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Ngo Corporate social Responsibility

Ngo Corporate
social Responsibility

Non-governmental organizations (NGO) can participate in corporate social responsibility (CSR) by team focuses similar to those of for-profit companies. However, the main difference between corporate and NGO CSR lies in their respective missions and purposes. While corporations are often formed with the intention of making a profit for shareholders, NGOs are typically formed with the aim of enhancing society or solving particular social or environmental challenges.

PSR Compliance

Years
experience

NGOs can adopt CSR practices by integrating social and environmental concerns into their operations and interactions with stakeholders, just like corporations. For example, NGOs can be transparent and accountable in their financial and operational activities, promote diversity and inclusion, and ensure ethical and sustainable practices in their supply chain. Additionally, NGOs can use their unique position to advocate for social and environmental change and work towards creating a better society. This could involve partnerships with other organizations, influencing policy changes, or engaging in community development projects. NGOs can also hold corporations accountable for their social and environmental impact by conducting research, raising awareness, and promoting responsible practices. This can be done through campaigns, advocacy efforts, and corporate engagement activities. Overall, NGOs can practice CSR by aligning their activities with their mission and values, promoting ethical and sustainable practices, and advocating for positive social and environmental change.

Benefit of Corporate
social responsibility in Ngo

Benefit of Corporate social responsibility in Ngo

Improved funding opportunities:

Companies that place a high priority on CSR are more likely to support nonprofit organisations (NGOs) that share their values and goals, which may result in additional opportunities for funding and support for the NGO's activities.

Enhanced partnership opportunities:

NGOs that prioritize CSR are more likely to develop strong relationships with companies that share their values, which can lead to new partnership opportunities and access to expertise, resources, and networks.

Increased public trust:

By practicing CSR, NGOs can demonstrate their commitment to social and environmental responsibility, which can help to build trust and credibility with stakeholders, including donors, partners, and local communities.

Improved program impact:

CSR can help NGOs to create more effective and sustainable programs that have a positive impact on society and the environment. This includes promoting responsible environmental practices, ethical supply chain management, and community development initiatives.

Greater social impact:

By partnering with companies and promoting responsible business practices, NGOs can have a greater social impact on society, beyond the work of their own programs. This involves making a positive impact on more important environmental and social issues, such climate change and sustainable development. Overall, CSR can help NGOs to build stronger partnerships, improve their impact and sustainability, and build trust and credibility with stakeholders. By working together, companies and NGOs can create a more responsible and sustainable future for all.

Corporate social responsibility

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.

PSR Compliance Assistance

There is no denying that securing CSR -1 certification is an intricate affair that seeks adequate skill and a professional approach. Many mistakes occur in the documentation part that inherently leads to the cancellation of the Application. With PSR Compliance support at your disposal, you do not need to encounter such hassles. All you need to facilitate requested credentials and information to our expert, and you are good to go. Our experts will take care of all the formalities and ensure seamless delivery of Certification in a prompt time frame.

Frequently Asked Questions(FAQ's)

  • 01. What is Corporate Social Responsibility (CSR)?
    Corporate Social Responsibility (CSR) refers to the responsibility of a company towards the community and society in which it operates, beyond its statutory obligations.
  • 03. What are the activities that come under CSR?
    Activities that come under CSR include community development projects, education, healthcare, environment protection, skill development, poverty alleviation, promotion of sports and culture, and any other activity for the social and economic welfare of the community.
  • 05. Is CSR mandatory in India?
    For businesses with a net worth of at least 500 crores of rupees, a turnover of at least 1,000 crores of rupees, or a net profit of at least 5 crores of rupees in any given fiscal year, CSR is clearly necessary. Such companies are required to spend at least 2% of their average net profits of the preceding three financial years on CSR activities.
  • 07. How to undertake CSR activities?
    CSR activities can be undertaken by a company through its own foundation, a trust, or a society, or by partnering with existing NGOs or organizations working in the area of CSR. The activities undertaken must be in compliance with the Companies Act, 2013, and the CSR rules and regulations notified by the Ministry of Corporate Affairs.
  • 02. Can CSR funds be used for political or religious activities?
    No, CSR funds cannot be used for political or religious activities, or for the benefit of the company's employees, shareholders, or directors. The funds can only be utilized for activities falling under the prescribed areas of CSR.
  • 04. Is there any penalty for non-compliance with CSR obligations?
    Yes, there is a penalty for non-compliance with CSR obligations. Companies that fail to spend the required amount on CSR activities are required to disclose the reasons for non-compliance in their annual report. They may also face penalties and legal action for non-compliance.
  • 06. What are the reporting requirements for CSR activities?
    Companies are required to disclose their CSR policy and activities in their annual report and on their website. They are also required to file a CSR report with the Registrar of Companies, providing details of the CSR activities undertaken during the financial year.

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