fc_gaz_27052025.pdf
Key changes
The amendments to these forms among other things now require more detailed financial disclosures and reporting and places the onus of certification on auditors. For example, if the audit reports and financial statements of an NPO applying for registration under FCRA does not contain activity-wise expenditure for the last three financial years, a chartered accountant’s certificate in the format available on the website of Ministry of Home Affairs at https://fcraonline.nic.in specifying the activity-wise amount spent by the association, duly reconciled with the income and expenditure account and the receipt and payment account must be furnished.
The amended Form FC-3A also requires that in case the association is engaged in publication-related activities or if publication activities are among its aims and objectives as stated in the Memorandum of Association or Trust Deed, an undertaking from the Chief Functionary regarding compliance with section 3(1)(g) of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), in the format available on the website of Ministry of Home Affairs at https://fcraonline.nic.in
Further, “if the publication of the association is registered with the Registrar of Newspapers for India, a “Not a Newspaper” certificate from the Registrar of the Newspapers for India shall be submitted in the format available on the website of Ministry of Home Affairs at https://fcraonline.nic.in
What this means?
Section 3(1)(g) of the Foreign Contribution (Regulation) Act, 2010 states that “No foreign contribution shall be accepted by any association or company engaged in the production or broadcast of audio news or audio-visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 or any other mode of mass communication.”
As per Section 2(1)(r) of the Information Technology Act, 2000 “electronic form with reference to information, means any information generated, sent, received or stored in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or similar device”
Implications for NPOs
Many NPOs publish newsletters and periodicals either in print or electronic form to inform their members, donors, beneficiaries and other stakeholders about their charitable or welfare-oriented activities. If such newsletter is registered with the Registrar of the Newspapers, the NPO must obtain a “Not a Newspaper” certificate from the Registrar of Newspapers for India.
In order to avail concessional postal tariff, some NPOs also register their newsletter as a ‘newspaper’ under the Press Registration and Books Act 1867. Registering as a ‘newspaper’ under the Post Office Act 1898 is not the same as registering with the Registrar of Newspapers of India (RNI). Regardless, we would suggest avoiding such registration merely to save on postal charges.
Conclusion
Contrary to misinformation circulating on social media, NPOs registered under FCRA may continue to publish their newsletters in print or electronic form. However,
- Information should be restricted to reporting the NPOs own charitable activities for their members, donors, beneficiaries and stakeholders.
- If the newsletter is registered with the Registrar of the Newspapers, the NPO must obtain a “Not a Newspaper” certificate from the Registrar of Newspapers for India (RNI).
- If the NPO is engaged in publication-related activities or if publication activities are among its aims and objectives as stated in the Memorandum of Association or trust deed, an undertaking from the Chief Functionary regarding compliance with section 3(1)(g) of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), in the format available on the website of Ministry of Home Affairs must be furnished.