The Foreign Contribution (Regulation) Act, 2010 regulates how organisations in India receive and use foreign contributions. The law matters for UPSC because it sits at the intersection of governance, civil society regulation, and national security. The PIB backgrounder also clarifies a common misconception: the law does not impose a general ban on foreign donations.

What the Foreign Contribution (Regulation) Act does

The Foreign Contribution (Regulation) Act is administered by the Ministry of Home Affairs. It governs the acceptance and utilisation of foreign contribution received from a foreign source, as defined in the law.

According to the PIB backgrounder, foreign contribution may take the form of an article, currency, or foreign security, and it also includes specified income arising from such contribution. The law does three things:

It identifies who may accept foreign contributions and on what conditions. It specifies how such money must be received, accounted for, and reported. It also restricts a narrow, defined set of foreign-funded activities that could affect India’s sovereignty, security, or public order.

Background and earlier position