Published June 2026

India’s Parliament is considering amendments to the Foreign Contribution (Regulation) Act (FCRA) that could significantly expand government authority over foreign contributions and certain assets held by foreign-funded civil society organizations.

If enacted, the legislation could affect thousands of nonprofits, charities, religious institutions, and international donors operating in India.

Five Things to Know

1. The bill goes beyond regulating foreign funding

The most controversial provisions concern organizational assets. Under the proposed amendments, a government-appointed authority could assume control of foreign contributions and certain organizational assets when an organization’s FCRA registration is cancelled, surrendered, or not renewed.

2. Asset transfers could occur without prior judicial approval

The bill would establish a Designated Authority empowered to take control of assets through an administrative process, without prior judicial adjudication. Critics argue this raises serious due process concerns and limits opportunities for organizations to challenge the initial transfer of assets.

3. Donors could face new risks

Organizations and foundations supporting land, buildings, hospitals, schools, or other long-term investments may face uncertainty regarding the future status of those assets if a recipient loses its FCRA registration. The bill also raises questions about assets funded through a combination of domestic and foreign sources.

4. FATF’s recommendations point in a different direction

Indian authorities have frequently cited the Financial Action Task Force (FATF) when defending tighter regulation of foreign-funded organizations. However, FATF’s 2024 evaluation recommended a more targeted, risk-based approach focused on organizations demonstrably at risk of terrorism financing, alongside greater outreach and consultation with the nonprofit sector. Critics argue that the 2026 Amendment Bill moves in the opposite direction by expanding broad restrictions across the sector.

5. The bill remains active

Parliament deferred consideration of the bill following significant opposition from civil society organizations, religious communities, and political parties. However, the bill remains pending and could return in a future parliamentary session.

Why This Matters

The FCRA already plays a central role in regulating foreign funding for civil society in India. Since 2010, approximately 22,000 FCRA registrations have been cancelled, while an estimated 15,000 registrations had expired and not been renewed as of April 2026.

The proposed amendments would expand the consequences of cancellation or non-renewal by potentially affecting organizational assets accumulated over many years. This could have significant implications for schools, hospitals, welfare centers, research institutions, and other organizations that rely on foreign funding to support their work.

The bill also raises important questions about freedom of association, due process, property rights, and the ability of civil society organizations to access resources and operate independently.

Our new policy brief examines

• The bill’s key provisions
• Its relationship to FATF Recommendation 8
• Potential implications for civil society organizations
• Risks for foreign donors and foundations
• Relevant international law considerations