There is no straight forward answer to this question – how to get CSR funding? However, one thing is very sure that there is huge funds under CSR, which all the eligible companies should invest in communities. You can check amount spent by companies under CSR in this official website of Ministry of Companies Affairs – Here
So, today, I am not discussing here how much funds available in CSR and which companies are liable to spare this fund.
Let us discuss from the view point of NGOs. How one grass-root NGO can get CSR funding ? In my opinion, NGOs should make efforts to reach out to CSR company rather than wait to be found by them.
So, before going into details on how a grass-root NGOs have to be prepared themselves for CSR funding and how to approach companies, let us first see what an NGO should not do to get CSR funding.
Don’ts – CSR Funding
1. Stay Away from Middle Man
Now days, you can found so many from this species called “Middle Man” . Stay away from this type of person who gives you guarantee to get funding in consideration of some “commission” or “cuts” or “payback” whether this person is your CA, friend, some funding agency employee or company employee. Just stay away from such middle man.
2. Routing of Funds
Another wrong practice, where company gives you CSR funds on a condition (of course unofficially) to route some portion of funds to the specific interested person or companies in the form of Salary, Fees or some procurement expenditures or by any other legal transactions by whatever name called. Though, speaking in legal terms, it may be correct, but still that will affect the credibility of your organization.
Do’s – CSR Funding
Before, approaching for funds to companies for CSR, NGO should do a self-evaluation, particular in the area of progarm implementation and control system. I have divided CSR funding process in three steps –
- Improve Program Quality
- Establish various Systems
- Approach Companies for CSR
Check out this chart –
We will discuss all the above steps in detail in the next part.