A variety of faith-based activities are permitted, but proselytization is expressly excluded from several categories that are eligible for registration under the Foreign Contribution Regulation Act (FCRA). The government has modified the rules for receiving foreign funds, requiring NGOs to select from a predefined list of purposes and their area of operation.
The Union Home Ministry also stated in a gazette notice published on Monday that any organization that employs foreign nationals—aside from those of Indian descent—as key personnel will "ordinarily not be considered" for registration or prior authorization to receive foreign funds under the Act.The notification stated that foreign nationals may be allowed to be "key functionaries" of an association for registration or prior approval under FCRA under the modified rules, which carved out an exception that permits the central government to identify such conditions or circumstances by an order.
The FCRA rules, 2011 have been amended by the government in a number of ways that increase responsibility for the receipt and use of foreign funds by Indian associations and non-governmental organizations (NGOs).

The definition of "key functionary in relation to a person other than an individual" has been expanded by the amendments to include a wide range of positions, such as trustees, company directors, partners in businesses, the "Karta" of a Hindu Undivided Family, and anyone in charge of association management.
The government has included a new section requiring NGOs to disclose the precise purpose and state or Union Territory of their operations when registering to receive foreign funding.The notification stated that each application for registration must include the states or Union territories where the association plans to conduct operations, as well as the purpose or purposes for which registration is sought, selected only from the list of purposes specified in the Schedule appended to these rules.

The information would be listed on the certificate that is given to the NGO, it stated.
The rules now require the applications to select their activities from a "Schedule" that covers social, religious, cultural, economic, and educational categories.
A variety of activities have been classified under the category of religious purposes, including devotional music promotion, religious instruction, and the building, remodeling, and upkeep of places of worship.
According to the regulations, religious instruction, the preservation of indigenous beliefs, and the documenting of religious traditions must all be done "excluding proselytization."
The condition has also been cited in "documentation, preservation, and revival of indigenous and tribal faith practices, rituals and systems of worship" and "conduct of religious education, moral instruction, satsangs, discourses, and meditation retreats".

According to the regulations, associations that were registered prior to 2026 have a year to inform the government of the particular goals and states they wish to maintain their registration.
Through the revised regulations, the Center has also established a price structure in which each additional state or purpose added to the application would cost an extra Rs 300.
The government has implemented a minimum expenditure cap of Rs 10 lakh of foreign contribution on its selected operations over the last two fiscal years in order to prevent dormant NGOs from holding onto licenses.
An NGO must have used the foreign contribution for its selected activities during the previous two years in order to renew its registration or prevent closure.According to the announcement, NGOs who receive foreign funding for defined purposes under "Prior Permission" will only be able to release their second or subsequent installment of cash once they have used at least 75% of the first.
According to the statement, the government will carry out a field investigation to confirm the use.
In their applications for registration or renewal under FCRA, NGOs that receive foreign funding are now required to include information on their social media profiles.
If funds are received through "intermediary remittance vehicles" or "Donor Advised Funds," the NGO's applications must identify the final donor, or the money's original source.
According to the regulations, annual returns now have to include a "detailed activity report" in addition to financial statements.