Research brief
India’s nonprofit sector in 2026: funding, FCRA and trust
India’s social sector runs on about ₹27 lakh crore a year (FY25), and 95% of it is public money. Private giving is about ₹1.43 lakh crore. NGOs allowed to receive foreign money have halved since 2015, and the new Income-tax Act keeps registration renewal a permanent part of running a nonprofit.
| Checked | 28 October 2026 |
| Sources | 12, cited line by line |
| Author | Raghu Vamsi Kadiri |
Key figures
1.87 lakh
NGOs listed on NGO Darpan as of 26 October 2023
The CSR Universe, from NGO Darpan data
81,624
implementing agencies registered for CSR on Form CSR-1 by 25 November 2024
Lok Sabha, December 2024
27.7%
of FCRA registrations ever granted were active in July 2026 (14,455 of 52,159)
KNN India, from MHA data
₹27 lakh crore
total social sector funding in FY25, 8.2% of GDP, about 95% of it public
Bain and Dasra, India Philanthropy Report 2026
₹1.43 lakh crore
private giving in FY25, 5% to 7% of all social sector funding
Bain and Dasra, India Philanthropy Report 2026
7.84 / 10
average trust in local charities in India (2025)
CAF World Giving Report 2026
How many NGOs are there in India?
NGO Darpan, the portal run by NITI Aayog, listed 1,87,395 NGOs as of 26 October 2023, led by Uttar Pradesh (26,270) and Maharashtra (24,784), according to The CSR Universe’s analysis of portal data.
A different register matters for companies. By 25 November 2024, 81,624 implementing agencies had registered with the Ministry of Corporate Affairs on Form CSR-1, which an organisation needs before it can run CSR projects for companies. Marpu Foundation holds CSR-1 registration CSR00050243.
Where the money comes from
Total social sector funding grew at 13% a year between FY20 and FY25 to about ₹27 lakh crore, 8.2% of GDP, according to the India Philanthropy Report 2026 by Bain and Dasra. Public spending is about 95% of it.
Private giving was about ₹1.43 lakh crore in FY25, only 5% to 7% of the total, driven largely by domestic family philanthropy and CSR. Families contribute about 42% of private giving, and family-run firms account for 65% to 70% of private-sector CSR. The report projects CSR to grow 8% to 10% a year to FY30, retail giving 9% to 11% and foreign private giving 2% to 4%. It puts the funding gap, measured against NITI Aayog norms, at about ₹16 lakh crore in FY25.
Foreign funding and the FCRA
Foreign money is concentrating in fewer organisations. Of 52,159 FCRA registrations ever granted, 14,455 were active in July 2026; 22,498 had been cancelled and 15,206 had expired, according to Ministry of Home Affairs data reported by KNN India. Active FCRA NGOs fell from 29,022 in 2015 to 14,466, while foreign receipts rose from ₹17,832 crore in 2015-16 to ₹22,974 crore in 2024-25, as reported by PTI.
More change is coming. The FCRA (Amendment) Bill, 2026 was introduced in the Lok Sabha on 25 March 2026 and referred to a 31-member Joint Parliamentary Committee in August 2026. As drafted, it would let a designated authority take control of foreign-funded assets when a registration ends. Marpu Foundation, for its part, has been built entirely on domestic funding.
Tax registration under the new Income-tax Act
Nonprofits in India depend on two tax registrations: 12A (Income Tax Act, 1961; now Section 332, Income Tax Act, 2025), which exempts their income, and 80G (Income Tax Act, 1961; now Section 354, Income Tax Act, 2025), which lets donors claim a deduction. The Income-tax (No. 2) Bill, 2025 passed both Houses in August 2025 and applies from 1 April 2026.
Registration stays time-bound: provisional registration lasts three tax years, regular registration five, and nonprofits with income of ₹5 crore or less get ten. Missing a renewal can trigger tax on accreted income. The rule that 85% of income must be applied, and the cap on anonymous donations (₹1 lakh or 5% of income, whichever is higher), carry over. For a small NGO, renewal compliance is now a standing cost, not a one-time task.
Implementing agencies and trust
Companies are doing more CSR themselves. Among listed companies, those using implementing agencies fell to 566 (28%) in FY2024 from 1,082 (78%) in 2020, according to CRISIL’s CSR Yearbook. Administrative overheads in CSR are capped at 5% of spend under the CSR rules.
Trust is fairly high but fragile. Indians rated trust in local charities at 7.84 out of 10 in 2025, and 82% said charities had a positive local impact (computed from CAF’s figures). But 18% of non-givers cited distrust, up from 11% a year earlier.
What this means for nonprofits that want to last
Three things follow. First, compliance is the price of trust: CSR-1, 12A and 80G registrations, renewals on time and clean records are what companies and donors check before anything else. Second, domestic funding is the stable base: with foreign funding concentrating and legislation in flux, nonprofits that grow on CSR, donations and volunteer time carry less regulatory risk. Third, volunteers stretch every rupee: a trained volunteer network delivers more of a programme within the same budget.
These are the principles Raghu Vamsi Kadiri built into Marpu Foundation, which works with 250+ partner companies across 23+ states without foreign funding, and the subject of his book, How to Start an NGO in India.
Questions people ask about India’s nonprofit sector
How many NGOs are there in India?
NGO Darpan, NITI Aayog’s portal, listed 1,87,395 NGOs as of 26 October 2023, according to an analysis of portal data. Separately, 81,624 implementing agencies had registered with the Ministry of Corporate Affairs on Form CSR-1 by 25 November 2024. The two registries count different things.
How many NGOs can receive foreign funding?
About 14,455 had an active FCRA registration in July 2026, 27.7% of the 52,159 registrations ever granted, according to Ministry of Home Affairs data reported by KNN India. Active registrations have roughly halved since 2015.
How much money does India’s social sector receive?
About ₹27 lakh crore in FY25, 8.2% of GDP, according to the India Philanthropy Report 2026 by Bain and Dasra. About 95% of it is public spending; private giving was about ₹1.43 lakh crore.
What changed for NGOs under the new Income-tax Act?
The Income-tax (No. 2) Bill, 2025 passed Parliament in August 2025 and takes effect from 1 April 2026. Nonprofit registration stays time-bound: provisional registration for three tax years, regular registration for five, and ten years for nonprofits with income of ₹5 crore or less. Missing a renewal can trigger tax on accreted income.
Do Indians trust charities?
Mostly. In CAF’s 2025 data, Indians rated their trust in local charities at 7.84 out of 10. But 18% of people who did not give said they did not trust charities to use money wisely, up from 11% a year earlier.
Sources
- The CSR Universe, NGOs in India 2023, based on NGO Darpan data. thecsruniverse.com
- Lok Sabha Unstarred Question 936, 2 December 2024 (CSR-1 registrations). eparlib.sansad.in
- KNN India, Stricter FCRA compliance, 9 July 2026. knnindia.co.in
- OrissaPOST (PTI), FCRA-registered NGOs down by half in last 10 years, 19 September 2026. www.orissapost.com
- PRS Legislative Research, Joint Committee on the FCRA (Amendment) Bill, 2026. prsindia.org
- ICNL, India FCRA amendments briefer, June 2026. www.icnl.org
- Bain and Company with Dasra, India Philanthropy Report 2026. dasra.org
- CRISIL, A decade on, CSR spend zooms but priority districts get little, 26 March 2026. www.crisil.com
- Ministry of Corporate Affairs, CSR Policy Amendment Rules, 22 January 2021. www.mca.gov.in
- CAF, World Giving Report 2026, India. worldgivingreport.org
- PRS Legislative Research, The Income-tax (No. 2) Bill, 2025. prsindia.org
- Income-tax (No. 2) Bill, 2025, as passed by Lok Sabha. prsindia.org
How to cite this brief
Kadiri, R. V. (2026, October). India’s nonprofit sector in 2026: funding, FCRA and trust [Research brief]. https://kadiriraghuvamsi.com/research/indias-nonprofit-sector/
Building or advising a nonprofit?
Raghu advises founders and boards on registration, compliance and getting CSR-ready.