Foreign Funding and Not-for-Profit Compliance: Understanding the Foreign Agents Registration Act (FARA)

Many not-for-profit (NFP) organizations receive funding from foreign foundations, collaborate with international partners or support global initiatives. While these relationships often advance important missions, they can also introduce compliance obligations that may not be on an organization’s radar.

One area receiving increased attention is the Foreign Agents Registration Act (FARA), a federal disclosure law designed to promote transparency regarding foreign influence in the U.S. Although FARA has existed for decades, recent enforcement activity has expanded awareness of how broadly the law can apply, particularly to organizations that receive foreign funding or work closely with foreign entities.

What Is the Foreign Agents Registration Act?

The Foreign Agents Registration Act requires certain individuals and organizations acting on behalf of foreign principals to register with the U.S. Department of Justice and disclose their activities, relationships and related financial information. Foreign principals can include foreign governments, political parties, corporations, foundations, NFPs and other organizations based outside the U.S.

Historically, some organizations have associated FARA with lobbying or political advocacy. However, enforcement trends suggest that NFP organizations should take a closer look at how foreign funding arrangements, partnerships and collaborative activities are structured.

Why Not-for-Profits Should Pay Attention

A key consideration under FARA is whether an organization is acting at the request, direction or control of a foreign principal while engaging in activities covered by the law. Importantly, a formal employment relationship is not always required.

As a result, activities that many NFPs consider routine, such as administering grants, sharing information, organizing events, conducting outreach campaigns or advocating for policy issues, may warrant closer review when foreign funding or foreign-directed initiatives are involved.

With enforcement efforts increasing, organizations should avoid if a charitable, educational or public-interest mission automatically exempts them from potential FARA obligations. Instead, NFP leaders should understand how their funding arrangements and operational activities may be viewed under the law.

Activities That May Raise Questions

Every situation is unique, but NFPs may want to assess risk when foreign funding or foreign organizations are connected to activities such as:

• Public awareness or advocacy campaigns
• Public relations and communications initiatives
• Educational or informational programs
• Conferences, events and stakeholder engagement efforts
• Fundraising activities conducted on behalf of foreign entities
• Interactions with government officials or policymakers

The presence of foreign funding alone does not automatically create a registration requirement. When a foreign organization helps direct, influence or request specific activities, additional review may be necessary.

Common Misconceptions About Exemptions

Many NFPs may assume they qualify for exemptions because their activities are educational, academic, charitable, scientific or mission-driven. While FARA does contain several exemptions, regulators interpret them narrowly, and eligibility depends on the specific facts and circumstances involved.

This means organizations should carefully evaluate whether an exemption truly applies rather than relying on assumptions. An NFP may still face compliance considerations if activities extend beyond the scope of an exemption or involve advocacy, public influence efforts or other registrable activities.

Questions Not-for-Profit Leaders Should Consider

Organizations with foreign funding or affiliations may benefit from asking:

• Who are the foreign entities that provide funding, direction or support?
• Do agreements contain language that suggests activities are being performed at the request or direction of a foreign organization?
• Are programs designed to influence public opinion, policy or government decision-making?
• Have potential FARA implications been considered before entering new partnerships or funding arrangements?
• Are governance and compliance procedures sufficient to identify emerging risks?

Regular reviews can help organizations better understand where additional analysis may be needed before launching new initiatives or accepting funding

What Not-for-Profits Should Do Now

For NFPs, awareness is often the first step toward managing compliance risk. As scrutiny surrounding foreign influence continues to evolve, organizations should establish processes for evaluating foreign funding relationships, reviewing partnership agreements and assessing activities that could fall within FARA’s scope.

A proactive review can help leadership teams identify potential concerns early, strengthen governance practices and reduce the risk of unexpected compliance issues. Organizations facing complex situations may also wish to consult qualified legal counsel regarding their specific facts and circumstances.

How Weaver Can Help

Foreign funding and international partnerships can create valuable opportunities for NFPs, but they may also introduce compliance considerations that deserve careful review. Weaver works with NFPs to evaluate governance, risk management and compliance processes that support informed decision-making and organizational resilience. Contact us to learn more.

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