The government on Tuesday amended rules governing foreign funding for non-governmental organisations (NGOs), making it mandatory for them to disclose the purpose for which such funding is sought and the state or UT where they intend to operate.The Foreign Contribution (Regulation) Amendment Rules, 2026, notified by the Ministry of Home Affairs, introduce changes to the registration, reporting and utilisation framework for associations receiving foreign contributions under the Foreign Contribution (Regulation) Act (FCRA), 2010.under the 2010 FCRA law.For the first time, the government has listed five segments — religious, social, economic, cultural and educational — under which NGOs can receive foreign funds. Activities under each category have been defined, with proselytisation banned under the religious purpose segment.The move will aid a crackdown on NGOs pursuing religious conversions under the guise of tribal welfare activities.“Documentation, preservation and revival of indigenous and tribal faith practices, rituals and systems of worship (excluding proselytisation) is permitted under the new rules,” the order, which requires NGOs and their functionaries to disclose social media accounts and prohibits funding with political motives.An additional fee of Rs 300 will be payable for each extra purpose and for every additional state or UT included in the certification application. The rules come despite concerns raised by the US over India’s tightening of foreign funding regulations for NGOs.Existing FCRA-registered associations will be given one year to furnish the mandated details if they wish to retain their registration. The rules further state that an association having foreign citizens as its chief office-bearers will ordinarily not be eligible for registration.“The Centre may, by order, specify circumstances in which such organisations may be considered for registration or prior permission,” the rules clarify. The amendments also introduce a new provision relating to “reasonable activity”.For the purposes of cancellation of registration under Section 14 and renewal under Section 16 of the Act, an association will be deemed to have undertaken reasonable activity in its chosen field if it has utilised at least Rs 10 lakh of foreign contributions for approved purposes during the previous two financial years.Another key change is the formal definition of the term “key functionary”. The definition includes a company director, partner in a firm, trustee of a trust and Karta of a Hindu Undivided Family.Rs 1L penalty for overspendingIn a separate order, the government revised compounding penalties for several offences under the FCRA. Organisations that spend foreign contributions on administrative expenses beyond the permissible 20 per cent limit will be required to pay a penalty of Rs 1 lakh or five per cent of the amount spent beyond the limit, whichever is higher.The utilisation of funds for speculative activities in violation of FCRA provisions will attract a penalty equal to 30 per cent of the amount invested in such activities or Rs 1 lakh, whichever is higher. All returns earned from such investments will also be recoverable.