Every NGO founder asks the same question: how do you actually get CSR funding in India, from real companies, not scammers? CSR funding is now one of the largest sources of funding for NGOs. But 2026 has brought new rules, a possible new law, and a wave of CSR fund scams every NGO should know about. This guide explains how CSR funding works, how to qualify, what changed in 2026, and the scams to watch out for, all in simple words.
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What Is CSR Funding?
CSR funding is money that companies must spend on social projects, under Section 135 of the Companies Act, 2013. It's not just goodwill; for big companies, this spending is legally required. NGOs are the main route through which this money reaches real people.
Companies can run projects themselves or provide CSR funding to a registered NGO that acts as an "implementing agency." This is why CSR funding has become such a large and competitive source of funding for NGOs, and why it's worth understanding the rules properly.
Which Companies Must Give CSR Funding?
Not every company gives CSR funding. Only companies that cross certain money limits are legally required to. Knowing these limits helps you pick the right companies to approach.
| Criteria | Limit |
| Net worth | ₹500 crore or more |
| Turnover | ₹1,000 crore or more |
| Net profit | ₹5 crore or more |
| Compulsory CSR spend | At least 2% of average net profit (last 3 years) |
| Impact study needed | If CSR spend is ₹10 crore or more |
If a company crosses even one of these limits, it must spend on CSR the next year, creating potential funding opportunities for eligible NGOs.
How NGOs Become Eligible for CSR Funding?
Before any company can legally give your NGO money, you need to meet a few basic conditions. Skipping these requirements is one of the most common reasons NGOs face rejection or delays.
- Form CSR-1 registration: Compulsory with the Ministry of Corporate Affairs (MCA) to become a recognised "Implementing Agency." Since July 2025, this has moved fully online, with stricter checks, including sign-off by a practicing CA, CS, or Cost Accountant.
- 3-year track record: Under the new CSR-1 rules, your NGO usually needs 3 years of real, documented work, unless it was set up by the company or a government body itself.
- NGO Darpan ID: Register on the NGO Darpan portal. Companies now treat this as a basic trust check before sending funds.
- RNPO registration (earlier called 12A/80G): Needed for tax exemption. Apply on the Income Tax e-filing portal. Most CSR teams expect this before they'll even consider your NGO.
- Trust, Society, or Section 8 Company registration: Your NGO must already be legally registered as one of these before applying for anything else.
How to Get CSR Funding: Step-by-Step Process
Once you're eligible, getting CSR funding is about putting your NGO in front of the right companies, the right way.
Step 1: Get CSR-1 registered. CSR-1 registration is required for eligible implementing agencies to undertake CSR activities on behalf of companies. Learn more on the MCA portal.
Step 2: Match your work to Schedule VII. CSR funds can be used for activities covered under Schedule VII of the Companies Act, 2013. This includes areas such as education, healthcare, rural development, women's welfare, and environmental protection.
Step 3: Build proof of your work. Keep past project reports, budgets, results, and impact studies ready to share.
Step 4: Target companies near you. Section 135 asks companies to prefer their local area for CSR spending. NGOs near a company's office or factory have a real edge.
Step 5: Write a strong proposal. Companies review NGOs almost like grant applications. Include your CSR-1 number, RNPO status, Darpan ID, a clear budget, and real numbers.
Step 6: Use CSR platforms and direct outreach. Look at CSR listing platforms and reach out directly to companies' CSR or foundation teams.
Step 7: Report properly once you receive the funds. Companies expect clear usage reports. Good reporting is also what brings repeat funding next year.
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Latest CSR Funding Updates in 2026
CSR rules have changed this year. Staying up to date with the latest requirements helps your NGO remain eligible and ready to access CSR support.
- New CSR Rules, 27 May 2026: The MCA now allows companies to allocate part of their CSR funds through special instruments called "zero coupon zero principal" bonds issued by NPOs listed on the Social Stock Exchange. This is capped at 10% of a company's total CSR spend and skips the usual impact study requirement — a new funding route for listed NPOs.
- CSR-1 Overhaul, July 2025: The old paper form is gone. CSR-1 is now fully online, with tighter rules; professional certification and a 3-year work history are now required before an NGO can legally get funds.
