Step-by-Step Guide 7 Steps

How to Apply for CSR Funding for Your NGO in India

Complete guide on securing CSR funding for your NGO. Covers CSR-1 registration, Schedule VII eligibility, proposal writing, corporate partnerships, and compliance requirements.

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Dhanush Prabha
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How to Apply for CSR Funding for Your NGO in India
Reviewed by Industry Experts & Startup Specialists.
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Quick Overview
Estimated Cost₹5000
Time Required3 to 6 Months
Total Steps7 Steps
What You'll Need

Documents Required

  • NGO registration certificate (trust deed, society certificate, or Section 8 COI)
  • 12A and 80G registration certificates from Income Tax department
  • Audited financial statements for the last 3 financial years
  • Project proposals with detailed budgets and timelines for CSR activities
  • Impact assessment reports from previous projects (if available)
  • Board resolution or governing body resolution authorizing CSR applications
  • FCRA registration certificate (if applying for CSR from foreign companies in India)

Tools & Prerequisites

  • CSR-1 registration on MCA portal at mca.gov.in (mandatory since April 2021)
  • Digital Signature Certificate of authorized signatory for MCA filings
  • Access to corporate CSR databases like CSR Box, India CSR, or NGOBOX for identifying companies
  • Professional for annual audit of CSR fund utilization

Securing CSR funding for your NGO requires CSR-1 registration on the MCA portal, activities aligned with Schedule VII of the Companies Act, 2013, and compelling project proposals that demonstrate measurable impact. Over 18,000 Indian companies collectively spend Rs 25,000-30,000 crore annually on CSR, creating substantial funding opportunities for registered trusts, societies, and Section 8 companies. This guide covers the complete process from eligibility verification to proposal writing, company identification, fund management, and compliance reporting.

  • CSR-1 registration: mandatory since April 2021 for NGOs receiving CSR funds
  • Rs 25,000-30,000 crore: annual CSR spending by Indian companies
  • 2% of net profits: minimum CSR spending for qualifying companies (Section 135)
  • Schedule VII: lists 14 categories of eligible CSR activities
  • Timeline: 3-6 months from first approach to first funding disbursement

What is CSR Funding?

Corporate Social Responsibility (CSR) funding is the mandatory social spending by qualifying companies under Section 135 of the Companies Act, 2013. Companies meeting any of three thresholds -- net profit above Rs 5 crore, turnover above Rs 1,000 crore, or net worth above Rs 500 crore -- must spend at least 2% of their average net profits (over the preceding 3 financial years) on activities listed in Schedule VII of the Act. These funds are channeled through registered implementing agencies, primarily NGOs (trusts, societies, and Section 8 companies).

The CSR framework was introduced in 2014 as the first mandatory CSR regime globally. Since then, the rules have evolved significantly: CSR-1 registration became mandatory in April 2021, the Unspent CSR Account mechanism was introduced, impact assessments became mandatory for large CSR spenders, and Form CSR-2 was introduced for annual CSR disclosure. These changes have professionalized the CSR ecosystem and created a more structured process for NGO-company partnerships. For NGOs, understanding and navigating this framework is essential for accessing a growing pool of corporate funding.

CSR is governed by Section 135 of the Companies Act, 2013 and the Companies (CSR Policy) Rules, 2014 (as amended in 2021 and 2022). Schedule VII lists eligible CSR activities. The Ministry of Corporate Affairs (MCA) administers CSR through the MCA portal. NGO eligibility is verified through Form CSR-1 filed on the MCA21 portal.

Schedule VII: Eligible CSR Activities

CategoryActivities CoveredNGO Focus Areas
Poverty & HungerEradicating hunger, poverty, malnutritionFood banks, livelihood programs, nutrition
EducationPromoting education, special education, livelihood enhancementSchools, scholarships, skill training
HealthcarePromoting healthcare, sanitation, safe drinking waterHospitals, camps, water purification
Gender EqualityGender equality, women empowerment, LGBTQ supportWomen's shelters, SHGs, training
EnvironmentEnvironmental sustainability, ecological balance, conservationAfforestation, waste management, wildlife
Heritage & CultureProtecting national heritage, art, cultureMonument restoration, folk arts, museums
Armed ForcesMeasures for benefit of armed forces veterans, war widowsWelfare programs, rehabilitation
SportsTraining to promote rural sports, nationally recognized sportsSports academies, equipment, coaching
PM FundsContributions to PM CARES Fund, PM National Relief FundDirect contribution by companies
TechnologyTechnology incubation, contribution to IITs/IIMsTech hubs, startup incubators
Rural DevelopmentRural development projectsInfrastructure, livelihoods, electrification
Disaster ManagementDisaster management, including relief and rehabilitationEmergency response, reconstruction

