Overview
For non-governmental organisations (NGOs) in India that wish to increase their influence and effect real change in their communities, obtaining CSR funding is a crucial first step. Your non-profit organisation may access the enormous fund of money that businesses set aside for social welfare if it takes the appropriate strategy.
This blog is intended to help you navigate the necessary procedures and conditions to obtain CSR funding for your non-profit organisation in India. We’ll go over every important detail to ensure your success, from creating a strong profile to comprehending the legal landscape and looking into potential funding sources.
In this blog, we will guide you through the essential steps and requirements to secure Corporate Social Responsibility (CSR) funding for your NGO in India. We’ll cover:
- Requirements for CSR Funding: Building a robust profile, preparing a compelling project report, obtaining necessary licenses, and Section 8 company registration and 12a 80g registration certifications.
- Legal Provisions for CSR Funding in India: Understanding the Legal Framework that governs CSR Activities in India.
- Sources of CSR Funding: Exploring funding opportunities from government bodies, private companies, and individual donors, along with specific websites, schemes, and approaches.
- Lead Magnet: Offering free resources including project report templates, NGO profile formats, and a comprehensive CSR database.
Meaning of CSR Funding
Corporate social responsibility is referred to as CSR. A CSR fund is a sum of money that corporations put aside to support the social welfare and development initiatives of organisations that carry out these kinds of activities. Corporate law mandates that all corporations set aside a certain percentage of their net income as a CSR fund.
Requirements for CSR Funding
1. Building a Robust Profile
A strong profile is crucial for CSR funding. Your profile should include:
- Your Mission and Vision: Clearly show the mission and vision of your NGO.
- Impact Stories: Highlight the effects of your excellent programmes on the community.
- Transparency: Give yearly reports, audit reports, and financial statements.
- Online Presence:To engage with stakeholders and showcase your work, make sure your website is professional and your social media accounts are up to date.
2. Preparing a Compelling Project Report
In order to convince possible donors of the practicality and importance of your project, a thorough project report is necessary. It needs to consist of:
- Needs assessment: Identify and specify the precise needs that your project is trying to satisfy.
- Goals and Plans: Clearly state your goals and the plans you have to reach them.
- Budget Plan: Provide a thorough budget that breaks down expenses.
- Impact measures: Determine measures to assess the project’s effectiveness and influence.
- Sustainability Plan: Describe how the project will be able to support itself over the long haul.
3. Obtaining Necessary Licences and Certifications
Ensure your NGO complies with all legal and regulatory requirements:
- Registration: For Section 8 company registration register under the Corporations Act, Trust Act, or Societies Registration Act.
- FCRA Registration: You must register under the Foreign Contribution (Regulation) Act if you want to receive foreign cash.
- CSR Registration Number: To be eligible for CSR money, get this number from the Ministry of Corporate Affairs.
- Certifications 12A and 80G: These certificates free your NGO from taxes and make donations to it possible.
Benefits of Proper Registrations
- Reputation: Your NGO’s reputation and dependability are increased by holding 12A and 80G, Section 8 company registrations.
- Tax Benefits: By offering tax advantages, 12A 80G registration facilitate the acquisition of gifts.
- Legal Identity: Corporate sponsors frequently choose Section 8 company registration since it gives your NGO a formal structure and legal status.
Legal Provisions for CSR Funding in India
According to Indian law, certain firms must set aside a portion of their earnings for CSR (corporate social responsibility) projects. The main phrases are made up of:
- Companies Act, 2013: Section 135 requires businesses with a net profit of ₹5 crores or more, a turnover of ₹1000 crores or more, or a net worth of ₹500 crores or more to invest a minimum of 2% of their average net earnings over the preceding three years in corporate social responsibility initiatives.
- CSR Activities: The Companies Act’s Schedule VII lists the sectors in which CSR monies may be applied, including environmental sustainability, healthcare, education, and poverty alleviation.
Sources of CSR Funding
1. Government Sources
Governmental organisations provide a range of venues and initiatives to assist with CSR efforts.
- Schemes: Take advantage of government initiatives such as the National CSR Data Portal, which offers information on CSR initiatives and funding sources.
- Discussion boards: Assist public sector enterprises (PSUs) required to allocate a portion of their earnings to corporate social responsibility initiatives.
2. Private Companies
Private companies are significant contributors to CSR funding:
- Direct Approach: Reach out directly to CSR departments of companies with a strong CSR agenda.
- CSR Platforms: Use platforms like NGOBOX and Samhita to connect with corporates and explore funding opportunities.
- Partnerships: Form strategic partnerships with companies to co-create and implement projects.
3. Individual Donors
Individual donors can also be a valuable source of funding:
- Crowdfunding Platforms: Ketto, Milaap, and ImpactGuru are crowdfunding websites that use them to raise funds for specific projects.
- Social Media Campaigns:Use social media to raise awareness and solicit individual donations.
- Networking: Assist powerful people and benefactors who share your enthusiasm for your cause.
Lead Magnet: Free Resources for Your NGO
We are providing free materials to get you started that can improve your chances of obtaining CSR funding:
- Project Report Template: A thorough template to assist you in creating an engaging project report.
- NGO Profile Structure: A polished structure to help your NGO establish a solid online presence.
- CSR Database: Get access to an extensive database of possible funding sources and CSR donors.
Just provide your email address when registering to receive these free materials, and we’ll deliver them right to your inbox. With your NGO, discover the possibilities of CSR Funding and create a long-lasting effect right now!
In conclusion
In order to secure CSR Funding for your non-profit organisation in India, you must comprehend the relevant regulatory requirements, establish a strong online presence, write an engaging project report, and get the required certifications and registrations. Your NGO may effectively access CSR funding possibilities and have a big influence on your community by using the tools that are available to it and the methods that are detailed in this guide.
