NGO Consultant

NGO Consultant
Odisha NGO Consultancy Services

Saturday, February 8, 2025

Indian NGOs in India can access CSR (Corporate Social Responsibility) funding from companies to support their social initiatives.

How NGOs Can Get CSR Funding and the requirements they need to meet:  :

  1. CSR-1 Registration:

    • NGOs must register with the Ministry of Corporate Affairs (MCA) by filing Form CSR-1.  
    • This registration allows companies to identify and engage with NGOs for their CSR activities.
  2. Eligibility Criteria:

    • The NGO must be a registered entity:
      • Section 8 company under the Companies Act, 2013  
      • Registered Trust
      • Registered Society  
       
    • It should have a valid registration under Section 12A and 80G of the Income Tax Act, 1961.
    • The NGO needs to have a minimum of 3 years of experience in undertaking similar activities.  
  3. Finding CSR Opportunities:

    • MCA Website: Check the MCA website for information on companies' CSR policies and potential funding opportunities.
    • Networking: Attend industry events, conferences, and workshops to connect with companies and their CSR representatives.  
    • Online Platforms: Explore online platforms and databases that list companies' CSR initiatives and funding opportunities.
    • Direct Outreach: Research companies whose CSR focus aligns with your NGO's mission and reach out to them directly with proposals.
  4. Developing a Strong Proposal:

    • Clearly define your project: Outline the project's objectives, activities, and expected outcomes.
    • Highlight alignment with CSR policy: Demonstrate how your project aligns with the company's CSR focus areas.
    • Showcase your track record: Provide evidence of your NGO's past successes and impact.
    • Present a detailed budget: Include a clear breakdown of how the funds will be utilized.
    • Emphasize transparency and accountability: Assure the company of your commitment to ethical practices and financial transparency.
  5. Building Relationships:

    • Communicate effectively: Maintain open and regular communication with the company throughout the funding process.  
    • Demonstrate professionalism: Present your NGO in a professional manner and build trust with the company.
    • Show appreciation: Acknowledge and appreciate the company's support and contribution.

Requirements to Receive CSR Grants:

  • Valid CSR-1 Registration: The NGO must be registered with the MCA.
  • Eligibility under Companies Act: The NGO should meet the criteria specified under Section 135 of the Companies Act, 2013 and related rules.
  • Alignment with CSR Policy: The NGO's activities should align with the company's CSR policy and Schedule VII of the Companies Act.  
  • Track Record and Experience: The NGO should have a proven track record of at least 3 years in relevant social, environmental, or developmental activities.
  • Financial Transparency: The NGO must maintain transparent financial records and be open to audits.  
  • Legal Compliance: The NGO should comply with all applicable laws and regulations.

Key Considerations:

  • Due Diligence: Companies often conduct due diligence on NGOs before providing CSR funding.  
  • Memorandum of Understanding (MoU): A formal MoU is usually signed between the company and the NGO outlining the terms and conditions of the funding.
  • Monitoring and Evaluation: Companies may monitor the progress of the project and evaluate its impact.  

By following these steps and meeting the requirements, NGOs can increase their chances of securing CSR funding from companies in India.