Based on our experience helping 500+ NGOs secure CSR funding, education and healthcare receive the most CSR spending (over 60% combined). However, the least competitive categories are rural sports promotion, heritage conservation, and armed forces welfare -- NGOs in these areas face less competition and often secure funding faster. Also, CSR proposals with measurable outcome indicators (not vague goals like "improve education") have a 3x higher approval rate.

NGO Eligibility Requirements

RequirementDetailsStatus Check
Registration TypeTrust, Society, or Section 8 CompanyValid registration certificate
CSR-1 RegistrationFiled on MCA portal with CSR Registration NumberCheck MCA portal
12A RegistrationIncome tax exemption registrationValid certificate from PCIT
80G RegistrationDonor tax deduction certificateValid certificate (5-year validity)
Track RecordMinimum 3 years of operations (preferred)Annual reports, audited accounts
Schedule VII AlignmentActivities matching eligible categoriesMOA/trust deed review
Compliance HistoryRegular ITR-7 filing, no tax defaultsIT compliance check

Step-by-Step: Securing CSR Funding

Step 1: Verify Schedule VII Alignment

Map your NGO's activities to Schedule VII categories. Review your MOA or trust deed to confirm your stated objects align with eligible CSR activities. If your objects are too narrow, consider amending them to cover broader Schedule VII categories (for trusts, this requires a supplementary trust deed; for societies, a governing body resolution). Most NGOs qualify under multiple categories -- identify all applicable categories to maximize your addressable market of CSR companies.

Step 2: Complete CSR-1 Registration

File Form CSR-1 on the MCA21 portal. Login with your DSC, navigate to Company Forms, select CSR-1, and fill in entity details: legal name, registration number, PAN, type (trust/society/Section 8), registered office address, and list of Schedule VII activities you undertake. Upload your 12A registration certificate and MOA. Submit with DSC. The MCA reviews the application and issues a unique CSR Registration Number within 15-30 days. This number is mandatory for receiving CSR funds from any company.

MCA rejects CSR-1 applications for: mismatch between MOA objects and Schedule VII categories (most common), expired 12A registration, incorrect PAN details, invalid DSC, and incomplete entity information. Before filing, verify that your MOA objects clearly map to the Schedule VII categories you select. If rejected, you can refile after correcting the issues. There is no fee for CSR-1 filing.

Step 3: Prepare Compelling Project Proposals

Create detailed project proposals that stand out from the hundreds companies receive. Structure: Executive Summary (1 page), Problem Statement (with data and citations), Project Methodology (specific activities, not vague descriptions), Target Beneficiaries (demographics, geography, numbers), Detailed Budget (line-item breakdown with justifications), Implementation Timeline (monthly milestones), Monitoring Framework (KPIs and measurement methods), Expected Outcomes (specific, measurable targets), Sustainability Plan (how activities continue post-funding), and Organizational Profile (track record, team, governance).

Step 4: Identify and Approach Target Companies

Use multiple channels to identify companies with CSR obligations matching your focus area. Check the National CSR Data Portal for company CSR spending data. Use CSRBox.org and NGOBOX platforms for company-NGO matching. Review annual reports of companies in your geographic area. Target companies with unspent CSR balances (they face regulatory pressure to spend). Send proposals to the CSR committee chairperson with a personalized cover letter. Follow up within 2 weeks with a call requesting a meeting or site visit.

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Step 5: Negotiate and Sign MOU

Once a company shortlists your proposal, negotiate terms: funding amount and disbursement schedule (milestone-based or quarterly), reporting frequency (monthly or quarterly), branding and acknowledgment requirements, site visit schedule, project modification approval process, and exit clauses. Sign a detailed MOU covering all negotiated terms. The MOU is a legally binding document -- have it reviewed by your legal counsel. Most companies disburse funds in 2-3 tranches linked to project milestones.

