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  • Understanding FARA and its Impact on Nonprofits

Understanding the Foreign Agents Registration Act (FARA) and its impact on Nonprofit Organizations

The Foreign Agents Registration Act (FARA) is a U.S. law passed in 1938 requiring individuals and organizations that engage in certain activities on behalf of foreign governments, political parties, or other foreign “principals” to register with the U.S. Department of Justice (DOJ). FARA’s primary purpose is transparency -- to ensure that the U.S. public and policymakers know when foreign interests are attempting to influence U.S. policy or public opinion. It does not prohibit advocacy or representation for foreign clients -- it simply compels disclosure and periodic reporting. 

More recently, the activities of nonprofits are being scrutinized, and many are now finding themselves out of compliance with FARA registration.

The law covers a broad array of activities when done “at the order, request, or under the direction or control” of a foreign principal, such as:

      • Lobbying or influencing U.S. officials
      • Public relations or grassroots advocacy
      • Political consulting
      • Fundraising or disbursement of money in the U.S. for a foreign principal


Impact on Nonprofit Organizations

Nonprofits with international ties—such as global relief organizations, advocacy groups, or research institutes—must evaluate whether any of their work constitutes acting on behalf of a “foreign principal”.  A “foreign principial” is considered a foreign government or political party; a company, nonprofit, or individual outside the US; and an organization substantially controlled by a foreign government. Even pro bono work or grant-funded activities can trigger FARA if they are coordinated with a foreign government or political party.

Because FARA’s definitions are broad, a nonprofit might inadvertently become subject to registration. For example, if a U.S. nonprofit accepts a grant from a foreign government agency to lobby Congress for a policy change, that likely triggers FARA.

Being listed publicly as a “foreign agent” may also carry stigma or misunderstanding among donors, partners, and the public. Nonprofits must be ready to explain why they are registered and what it means. In addition, registration and semiannual filings require significant administrative effort and may require legal counsel to ensure accuracy and ongoing compliance. Smaller nonprofits may find these burdensome. Registrants must update the DOJ every six months with detailed reports about their activities, income, and disbursements. In addition, certain informational materials distributed on behalf of a foreign principal must include disclaimers and be filed with DOJ.

Nonprofits may need to structure grants or partnerships carefully to avoid FARA triggers. For instance, receiving funding from an overseas philanthropy is not automatically covered, but if the foreign funder is effectively directing lobbying efforts in the U.S., FARA likely applies.


State-Level “FARA” Laws

Starting in 2025, five states have enacted laws intended to regulate foreign support of state-level activities.  These laws, sometimes referred to a “baby FARA” laws because they mirror the language from FARA, essentially create a parallel state disclosure requirement.  The five states that have enacted such laws are Arkansas, Florida, Louisiana, Nebraska, and Texas.  Similar bills are currently being considered in other states as well -- including Arizona, California, Georgia, Illinois, Indiana, Missouri, New York, Oklahoma, Tennessee, and West Virginia. Because of this, nonprofits subject to FARA will also need to possibly fulfill state-level reporting. 


Bottom Line

FARA is not designed to penalize international cooperation but to promote transparency about foreign influence in U.S. public life. For nonprofit organizations—especially those with cross-border funding, advocacy, or partnerships—understanding and proactively managing FARA obligations, along with new state-level rules, is crucial to avoid legal risk and maintain public trust.


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