Corpus Donation

Sir,

I had read in one of your answers that under CSR cos can donate to corpus fund ? is it true?Under what section of the act ?whatever details we can get from your forum we will like others will be too hapyy.

Thanking you.

With Best regards,

Devendra Desai
Founder / Managing Trustee
Children Toy Foundation

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2 Responses to Corpus Donation

  1. Subhash Mittal says:

    As per Rule 7 of Companies (CSR) Rules 2014, CSR Expenditure shall include all expenditure including contribution to corpus, or on projects or programs relating to CSR activities approved by the Board on the recommendation of its CSR Committee, but does not include any expenditure on an item not in conformity or not in line with activities which fall within the purview of Schedule VII of the Act.

    From the above Rule, it is clear that corpus is covered, as long as these conditions are met. Questions are asked, if expenditure has to be Schedule VII activities how it can be corpus. It has been clarified that as long as the NPO is exclusively set up for any of the Sch. VII activities, then a corpus grant can be given to such an entity and be treated as expenditure under CSR.

  2. Pankaj Agarwal says:

    Please give details of corpus donation out of csr funds

    Pankaj Agarwal

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