We have a query from a Corporate partner on whether they can pay a registered charity organisation, its 10 per cent administration fees to run the projects, because the recent CSR bill caps administration expenses to 5 per cent.
As we understand the current CSR rule. Provision of administrative expenses of 5 per cent in the recent CSR rule is been made to enable corporates to build their internal capacity and / or consult with for profit organisation for CSR strategy / implementation plans etc. Once the corporate donate its 95 per cent CSR funds to a registered charity organisation, the registered charity organisation can charge 10 per cent admin fee from / within the 95 per cent donation received from the corporate to run the project. This does not violate the 5 per cent administration expenses clause of CSR rule.
Please do share your views on the same.
Thanks and regards,