A step-by-step guide for Indian NGOs to understand CSR regulations, identify corporate partners, write winning proposals, and build long-term CSR relationships.
India became one of the first countries in the world to mandate Corporate Social Responsibility spending when it enacted Section 135 of the Companies Act 2013. This landmark legislation requires qualifying companies to spend at least 2% of their average net profit over the preceding three financial years on CSR activities listed in Schedule VII.
For NGOs, this created an enormous funding opportunity. Thousands of crores flow from corporate treasuries into social impact projects every year. But navigating the CSR landscape requires understanding the regulations, building the right relationships, and presenting your work in a language that resonates with corporate decision-makers.
Companies meeting any of the following criteria during the preceding financial year are subject to CSR obligations:
CSR spending must be directed towards activities listed in Schedule VII:
Companies subject to CSR must form a CSR Committee of the Board. This committee formulates the CSR policy, recommends expenditure, and monitors the programme. Your proposal ultimately needs this committee's approval.
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Corporate CSR teams conduct thorough due diligence. Be prepared with:
Strategic alignment matters more than the size of the CSR budget.
Study target companies' CSR policies and past spending. This information is available in annual reports and CSR reports on their websites. Companies in your sector — IT companies for education, pharmaceutical companies for healthcare — are natural fits.
The Ministry of Corporate Affairs maintains a CSR spending database. The National CSR Portal (csr.gov.in) provides information on companies' obligations and spending. Use these to identify companies actively looking for implementing partners.
Many companies prefer CSR projects near their operations. If you operate near a major industrial area, research companies with facilities nearby.
Attend CSR conferences, join industry associations, and connect with CSR professionals on LinkedIn. Personal relationships accelerate partnership development significantly.
CSR compliance is strict, and companies face penalties for non-compliance. Your reporting must be thorough:
Platforms like FundsForAll can help streamline CSR reporting by providing real-time donation tracking, fund utilisation dashboards, and impact reporting tools.
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Learn About CSRCSR-1 is a registration form on the MCA portal that NGOs must complete to receive CSR funds. Introduced in 2021, it creates a centralised database of eligible organisations. Without it, companies cannot channel CSR spending through your NGO.
Eligible activities include: eradicating hunger and poverty, promoting education, gender equality, environmental sustainability, protection of national heritage, rural development, armed forces welfare, sports promotion, disaster management, and more.
Indian companies spend approximately Rs 28,000-30,000 crore annually on CSR. This amount grows each year as corporate profits increase, though competition among NGOs is also intensifying.
While possible, it is challenging. Most companies prefer NGOs with at least 3 years of track record and audited financials. New NGOs can start by partnering with established organisations as implementing partners.
Written by
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