What is CSR?
Corporate Social Responsibility (CSR) is a legal requirement in India for large companies to spend part of their profits on social and environmental projects. Since 2014, under Section 135 of the Companies Act, companies meeting certain financial thresholds must spend at least 2% of their average net profits (last 3 years) on approved CSR activities. CSR is not just charity—it’s a structured way for businesses to give back to society while building trust and reputation.
How Much Money is spent on CSR?
FY 2023–24 CSR spending: Over ₹30,000 crore across thousands of projects.
Cumulative CSR investment (2014–2024): More than ₹2.21 lakh crore.
Focus areas: Education, healthcare, environment, women empowerment, rural development, and disaster relief
Who Are the Biggest CSR Funders?
| Company | CSR Focus Areas | Recent CSR Spend |
| Reliance Industries | Healthcare, education, rural development |
Among top spenders in India |
| Tata Group | Farmer training, skill development, environment |
Hundreds of crores annually |
| Infosys Foundation | Education, healthcare, arts & culture |
Major CSR grants |
| ONGC | Rural development, healthcare, environment |
Large PSU contributor |
| HCLTech Foundation | Education, skill development, environment |
Expanding CSR grants |
| SBI Foundation | Rural livelihoods, healthcare, education |
Strong PSU presence |
Why Does CSR Matter?
For society: Funds schools, hospitals, clean water, women empowerment, and climate action.
For companies: Builds reputation, attracts investors, and strengthens community goodwill.
For NGOs: Provides structured funding opportunities to scale impact.
Examples of Impact
Hindalco: Spent over ₹360 million on healthcare, education, and sustainable farming.
ITC Limited: Runs large-scale projects in forestry, water stewardship, and women
empowerment.
Tata Chemicals: Invested ₹160 million in farmer training and rural youth employment.
Challenges for Grassroots NGOs in Accessing CSR Funds
Even though CSR spending is large, small and local NGOs often face barriers:
Networking gap: Many small NGOs lack connections with corporate CSR teams or
intermediaries, making it harder to even get noticed.
Complex compliance requirements: Registration under CSR‑1, 12A/80G tax
exemptions, and NGO Darpan ID can be difficult for small organizations.
Preference for large NGOs: Corporates often fund well‑established NGOs with national presence, leaving smaller groups overlooked.
Limited capacity: Grassroots NGOs may lack proposal‑writing skills, financial reporting systems, or digital tools required by companies.
Geographic bias: CSR funds tend to concentrate in urban or industrial areas, while
remote rural NGOs struggle to attract attention.
Short‑term projects: Companies often prefer visible, quick‑impact projects, which may not align with the long‑term development work of local NGOs.
Tips for NGOs to Access CSR Funds
Network actively: Attend CSR forums, NGO fairs, and industry events to connect with CSR managers.
Strengthen compliance: Ensure CSR‑1 registration, tax exemptions (12A/80G), and proper documentation are in place.
Build capacity: Invest in proposal writing, financial management, and monitoring systems to meet corporate standards.
Showcase impact: Use simple reports, videos, or case studies to demonstrate measurable outcomes.
Leverage partnerships: Collaborate with larger NGOs or networks to gain visibility and credibility.
Engage locally: Approach companies operating in your region; they often prefer funding projects near their business operations.
Use digital presence: Maintain an updated website and social media to showcase transparency and attract attention.
Focus on alignment: Tailor proposals to match the CSR priorities of target companies (e.g., education, environment, healthcare).
Key Takeaways for Beginners
• CSR projects touch everyday lives—schools, hospitals, clean water, jobs, and environment.
• CSR is mandatory for large companies in India.
• Spending is huge and growing—over ₹30,000 crore annually.
• Top funders include Reliance, Tata, Infosys, ONGC, HCLTech, and SBI.
• Grassroots NGOs face challenges in compliance, visibility, and capacity building.
Conclusion
CSR in India is one of the largest corporate-driven social investment programs in the world. For groups new to the concept, think of CSR as a bridge between business profits and social good. Companies are not just making money—they are legally required to reinvest part of it into building a better India.
Author
Biju Pappachan
Director, Phoenix India Consulting
Phoenix India Consulting supports grassroots organizations to access CSR funding by strengthening compliance, improving visibility, and providing hands‑on support in proposal development. With decades of experience in program design and organizational development, Biju and his team help NGOs translate their local impact into structured, fundable projects that meet corporate CSR standards.