India has the world's only mandatory corporate social responsibility law. Every qualifying company must spend 2% of its average net profits on social causes - creating a Rs 25,000+ crore annual funding pool that NGOs can access. But most NGOs never tap into this pool because they either lack the mandatory registrations, do not know how to approach corporate CSR teams, or submit proposals that do not match what companies are looking for.
This guide covers the complete CSR funding journey for NGOs - from eligibility requirements and Form CSR-1 MCA registration to identifying target companies, crafting winning proposals, and building long-term corporate partnerships.
What Is CSR and How Does It Create Funding Opportunities for NGOs?
Section 135 of the Companies Act, 2013 mandates that companies meeting any of three financial thresholds must constitute a CSR Committee and spend at least 2% of their average net profits (over the preceding 3 financial years) on CSR activities. The three thresholds are: net worth above Rs 500 crore, turnover above Rs 1,000 crore, or net profit above Rs 5 crore in any financial year.
This means thousands of Indian companies - from Reliance and Tata to mid-sized IT firms and manufacturing companies - have a legal obligation to fund social causes. They can implement CSR through: (a) their own foundation, (b) a Section 8 company established by them, or (c) by funding external NGOs registered on the MCA portal through Form CSR-1. Option (c) is where your NGO enters the picture. Companies actively seek credible, compliant NGOs to partner with because managing CSR programmes in-house is expensive and operationally complex. For NGOs with NGO registration already in place, CSR funding is the single largest domestic funding opportunity in India.
Key Terms You Should Know
- Schedule VII (Companies Act): The list of eligible CSR activities. Includes: eradicating hunger and poverty, promoting education, healthcare, gender equality, environmental sustainability, protection of national heritage, benefits to armed forces veterans, rural development, slum area development, disaster management, and contributions to technology incubators.
- Form CSR-1: Mandatory MCA registration form for NGOs receiving CSR funds. Introduced by Companies (CSR Policy) Amendment Rules, 2021. Filed online on the MCA portal. Requires certification by a practising CA, CS, or CMA. Generates a unique CSR Registration Number.
- CSR Committee: A board-level committee in the company consisting of 3+ directors (including at least 1 independent director). The committee recommends CSR policy, identifies projects, monitors implementation, and approves NGO partnerships. This is who your proposal goes to.
- Unspent CSR Fund: If a company does not spend its full CSR obligation in a financial year, the unspent amount must be transferred to a specified fund (PM CARES, PM National Relief Fund, or a fund under Schedule VII) within 6 months. Companies face penalties for non-compliance, creating urgency to find implementing partners.
- Implementing Agency: The NGO, trust, society, or Section 8 company that executes the CSR project on behalf of the funding company. Must have CSR-1 registration and meet all eligibility criteria.
CSR Funding Eligibility: What Your NGO Must Have Before Approaching Companies
Companies conduct thorough due diligence before funding any NGO. Here are the non-negotiable requirements:
| Requirement | Why It Matters | How to Get It |
|---|---|---|
| Registered entity (Trust / Society / Section 8) | Legal identity - companies cannot fund unregistered groups | Sub-Registrar (trust), Registrar of Societies, or MCA (Section 8) |
| Valid 12A registration (RNPO under IT Act 2025) | Confirms the NGO is tax-exempt - proves non-profit status | Form 10A on Income Tax portal (Section 332) |
| Valid 80G registration | Allows the company to claim tax deduction on CSR donation | Applied alongside 12A through Form 10A |
| Form CSR-1 registration | Mandatory MCA registration - without it, companies cannot legally fund you | MCA portal (mca.gov.in) - online filing |
| 3-year track record with audited financials | Companies must verify that the NGO has experience in similar activities | Maintain audited accounts from Year 1; CA audit annually |
| NGO Darpan registration | Government visibility + required for many CSR partnerships | ngodarpan.gov.in (free, 1-2 weeks) |
| PAN of the organisation | Required for all financial transactions and registrations | Apply via NSDL/UTIITSL after entity registration |
| Alignment with Schedule VII activities | Company CSR spend must fall under Schedule VII - your activities must match | Review Schedule VII and map your activities to specific clauses |
Note: Missing even one of these requirements disqualifies your NGO from CSR funding. The most commonly missing items are Form CSR-1 (many NGOs are unaware it became mandatory in 2021) and the 3-year track record (new NGOs must wait and build credibility first). Start gathering these from Day 1 of your NGO's operations. For 12A and 80G registration, apply immediately after entity registration.
Form CSR-1: How to Register on the MCA Portal
Form CSR-1 is filed online at mca.gov.in. Here is the step-by-step process:
- 1. Obtain a Digital Signature Certificate (DSC). The authorised representative of the NGO needs a Class 3 DSC for signing the form electronically. Cost: Rs 1,500-2,500. Processing: 1-2 days. DSC providers include eMudhra, Sify, and CDAC.
- 2. Create a login on the MCA portal. Register as a business user on mca.gov.in if you do not already have an account. You will need the NGO's PAN, email, and mobile number.
- 3. Fill Form CSR-1 online. The form has two parts: Part 1 requires entity details (name, registration number, PAN, address, nature of entity, registered office, details of key functionaries, and description of CSR activities). Part 2 requires professional certification by a practising CA, CS, or CMA attesting the accuracy of information.
- 4. Upload supporting documents. Registration certificate, MOA/trust deed, PAN card, 12A/80G certificates (or RNPO certificate), and details of past activities.
- 5. Get professional certification. A practising Chartered Accountant, Company Secretary, or Cost Accountant must certify Part 2 of the form. The professional verifies the accuracy of entity details and confirms the NGO's eligibility. For NGOs using accounting services, the CA handling your accounts can certify the form.
- 6. Submit with DSC. Sign the form using the authorised representative's DSC and submit electronically. No physical documents are required.
- 7. Receive CSR Registration Number. Upon approval, MCA issues a unique CSR Registration Number. This number is your NGO's identity for all CSR transactions. Companies will verify this number before approving funding. Share it in all proposals and communications.
Processing time: 3-7 working days for straightforward applications. Cost: No government fee for the form itself (only DSC cost and CA certification fee).
Schedule VII Activities: What Corporate Donors Can Fund
Companies can only spend CSR funds on activities listed in Schedule VII of the Companies Act. Map your NGO's programmes to these categories:
| Schedule VII Category | Examples of Eligible Activities |
|---|---|
| Eradicating hunger, poverty, malnutrition | Mid-day meal programmes, food banks, nutrition supplements, livelihood support |
| Promoting education | Schools, scholarships, vocational training, digital literacy, special education |
| Promoting gender equality and women empowerment | Self-help groups, skill training for women, women's shelters, menstrual hygiene |
| Healthcare and sanitation | Hospitals, mobile health units, clean water projects, sanitation infrastructure, preventive health camps |
| Environmental sustainability | Tree planting, waste management, renewable energy, wildlife conservation, carbon emission reduction |
| Protection of national heritage, art, culture | Restoration of monuments, cultural festivals, art education, language preservation |
| Benefits to armed forces veterans and families | Rehabilitation programmes, livelihood support, education for children of veterans |
| Training to promote rural sports, Paralympics, Olympics | Sports academies, equipment provision, coaching programmes |
| Contribution to PM CARES, PM National Relief Fund | Disaster relief, national emergency response |
| Rural development projects | Infrastructure, drinking water, roads, bridges, community centres in rural areas |
| Slum area development | Housing, sanitation, skill development, healthcare in notified slum areas |
| Disaster management and relief | Emergency response, rehabilitation, preparedness training |
| Contributions to technology incubators | Supporting startups in incubators located within academic institutions |
Tip: When approaching a company, explicitly state which Schedule VII clause your programme falls under. Example: 'Our scholarship programme for 500 rural students directly falls under Schedule VII Clause (ii) - promoting education.' This saves the CSR committee time and demonstrates your understanding of the legal framework.
How to Identify and Approach Corporate CSR Donors
Step 1: Research companies using MCA filings and CSR portals. Visit csr.gov.in (National CSR Portal) to see which companies are spending CSR funds, their focus areas, and geographic preferences. Check company annual reports (available on their websites or MCA portal) for CSR spending details. Companies in your city or state are the best initial targets.
