Eligibility criteria for Corporate social responsibility
In India, the eligibility criteria for NGOs to receive corporate social responsibility (CSR) funding from companies are governed by the Companies Act 2013 and related rules. The following are the general eligibility criteria that NGOs must fulfill to be eligible for CSR funding:
Registration: NGOs must be registered under the Societies Registration Act, 1860; the Indian Trusts Act, 1882; or the Companies Act, 2013.
Experience: NGOs must have at least three years of experience in undertaking social development projects.
Prioritization of Areas: NGOs must focus on areas that are covered under Schedule VII of the Companies Act 2013, such as eradicating poverty, promoting education, gender equality, and environmental sustainability.
Valid Bank Account: NGOs must have a valid bank account and financial statements for the last three years.
Accountability and Transparency: The financial and operational operations of NGOs must be open and responsible, and they must be able to present audited financial accounts and project reports.
Compliance with Laws: NGOs are required to comply by all relevant laws and rules, including those pertaining to taxation, labour, the environment, and governance.
Impact Assessment: NGOs must be able to demonstrate the impact of their projects and their contribution to the social and environmental goals covered under Schedule VII.
IIt is important to note that these eligibility criteria may vary depending on the company and their specific CSR policies and priorities. NGOs should also consult the company's CSR guidelines to ensure that their projects align with the company's priorities and requirements.
Document required for Corporate social responsibility
The documents required for an NGO to apply for corporate social responsibility (CSR) funding from companies may vary depending on the specific company and their CSR policies and requirements. However, the following are some of the common documents that may be required:
Registration Certificate: NGOs must provide their registration certificate under the Societies Registration Act, 1860; the Indian Trusts Act, 1882; or the Companies Act, 2013.
PAN Card: NGOs must provide their PAN card details, as it is mandatory for all organizations receiving funds in India.
Bank Account Details: NGOs must provide their bank account details, including account number and IFSC code.
Audited Financial Statements: NGOs must provide audited financial statements for the last three years to demonstrate their financial stability and accountability.
Project Proposal: NGOs must provide a detailed project proposal, including project goals, activities, expected outcomes, and timelines.
Impact Assessment Report: NGOs must provide an impact assessment report to demonstrate the effectiveness and impact of their past projects.
12A Certificate: NGOs must provide an impact assessment report to demonstrate the effectiveness and impact of their past projects.
80G Certificate: NGOs must provide a 12A certificate, which is issued by the Income Tax Department and grants tax exemption to NGOs.
It is important for NGOs to carefully review the company's CSR policies and requirements and provide all the necessary documents to ensure that their application is complete and meets the company's requirements.
Procedure of Registering Corporate social responsibility
In India, the process of registering for corporate social responsibility (CSR) funding from companies involves the following steps:
Identify Eligible Companies: NGOs must first choose which businesses, depending on their size, profitability, and other characteristics, are eligible to give CSR money.
Develop Project Proposals: NGOs must then develop project proposals that align with the companies' CSR priorities and requirements, and provide detailed project goals, activities, outcomes, and timelines.
Submit Proposals to Companies: NGOs must then submit their project proposals to the eligible companies along with the necessary documents, such as their registration certificate, audited financial statements, and project reports.
Agreement and MoU: A Memorandum of Understanding (MoU) will be signed by the corporation and the NGO, outlining the terms and circumstances of the funding, the implementation schedule, and the reporting requirements, if the company decides to sponsor the NGO's project.
Project Implementation: Once the agreement and MoU are signed, the NGO can begin implementing the project according to the agreed-upon timeline and activities.
Reporting and Evaluation: NGOs must provide regular progress reports and financial statements to the company, as per the reporting requirements outlined in the agreement and MoU. The company will evaluate the impact and effectiveness of the project based on the NGO's reports.
NGOs must make sure that their project ideas meet with the company's CSR policies and requirements and that they deliver the required paperwork and material quickly and expertly. NGOs may increase the impact of their work and contribute to a more responsible and sustainable future by forming strong connections with businesses and implementing successful and sustainable projects.
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