November 5, 2025

CSR Fund for NGO in India : 2025 Guide

CSR Fund for NGO in India (2025 Guide): How NGOs Can Secure Corporate Social Responsibility Grant

Introduction: The Growing Role of CSR Funds in India

Corporate Social Responsibility (CSR) has emerged as a vital force driving social change and development in India. For NGOs, CSR funding is one of the most reliable and sustainable sources of project finance. It empowers organizations to go beyond traditional donations and establish long-term partnerships with corporations that share their mission.

The term CSR fund for NGO in India refers to the money set aside by eligible companies under Section 135 of the Companies Act, 2013 to support social, environmental, and developmental causes. These funds are distributed through registered NGOs that comply with government norms and demonstrate measurable impact.

In 2025, CSR has evolved beyond mere compliance—it is now a strategic investment in India’s sustainable future. Let’s explore how your NGO can unlock this opportunity effectively.

1. Understanding CSR and Its Legal Framework

1.1 What is CSR?

Corporate Social Responsibility (CSR) means that businesses voluntarily integrate social and environmental concerns into their operations. In India, CSR is not just a moral obligation—it is a legal mandate. Under Section 135 of the Companies Act, 2013, certain companies are required to allocate a part of their profits toward social initiatives.

1.2 Which Companies Must Spend on CSR?

According to the law, every company—public or private—that meets any of the following criteria must spend at least 2% of its average net profit (of the last three financial years) on CSR activities:

Net worth of ₹500 crore or more
Turnover of ₹1,000 crore or more
Net profit of ₹5 crore or more

This CSR amount must be utilized for approved projects as listed under Schedule VII of the Act, which includes areas such as education, healthcare, gender equality, rural development, environment protection, and more.

2. Why CSR Funds Matter for NGOs

CSR funds have transformed the NGO ecosystem in India. Thousands of NGOs rely on corporate partnerships to execute impactful projects.

2.1 Key Benefits of CSR Funding for NGOs

Sustainable Funding: CSR funds provide long-term financial stability beyond short-term donations.
Scalability: With corporate partnerships, NGOs can expand to new regions and beneficiaries.
Credibility: Collaboration with reputed brands boosts the NGO’s public image.
Capacity Building: CSR often includes skill and infrastructure support.
Impact Measurement: CSR-funded projects are typically outcome-driven, helping NGOs develop strong reporting systems.

In short, CSR funding is not charity—it’s a strategic collaboration between business and society.

3. NGO Eligibility for CSR Funds

To access CSR funds, NGOs must meet specific legal and operational criteria.

3.1 NGO Registration Types

An NGO must be registered under one of the following:

Trust (Indian Trust Act, 1882)
Society (Societies Registration Act, 1860)
Section 8 Company (Companies Act, 2013)

3.2 Mandatory Registrations and Certificates

To qualify for CSR funding:

12A Registration: Enables income tax exemption.
80G Certificate: Allows donors to claim tax benefits.
CSR-1 Registration: Mandatory MCA approval to receive CSR funds.
PAN, TAN, and Audited Accounts (3 years).

3.3 CSR-1 Registration Process

Visit the MCA website.
Download Form CSR-1.
Fill in NGO details and upload registration documents.
Attach Digital Signature Certificate (DSC) of a governing member.
Submit online to generate a CSR Registration Number.

Once registered, your NGO becomes visible to corporate CSR teams searching for implementing partners.

4. Types of CSR Projects That Get Funded

CSR projects eligible for funding must align with national priorities and the company’s CSR focus areas. Common CSR categories include:

Category	Example Activities
Education	School development, scholarships, digital literacy
Health & Nutrition	Hospital projects, mobile health units, menstrual hygiene
Environment	Tree plantation, waste management, renewable energy
Women Empowerment	Vocational training, SHGs, microfinance
Rural Development	Housing, clean water, skill development
Livelihood	Entrepreneurship, handicrafts, agri-training

Pro Tip: Align your project proposal with the company’s existing CSR policy or focus area for higher approval chances.

5. Top CSR Funding Companies in India (2025 Update)

As per the National CSR Portal, the following companies are among the top CSR spenders in India:

Company	CSR Spending (₹ Crore)	Focus Areas
Reliance Industries	1,000+	Health, Rural Development, Education
TCS	720+	Education, Skilling, Health
Infosys Foundation	360+	Education, Sustainability
HDFC Bank	700+	Livelihood, Financial Inclusion
ITC Limited	350+	Environment, Women Empowerment
ONGC	450+	Environment, Rural Development
NTPC	400+	Education, Energy Access

These corporates regularly invite project proposals from eligible NGOs and partner through multi-year agreements.

6. How to Approach Companies for CSR Funding

6.1 Identify Compatible Companies

Research companies that support causes similar to your mission. Review their CSR annual reports or CSR policy (usually available on company websites).

6.2 Align with CSR Priorities

Corporates prefer NGOs whose objectives align with their own CSR goals. For example:

A renewable energy NGO should approach energy or manufacturing firms.
A women’s empowerment NGO might approach FMCG or banking companies.

