FCRA Amendment 2026: Key Proposed Changes for NGOs
Why in the news
The Union Government is set to move changes to the foreign contribution law to tighten oversight of NGOs that receive overseas money.
Proposed changes
| Change | Meaning |
|---|---|
| Designated authority | Takes over, manages and sells assets if registration is suspended, cancelled or not renewed |
| Wider key functionary | Adds directors, partners, trustees, HUF Karta, governing body members and anyone controlling operations |
| Liability | Key functionaries made legally answerable for violations |
| Prior approval | Police and states need Central nod before FCRA probes; federalism concern |
| Fund-use deadlines | Time limits replace open-ended periods for funds used under prior permission |
| Punishment | Maximum imprisonment cut from 5 years to 1 year |
Background
- FCRA governs NGOs’ acceptance and use of foreign contributions and prevents misuse against national interest.
- About 16,000 NGOs are registered, receiving roughly ₹22,000 crore a year.
Exam angle
- Act year: 2010; proposed jail ceiling: 1 year.