With amendments to the Companies Act making social welfare spending mandatory, small businesses-focused rating agency SMERA today launched a specialised grading system for non profit organisations (NGOs).
SMERA's grading will focus on integrity of the NGO, the impact which its work is having and its implementation efficiency, its chief executive Sankar Chakraborti said.
It will not grade NGOs affiliated to political organisation or those religious in nature.
According to some estimates, around 20,000 entities fall under the ambit of the new requirements and collectively, they will ensure the flow of around Rs 9,000 crore in Corporate Social Responsibility (CSR) funds to NGOs every year, SMERA's head of new initiatives Umesh Nihalani told reporters here.
The grading will range from 1 to 5, with 1 being the strongest and 5 the lowest.
SMERA is looking at the service as a new business initiative, Chakraborti said, adding that it will earn from the initiative.
It will charge Rs 35,000 to Rs 50,000 for a rating and it is open for either the NGO or the donor to get the rating.
Source: http://www.business-standard.com/article/pti-stories/ratings-for-ngos-launched-114090501342_1.html
SMERA's grading will focus on integrity of the NGO, the impact which its work is having and its implementation efficiency, its chief executive Sankar Chakraborti said.
It will not grade NGOs affiliated to political organisation or those religious in nature.
According to some estimates, around 20,000 entities fall under the ambit of the new requirements and collectively, they will ensure the flow of around Rs 9,000 crore in Corporate Social Responsibility (CSR) funds to NGOs every year, SMERA's head of new initiatives Umesh Nihalani told reporters here.
The grading will range from 1 to 5, with 1 being the strongest and 5 the lowest.
SMERA is looking at the service as a new business initiative, Chakraborti said, adding that it will earn from the initiative.
It will charge Rs 35,000 to Rs 50,000 for a rating and it is open for either the NGO or the donor to get the rating.
Source: http://www.business-standard.com/article/pti-stories/ratings-for-ngos-launched-114090501342_1.html
