The Foreign Donations (Voluntary Activities) Regulation Act 2016, often shortened to the FDRA, is the law that governs how organisations in Bangladesh may receive and use foreign funding for voluntary activities. In short, it requires any organisation that wants foreign donations to register with the NGO Affairs Bureau, obtain approval for each project before spending, and report on how the money is used. The Act takes precedence over other relevant laws on this subject, so understanding it is essential for any foreign-funded NGO.
This is general information, not legal advice. The Act, its rules, and how they are applied can change. Confirm current obligations with the NGO Affairs Bureau or a qualified lawyer before acting.
What the Act covers
The FDRA applies to voluntary, non-political, non-profit activities funded by foreign donations. It defines who may receive such donations and sets the conditions under which they may be used. Any organisation, or in limited cases an individual, permitted to receive foreign donations falls under its scope. Domestic-only fundraising sits outside this Act, but the moment foreign money is involved, the FDRA governs.
The key obligations
Beyond initial registration, the Act and its rules impose ongoing duties on foreign-funded organisations:
- Registration with NGOAB. Foreign-funded organisations must register, a process valid for 10 years and renewable around six months before expiry. (See how to register with the NGO Affairs Bureau.)
- Project-by-project approval. You generally cannot spend foreign funds freely. Each project requires prior approval through a project proposal submitted to NGOAB before funds are used.
- Reporting. Organisations must submit annual activity reports and account for how foreign funds were utilised.
- Authorised banking. Foreign donations must flow through designated, authorised bank accounts.
- Approvals for foreign personnel and travel. Legal guidance notes that appointing foreign consultants, advisers, or officers, and certain foreign travel, can require approval.
Restrictions and oversight
The Act places conditions on the sources of donations and gives NGOAB broad oversight of foreign-funded activity. Compliance is monitored, and the regulatory environment has tightened in recent years. According to the International Center for Not-for-Profit Law, a 2021 regulation allows NGOAB to cancel the registration of organisations that remain inactive and unable to secure foreign funding over a five-year period. The practical takeaway is that registration is not a one-time formality but an ongoing compliance relationship.
The risks of non-compliance
Failure to meet FDRA obligations, missed reporting, spending without project approval, or using unauthorised accounts, can lead to suspension or cancellation of registration. For an organisation that depends on foreign funding, that is an existential risk, which is why many NGOs treat FDRA compliance as a core operational function rather than an afterthought.
Where domestic fundraising fits
The FDRA is about foreign money. For domestic donations, the compliance burden is lighter, and a registered organisation can raise local funds transparently through a verified platform. Uddom helps registered NGOs accept domestic donations with a verified page, local payments, and fund tracking. It is not a substitute for legal compliance, but it gives organisations a clean, accountable way to raise funds at home. (See how NGOs can accept online donations.)
Frequently asked questions
What does the Foreign Donations Act 2016 require? It requires organisations receiving foreign donations to register with the NGO Affairs Bureau, obtain approval for each project before spending, route funds through authorised bank accounts, and report on fund utilisation. It governs foreign, not domestic, funding.
What happens if an NGO does not comply with the FDRA? Non-compliance, such as missed reporting or spending without project approval, can lead to suspension or cancellation of registration. Confirm your current obligations with NGOAB or a lawyer.
By Md. Sowad Al-Mughni, Uddom. Last updated: June 2026.