The Ministry of Home Affairs (MHA) has further tightened the regulations surrounding foreign funding for Non-Governmental Organizations (NGOs) in India. The new directives prevent NGOs receiving foreign funds from publishing news content. These amended rules aim to enhance transparency and accountability in the receipt and utilization of foreign contributions.
The Centre has made it mandatory for NGOs applying for registration, prior permission, and renewal of registration under the Foreign Contribution (Regulation) Act, 2010 (FCRA), to submit comprehensive details of all individuals and entities involved, along with the nature of their association. Organizations engaged in publication-related activities are now required to affirm that they are not involved in the production or broadcast of news. If an organization is registered with the Registrar of Newspapers for India (RNI), it must provide a 'not a newspaper' certification.
These changes have been implemented through amendments to the Foreign Contribution (Regulation) Rules, 2011. The MHA has unveiled revised forms, including Form FC-3A for fresh registration, Form FC-3B for prior permission, and Form FC-3C for renewal of registration.
Under the new Form FC-3A, applicants must include financial statements, audit reports, and year-wise activity reports for the last three years, along with an affidavit from each office bearer or director. If the organization is involved in publication activities, it must submit an undertaking from the chief functionary stating that it is not engaged in the production or broadcast of news through electronic means. They should also submit an affidavit regarding the receipts and utilization of foreign contributions after the expiry or cancellation of a previously held FCRA registration. Organizations seeking prior permission are required to submit a commitment letter from the donor, with the amount committed matching the donation amount mentioned in Form FC-3B.
The MHA's move is designed to prevent NGOs from mischaracterizing media activities as education or research. By introducing specific affidavit requirements, the regulatory framework aims to close existing compliance gaps right at the initial stages of registration and approval. This shift places clear personal accountability on the chief functionaries of NGOs, emphasizing substantive legal adherence over procedural formalities.
With these affidavits, NGOs involved in the dissemination of news or views will find it challenging to claim that their publications are solely for 'awareness', 'research dissemination', 'advocacy', or 'community outreach', and not 'news or views' in the statutory sense. Entities operating exclusively on digital platforms, such as websites or YouTube channels, cannot evade scrutiny by claiming they are not 'newspapers' as defined by the Press and Registration of Books Act.
The amended FCRA rules also mandate adherence to Financial Action Task Force (FATF) guidelines and require NGOs to submit detailed financial records. NGOs must provide letters from donors, detailed breakdowns of project expenses, and ensure that administrative costs remain below 20% of the total foreign funds received. Funds can only be accepted by organizations with a clearly defined cultural, educational, or social mission, and all such organizations must be officially registered.
The FCRA, initially enacted in 1976 and subsequently amended in 2010 and 2020, governs the acceptance and utilization of foreign contributions by individuals, associations, and organizations in India. The amendments were introduced to ensure transparency and prevent the misuse of foreign funds. The MHA is authorized to suspend an NGO's FCRA registration for up to 360 days if violations are found. The 2020 amendments also made Aadhaar identification mandatory for all key functionaries of NGOs, barred public servants from receiving foreign contributions, and prohibited the transfer of foreign funds to other NGOs.
