CSR Funding

Quick Summary

As an NGO consultant with 5+ years of experience working with social organizations and corporates, I’ve seen firsthand how CSR funding in India has transformed grassroots projects. Under the Companies Act, 2013, eligible companies must spend 2% of their average net profits on CSR activities.

In FY 2023-24, companies contributed nearly ₹33,087 crore, and by 2025, more than 32,000 companies in India together have invested over ₹1.5 lakh crore in CSR projects. From my experience, securing CSR funds is not just about applying; it requires CSR-1 registration, 12A & 80G certification, financial transparency, and measurable social impact.

Today, CSR is no longer just charity, it’s about corporate–NGO partnerships that deliver sustainable development goals (SDGs) like education, healthcare, skill development, and environmental protection.

Introduction

Corporate social responsibility (CSR) has become an important aspect of business operations in today's world. It involves taking responsibility for the impact companies have on society & the environment. One way companies fulfill their CSR obligations is through CSR funding, which involves donating a portion of their profits or resources to social & environmental causes. CSR funding is not just a moral obligation, but also a way for companies to improve their public image, attract customers & investors, & retain employees.

According to a study by Cone Communications, 87% of customers will make a purchase based on a company's social or environmental values. Furthermore, CSR funding can have a significant impact on society, by promoting education, health, environmental sustainability, & community development.

Finding the right funding opportunities can be challenging for even the most experienced business professionals.So, we are here to help companies identify & secure the right funding streams, & ready to assist you in making the most of your CSR initiatives. Let us help you make a difference in the world while building a strong & sustainable brand.

What is CSR Funding?

Corporate Social Responsibility (CSR) is a way for companies to contribute to society by supporting social and environmental causes. Businesses that meet specific financial criteria must invest some of their profits in initiatives that help communities. Many companies collaborate with NGOs on education, healthcare, skill development, women empowerment, and environmental sustainability.

CSR is not just about donations—it is a structured approach where businesses take responsibility for social change. CSR funding allows companies to support impactful projects that promote sustainability, address real issues, and improve lives. Through CSR, businesses actively build a better society while aligning with ethical and legal responsibilities.

● Environmental Social Responsibility: Environmental CSR focuses on a company's impact on the environment. It means implementing sustainable practices to reduce pollution & conserve natural resources. 

● Ethical/Human Rights Social Responsibility: This CSR highlights a company's commitment to ethical business practices & respecting human rights.

● Philanthropic Corporate Responsibility: This CSR is all about giving back to society through charitable donations or volunteering. Companies may support social causes or organizations that align with their values & mission.

● Economic Corporate Responsibility: This CSR refers to a company's responsibilities to its shareholders, customers, & suppliers. It includes ensuring economic stability & growth, treating employees & stakeholders fairly, & maintaining strong corporate governance. 

Benefits of Corporate Social Responsibility

CSR funding is crucial in helping NGOs expand their reach, implement impactful projects, and achieve long-term sustainability. Here’s how NGOs benefit from CSR partnerships:

1. Financial Stability & Growth – CSR funding allows NGOs to focus on their mission instead of constantly fundraising. With only 1 in 10 NGOs in India receiving government grants, CSR has become a critical funding source for sustainability.

2. Better Resources & Technology – Corporate support helps NGOs upgrade their tools, infrastructure, and digital systems, making their work more efficient and impactful. Companies like Tata Trusts and Infosys Foundation have funded technology-driven education programs that have reached over 1 million students across rural India.

3. Stronger Credibility & Networking – Partnering with well-known companies boosts an NGO’s reputation, attracting donors, collaborators, and long-term funding opportunities.

4. Expert Guidance & Employee Volunteering – Many corporates offer mentorship, strategy support, and skilled volunteers, helping NGOs improve financial planning, marketing, and operations.

5. More Visibility & Public Awareness – CSR-backed NGOs often get featured in media, corporate reports, and social campaigns, increasing awareness and support for their cause. Reports show that NGOs with strong digital presence receive 40% more corporate funding than those without active online engagement.

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Eligibility for CSR Funds

For an NGO to receive CSR funding, it must meet specific criteria to ensure credibility and accountability. Here's what companies typically look for before providing CSR grants. These points together define the Eligibility for receiving CSR funds in India:

1. Registered as a Section 8 Company, Trust, or Society – Your NGO must be legally registered under one of these categories to be eligible for CSR funding.

2. CSR-1 Registration is Mandatory – Since April 2021, every NGO seeking CSR funds must be registered with the Ministry of Corporate Affairs by filing Form CSR-1. Over 60,000 NGOs have registered under CSR-1 to date.

3. A Proven Track Record – Companies prefer NGOs with at least three years of experience in implementing social projects. If your NGO is new, collaborating with an experienced organization can improve your chances. 

4. Project-Based Funding Approach – Corporates usually don't fund general operational costs. They prefer to support specific projects with measurable goals and outcomes, such as building schools, providing clean water, or conducting skill training programs. 

5. Transparency and Compliance – Your NGO must maintain proper financial records, regularly update donors about project progress, and be open to audits. Companies want to ensure their CSR funds are used effectively.

6. Strong Networking and Visibility – A well-maintained website, social media presence, and active participation in CSR-related forums can help attract corporate donors. Companies are more likely to support NGOs that are visible and demonstrate impact.

How to Get CSR Funding for NGO?

Getting CSR funding isn't just about applying for grants, building trust, showing impact, and forming the right connections. Here's how NGOs can improve their chances of securing CSR funding and strengthen their application for CSR funding process:

1. Get 12A and 80G Certificates – These act as trust badges for your NGO. 12A gives tax exemptions, while 80G lets donors claim tax benefits. Companies prefer NGOs with these as they make CSR funding tax-efficient. If you don't have them yet, get them—it boosts your chances with corporate donors. 

2. NGO DARPAN Registration – Listing on NGO DARPAN improves credibility. Currently, over 1 lakh NGOs are registered on the platform. 

3. Get CSR-1 Registration – CSR is only given to NGOs with CSR-1 approval from the Ministry of Corporate Affairs. Without this, companies cannot legally fund your NGO. Make sure you complete this mandatory step.

4. Create a NGO Project Proposal – A well-structured proposal should clearly outline the problem, how funds will be used, and the expected impact. Corporations look for transparency and measurable results before approving funds.

5. Network with Corporate CSR Teams – Attend CSR events, connect on LinkedIn, and approach corporate foundations. Proper networking can open doors to funding opportunities and long-term partnerships.

6. Showcase Impact & Maintain Transparency – Regularly update donors with financial reports, success stories, and project progress. Companies trust NGOs that maintain transparency and provide measurable impact data.

How Companies Allocate CSR Budgets 

As per India's CSR law, companies must contribute 2% of their average net profits from the last three years to CSR initiatives. 

For NGOs, this means corporates are actively looking for impactful projects to fund. Securing CSR funding requires presenting your NGO as a credible, transparent, and result-driven organization.

Why Choose NGOExperts?

At NGO Experts, we specialize in helping NGOs secure CSR funding and manage projects efficiently. Our team has a strong network of corporate partners and a proven track record of successful NGO-corporate collaborations.

• Expertise in CSR funding & compliance – We help NGOs register, empanelled, and connect with corporates.
• Strong corporate network – We match NGOs with businesses looking for credible CSR partners.
• Complete project management support – We handle it all from funding proposals to impact reporting.
• Commitment to transparency & impact – We ensure funds are used effectively, creating measurable change.