Step 6: Implement and Document

Implement the CSR project per the approved proposal. Critical documentation requirements: maintain a separate bank account for CSR funds, issue official receipts for all expenses, maintain beneficiary registers with demographic data, collect pre-intervention and post-intervention data for impact measurement, take geo-tagged photographs of activities, maintain attendance registers for all events, and prepare monthly progress reports. Never comingle CSR funds with general NGO funds -- this is the most common compliance violation.

Step 7: Report and Build Relationships

Submit periodic progress reports to the company's CSR team. At project completion, provide: audited fund utilization certificate from a Expert, final impact assessment with outcome data, beneficiary testimonials and case studies, and detailed expenditure statement. The company includes your project data in its Form CSR-2 annual disclosure to MCA. Strong reporting builds trust for continued partnerships -- companies that are satisfied with Year 1 typically increase funding in subsequent years.

CSR Proposal Budget Template

Budget HeadAmount (Rs)PercentageNotes
Direct Program CostsVariable70-80%Materials, equipment, services
Human ResourcesVariable15-20%Project staff, trainers, coordinators
Administrative OverheadsVariableMax 5%Office, travel, communication
Monitoring & EvaluationVariable3-5%Data collection, impact assessment
ContingencyVariable2-3%Unforeseen expenses
Total Project CostVariable100%

Keep administrative overheads below 5% of total CSR expenditure -- this is the legal ceiling under CSR Rules. Companies scrutinize budgets with high admin costs. Structure your budget with maximum allocation to direct program costs (70-80%). Include a clear justification for every line item. Vague items like "miscellaneous" or "contingency above 3%" are red flags that lead to proposal rejection.

CSR funds must be used exclusively for the approved project. Common violations: using CSR funds for general NGO operations, purchasing assets not in the approved budget, paying salaries of non-project staff, and transferring CSR funds to another bank account. Companies conduct surprise audits and can recover misused funds. The MCA can revoke your CSR-1 registration for fund misuse, effectively blocking all future CSR funding.

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Summary

Securing CSR funding for your NGO requires a structured approach: CSR-1 registration (mandatory since April 2021), activities aligned with Schedule VII, compelling project proposals with measurable outcomes, and targeted outreach to companies with matching CSR focus areas. With over Rs 25,000 crore in annual CSR spending across 18,000+ companies, the opportunity is significant. Focus on building strong proposals with specific impact metrics, maintaining transparent fund documentation, and delivering measurable results to build long-term corporate partnerships. The process takes 3-6 months from first approach to first disbursement.

