How to get CSR funding

Quick Summary

Corporate Social Responsibility (CSR) funding is a powerful resource for NGOs and social enterprises eager to create social impact. In simple terms, a CSR fund refers to the financial resources allocated by companies to support social, environmental, or community development initiatives. 

In India, companies meeting certain financial criteria must spend at least 2% of their profits on CSR activities, opening up huge funding opportunities.

Overview

CSR funding is a powerful tool that became more structured after the introduction of the CSR Law under the Companies Act, 2013 ensures companies should share a certain percentage of their profit in social and environmental development. By channeling at least 2% of profits into CSR activities, companies support meaningful projects with real impact.

Whether you’re an NGO, a social enterprise, or a corporate entity, understanding CSR funds is key to nonprofits' successful partnership to create measurable goals. This blog explains the necessity of knowing how CSR funds work, the benefits of CSR funding, and a step-by-step guide to successfully securing CSR grants in 2025 and beyond.

What is CSR Funding and why is it important?

CSR funding is the financial resource that companies must allocate to projects and initiatives that benefit society and the environment. This could include programs in education, healthcare, women’s empowerment, environmental conservation, and rural development. It’s a legal requirement for certain companies under the Companies Act, 2013. If a company has a net worth of ₹500 crore or more, turnover of ₹1000 crore or more, or a net profit of ₹5 crore or more, it must spend at least 2% of its average net profits from the last three years on CSR activities.

The main objective of CSR funding is to ensure companies contribute to the community in a meaningful and impactful way, balancing profits with social good.

At NGO Experts, we understand the necessity of knowing how CSR funds work, how companies and nonprofits can engage with CSR funding, and what it takes to make these partnerships successful.

Benefits of CSR Funding

CSR funding creates a shared value model where both businesses and implementing organisations benefit. 

For Companies

Companies that actively invest in CSR earn goodwill from consumers, employees, and stakeholders helps meet regulatory requirements under Indian law (mandatory 2% spend for eligible companies). Allows alignment between social causes and business strategy.

For NGOS and Social Enterprises:

Empowers NGOs to address critical social issues such as poverty, education gaps, healthcare, and environmental challenges, leading to sustainable community development.

Promotes economic and social inclusion by supporting marginalized groups and creating fair opportunities, which benefits society and the economy as a whole.

Gives opportunity to collaborate with corporations on long-term missions.

How To Get CSR Funding?

Ensure Legal Compliance and Registration

• Register your NGO as a Trust, Society, or Section 8 Company.
• Obtain necessary tax certificates: 12A and 80G registration.
• File Form CSR-1 online with the Ministry of Corporate Affairs (MCA) to gain a CSR Registration Number, which proves NGO eligibility to receive CSR funds.

Research and Align With Corporate CSR Priorities

• Identify companies whose CSR focus areas match your mission (e.g., education, healthcare, environment).
• Review Schedule VII of the Companies Act to understand approved CSR sectors.

Prepare a Strong, Impact-Focused Proposal

Your proposal should include:

• The social problem addressed
• Proposed solution
• Geographic reach and beneficiaries
• Budget and timing
• Metrics for impact measurement (including social impact management frameworks)

Engage with Incubators or Grant Providers

• Programs like Bharat Impact Incubator offer the Impact Quest (IQ) Program, which provides CSR grants to innovative startups and nonprofits aiming to scale their solutions. 

Submit Your Proposal and Follow Up

• Maintain regular communication with the corporate CSR teams.
• Be ready to provide supplementary information or clarifications promptly.

Examples of Leading CSR Funding Companies in India

1. Reliance Industries Limited (RIL)

Reliance spent over ₹1,200 crore on CSR projects in FY 2022-23. The focus areas include education, healthcare, rural development, sports promotion, and environmental sustainability

2. Tata Consultancy Services (TCS)

Known for its emphasis on education and rural development, TCS spent ₹674 crore on CSR activities in FY 2020-21.

3. HDFC Bank

With a CSR spend of ₹444 crore in 2022-23, HDFC Bank’s focus is on holistic education development, water conservation, healthcare, and hygiene.

CSR Funding Checklist for NGOS 2025

•  Registered as a Trust, Society, or Section 8 Company
•  Valid 12A and 80G tax exemption certificates
•  Filed and received CSR-1 registration number from MCA
•  Clear alignment of NGO focus areas with corporate CSR priorities
•  Well-structured proposal demonstrating credible impact
•  Engaged with CSR incubators or accelerators (optional but helpful)
•  Established a communication channel with CSR corporate contacts
•  Prepared for ongoing monitoring & evaluation reporting

Conclusion

Getting CSR funding in India is both an opportunity and a responsibility. A clear CSR strategy, strong proposals, and trusted partnerships with corporations unlock the full potential of CSR funds, enabling social enterprises and NGOs to create sustainable, high-impact change. Whether you’re looking to start a CSR fund, design an effective strategy, or assess the real-world impact of your work, the NGO Expert team brings the tools, experience, and insight to make it happen.

FAQs

Q1: Which companies are required to spend on CSR?

Companies in India with a net worth of ₹500 crore or more, turnover of ₹1000 crore or more, or net profit of ₹5 crore or more in the last three financial years must spend at least 2% of their average net profits on CSR activities.

Q2: What types of organizations are eligible to receive CSR funds?

Eligible recipients include registered Section 8 companies, trusts, or societies with valid 12A and 80G registrations under the Income Tax Act. They should have a minimum 3-year track record of similar social work

Q3: Are companies required to report their CSR activities?

Yes, companies must include a detailed annual CSR report in their Board’s Report as mandated by Rule 8 of the CSR Rules. This includes disclosing CSR policy, activities undertaken, and spending

Q4: What happens if a company does not spend the mandatory CSR amount?

The company board must provide a reason for not spending the CSR amount in its Board report. Non-compliance can invite penalties under the Companies Act