Foreign funding rules tightened for NGOs, penalties revised

📌 Summary:

• MHA tightened the FCRA framework via gazette notifications (Monday): registrations are now purpose- and geography-specific; NGOs must pick activities from a pre-defined schedule and file new Form FC-6F within one year
• Religious-category activities (places of worship, scriptures, religious education, indigenous/tribal faith practices) are permitted but "excluding proselytisation"
• "Key functionary" definition widened to include directors, partners, trustees, karta of an HUF; associations with foreign-national key functionaries will "ordinarily not" be eligible
• Stricter fund-use norms: "reasonable activity" now needs at least Rs 10 lakh of foreign contribution used over the last 2 financial years; next instalment released only after 75% of the previous tranche is spent and field-verified
• New disclosures required: social media accounts, detailed activity reports, publications, and ultimate donors behind donor-advised funds/intermediaries
• Revised compounding penalties (e.g., breaching the 20% administrative-expense cap → Rs 1 lakh or 5% of the excess, whichever is higher)

🎯 UPSC Relevance: GS2 — regulation of NGOs and foreign funding; transparency, accountability and civil society–state relations.

📝 Prelims Facts:

• FCRA = Foreign Contribution (Regulation) Act, administered by the Ministry of Home Affairs
• Cap on administrative expenses from foreign contribution = 20%
• New intimation form introduced: FC-6F

🔑 Key Term: Proselytisation — attempting to convert a person from one religion to another; now expressly excluded from FCRA-permitted religious activities.