Corporate Social Responsibility (CSR) is the funding and grants process under which Non-Profit Organisations (NGOs) can get financial and other support from the corporate sector. Under the Companies Act, 2013 it is a mandatory provision to provide a contribution of 2 percent of the average net profits of companies. CSR is required and applicable according to Sub-Section 1 of Section 135 of Companies Act, 2013.
According to the Companies Act, the CSR provision is applicable for a company having a net worth of rupees 500 carores or more, or a turnover of rupees 1000 carores or more or a net profit of rupees 5 carores or more during any financial year. The company also has a Corporate Social Responsibility Committee of the Board.
This mandate has thus opened new doors for Indian NGOs, and has provided a huge opportunity to be tapped. But not many NGOs have been able to take advantage of this, and thus many still do not have access to CSR funds, because of a number of reasons like lack of initiative, little understanding of the scenario, no network, etc. So, here is a step-by-step guide for NGOs on how they may mobilize CSR funds.