Question 1

How can an NGO get CSR funding in India?

Accepted Answer

An NGO can get CSR funding by first ensuring it has CSR-1 registration with the Ministry of Corporate Affairs, valid 12A and 80G certificates, and at least three years of audited financials. Companies with a net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more must spend 2% of their average net profit on CSR. NGOs access this funding by being discoverable, building credibility through compliance, and submitting tailored proposals that match each company's Schedule VII focus areas.

Question 2

Which NGOs are eligible to receive CSR funds?

Accepted Answer

To receive CSR funds, an NGO must be registered as a Section 8 Company, a registered Public Trust, or a registered Society, hold mandatory CSR-1 registration with the MCA, and have valid 12A registration. Since April 2021, CSR-1 registration is compulsory for any entity receiving CSR funds. The NGO should also have at least three years of track record, though companies may fund newer organisations they establish or have an established relationship with.

Question 3

How much CSR funding can an NGO receive?

Accepted Answer

There is no fixed limit on how much CSR funding an NGO can receive. The amount depends on the funding company's CSR budget, the scope of the project, and the NGO's capacity to deliver. CSR teams typically match grant size to an NGO's demonstrated capacity — an organisation whose largest past grant was Rs 10 lakh may struggle to win a Rs 2 crore mandate, as it signals capacity risk. Building a track record of successfully delivered grants is the key to accessing larger funding.

Question 4

Is CSR funding free money for NGOs?

Accepted Answer

No. CSR funding comes with significant accountability. Companies must report CSR spending to their board and in their annual report under the Companies Act. NGOs receiving CSR funds are expected to deliver measurable outcomes, submit utilisation reports, and often undergo monitoring and evaluation. CSR funds are best understood as outcome-linked grants with reporting obligations, not unconditional donations.

Question 5

What is CSR-1 registration and is it mandatory?

Accepted Answer

CSR-1 is a registration form filed with the Ministry of Corporate Affairs that every NGO must complete to receive CSR funds in India. It has been mandatory since 1 April 2021. Without a valid CSR-1 registration and its associated CSR Registration Number, no company can legally route CSR funds to your organisation, regardless of how strong your work or proposal is.

Question 6

What is the difference between 12A and 80G registration?

Accepted Answer

12A registration exempts an NGO's income from income tax, allowing the organisation to retain more of its funds for charitable work. 80G registration provides a tax benefit to donors, allowing them to claim a deduction on donations made to the NGO. 12A benefits the NGO directly; 80G makes the NGO more attractive to donors. Both are issued by the Income Tax Department, are valid for five years, and are renewed through Form 10AB.

Question 7

Do NGOs need FCRA registration for CSR funding?

Accepted Answer

No. FCRA registration is required only to receive foreign contributions — funds from foreign governments, foreign foundations, or foreign citizens. Domestic CSR funds from Indian companies do not require FCRA. For domestic CSR funding, an NGO needs CSR-1, 12A, and 80G. FCRA only becomes relevant if the funding source is foreign or if an Indian company funding you has more than 50% foreign ownership.

Question 8

What documents does an NGO need to be CSR-ready?

Accepted Answer

A CSR-ready NGO needs: registration certificate (Section 8, Trust Deed, or Society registration), CSR-1 registration with the MCA, valid 12A and 80G certificates, three years of UDIN-verified audited financial statements, PAN card, board or trustee details with DINs where applicable, and an annual report with impact data. Having all of these current and verifiable removes the biggest sources of friction in CSR funding decisions.

Question 9

How long does CSR-1 registration take?

Accepted Answer

CSR-1 registration is typically processed within a few working days once filed correctly on the MCA portal, as it is a self-declaration form verified by a practising professional such as a Chartered Accountant or Company Secretary. The prerequisite is that your 12A and registration documents are already in order. The form itself is straightforward once supporting documents are ready.

Question 10

What is an NGO Trust Score?

Accepted Answer

An NGO Trust Score is an independent credibility rating that measures how trustworthy and funding-ready an organisation is, based on verified data rather than self-reported claims. The PATVAAR Trust Score is computed across five pillars — Compliance, Governance, Financial health, Reporting transparency, and Operations — and cross-referenced against government sources. It gives CSR teams an instant, verifiable signal of an NGO's credibility.

Question 11

How is the PATVAAR Trust Score calculated?

Accepted Answer

The PATVAAR Trust Score is calculated across five pillars: Compliance (registration, 12A, 80G, CSR-1, FCRA status), Governance (board structure and transparency), Financial health (audited financials and UDIN verification), Reporting (disclosure quality), and Operations (track record and delivery capacity). Each pillar is scored from verified documents and government database cross-references, producing an overall score out of 100 and a tier rating from C to A+.

Question 12

How do CSR teams verify NGOs before funding?

Accepted Answer

CSR teams verify NGOs by checking registration status on MCA21, confirming 12A and 80G validity on the Income Tax portal, verifying audited financials through UDIN, checking FCRA status on the MHA portal where relevant, and reviewing track record and governance. This due diligence can take weeks when done manually. A verified Trust Score compresses this into an instant, independently checkable signal, which is why verified NGOs move through funding decisions faster.

Question 13

Why do credible NGOs still struggle to get CSR funding?

Accepted Answer

Many credible NGOs struggle because their quality of work is invisible to funders without proof. A CSR manager receiving 200 proposals has no quick way to verify which organisations are genuinely compliant and capable, so they default to funding NGOs they already know. This is why 85% of CSR funding concentrates among a small number of well-known organisations. Independent verification levels this field by making credibility provable for any NGO.

Question 14

Which sectors receive the most CSR funding in India?

Accepted Answer

Education receives the largest share of CSR funding in India at approximately 28 to 32% annually, followed by healthcare at 18 to 22%, rural development at 10 to 14%, and environment, which is the fastest-growing sector at 8 to 12%. Mental health and climate resilience are emerging sectors where funder demand currently exceeds the supply of credible NGO partners, creating opportunities for well-positioned organisations.

Question 15

When is the best time to approach companies for CSR funding?

Accepted Answer

The best time to approach companies is between February and June. Most companies finalise their CSR budgets and select implementation partners in the first quarter of the financial year, between April and June. Submitting proposals in February or March, before the new budget is allocated, positions your NGO ahead of the rush and increases your chances of being considered.

Question 16

Which states receive the most CSR funding in India?

Accepted Answer

Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Rajasthan together receive approximately 50% of India's total CSR funding, broadly mirroring where corporate headquarters and manufacturing operations are located. States with high development needs such as Uttar Pradesh, Bihar, Jharkhand, and the Northeast receive proportionally less, partly because credible verified NGO partners are harder for funders to identify there.

Question 17

What is PATVAAR?

Accepted Answer

PATVAAR is India's NGO-CSR matchmaking marketplace — a platform that computes independent Trust Scores from government data and connects credible NGOs with CSR funders. It helps NGOs become discoverable and fundable, and helps CSR teams find and fund trustworthy partners without weeks of manual due diligence.

Question 18

Is PATVAAR free to use?

Accepted Answer

Yes. Getting a Trust Score on PATVAAR is completely free during the current Beta period. NGOs can register, complete the process, and receive a published Trust Score at no cost. There are no agent fees, no promotion charges, and no hidden costs.

Question 19

How long does PATVAAR verification take?

Accepted Answer

PATVAAR's Trust Score publication takes up to seven working days from the point all required documents are submitted. The process involves cross-referencing your documents against government databases including MCA21, the Income Tax portal, UDIN, and the FCRA portal where applicable.

Question 20

Who can use PATVAAR?

Accepted Answer

PATVAAR serves two groups. NGOs registered as Section 8 Companies, Trusts, or Societies can get a Trust Score to become discoverable to funders. CSR teams, foundations, and corporate funders can browse the NGO registry, filter by sector, geography, and Trust Score, and post funding mandates. PATVAAR is strictly no-agent and operates on government-sourced data.

Question 21

How does PATVAAR verify NGO information?

Accepted Answer

PATVAAR verifies NGO information by cross-referencing submitted documents against official government sources: MCA21 for company and CSR-1 registration, the Income Tax Department portal for 12A and 80G status, UDIN for audit verification, and the Ministry of Home Affairs portal for FCRA status. This means a Trust Score reflects independently confirmed data, not self-reported claims.

CSR Funding in India, by Sector