The foundation lies in the paragraphs defined under the Foreign Contribution (Regulation) Amendment Act, 2020, commonly known as the FCRA. 

1. The cap on administrative expenses such as salaries paid to employees has been cut from 50 percent to 20 percent. 
2. The requirement of Aadhaar and the prohibition on public servants receiving foreign funding. 
3. Extended suspension of the FCRA account if more than one is found. 
4. Each FCRA-registered nonprofit looking to collaborate on a project will have to enter into a direct transaction with the foreign contributor to receive funds.
5. FCRA registration expires after five years. 
6- Any nonprofit that would prefer to surrender their FCRA registration may do so, but any assets that have been created using foreign contributions will be transferred to an authority prescribed by the government. 
7. No longer could non-FCRA-registered nonprofits receive a portion of FCRA funds from FCRA-registered nonprofits. 
8. Foreign contributors will have to ensure their funds are not further distributed by the recipient entity by incorporating necessary restrictions in the terms of the grant.
- Atul Tyagi
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