India tightens foreign funding rules for NGOs
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NEW DELHI: India has implemented new, stricter regulations for non-governmental organisations (NGOs) receiving foreign funding. Under the amended Foreign Contribution (Regulation) Act (FCRA), organizations must specify operational locations and how overseas money is utilised. NGOs must select activities from an approved list, including education, health, and social welfare.
Groups are required to provide detailed disclosures on websites and social media, while annual filings must include expanded reports on project spending. Additionally, organizations with foreign nationals in key leadership roles are generally ineligible for foreign funding.
Since 2014, the government has suspended thousands of non-profits, citing concerns over ‘anti-national activities’. This follows a 2020 amendment that restricted fund transfers and administrative expenses.
A fresh bill is pending in parliament to further expand compliance norms, which critics argue makes operations increasingly difficult for foreign-funded groups.
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