Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976. (UPSC 2015)

Foreign funding of NGOs is regulated to protect sovereignty, transparency and public order, but recent FCRA changes have made the regime much tighter.

• Stricter control: The 2020 and later rules barred sub-granting, capped administrative expenses, required a single SBI FCRA account, and intensified renewal and reporting scrutiny.
• Greater compliance burden: More detailed disclosures, limits on key functionaries and fund use, and tranche-based release of large grants can burden small, rural and specialised NGOs.
• Risks and concerns: Proposed vesting of foreign-funded assets on cancellation, and vague terms like political activity or proselytisation, may create uncertainty and chill legitimate advocacy, though foreign influence must be checked.

Overall, the changes strengthen accountability and national security, but need clearer safeguards, fair hearing and proportionate enforcement to avoid stifling genuine civil society work.