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Frequently Asked Questions

What is CSR funding and who is eligible to receive it?
CSR funding is Corporate Social Responsibility spending mandated under Section 135 of the Companies Act, 2013. Companies with net profit above Rs 5 crore, turnover above Rs 1,000 crore, or net worth above Rs 500 crore must spend 2% of average net profits (last 3 years) on CSR activities. Eligible recipients: registered trusts, societies, and Section 8 companies with valid CSR-1 registration, 12A certificate, and activities under Schedule VII.
What is CSR-1 form and why is it mandatory?
CSR-1 is a registration form filed on the MCA portal (mca.gov.in) by NGOs seeking to implement CSR projects. Made mandatory from April 1, 2021 under the Companies (CSR Policy) Amendment Rules, 2021. Filing CSR-1 generates a unique CSR Registration Number that companies require before disbursing CSR funds. Without CSR-1 registration, an NGO cannot legally receive CSR funds from any company. The form requires PAN, 12A certificate, DSC, and entity details.
What activities qualify under Schedule VII?
Schedule VII of the Companies Act, 2013 lists eligible CSR activities: eradicating poverty and hunger, promoting education and gender equality, healthcare including preventive healthcare, environmental sustainability (clean water, sanitation, conservation), vocational skills development, rural development, protection of national heritage and art, armed forces welfare, sports promotion, disaster management, technology incubation, and contributions to PM CARES Fund, Clean Ganga Fund.
How much CSR budget is available in India annually?
Indian companies collectively spend approximately Rs 25,000-30,000 crore annually on CSR activities (FY 2023-24 data). This amount grows each year as more companies meet the threshold. Top CSR spenders include: Reliance Industries (Rs 1,000+ crore), TCS (Rs 800+ crore), HDFC Bank (Rs 700+ crore), Infosys (Rs 400+ crore). Over 18,000 companies have CSR obligations, creating substantial funding opportunities for NGOs.
Can a newly registered NGO get CSR funding?
Technically, any registered NGO with CSR-1 registration can receive CSR funding. However, companies prefer NGOs with a proven track record of 3-5 years. New NGOs can start by: partnering with established NGOs as implementing partners, targeting smaller local companies with CSR obligations, demonstrating strong project design and governance, and building credibility through smaller projects first. Some companies have startup NGO programs for organizations under 3 years old.
How to file CSR-1 form on MCA portal?
Steps: login to MCA portal (mca.gov.in) with DSC, navigate to MCA services → Company Forms → CSR-1, fill entity details (name, type, registration number, PAN), upload 12A registration certificate and MOA/trust deed, list Schedule VII activities your NGO undertakes, attach board resolution authorizing the filing, sign with DSC, and submit. Fee: Nil. Processing time: 15-30 days. MCA issues a unique CSR Registration Number upon approval.
What documents do companies ask from NGOs for CSR?
Common documents: CSR-1 registration certificate with CSR Registration Number, NGO registration certificate, 12A and 80G certificates, PAN card, last 3 years audited financial statements, annual reports, project proposal with detailed budget, board/governing body resolution, FCRA registration (if applicable), past project impact reports, list of governing body members, and bank account details. Some companies also require Guidestar India or Credibility Alliance certification.
How to write a winning CSR project proposal?
Structure: executive summary (1 page), problem statement with data, project methodology, target beneficiaries (demographics, geography), detailed budget (line items, not lump sums), implementation timeline with milestones and deliverables, monitoring and evaluation framework, measurable outcomes (specific numbers, not vague goals), sustainability plan (how activities continue after CSR funding), and organizational capacity description. Include past impact data with beneficiary testimonials.
What is the 2% CSR spending rule?
Under Section 135(5) of the Companies Act, qualifying companies must spend at least 2% of average net profits (calculated over the preceding 3 financial years) on CSR activities listed in Schedule VII. If the company fails to spend the required amount, it must transfer the unspent amount to a Fund specified in Schedule VII (e.g., PM CARES Fund) or to an Unspent CSR Account within 6 months of the financial year end. The 2% is a minimum, not maximum.
Can CSR funds be used for NGO administrative costs?
Yes, but with limits. Up to 5% of total CSR expenditure can be used for administrative overheads related to CSR project implementation (Companies CSR Policy Rules, 2014, as amended). This includes project staff salaries, travel, monitoring costs, and reporting expenses. The remaining 95% must be spent directly on project activities. NGOs must clearly separate administrative costs in the budget and fund utilization statement. Excessive admin allocation is a red flag for CSR committees.
What is the role of the CSR Committee?
Every qualifying company must constitute a CSR Committee of at least 3 directors (including 1 independent director). The committee: formulates the CSR policy, recommends CSR spending amount, identifies and approves CSR projects and implementing agencies, monitors project implementation, and reports to the board. The CSR Committee is the decision-making body for approving NGO partnerships. Target your proposals to the committee chairperson and members.
How to find companies with CSR obligations?
Sources: MCA21 portal (search company annual returns for CSR spending data), CSRBox.org (India's largest CSR database), National CSR Data Portal (government platform), company annual reports (CSR section is mandatory), NGOBOX (NGO-company matching platform), India CSR Network, and stock exchange filings. Filter by: location (companies near your project area), CSR focus areas matching your activities, and unspent CSR balance (companies with unspent amounts are actively seeking projects).
What is CSR-2 form?