Step 2: Match your activities to the company's CSR policy. Every qualifying company publishes a CSR policy listing preferred sectors and geographies. An education NGO should target companies whose CSR policy prioritises education. A healthcare NGO should target companies focusing on health. Mismatched proposals are rejected immediately.
Step 3: Build your digital presence. Corporate CSR teams research NGOs online before responding to proposals. Maintain an updated website with mission statement, programme details, impact data, audited financials, team profiles, and testimonials. Active social media showing real project activities builds credibility. NGOs with Section 8 company registration often have higher credibility with corporate donors due to the governance structure.
Step 4: Craft a compelling CSR proposal. Your proposal must include: problem statement (specific, data-backed), proposed solution (your programme), target beneficiaries (number, demographics, location), budget breakdown (activity-wise, not lump sum), timeline (quarterly milestones), measurable outcomes (quantifiable impact indicators), and your NGO's credentials (track record, audited financials, CSR-1 number, 12A/80G details).
Step 5: Network at CSR events and platforms. Attend CSR conferences, join CSR platforms like CSRBOX, Indian CSR Network, and National CSR Portal. These events connect NGOs directly with corporate CSR teams. LinkedIn is increasingly used by CSR managers to discover implementing partners.
Step 6: Offer employee engagement opportunities. Companies love CSR programmes that include employee volunteering. Propose activities where company employees can participate directly - teaching sessions, health camps, tree planting drives, mentoring sessions. This gives the company both CSR compliance and employee engagement value.
What Corporate CSR Committees Evaluate When Selecting NGO Partners
| Evaluation Criterion | What They Check | What You Must Provide |
|---|---|---|
| Legal compliance | CSR-1 registration, 12A/80G, entity registration, PAN | Copies of all registration certificates with validity dates |
| Track record | 3+ years of activity in the proposed area, audited financials | Activity reports and audited financial statements for 3 years |
| Alignment with Schedule VII | Does the proposed activity fall under Schedule VII? | Explicit clause mapping in your proposal |
| Geographic relevance | Does the NGO operate in the company's preferred geography? | Project location with district/state details |
| Impact measurement capability | Can the NGO report measurable outcomes? | Sample impact report from past projects with quantifiable data |
| Governance and transparency | Board/trustee composition, audit compliance, website presence | Board profiles, CA audit report, active website |
| Budget reasonableness | Is the budget realistic and broken down by activity? | Detailed budget with per-beneficiary cost analysis |
| Sustainability plan | Will the impact continue after CSR funding ends? | Exit strategy or sustainability mechanism in the proposal |
Note: Companies are increasingly using third-party due diligence agencies (like GuideStar India, Credibility Alliance) to evaluate NGOs. Maintaining your profile on these platforms significantly improves your chances.
Common Mistakes NGOs Make When Seeking CSR Funding
Mistake 1: Not having CSR-1 registration. Since April 2021, CSR-1 is non-negotiable. Without it, companies legally cannot fund you. Many NGOs still operate without CSR-1 and wonder why proposals are rejected. File it immediately on mca.gov.in.
Mistake 2: Sending generic proposals to all companies. Each company has a specific CSR policy with preferred sectors and geographies. A one-size-fits-all proposal screams lack of research. Customise every proposal to match the specific company's CSR focus areas.
Mistake 3: Weak impact measurement. Saying 'we helped 500 children' is not enough. Companies want: baseline data (what was the situation before?), outputs (how many sessions conducted?), outcomes (test score improvement?), and long-term impact (employment rates?). Build measurement into your programme design from Day 1.
Mistake 4: Ignoring the company's unspent CSR fund urgency. Companies that do not spend their full CSR obligation must transfer unspent amounts to government funds within 6 months - and face penalties. In Q3-Q4 of each financial year (October-March), companies urgently seek implementing partners to deploy unspent funds. This is the best time to approach companies with ready-to-implement proposals.
