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2026 Amendments to India's Foreign Contribution Regulation Act (FCRA)

This page will be updated as new information becomes available. Please bookmark it for future reference. Last updated August 26, 2026.

India’s Foreign Contribution Regulation Act (FCRA) is the cornerstone law regulating how nonprofits in India receive foreign funding, including from U.S.-based foundations and corporations.

Major amendments adopted in 2020 significantly tightened how foreign funding could be received and used. The latest FCRA Amendment Rules, issued by the Ministry of Home Affairs, build on those changes and took effect June 22, 2026.

In short, these developments are likely to impact how foundations and corporations make grants to Indian NGOs in several important ways.

The full FCRA Amendment Rules are available online through the Ministry of Home Affairs. We also suggest International Center for Not-for-Profit law’s (ICNL) summary and analysis of the new rules, which looks at the key changes and what they mean for civil society organizations and funders.

U.S. foundations are significant donors to Indian nonprofits, having granted more than $1.2 billion to the country between 2020-2023. Within the new rules, there are several changes that are most likely to impact grantmakers supporting Indian grantees:

What Funders Need to Know

The Ministry of Home Affairs issued new FCRA Amendment Rules that took effect on June 22, 2026.

Organizations Must Register Specific Activities and Locations. Organizations must select their work from a government-prescribed list of 105 activities across five categories and identify the States or Union territories where they operate.
Existing FCRA-registered organizations must submit Form FC-6F by June 21, 2027 or risk losing their registration. Future changes to registered activities or geographies require prior Ministry of Home Affairs approval, and foreign contributions cannot be used outside the approved scope.
Expanded Definition of “Key Functionary”. The rules expand the definition of a key functionary to include directors, trustees, partners, governing body members, and anyone with control over or responsibility for an organization’s management or affairs. For funders, this raises questions about whether grant conditions, approval rights, or other forms of oversight could be seen as exercising control over an Indian grantee.
New Disclosure Requirements. Annual FCRA returns now require more information on social media accounts, publications, activities, geographic reach, and the ultimate foreign donor. For grants made through donor-advised funds, intermediaries, or other U.S. 501(c)(3) organizations, the grantee must disclose the ultimate donor’s name, address, and email.
Restrictions on Foreign Nationals. Organizations with foreign nationals serving as key functionaries will generally not be eligible for FCRA registration or prior permission without Central Government approval, with limited exceptions for certain Overseas Citizens of India and Persons of Indian Origin. This is particularly relevant when foreign funder staff or board members have governance or decision-making roles involving Indian grantees.
New Requirements for Organizations Using Prior Permission. Organizations using the Prior Permission route must show that at least 75% of a previous installment has been used and undergo a government field inquiry before receiving another installment. For multi-year or multi-tranche grants, this could slow disbursements and create funding gaps.
New Restrictions on Publications and Communications. FCRA-funded organizations can continue to publish research, impact reports, and fundraising materials, but political commentary, news reporting, current affairs reporting, or other content that could be considered “news” may create issues under the rules. Annual returns must also disclose publications and communications by the organization and its key functionaries, an important consideration for groups engaged in advocacy, policy research, or public communications.

The FCRA Amendment Bill Remains Pending

Separate from the Rules already in effect, an FCRA Amendment Bill introduced in March 2026 remains pending. After significant opposition, it was referred to a Joint Parliamentary Committee on August 12, 2026, with a report expected during Parliament’s Winter Session.

If passed, the bill could allow a government-appointed Designated Authority to take control of foreign contributions and certain organizational assets when FCRA registration is cancelled, surrendered, or not renewed, without prior judicial approval. This could affect long-term investments in land, buildings, schools, hospitals, research institutions, and other assets financed with foreign funding.

These provisions are not currently law. The Amendment Bill remains under parliamentary review and could change.

Key 2020 FCRA Requirements Still in Effect

The 2026 developments build on major FCRA amendments adopted in 2020. Four requirements remain particularly relevant to grantmakers:

Re-granting remains prohibited. FCRA-registered organizations cannot transfer foreign contributions to another organization, prohibiting re-granting and sub-granting of foreign funds.
Designated State Bank of India account. Foreign contributions must be received through the organization’s designated FCRA account at the State Bank of India’s New Delhi Main Branch.
Administrative expenses remain capped at 20%. Organizations may generally use no more than 20% of foreign contributions received during a fiscal year for administrative expenses.
Surrender, cancellation, or non-renewal of registration. The 2020 amendments created a process for organizations to surrender their FCRA registration and introduced provisions affecting assets created from foreign contributions. The pending 2026 Amendment Bill could significantly expand government authority in this area.

Further reading on The Indian Foreign Contribution (Regulation) Amendment Law 2020: