Could India’s Crackdown on Nonprofits Signal a New Threat to American Charities?

In March 2023, Meeta, who spent 15 years working with a well-known NGO in Delhi, lost her job. Her organization’s FCRA license, crucial for receiving international funding, had been revoked less than a month earlier. With this license gone, they couldn’t access foreign donations, leaving many without support.

This isn’t an isolated case. The Indian government’s strict control over FCRA certifications has significantly impacted many nonprofits and human rights organizations. As a result, numerous NGOs across India have faced similar challenges, struggling to maintain their operations.

In the U.S., a proposed law known as HR 9495 poses a potential threat to nonprofits. If enacted, it would allow the treasury secretary to strip the tax-exempt status of any organization deemed a “terrorist supporting organization,” sparking fears among advocacy groups. Critics have dubbed it the “nonprofit killer” bill, suggesting it could stifle political advocacy as it does in India.

Meeta’s plight underscores the serious ramifications of these legislative measures. After her dismissal, she struggled to support her two children while trying to manage a new mortgage. Many other job losses in the nonprofit sector mirror her experience. In fact, India’s vast social sector, which includes over 3.3 million nonprofits employing more than 18 million people, is already under severe strain due to these funding restrictions.

High-profile organizations like the Centre for Policy Research, Save the Children, and Oxfam India have all faced similar fate with their FCRA registrations canceled. This has forced them to downsize significant portions of their work. For example, Amnesty International has halted all operations in India because of these restrictions.

Anisha, a lawyer dealing with NGO cases, points to the broad language used in the FCRA that allows for arbitrary decisions against civil society organizations. She notes, “Terms like ‘public interest’ are not clearly defined, making it simpler for authorities to revoke licenses without a proper hearing.”

A recent survey by the Civicus Monitor classified India’s civil space as “repressed.” This classification reflects ongoing government crackdowns on dissent and activism, particularly after amendments to the FCRA in 2020 that imposed even stricter regulations on nonprofits.

Additionally, the Unlawful Activities (Prevention) Act (UAPA) has often been used against human rights activists, granting sweeping powers to detain individuals without trial. Critics assert that laws like this create an atmosphere of fear, discouraging NGOs from advocating for vulnerable communities.

Even amid these challenges, some NGOs continue to operate and advocate for marginalized groups. However, without access to international funding, many are forced to cut back on essential services, from education to health care. For those in dire situations, like Meeta’s former organization, the loss of foreign aid means the difference between survival and shutdown.

As U.S. organizations observe the situation in India, many are concerned that similar restrictions could emerge at home. The ACLU has warned that HR 9495 could hand political leaders unchecked power to silence dissent. If this legislation moves forward, the lessons from India could offer a grim forecast for the future of civil society in America.

For anyone following these developments, the outcome is uncertain, but it is clear that both nations face turbulent times regarding the freedom of nonprofits to operate independently.



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