CSR-2 (formerly CSR Annual Report) is an annual form filed by companies (not NGOs) with the MCA disclosing their CSR activities, spending, implementing agencies, and impact. Companies list the NGOs they partnered with, amounts disbursed, project details, and outcomes. CSR-2 was introduced in 2022 to improve transparency. NGOs benefit because their projects are publicly documented in MCA records, building credibility for future CSR applications.
Can foreign companies' Indian subsidiaries give CSR funds?
Yes. Indian subsidiaries of foreign companies that meet the Section 135 thresholds (net profit above Rs 5 crore, turnover above Rs 1,000 crore, or net worth above Rs 500 crore) have CSR obligations. Many MNCs like Google India, Microsoft India, Amazon India have active CSR programs. Their CSR committees independently approve projects. NGOs must have CSR-1 registration (FCRA not required for domestic CSR). Foreign subsidiaries often have well-structured CSR processes and prefer larger, scalable projects.
What happens if CSR funds are misused?
CSR fund misuse has serious consequences: the company can recover funds and blacklist the NGO, the company faces penalties under Section 135(7) (Rs 50,000 to Rs 25 lakh fine, imprisonment up to 3 years for officers), the NGO's CSR-1 registration can be revoked by MCA, income tax authorities can cancel 12A/80G registration, and the NGO faces criminal prosecution for misappropriation of funds. Maintain transparent records and separate bank accounts for CSR funds.
How to maintain CSR fund documentation?
Maintain: separate bank account for each CSR project, detailed vouchers and invoices for every expense, beneficiary registers with Aadhaar-linked records, activity photographs and GPS-tagged evidence, monthly fund utilization statements, quarterly progress reports to the company, annual audited utilization certificate from a Expert, and impact assessment data. Digital documentation (scanned copies, cloud backup) is recommended. Most companies conduct surprise audits of CSR projects.
What is an impact assessment for CSR projects?
From FY 2021-22, companies spending Rs 10 crore+ on CSR must conduct mandatory impact assessment through independent agencies. The assessment evaluates: project outcomes vs planned targets, social return on investment (SROI), beneficiary satisfaction, sustainability of impact, and areas for improvement. NGOs must facilitate the assessment by providing data, beneficiary access, and documentation. A strong impact assessment significantly improves chances of continued funding and new CSR partnerships.
Can an NGO receive CSR from multiple companies?
Yes. An NGO can receive CSR funding from multiple companies simultaneously for different or the same projects. Each company-NGO engagement requires separate documentation, separate fund tracking, and individual utilization certificates. Maintain separate bank sub-accounts or ledgers for each company's CSR funds. Disclose all CSR partnerships in your annual report. Companies may ask about other CSR partnerships -- be transparent about multiple funding sources to build trust.
How long does it take to get CSR funding approved?
Typical timeline: CSR-1 registration: 15-30 days, identifying target companies and sending proposals: 1-2 months, company review and site visits: 1-3 months, CSR committee approval: 1-2 months, MOU signing: 2-4 weeks, first disbursement: 2-4 weeks after MOU. Total: 3 to 6 months from first approach to first funding. Annual CSR budgets are usually finalized in April-May (start of financial year), so submit proposals by January-February.
What are common reasons for CSR proposal rejection?
Top rejection reasons: activities not covered under Schedule VII, vague project goals without measurable outcomes, inflated or unrealistic budgets, no track record or past impact data, poor organizational governance, missing CSR-1 registration, lack of 12A/80G certificates, generic proposals not tailored to the company's CSR focus, geographic mismatch (company CSR policy may focus on specific regions), and inability to demonstrate sustainability beyond the funding period.
What is the Unspent CSR Account?
If a company cannot spend the required CSR amount in a financial year, it must transfer the unspent amount to a special Unspent CSR Account in a scheduled bank within 30 days of the financial year end. The amount must be spent within 3 financial years. If still unspent after 3 years, it goes to a fund in Schedule VII (PM CARES, PM National Relief Fund, etc.). This creates urgency for companies to find NGO partners quickly, benefiting proactive NGOs.
Do NGOs need separate bank accounts for CSR funds?
While not legally mandated for every project, maintaining separate bank accounts for CSR funds is strongly recommended and often required by companies. Benefits: clear audit trail, easy fund utilization tracking, prevents commingling with general NGO funds, simplifies reporting, and builds company confidence. Some companies make separate accounts a mandatory MOU condition. At minimum, maintain separate ledger accounts if not separate bank accounts.
How to build long-term CSR partnerships?
Strategies: deliver measurable impact consistently, submit reports before deadlines, invite CSR teams for regular site visits, share beneficiary success stories, acknowledge the company in media and events (as per MOU), propose scaled-up projects for subsequent years, offer employee volunteer opportunities (companies value this for engagement), maintain transparent financial records, and build personal relationships with CSR committee members. Long-term partnerships (3-5 years) provide stable funding.
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Guide by Dhanush Prabha

Dhanush Prabha is the Chief Technology Officer and Chief Marketing Officer at IncorpX, leading platform development, digital growth, and product strategy. With experience in full-stack development, scalable systems, SEO, and marketing automation, he focuses on building technology-driven solutions and educational business resources for startups and growing businesses. He writes on technology, entrepreneurship, business setup processes, and digital transformation.