- Easier CSR-2 Filing, May 2025: Companies can now file Form CSR-2 on their own, instead of attaching it to another form. This eases the process for the company.
- Possible New Limits: A pending law, the Companies (Amendment) Bill, 2025, proposes lowering the CSR limits to a net worth of ₹100 crore, a turnover of ₹500 crore, or a net profit of ₹3 crore. If passed, many more mid-sized companies would have to give CSR funds.
- Stricter Checks: The MCA has been sending warning notices to companies that don't meet the 2% CSR spending rule, a sign that both sides of CSR funding are being watched more closely.
CSR Funding Scams NGOs Should Know About
The NGO and CSR sector has also seen serious fraud and scam cases during 2025–2026. Every genuine NGO should know about these to stay safe and stay trustworthy.
- The ₹800 Crore Scam: Income Tax officers found fake trusts and shell companies across six states that pretended to use CSR funds for real work while diverting them.
- The ₹5,000 Crore Diversion Case: A 2025 probe found money meant for schools and hospitals was shown as "spent" through fake NGOs. Real villagers' and MNREGA workers' identities were misused to fake beneficiary lists.
- The Kerala CSR Scam: One of the biggest cases, over ₹1,000 crore allegedly collected by a group called "National NGO Confederation," which promised cheap scooters and laptops using fake CSR money. Over 34 cases were filed, and the top accused were arrested.
- Fake Hexaware CSR Offer: Scammers faked documents in the name of Hexaware Technologies, offering over ₹100 crore in fake CSR deals to unsuspecting NGOs.
- Tripura NGO Fraud: An NGO allegedly linked to a land mafia stole ₹40 crore by faking education and rubber-trade projects that never existed.
These cases matter for honest NGOs too. Companies are now far more careful, so clean paperwork, a real CSR-1 number, and a genuine track record matter more than ever to actually get funded.
How to Avoid CSR Funding Fraud?
With scams this common, both NGOs and companies need to check facts before any money moves.
- Never pay any fee or "processing charge" to get CSR funding; real CSR money never asks the NGO to pay first.
- Check a company's CSR claims on its own official website, not through someone who contacts you first.
- Check an NGO's CSR-1 number, Darpan ID, and RNPO status on the official portals before working together.
- Be careful of anyone offering guaranteed funding in exchange for personal details, bank access, or advance payment.
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Frequently Asked Questions
Which NGOs can get CSR funding in India?
NGOs registered as a Trust, Society, or Section 8 Company, with CSR-1 registration, RNPO (tax-exemption) status, and usually 3 years of real work experience, can get CSR funding.
Is CSR-1 registration compulsory?
Yes. Form CSR-1 has been required since 2021 for any NGO wanting to receive CSR funds, and the rules got stricter in July 2025.
How much CSR money do Indian companies give each year?
The pool has grown significantly; total CSR spending increased from about ₹10,066 crore in FY 2014-15 to about ₹34,909 crore in FY 2023-24, and then to about ₹1,44,000 crore between FY 2019-20 and FY 2023-24.
What's the biggest CSR change in 2026?
May 2026 allow companies to allocate CSR funds through special Social Stock Exchange bonds, in addition to the stricter CSR-1 process that started in 2025.
Are CSR funding scams common in India?
Yes. 2025–2026 has seen several big scams, including one in Kerala worth over ₹1,000 crore and an ₹800 crore fund-diversion case, both using fake NGOs.
Can a brand-new NGO get CSR funding?
It's hard without a track record. Most rules require at least 3 years of actual work, unless a company or a government body established the NGO.
What kind of work qualifies for CSR funding?
Only work listed under Schedule VII of the Companies Act — like education, health, rural development, women's welfare, and environment work.
Author
Aabha Garg
A Content Strategist at NGOExperts, who focuses on NGO registration, 12A and 80G registration, FCRA compliance, income tax filing for non-profits, and CSR funding guidelines in India. I research and write our compliance guides in collaboration with our in-house Chartered Accountants and Company Secretaries, so every article reflects current tax and regulatory requirements for the NGO and non-profit sector.
Written by Aabha Garg. Last updated on August 27, 2026
