How to write a CSR proposal that stands out?

By Ritika

The regulation for Corporate Social Responsibility (CSR) is peculiar in India. Section 135 of the Companies Act, 2013 mandates certain profit-making companies to set up a committee that ensures spending at least 2 percent of the last three years’ average net profits on CSR activities. Since this regulation came into force, the CSR budgets of companies increased. 

During 2020-21, the top 10 listed companies in India spent INR 35 billion on CSR projects and during the pandemic, they spent more than INR 15 billion on Covid-19 relief activities.

If plenty of funds are available, are these easily accessible to organizations in need? What goes into a proposal seeking funds? What are the various sections? Are there any Dos and Don’ts? While helping organizations prepare CSR proposals, I learned a few important lessons. In this article, I share insights from my experience; it may be helpful for those trying to get CSR funding.

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Whom to approach?

Prima facie, getting CSR funding may be challenging. It requires planning, research, networking, and credibility. Two key points may be noted. One, companies usually fund projects in specific geographical areas. For example, a company based in Uttar Pradesh may be keener in funding projects in and around its central location. So, look for companies that fund projects in your geographical area. The starting point could be to locate all big players in your State. Two, most companies fund in few selected priority areas like education, women empowerment, technology, healthcare, etc. Make a list of the companies funding in your domain. Networking can play an essential role in getting noticed.

After shortlisting the companies, visit their respective websites to determine if they prescribe a template for submitting a proposal. Some companies have a specified format for evaluation, while others accept any standard format as discussed ahead.

Structure

Whether it is a prescribed template or any other format, the sections of a CSR proposal include the following:

Basic organizational details including name, address, legal status, year of registration, status viz. Income Tax Act, 1961, contact details.

Background including history, type of past projects, reach and presence, employees, success stories, awards, and accolades.

Impact of the organization, including the geographical area, number of beneficiaries, before and after stories, and qualitative and quantitative data to demonstrate the ground-level impact. To cite an example, if you are a school, you may write, “Till date, __ girl students have enrolled in the school. Their attendance and pass percentage has been _ and _. The school has taken special initiatives like ensuring toilet facilities for students. The average gender ratio in the classrooms is __.“

Sources of finance for the organization apart from the CSR funds covering how the organization started, how it has sustained till date, and if other sources will continue to contribute.

Title, background, goal and objectives of the project for which funds are needed; all stated with clarity 

Details of the Needs Assessment Survey/Baseline Survey already conducted to establish the rationale for the project; must include gaps identified and supporting data collected through the survey

Detailed explanation about the beneficiaries – their background and socio-economic status, and geographical area of execution of the project, including the reason for selection

Plan for execution and monitoring, including phases, key activities, timeline, key milestones, outcomes and methodology for impact assessment

Governance of the project and details of key persons responsible for executing the project

Budget (project cost) including head-wise details and plan for sustaining the project after exhausting CSR funds

The forecasted impact (qualitative/ quantitative) stating the number of beneficiaries and the expected change in their lives

Annexures including popular articles/reports, certificate of registration/deed, disclosures about the reputation, linkage of the outcomes with government schemes, personal profiles of the team, annual reports, PAN/TAN number, Form 12 A and 80G, FCRA approval, TDS exemption certificate, GST Registration certificate if applicable, testimonials from previous beneficiaries, reference letters from past or present supporters, photographs and so on.

What will make my proposal stand out?

While most CSR proposals will follow a similar format discussed above, some points may be given special attention.

First, it is crucial to establish who you are. Don’t just tell your story; show your journey and use data to demonstrate the impact you have made and intend to make.

Second, the detailed needs assessment survey can make a proposal look impressive.

Third, companies are keen on supporting organizations with a good record of past performance that can sustain after exhausted CSR funds. Show that you can do it.

Fourth, impact assessment of a CSR project is essential; there may soon be a regulation in this matter. Companies will be inclined to fund projects that bring out data to explain the project’s impact over the long term.

Fifth, testimonials of beneficiaries and reference letters of supporters may help. Ensure that all documents are complete and neatly arranged. Support statements with data. Avoid factual or typing errors. Address the right person and seek an appointment to discuss your case before sending the proposal.

While CSR funds are mainly for philanthropic activities, the competition for funds can be tricky even if you are a genuine organization with many years of experience. The only way out is to make a start and find your way out. All the best!

About the Author

Ritika is an Assistant Professor faculty at the Department of Management Studies, MNIT Jaipur. She also worked with the TERI School of Advanced Studies. She has a Ph.D. from IIT Roorkee.

(Views are personal)

CopyRight@IndiaCSR.