If you haven't been following the recent legislative developments
in India, there's a revolutionary development that is about to start from today
(April 1st, 2014) and I swear it is not an April Fools joke.
Section 135 of the Schedule VII of
Companies Act 2013 has been notified and this section mandates all the
registered companies in India to contribute towards Corporate Social
Responsibility (CSR) activities beginning from today. So the obvious
question is which companies have to give and how much?
So the obvious question is which companies have to give and how
much?
Any registered company that meets these following three conditions are mandated to give:
Any registered company that meets these following three conditions are mandated to give:
1. A company with 5 Crores of net profit (One Crore =
166000 US dollars at a coversion rate of 60 rupees for every US dollar)
2.
A company with 1000 Crores of turn
over
3.
A company with 500 Crores of net
worth
Company
has to spend 2% of three year average of net profit in each financial
year. There are approximately 16000 registered companies in India and
companies financial disclosures of the previous years thus far seem to indicate that there's a
treasure of 20,000 crores to be spent on CSR activities.
What I have noted in my personal experience of working with non-profits is that Indian donors do give (as opposed to the popular perception) and give generously but is lot more careful in giving than their counterparts in the developed world. This means there's an added responsibility for the non-profits to win the trust and confidence of the corporates to receive their funding.
There are mechanisms available for the non-profits to prove their heart. Unless and until they are ready to embrace such tools, it will be extremely difficult to raise money in an environment where entities are looking to give and give big. One of the mechanisms that I can think of is to find an accredited organization for their governance, accountability and transparency standards. Two very strong and long standing organizations that found favor among the corporate and even in some cases with the government is ‘GiveIndia’ and ‘Credibility Alliance’ Don’t take my word for it but check out their web sites to get to know them. Non-Profit has to go through the grind to get listed by GiveIndia and stay on listed.
What I have noted in my personal experience of working with non-profits is that Indian donors do give (as opposed to the popular perception) and give generously but is lot more careful in giving than their counterparts in the developed world. This means there's an added responsibility for the non-profits to win the trust and confidence of the corporates to receive their funding.
There are mechanisms available for the non-profits to prove their heart. Unless and until they are ready to embrace such tools, it will be extremely difficult to raise money in an environment where entities are looking to give and give big. One of the mechanisms that I can think of is to find an accredited organization for their governance, accountability and transparency standards. Two very strong and long standing organizations that found favor among the corporate and even in some cases with the government is ‘GiveIndia’ and ‘Credibility Alliance’ Don’t take my word for it but check out their web sites to get to know them. Non-Profit has to go through the grind to get listed by GiveIndia and stay on listed.
If you
know of any corporate(s) that might be interested to partner with a credible
NGO, kindly do consider the Hope House and recommend us as we are listed by GiveIndia as TierI
NGO and accredited by Credibility Alliance for the highest possible norms available. Want to
support us? Click here
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