Corporate Social Responsibility or CSR is a managerial theory wherein corporate houses acknowledge their social and environmental responsibilities and incorporate them into their corporation’s operations. Thus, CSR is the medium through which a company achieves a balance of economic, environmental and social imperatives. Such an approach is often called the “Triple-Bottom-Line- Approach”. Corporate houses assume such responsibilities while addressing the expectations of shareholders and stakeholders.
For considerable years the corporations perceived CSR as a corporate burden. However, recent years witnessed a paradigm shift in the corporate mindset. The benefits of CSR ensured growth and goodwill to the corporate houses.
Numerous corporate houses of India, such as the Tata group and the Aditya Birla Group, have already been contributing to society through Corporate Social Responsibility (CSR) and foundations since their inception. As a result, CSR is not a novel concept in the Indian context. However, the Companies Act of 2013 has pushed CSR to the leading edge, with a “comply or explain” obligation for corporates with a net income of more than 5 crores INR per year.
This obligation, therefore, has provided the impetus for Indian NGOs and created a massive possibility to be capitalised on. However, not many NGOs have been able to take advantage of this, and as a result, many continue to lack access to CSR funds for a variety of reasons, including a lack of forethought, a lack of awareness of the scenario, a lack of a network, and so on.
Ways through which NGOs could receive CSR Funding
1. Online Platforms
Platforms like CSR2life.com are working to make it easier for non-profits to approach corporations directly. Users can use CSR2life.com to find companies that are collaborating with various non-profit organisations in order to assist NGOs in need. CSR2life.com assists non-profit organisations in presenting their CSR projects to multiple corporations at the same time in an interactive format, allowing them to interact with your project. CSR2life.com is an effective platform for managing all of your CSR-related activities and content. It is an efficient platform for your CSR requirements.
2. “3Cs” Approach
When developing a CSR plan, every non-profit must consider three factors. A great deal of effort goes into developing such a plan – the first step is deciding what type of project you want to undertake, the second is determining what sources of funding you want to tap into, and the third is convincing companies to collaborate with NGOs. When it comes to approaching corporate India for help, a number of non-governmental organisations (NGOs) have had limited success. However, this does not imply that all NGOs and non-profits have been unable to obtain funding from large corporations.
3. “5Cs” Approach
CSR2life.com has elevated the concept of philanthropy for non-profits. This is a comprehensive platform that connects non-governmental organisations (NGOs) with corporate social responsibility (CSR) approaches. Recognizing corporate contributions to community improvement, the platform encourages all non-governmental organisations (NGOs) to raise CSR contributions for a specific community or charitable cause. Corporate partners, on the other hand, see the platform as a transparent way to spend CSR funds on need-based projects. They can do so by selecting one of the many approved non-profits and projects.
4. “7Cs” Approach
Using the 7Cs approach, NGOs and non-profit organizations can showcase what they have done, create a relationship with corporates and then share their success stories. The platform also enables NGOs to raise funds for their cause and have access to the CSR funds of many corporates simultaneously. Through CSR2life.com, NGOs can create and share impactful CSR campaigns with corporates and other social organizations. Companies can find new CSR targets, generate opportunities and make their CSR efforts more visible on the platform.
5. Comprehend and trace the corporate sponsors in your area
Create a map of the existing businesses in your area. Begin by learning about their profile, preferences, and policies. Investigate whether they are already involved in CSR activities. Finally, schedule a meeting with the CSR team or HR.
NGOs must take the initiative and investigate various funding options. Many organisations dedicated to CSR organise events. Year-round online and offline campaigns are underway. These events provide an excellent opportunity for active participation, networking with prospective donors, and relationship building. These could lead to fruitful collaborations in the long run.
7. Legal mandates for non-governmental organisations
Apart from the NGO Registration certificate, most corporate donors only donate to NGOs that have certificates such as 80G registration (which provides the donor with a 50% income tax exemption), 12A registration (which provides the NGO with tax-free income), and so on. It is in the best interests of the NGO to complete these registrations in order to increase the likelihood of receiving funds. Foreign companies may donate funds only if the NGO is registered under the FCRA (Foreign Contribution Regulation Act). Ensure that your NGO has all of the necessary documentation, and don’t forget to renew it every year.
CSR acts as a platform through which NGOs could accumulate funds from corporate houses for their functioning. Companies Act 2013 obligates the corporate houses to contribute 2% of their net earnings towards CSR. Hence, by exploiting such a mandate, NGOs could accumulate funds for their operations.
Such funding serves both purposes. Not only does it compliances with the obligatory provision of section 135 of the Companies Act but also provides NGOs with the necessary funding to create the desired impact on the society. Hence, it is a must to look out for the more Ways NGOs can get CSR Funds
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LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost.