CSR-1 Form Registration: How NGOs Can Get CSR Funds

What is CSR? The Basics

CSR Meaning in India

Corporate Social Responsibility (CSR) refers to the ethical duty of companies to contribute towards social and environmental development. In India, CSR became mandatory under the Companies Act, 2013, positioning it as a pivotal force for nation-building.

Legal Framework Governing CSR

CSR regulations fall under Section 135 of the Companies Act, which mandates eligible companies to spend 2% of their average net profits over the past three years on social development.

Importance of CSR in Nation Building

CSR fund empower NGOs to drive education, healthcare, sanitation, rural development, and sustainability projects, addressing grassroots challenges where government resources may fall short.

CSR Applicability: Who Needs to Comply?

Companies Covered Under CSR Law

The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 apply to certain categories of companies based on their financial strength. Specifically, any company, whether private, public, listed, or unlisted—is mandated to comply with CSR obligations if, during any financial year, it meets any one of the following financial thresholds:

• Net worth of ₹500 crore or more

• Turnover of ₹1,000 crore or more

• Net profit of ₹5 crore or more

These thresholds are evaluated individually, meaning a company needs to meet just one criterion to fall under the CSR mandate.

Financial Terms

• Net Worth: This is the total assets of a company, minus its total liabilities. It reflects the company's financial stability and long-term viability.

• Turnover: This refers to the total revenue generated by the company from the sale of goods or services during a financial year.

• Net Profit: This is the actual profit left after deducting all expenses, taxes, and costs from the total revenue.

Obligations for Eligible Companies

If a company qualifies under these parameters, it is required to:

• Form a CSR Committee of the Board.

• Develop a CSR Policy outlining its commitment and chosen activities.

• Spend at least 2% of its average net profits of the preceding three financial years on CSR activities listed under Schedule VII of the Companies Act.

• Disclose CSR spending and activities in its annual board report and on its company website.

Applicability Across Sectors

These CSR norms are not restricted to a specific industry. They are equally applicable to manufacturing, services, finance, and IT companies. Whether a company is Indian or a foreign company operating in India with a branch office, the rules apply if the financial thresholds are met.

Threshold Limits and Mandatory Contributions

Eligible companies must form a CSR committee and contribute 2% of their average net profits from the last three financial years towards approved CSR activities.

CSR Activities Eligible for Funding

Schedule VII Activities

CSR funds can be directed toward areas outlined in Schedule VII of the Companies Act:

• Education and skill development

• Healthcare and sanitation

• Women empowerment

• Environmental protection

• Rural development

Government Approved Programs

Many government initiatives align with CSR goals, such as:

• Swachh Bharat Abhiyan

• Skill India

• Digital India

Popular CSR Initiatives

Top-performing CSR projects include building schools, vocational training centers, green energy projects, and community health clinics.

Why CSR-1 Registration is Mandatory for NGOs

Since April 1, 2021, it is compulsory for NGOs to file CSR-1 Form Registration to receive funds from corporate donors. It acts as a declaration of eligibility and ensures transparency in fund disbursal.

CSR-1 Form Registration Process Explained

Eligibility Criteria

Only NGOs meeting the following conditions are eligible:

• Registered as a Section 8 company, Society, or Trust

• Possess valid 12A and 80G certificates

Step-by-Step Filing Procedure

• Visit the MCA portal and download CSR-1 Form

• Fill in organization details and registration numbers

• Get it digitally signed by an authorized signatory

• Submit via MCA's online system

Documents Required

• Registration Certificate (Section 8, Trust, Society)

• PAN of NGO

• 12A and 80G Certificates

• Authority Letter

• DSC (Digital Signature Certificate) of authorized person

Section 8 Company Registration for CSR Funding

Importance of Section 8 Status

Section 8 Company Registration is preferred for CSR funding as it ensures structured governance, transparency, and tax advantages.

Incorporation Process

• Name Approval (via RUN service)

• SPICe+ Form submission

• Drafting MOA & AOA

• PAN, TAN, and CIN generation

Benefits for NGOs

• Access to CSR funds

• Ease in compliance

• Trust among corporate partners

12A and 80G Registration: Tax Benefits for Donors

Overview of 12A & 80G

• 12A exempts NGO income from tax

• 80G Registration allows donors to claim tax deductions

Application Process

Apply via the Income Tax portal with:

• Audited accounts

• PAN details

• Activity report

How It Helps in Attracting CSR Funds

Companies prefer funding NGOs with 80G registration since it gives them tax rebates on their donations.

FCRA Registration: For Receiving Foreign CSR Donations

What is FCRA?

Foreign Contribution Regulation Act (FCRA) enables NGOs to accept international donations.

Eligibility Criteria

• Minimum 3 years of existence

• Minimum ₹10 lakh in donations over 3 years

Registration Process

• Apply via FCRA portal

• Submit financial and activity reports

• Await MHA approval

NITI Aayog Registration for NGOs

What is NGO Darpan?

NGO Darpan is an initiative by NITI Aayog to maintain a centralized database of verified NGOs.

Benefits of Registration

• Recognition from the government

• Eligibility for government grants

• Enhances credibility

CSR Relevance

Many companies refer to NGO Darpan IDs when evaluating NGOs for CSR partnerships.

Common Mistakes to Avoid During CSR-1 Registration

• Submitting expired certificates

• Mismatch in NGO type and PAN details

• Using wrong digital signature type

Validating CSR Registration Status Online

• Visit MCA website

• Click on CSR tab → CSR-1 Filing Status

• Enter SRN number to track approval

Timeline and Fees Involved in CSR-1 Registration

• Filing Time: 3-5 working days

• Processing by MCA: 7-10 days

• Fee: Nil (government does not charge for CSR-1 filing)

Impact of CSR Funding on NGOs

Case Studies

• An NGO in Rajasthan built 50+ toilets through CSR support

• A women’s collective received vocational training through Tata CSR funding

Infrastructure Development

CSR funds enable long-term investment in physical assets like schools, clinics, and water treatment plants.

How to Approach Companies for CSR Funds

Writing a CSR Proposal

Include:

• Vision and mission

• Budget and utilization plan

• Alignment with Schedule VII

Building Corporate Partnerships

• Attending CSR networking events

• Leverage social media

• Showcase impact through annual reports

Monitoring & Reporting

• Regular updates to funders

• Impact metrics and success stories

• Financial transparency

Conclusion

CSR-1 Form Registration is for NGOs to access meaningful CSR funding from Indian corporates. By ensuring compliance with legal requirements like Section 8 Company Registration, 12A and 80G, FCRA, and NITI Aayog registration, NGOs position themselves as credible and eligible partners for impactful CSR activities. This process not only enhances transparency but also builds trust with corporate donors. With proper documentation and strategic outreach, NGOs can CSR funds to scale their missions, expand outreach, and contribute to national development goals. The effort invested in registrations is small compared to the long-term benefits of sustained funding, partnerships, and visibility. Registering for CSR-1 isn't just a formality, it's a powerful step toward driving real, sustainable change in society.

FAQs

Q1. Can an NGO receive CSR funds without CSR-1 Registration?

Ans. No, as per MCA guidelines effective from April 1, 2021, CSR-1 Registration is mandatory for all NGOs wishing to receive CSR contributions from companies in India.

Q2. What types of NGOs are eligible to file CSR-1?

Ans. Only the following NGO types can file CSR-1:

• Registered Trusts

• Registered Societies

• Section 8 Companies

They must also have valid 12A and 80G registrations.

Q3. Can a newly formed NGO apply for CSR-1 Registration?

Ans. Yes, but only if it has obtained 12A and 80G registrations and fulfills all eligibility criteria. However, most companies prefer NGOs with an operational track record for CSR partnerships.

Q4. What happens after CSR-1 is approved?

Ans. Once approved, the NGO receives a unique CSR Registration Number. This must be shared with companies during CSR proposals and is also used for compliance reporting on CSR fund utilization.