Tracing the broad spectrum of NGO foreign funding ecosphere in India

Non-governmental organisations (NGOs) in India’s social sector are supported by varied types of philanthropic giving. From informal everyday giving by Indian citizens to institutionalised corporate philanthropy, there’s a broad spectrum of domestic philanthropic activity across the country. 

Additionally, the sector has historically received significant support as donations and grants from the international community, i.e., foreign individuals and institutions. 

Any NGO in India that wishes to receive funding from foreign individuals and institutions is required to comply with the Foreign Contribution (Regulation) Act (FCRA) 2010, amended in 2020, and register with the Ministry of Home Affairs. 

According to FCRA, NGOs are only eligible for FCRA registration if they have been in existence for at least three years. Each registered NGO is assigned an ‘FCRA registration number’, a numeric ID that is the basis of the NGO’s record in the FCRA database, which must be renewed every five years. 

FCRA registration requires NGOs to file and publicly disclose quarterly receipts of all foreign contributions received, details of the foreign funders, and details of used and unused funds. For one-time foreign grants for specific projects and activities, NGOs lacking an FCRA registration can seek ‘prior permission’ from the central government to bypass the regular registration process. 

Additionally, the government maintains a ‘prior approvals’ list of foreign funders — these funders need to seek government approval for each donation they make to any Indian NGO. 

Source: Estimating Philanthropic Capital in India, a report by the Centre for Social Impact and Philanthropy, Ashoka University