FCRA NGOs Halve as Foreign Contributions Rise

The number of active non-governmental organisations registered under the Foreign Contribution (Regulation) Act, or FCRA, fell from 29,022 in 2015 to 14,466 on 18 September 2026. Foreign contributions to FCRA-registered NGOs rose from ₹17,832 crore in 2015-16 to ₹22,974 crore in 2024-25.

Foreign Contribution (Regulation) Act

The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and use of foreign contributions by individuals, associations and companies in India. The law places registration, prior permission, accounting and reporting requirements on entities that receive foreign funds.

Registration, Cancellation and Compliance

The government has cancelled the FCRA registration of 21,983 NGOs to date. Of these cancellations, 91.3% were linked to failure to file annual returns as of 18 September 2026. Annual returns are a statutory compliance requirement under the FCRA framework.

Foreign Funding Pattern in 2024-25

The United States was the largest source of foreign contributions in 2024-25, with ₹12,113 crore. Delhi received ₹5,834 crore, the highest among states and Union territories, while Tamil Nadu had 2,102 active FCRA associations, the highest number among states.

Important Facts for Exams

• The FCRA was enacted in 2010 and regulates foreign funding for associations in India.
• Annual returns are a mandatory compliance filing for FCRA-registered entities.
• Foreign contributions in 2024-25 totalled ₹22,974 crore across FCRA-registered NGOs.
• The Ministry of Home Affairs administers FCRA registration and compliance matters.

Use of Foreign Contributions

In 2024-25, ₹13,071 crore, or 57% of the total, went towards social activities. Education received ₹6,933 crore, or 30%, and religious purposes received ₹1,841 crore, or 8%.

Unutilised Funds and Religious Contributions

As of 2024-25, ₹35,968 crore in foreign contributions remained unutilised. NGOs held ₹21,140 crore of this amount in fixed deposits. Christian associations received ₹1,345 crore of the religious contributions, while Hindu NGOs received ₹328 crore.

Recent Rule Changes

New FCRA Amendment Rules came into effect on 22 June 2026. These rules relate to government oversight and transparency for NGOs receiving foreign funding.