Changes in CSR effectively rule out ‘Societies’ & ‘Trusts’ from accessing CSR funds
Another blow to the Non-Profit Sector by the Govt. Ministry of Corporate Affairs has brought out draft rules for changes in CSR rules. The proposed rules now specify that only following entities can implement CSR Projects.
- Company itself or in collaboration with another company
- a S.8 company
- any entity established under an Act of Parliament or State legislature (likely to be only Govt / Autonomous bodies promoted by Govt)
This effectively rules out Societies or Trusts from accessing CSR funds. Considering Societies/ Trusts form 90% of NGO sector organisations, this will impact most NGOs.
However all is not lost, these are still DRAFT rules, and govt has invited comments from public. We are giving a ready link for you to connect to the webpage, where you can give your comments.
In view of the severe adverse impact that such a change would have on NGOs finances, we request all to submit comments asking Govt to reconsider removal of ‘societies & trusts’ from accessing CSR funds. In this regard, we can request that old rule which required at least three years successful track record for all NGOs, irrespective of legal format be continued.
Soon we will bring a comprehensive note on proposed changes in CSR Rules on this forum itself.
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Socio
Research & Reform Foundation (NGO)
512 A,
Deepshikha, 8 Rajendra Place, New Delhi – 110008