6.3 Build Relationships

Attend CSR networking events and summits.
Connect via professional platforms like LinkedIn.
Follow up with concise email proposals and impact decks.

6.4 Documentation to Keep Ready

NGO registration certificates
CSR-1 approval
Annual reports & audited accounts
Past project reports & impact data
Photographs or short video of fieldwork

A well-prepared NGO inspires confidence and improves funding chances.

7. Writing a Winning CSR Proposal

A professional proposal can make the difference between approval and rejection. Here’s how to create one:

7.1 Essential Components

Cover Letter – Introduce your organization briefly.
Executive Summary – One-page overview of project goals and budget.
Problem Statement – The issue your project will address.
Project Objectives – Clear, measurable goals.
Implementation Plan – Steps, timeline, and target group.
Budget & Sustainability – Detailed cost and long-term plan.
Monitoring & Evaluation (M&E) – KPIs to measure success.

7.2 Proposal Tips

Keep the document concise (max 10 pages).
Use data, not just emotional appeal.
Include past success stories.
Add photos, charts, and measurable targets.
Highlight transparency and governance systems.

Pro Tip: Use keywords like “CSR partnership,” “sustainable development,” and “impact-driven” to align your proposal with corporate language.

8. Building Long-Term CSR Partnerships

A one-time fund is good—but a multi-year CSR partnership is better. Corporates want consistent, reliable partners who can scale impact.

Best Practices:

Submit timely progress reports with data and photos.
Acknowledge the corporate partner publicly (press releases, social media).
Maintain open communication about project challenges and successes.
Invite CSR officers for site visits.
Discuss future project expansions during review meetings.

Consistency and transparency convert one-year CSR projects into multi-year collaborations.

9. Common Mistakes NGOs Should Avoid

Applying without CSR-1 registration.
Submitting proposals unrelated to company CSR themes.
Overestimating project budgets.
Ignoring compliance and audit requirements.
Failing to report outcomes post-funding.

Avoiding these pitfalls can significantly improve credibility.

10. The Future of CSR Funding in India

10.1 Key Trends (2025 & Beyond)

Integration of ESG: CSR now overlaps with Environmental, Social, and Governance goals.
Focus on Technology: More funding for digital inclusion and AI-driven education.
Climate & Sustainability: Green projects gaining major attention.
Data Transparency: Companies demand real-time impact reporting.
Collaborative Models: Multi-NGO consortium projects are rising.

10.2 Government’s Role

The Ministry of Corporate Affairs continues to strengthen CSR monitoring via the National CSR Portal, ensuring transparency and fair distribution of funds.

11. How CSR Consultancies Help NGOs

Many NGOs find it challenging to navigate compliance, proposal design, and corporate networking. CSR consultancies bridge this gap by offering:

CSR-1 registration assistance
Proposal writing and documentation support
Matching NGOs with suitable corporate funders
Impact reporting and monitoring systems
Liaison with CSR heads of companies

Working with a professional CSR consultancy improves visibility and funding success rate.

12. Case Studies of Successful CSR–NGO Partnerships

12.1 Akshaya Patra & Infosys Foundation

Infosys Foundation supports Akshaya Patra’s mid-day meal program, serving millions of schoolchildren daily across India.

12.2 Tata Trusts & Pratham

This partnership focuses on improving literacy outcomes and digital education tools.

12.3 ITC & Self-Help Groups

ITC’s “Mission Sunehra Kal” empowers women and farmers through sustainable livelihood programs.

These examples show how strategic alignment and strong governance attract large-scale CSR funds.

13. Frequently Asked Questions (FAQs)

Q1. Can a newly registered NGO apply for CSR funding?
Not immediately. Generally, an NGO needs at least 3 years of audited accounts and CSR-1 approval.

Q2. Is CSR funding considered a donation or grant?
CSR funding is a grant, but it comes with accountability, reports, and audits.

Q3. Can foreign NGOs receive CSR funds from Indian companies?
CSR funds must be utilized within India. Foreign NGOs need a registered Indian partner NGO.

Q4. How can I find CSR opportunities?
Use portals like csr.gov.in, CSRBOX, and networking events.

Q5. Can NGOs charge administrative expenses?
Yes, but within the limits specified by the corporate agreement (usually up to 5–10% of total CSR grant).

14. Conclusion

CSR funding has become one of the most impactful financing mechanisms for NGOs in India. With the right registration, documentation, and partnership approach, NGOs can unlock consistent and large-scale funding to drive meaningful social change.

As India advances toward a sustainable and equitable future, CSR partnerships will remain at the heart of national development. Every NGO—big or small—can be part of this transformation by aligning its mission with corporate goals and maintaining transparency.

15. Call to Action — Partner with a CSR Consultancy

If your NGO is ready to take the next step toward securing CSR funding, but you’re unsure where to start — expert help can make all the difference.

📞 Get in touch with our CSR Funding Desk today!
We assist NGOs with:
✅ CSR-1 registration and compliance
✅ Proposal preparation and documentation
✅ Matching with potential CSR donors
✅ Ongoing support and reporting systems

Let’s turn your social mission into measurable impact through the power of CSR funding.

NGO Funding Solutions