Spending by Corporates to deal with the corona virus outbreak will be considered as CSR activity under the Company’s Law, Government said on Monday, March 23, 2020. In India over 400 people have been infected by the corona virus and at least seven people have died, while many states have announced lockdown to curb spreading of the the infection. (current updates on corona virus is being updated by media)
Under the Companies Law, certain classes of profitable entities have to shell out at least an average of 2 percent of their preceding three years annual net profit towards Corporate Social Responsibility (CSR) activities in a particular financial year.
The Government of India, Ministry of Corporate Affairs stated in circular dated March 23, 2020 that “ It is hereby clarified that spending of CSR funds for COVID – 19 is eligible for CSR activity”.
CSR funds could be utilised for various activities related to COVID – 19, including those relating to preventing health care and sanitation, as per the circular. The CSR funds could also be used for direct expenditure to contain the spread, morbidity and mortality due to the disease.
Corporate Affairs Minister, Honourable Nirmala Sitaraman tweeted the circular “ In view of the spread of novel # Corona Virus in India, its declaration as pandemic by the WHO, and decision of Government of India to treat this as notified disaster, it is hereby clarified that spending CSR funds for COVID – 19 is eligible CSR Activity”…
Every company having net worth of at least Rs. 500 Crores, turnover of Rs. 1000 Crore or more or a minimum net profit of Rs. 5 Crores during immediately preceding year has to make the CSR expenditure. A suggestion has been mooted to Government of India to create a portal on which specific requirements of equipment, medicines may be posted for contribution in cash or kind to make the coordinated efforts and avoid duplications. Thanks to the web site www.moneycontrol.com for disseminating this information.
Brief guidelines for developing CSR projects:
The following inputs are normally envisaged in a project proposal aimed at convincing the Corporate houses to grant funding under their Corporate Social Responsibility domain:
- Personal information, brief profile & contact details of the Head of the organisation & key personnel involved in the ongoing activities of the Federation / Association.
- Organisation details i.e. name, date of registration, nature of organisation, (whether Charitable Trust, NGO, Section 15 company or any other ), city, brief on past experiences , achievements and current activities, current sources of revenue for undertaking the ongoing activities (from donors / volunteers / government support etc.,). Preceding three years statement of accounts.
- Problem statement ; key drivers to resolve the concerns of elderlies in the region ; proposed strategy. The issue should have impacts on social fabric in quantifiable / measurable terms.
- Project details – the facilities, implementation methodology, agencies in the implementation, organisation supervising the implementation, commissioning, taking over and project life time operations. The project ownership until its life cycle including sustainability is to be established.
- Financial Analysis : For project implementation & operation, sustainability for project life cycle.
- Meeting donors concerns for funds getting utilised in trust worthy, transparent and credible manner for the intended purpose, progress reporting on implementation and social impact analysis / benefits. Donors may have some specific guidelines on the reporting formats.
- Credentials of the promoters of the project & organisation like past awards / certificates, recommendation letters from dignitaries, bank statements, home work done (like field survey / back up offers obtained for project implementation etc.,)
Sharing of experiences:
The following CSR projects are under pipeline. The promoters / project leaders contact details are also given. You are welcome to interact with the concerned to get an update on their efforts and possibly seek the guidelines / discuss as to how to go about your endeavours.
- Caring for left out Elderly in Kumbh Mela Haridwar 2021. (Mr.MK Raina, Chairman CSR mob: 9760002072)
- Care home for an elderly women in Ujjain city. (Mr. Arvind Jain, Ujjain, Jt.Secretary mob: 9424538639)
- Old age home in Vijayawada (Dr. GVVUM Rao Member CSR, mob: 9441370225)
- Services to economically deprived in Goa. (Mr. Diogo M. Da Costa, President mob: 9881090933)
- Chennai – a number of proposals (Mr. D. Rajasekaran President mob: 6381874737 / 9444368077)
- Day Care in Chandigarh (Mr. IP Puri, President mob: 9815077553)