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 Corporate Social Responsibility?

Corporate Social Responsibility (CSR) is an ethical business concept that aims to ensure that companies are accountable for their impact on society & the environment. It is a voluntary initiative that is adopted by businesses to promote sustainable development & social well-being. Corporate Social Responsibility in India covers a wide range of activities such as ethical practices, community development, environmental protection, human rights, & philanthropy.

CSR funding refers to the financial resources that companies allocate to support their CSR initiatives. It can take many forms such as grants, donations, sponsorships, & partnerships with non-profit organizations.

Many companies view CSR as a key driver of business success, as it can help to build a positive brand reputation, enhance customer loyalty, & attract & retain talented employees. CSR initiatives enable companies to make a real difference in the communities in which they operate, & also generate long-term value.

Types of Corporate Social Responsibility

Benefits of Corporate Social Responsibility

The introduction of Section 135 of Companies Act 2013 has made CSR mandatory for companies with a turnover above a certain threshold. The benefits of CSR under this act are numerous:

Eligibility Under Corporate Social Responsibility

Before you begin the registration process, it is important to ensure that all the documents are ready & available. List of some essential documents include

How to Get CSR Funding?

As a nonprofit organization or social entrepreneur, securing corporate social responsibility (CSR) funding is essential for achieving your goals. However, getting CSR funding requires a strategic approach.

● Research & Identify Potential Donors

Before approaching any company for funds, research potential companies that operate in your area & assess their CSR initiatives. Look for companies with alignment in the cause your project addresses. Take note of their application criteria & eligibility requirements, which can vary widely.

● Proper Documentation of Your Project

Ensure that you have a clear understanding of what your project entails & that all relevant documentation is in order. Have a strong project plan, with a clear timeline of activities, list of stakeholders & the expected outcomes. Also, provide financials, project evaluation & impact assessment that will help the companies to evaluate your ideas better.

● Address Your Plan of Action

While CSR funding can provide a boost to your project, it is essential to realize that it is not a primary source of financing; hence you may not secure complete funding. Therefore, set realistic expectations regarding the amount of funding you can expect & plan accordingly.

● Set Expectations

While CSR funding can provide a boost to your project, it is essential to realize that it is not a primary source of financing; hence you may not secure complete funding. Therefore, set realistic expectations regarding the amount of funding you can expect & plan accordingly.

Get Empanelment with "National CSR Hub" at TISS

To secure CSR funding for their projects, NGOs can conveniently seek empanelment with the esteemed "National CSR Hub" at Tata Institute of Social Sciences (TISS). By achieving empanelment, you become a part of a professional network of development sector organizations in India. However, to qualify for this esteemed partnership, your NGO must fulfill certain requirements.

These include demonstrating financial capacity, transparency & sustainability, solid governance & organizational structure, a clearly defined core activity, established strategies & methodologies, a capable staff, proper administrative policies & procedures, effective program management, & proper documentation.

Net Profits for CSR

As per the CSR (Corporate Social Responsibility) policy, every company must set aside 2% of their average net profits from the previous three years towards fulfilling their CSR obligations. The calculation of net profits for CSR is done in accordance with Section 198 of the Companies Act, 2013.

This section states that when computing a company's net profits, any subsidies or bounties received from a government or public authority authorized for this purpose should be taken into account as credits. Essentially, companies can reduce their net profit amount by the subsidies or bounties they receive, thereby lowering their CSR contribution. This is important information for companies seeking to accurately calculate their CSR spending requirements.

Fines for Non-Compliance to CSR

If a company doesn't spend the money they're supposed to on social & environmental causes, they will face fines. The fine will start at Rs 50,000, but could go up to Rs 25 lakh. Also, any person in charge of the company who doesn't follow the rules can face fines of at least Rs 50,000 & up to Rs 5 lakh, as well as potential imprisonment for up to three years.

Why Choose NGOExperts?

NGOExperts specializes in providing end-to-end project management services for CSR funding initiatives. Our experienced team ensures timely & efficient execution of projects while maintaining complete transparency. We offer comprehensive reporting & impact assessment services to help organizations achieve their CSR goals.

Our Process

We follow a simple three-step process to offer CSR funding guidance & other services for NGOs: