Institutional, Government, and CSR Fund Raising in India is a structured approach through which NGOs, Trusts, Societies, and Section 8 Companies secure funding for social impact projects. With the rise of Corporate Social Responsibility (CSR) obligations and government welfare schemes, compliant organizations can access significant funding to scale their initiatives.
In this Saving Mantra guide, we explain what CSR fund raising is and provide a step-by-step process for Institutional and Government CSR fund raising in India, including eligibility, documentation, and compliance.
What is Institutional, Government & CSR Fund Raising?
CSR and institutional fund raising refers to mobilizing funds from:
- Corporates fulfilling CSR obligations
- Government ministries and departments
- Public sector undertakings (PSUs)
- Foundations, trusts, and international agencies
Funds are granted for projects aligned with social, environmental, educational, and developmental goals.
Legal Framework for CSR Funding in India
CSR funding in India is governed under Section 135 of the Companies Act, 2013, which mandates eligible companies to spend a portion of profits on CSR activities. NGOs receiving CSR funds must comply with MCA and Income Tax regulations.
Who is Eligible to Receive CSR & Government Funds?
Eligible entities include:
- Registered Trusts
- Registered Societies
- Section 8 Companies
- Entities with valid CSR-1 Registration
- Organizations with 12A/12AB and 80G registration
Benefits of Institutional & CSR Fund Raising
- Access to large and recurring funding
- Increased project scale and impact
- Improved organizational credibility
- Long-term partnerships with corporates and government bodies
- Financial sustainability for NGOs
Step-by-Step Process for CSR & Government Fund Raising in India
Step 1: Legal & Tax Compliance Readiness
Ensure your organization has:
- Valid registration (Trust/Society/Section 8)
- CSR-1 registration
- 12A/12AB and 80G approvals
- PAN and bank account
Step 2: Identify Funding Opportunities
Research and shortlist:
- Corporate CSR programs
- PSU and government grant schemes
- Institutional and foundation grants
based on project alignment and eligibility.
Step 3: Design Impact-Oriented Projects
Develop clear project proposals outlining:
- Social problem and solution
- Objectives and beneficiaries
- Budget and timelines
- Measurable outcomes and impact
Step 4: Prepare Documentation
Compile all required documents, including legal, financial, and project-related records.
Step 5: Submit Funding Proposals
Apply through:
- Corporate CSR portals
- Government grant portals
- Direct institutional applications
Step 6: Due Diligence & Evaluation
Funders conduct due diligence covering governance, financial transparency, and past performance.
Step 7: MoU & Fund Agreement
Upon approval, sign an MoU or Grant Agreement detailing fund utilization, reporting, and compliance terms.
Step 8: Project Implementation
Execute the project strictly as per the approved proposal and timelines.
Step 9: Monitoring, Reporting & Audit
Submit periodic:
- Utilization certificates
- Impact and progress reports
- Audited financial statements
Documents Required for CSR & Government Fund Raising
- Registration certificate of NGO
- CSR-1 certificate
- 12A/12AB and 80G approvals
- PAN and bank details
- Audited financial statements
- Project proposal and budget
- Past impact reports and photographs
Common CSR Activities Eligible for Funding
- Education and skill development
- Healthcare and sanitation
- Women empowerment
- Rural development
- Environmental sustainability
- Livelihood and poverty alleviation
Challenges in CSR Fund Raising
- Intense competition for funds
- Strict compliance and reporting norms
- Alignment with corporate CSR themes
- Delayed disbursements
Best Practices for Successful Fund Raising
- Maintain strong governance and transparency
- Build credible impact data
- Align projects with national priorities
- Ensure timely reporting and audits
- Develop long-term corporate partnerships
Why Choose Saving Mantra for CSR Fund Raising Support?
- NGO and CSR compliance expertise
- End-to-end fund raising strategy support
- Project proposal drafting and review
- CSR-1, 12A, and 80G assistance
- Transparent and professional advisory services
Conclusion
Institutional, Government, and CSR Fund Raising in India offers immense opportunities for compliant NGOs to scale their social impact. By following the correct step-by-step CSR fund raising process, organizations can attract sustainable funding and build trusted partnerships. Saving Mantra provides expert guidance to help NGOs navigate compliance, funding, and impact reporting successfully.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. CSR laws, government schemes, and funding criteria are subject to change. Readers are advised to consult qualified professionals before applying for institutional, government, or CSR funding in India.