India's Foreign Funding Reform Could Make Work Harder for LGBT Groups

India’s Parliament referred a bill overhauling foreign funding regulation to a joint committee on August 12. The proposed rules could make it harder for LGBT organizations that rely on overseas donations to operate by expanding government control over those funds and assets acquired with them.

The FCRA Amendment Bill , introduced in the lower house on March 25, would create a government-appointed Designated Authority. If a foreign-funding recipient’s registration is cancelled, surrendered, or not renewed, the authority could provisionally manage remaining contributions and assets acquired wholly or partly with them. If the organization does not restore its registration within a prescribed period, the assets could vest permanently in the authority, be transferred to government bodies, or be sold.

Separate Home Ministry rules , in force since June 22, already require organizations to specify their purposes and areas of operation, disclose social media accounts, and obtain approval to change their activities. To demonstrate “reasonable activity” and retain FCRA registration, an organization must use at least 1 million rupees in foreign contributions over two financial years.

Souvik Saha, founder of the Indian organizations People for Change and Jamshedpur Queer Circle, told the Los Angeles Blade that the spending threshold and possible vesting of assets are especially risky for small LGBT groups that run helplines, safe spaces, and regional programs on modest grants. He said domestic funding for this work remains limited in India, while corporate and private foundations often consider LGBT issues controversial.

The Indian government says the reform closes gaps in the management of foreign contributions and strengthens transparency rather than restricting legitimate charity. An official government FAQ stresses that any management would apply only to assets created with overseas funds and that the rules apply equally to organizations of every ideology. The bill would also reduce the maximum prison sentence for violating the FCRA from five years to one. The joint committee is due to report by the end of the first week of Parliament’s Winter Session.