Mistake 5: No follow-up or relationship building. CSR funding is relationship-driven. One proposal submission is not enough. Follow up, share progress updates from other projects, invite CSR managers to visit your project sites, and maintain regular communication. Long-term partnerships are more valuable than one-time grants. For NGOs needing compliance support to build credibility, tax audit services ensure your financials are audit-ready for corporate due diligence.
CSR Funding + RNPO + 80G: How the Pieces Fit Together
For a fully CSR-ready NGO, three registrations work together:
- RNPO (Section 332 IT Act 2025): Gives income tax exemption - the NGO's income from CSR grants is not taxed. Without RNPO, the NGO pays tax on CSR money received.
- 80G: Technically, CSR donations mandated under Section 135 are not eligible for additional 80G deduction for the company (per Finance Act 2023). However, 80G registration demonstrates non-profit credibility and is required by most CSR committees as part of due diligence.
- Form CSR-1: The MCA gate - without this, no CSR fund can legally flow to your NGO. This is the company-side compliance requirement.
All three are needed. A common confusion: some NGOs think 80G registration alone qualifies them for CSR funding. It does not. CSR-1 is a separate MCA filing. Similarly, RNPO is an Income Tax filing. Three separate portals, three separate registrations, one goal - making your NGO a fully compliant CSR partner. For the complete RNPO process, see our guide on charitable trust and NGO registration rules 2026.
CSR Funding Timeline for NGOs
| Step | Activity | Timeline |
|---|---|---|
| 1 | Register entity (trust/society/Section 8) | 1-8 weeks depending on structure |
| 2 | Apply for PAN and TAN | 1 week |
| 3 | Apply for RNPO + 80G (Form 10A) | 1-3 months |
| 4 | Register on NGO Darpan | 1-2 weeks |
| 5 | File Form CSR-1 on MCA portal | 1-2 weeks (including DSC) |
| 6 | Build 3-year track record with audited financials | 3 years (mandatory waiting period) |
| 7 | Research target companies and prepare proposals | Ongoing |
| 8 | Approach companies (peak season: Oct-Mar) | 2-6 months per partnership |
| From entity registration to first CSR grant | ~3.5-4 years (including 3-year track record) |
Key Takeaways
Indian companies spend Rs 25,000-28,000 crore annually on CSR - the world's only mandatory corporate social responsibility law creates the single largest domestic funding opportunity for NGOs in India, accessible to any registered trust, society, or Section 8 company with the right credentials.
Five non-negotiable requirements to access CSR funding: registered entity (trust/society/Section 8), valid RNPO registration (12A under old Act or Section 332 under IT Act 2025), 80G registration, Form CSR-1 on the MCA portal (mandatory since April 2021), and a minimum 3-year track record with audited financials demonstrating experience in Schedule VII activities.
Form CSR-1 is filed online at mca.gov.in with a DSC, requires professional certification by a practising CA/CS/CMA, generates a unique CSR Registration Number, and takes 3-7 working days to process - without it, companies cannot legally fund your NGO regardless of how impactful your work is.
To attract corporate donors: research companies using the National CSR Portal (csr.gov.in) and MCA filings, match your activities to their CSR policy, explicitly map your programmes to Schedule VII clauses, include quantifiable impact data in proposals, offer employee engagement opportunities, and approach companies in Q3-Q4 (October-March) when unspent CSR fund urgency is highest.
CSR committees evaluate NGOs on 8 criteria: legal compliance, track record, Schedule VII alignment, geographic relevance, impact measurement capability, governance transparency, budget reasonableness, and sustainability planning - maintaining profiles on GuideStar India and Credibility Alliance significantly improves due diligence outcomes.
Ready to Access CSR Funding? Get Your NGO CSR-Ready
CSR funding is not a lottery - it rewards NGOs that are legally compliant, operationally credible, and strategically aligned with corporate priorities. Getting CSR-1 registered, maintaining audited financials, and building a track record of measurable impact are the foundations.
Explore our NGO registration services - from entity formation (trust, society, or Section 8) to RNPO + 80G registration, NGO Darpan enrolment, Form CSR-1 filing, and CSR proposal support. Offices in Pune, Mumbai, Delhi, and Hyderabad.
+91 945 945 6700 (Call or WhatsApp)
