MHA warns unlicensed NGOs against receiving foreign funds
All NGOs receiving foreign funds have to be mandatorily registered under the FCRA and they have to utilise such funds only for the purposes these have been received
The Union home ministry has warned that non-government organisations (NGOs) that receive and utilise foreign funds without having a licence under the foreign contribution regulation act (FCRA) or after its expiry will be penalised, according to a communication by the ministry on Tuesday.

The ministry came across some instances of credit or debit in the accounts of NGOs without a licence, which caused it to issue a public notice on Tuesday.
All NGOs receiving foreign funds have to be mandatorily registered under the FCRA and they have to utilise such funds only for the purposes these have been received.
Besides, those who get the FCRA registration certificate must renew it within six months before the expiry of the period of the registration and if not done, their registration ceases to exist and they can’t receive or utilise foreign contribution.
“However, instances have come to the notice to this ministry where credit or debit of the FC (foreign contribution) has been noticed into the accounts of the NGOs/associations who have not been granted registration/prior permission/renewal under the FCRA 2010 or such NGOs/associations whose registration has ceased on expiry of validity period or whose registration has been cancelled,” the notice stated.
It added that any receipt or utilisation of the FC without valid registration is violation of the provisions of the FCRA 2010.
Accordingly, it said, “any transaction in FCRA accounts/FCRA utilisation accounts of the NGO/association whose FCRA registration has been cancelled or ceased or validity expired would amount to violation of FCRA 2010 and is liable for penal action”.
In November 2024, the home ministry said that any non-government organisation involved in anti-development activities, religious conversions or incites protests with malicious intentions or has links with radical organisations will be refused foreign contribution regulation act (FCRA) licence.
According to the MHA data, as many as 16,091 NGOs have FCRA licences as of date while licences of 20,713 organisations have been cancelled.
The Centre tightened the FCRA in 2020 by making several amendments. It even canceled the licences of Rajiv Gandhi Foundation (RGF) and Rajiv Gandhi Charitable Trust (RGCT) in 2022 accusing them of violating the law.
The FCRA unit of the MHA carried out inspections or audits of at least 335 NGOs and associations registered or granted prior permission under FCRA between 2019 and 2022 to see if foreign funding rules were being followed by them.
The FCRA act - amended in September 2020 - barred public servants from receiving foreign funding and made Aadhaar mandatory for every office-bearer of the NGOs. The amended law also bars organisations from using more than 20% of foreign funds for administrative purposes. The limit was hitherto 50%.
