Bharat Joshi

Manager, CBR and Resource Mobilization

BLIND PEOPLE’S ASSOCIATION

AHMEDABAD-380 015

INDIA

NGOs and Corporate

Social Responsibility……

A VISIONARY & HIS VISION. . .

Dedicated to memory of Jagdish Patel

who laid the FOUNDATION

POPULAR MYTHS about

NGOs

“JHOLAWALA WORKERS”

POORLY PAID

VOLUNTEERS

“MOTHER TERESA” SYNDROME

ELDERLY DO-GOODERS

UNPROFESSIONALLY MANAGED

No Professional Career

BPA

Professional Center BPA

CHARITY SHOP

CHARITY SHOP

NOVEL CONCEPT

USED AND OLD ITEMS

R. M. PARIKH RESOURCE CENTRE SUMERU

K.C.R.C. BHUJ ASHIRVAD TRUST BPA NADIAD BRANCH

Dr. Jeet Mehta School

UNKNOWNS….contd

NGOs names different- NPOs, VOs,

Legal status different

Regulatory authorities different

Legalities

Charitable Trust.

Registered Society

A non profit organization registered as Section - 25 company

Other Legalities

We file returns too- FCRA, Charity Commissioner, Income tax

We have regulatory bodies like Rehabilitation Council of India, Credibility Alliance, etc

Health

Development

Education

Special groups e.g. Disability/Women/ Orphans/Animals

Advocacy

NGO- Activity Spectrum

JOY OF GIVING

Venkat Krishna set up www. GiveIndia.org, India’s first philanthropy exchange, that currently channels over Rs 15 crores p.a. (US$4million) from over 50,000 individual donors and 100 corporations to over 150 NGOs all over India.

COMMON THREADS

Four “Ms” apply to us also

We also want to maximize gains and minimize costs – for humanity

All NGOS also have life cycles and the ones who do not change perish

Our share holders are our stake holders

We too have to “grow or go”!!

Traditionally NGOs, Religious groups, Development agencies depend on donations, grants largely for their sustenance

Now they are looking forward to a new source

CSR….

wealth with out work;

pleasure without conscience;

religion without sacrifice;

politics without principle;

knowledge without character;

science without humanity and

business without ethics".

Gandhi Ji said, " the following seven things will destroy us:

"Welfare of community is linked with corporate success and is the duty of corporate community, no more no less."--Ratan Tata

Corporate Social Responsibility(CSR) also means.. Corporate Social Responsibility is the

continuing commitment by Business to behave Ethically and contribute to Economic Development while improving the Quality of life of the workforce and their families as well as of the local community and society at large.

World Business Council

CSR Guidelines

CSR a part of our heritage – mentioned in our scriptures, Vedas & holy books

Many business houses have been promoting CSR on their own – Lalbhai Group, Tata, Birla, Mafatlal, Reliance, Adani etc.

For the last 5 years – PSU have been promoting CSR @ 3 percent of Net Profits as per directives of PMO – ONGC, Gail, PowerGrid, IndianOil, Hindustan Petroleum

Change in CSR Approaches

Corporate Philanthropy.

It was not mandatory for Corporate

It was in Domain of Corporate Bosses

NEW CSR Policy enacted by Indian Government.

Now CSR has become legal Responsibility with punitive measures for Non Compliance.

It aims sustainable, environment and stakeholder friendly.

Its Rights of the Society

CSR Guidelines

Title: Companies (Corporate Social

Responsibility Policy) Rules,

2014.

1) Powers conferred

Under section 135 and

Sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013)

2. W.E.F. 1st day of April, 2014

Companies to which it applies

Every Indian Company

Its holding and subsidiary company

Foreign Company having its branch office or project office in India

Which Company Covered ?

Every company with net worth of Rs 500 crores or more,

Or turnover of Rs 1,000 crores or more

Or a net profit of Rs 5 crores or more on an average during last 3 financial years

Extent: 2 % of Net Profit

Permissible CSR Activities as per

Schedule VII

1.Eradicating hunger, poverty, malnutrition

2.Promoting Education

3.Promoting gender equality

4.Ensuring environmental sustainability

5.Protection of national heritage,

6.Measures for the benefit of armed forces

veterans, war widows and their dependents

7.Training to promote rural sports

8.Contribution to the Prime Minister’s National

Relief Fund

Permissible CSR Activities as per

Schedule VII

9. Contributions or funds provided to technology incubators located within academic institutions which are approved by Central Govt;

10.Rural development projects

Not Permissible Expenses

1. Contribution made to political party or political purpose.

2. Activities undertaken in pursuance of the normal course of business of the company

3. CSR activities within India

4. Amount Spent on Workforce and Family Members

•According to Indian Institute of Corporate Affairs, a

minimum of 6,000 Indian companies will be required to

undertake CSR projects in order to comply with the provisions of the Companies Act, 2013 with many companies undertaking these initiatives for the first time.

•Some estimates indicate that CSR commitments from

companies can amount to as much as 20,000 crore INR.

CII and Credibility Alliance’s Guidelines for Identifying NGOs partners

Identity of NGOs: Trust Registered, Society Registration, Company Register.

Vision, Aims, and Objectives and achievements.

Governance of NGOs

Operations

Accountability and Transparency

Affidavit by authorized signatory

Case Study: Blind People’s Association

a. Following disclosure policy as per Give India

norms

b. Uploading contributions, donations & grants on website

c. Making all major purchases public by displaying details on website

d. Displaying names of 5 major donors of month and 5 major donors

e. Issuing receipts on the spot for all donations and contributions

f. Displaying names of volunteers on the website

g. Depositing all the cash, cheques

r. Investment of all funds and endowments as per statutory provisions

s. Following Government rules in respect of CL. SL EL

t. 3 Members of Managing Committee visit every day

u. Convening of quarterly meetings of all Managing Committees

v. Convening Annual General Meeting every year before 30th September

w. Providing access to all the donors, visitors to all the departments

x. Following provisions of Industrial Dispute Act in case of any dismissal, discharge or termination & appointments.

y. Accounting of all the donations received even in kind

Outcomes

It receives regular and uninterrupted grants from Government.

Functional and result-oriented partnership with Govt.

80 % donations are made by walk in donors

Global Giving – second all over world for mobilizing highest resources within first 30 days.

Regular contribution from 3 on-line websites.

Donation of land of 5 acres for eye hospital; 22 acres for inclusive education; 1 acre for disaster management and I acre for inclusive schools.

Land for 3 campuses as revenue free land from Govt.

50 persons provide their voluntary services

Contributions from Corporate sector under Corporate Social Responsibility is on increase

Funding from international statutory sources is increasing

Assets growth at 20% per annum over last two decades

Investment growing at 10% every year for last 2 decades

Participation of Staff in CSR

I. Payroll Giving: Staff gives written consent that a specific amount be deducted from salary and contributed towards CSR. HDFC Bank Staff has donated 60 lacs to Blind People’s Association.

II. Volunteers: Providing Voluntary services to Projects being supported under CSR for monitoring etc.

Participation of Staff in CSR

III. Identification of Projects: Staff assists company in indentifying right type of NGOs and appropriate Projects.

IV. Joining Service Clubs: Staff may join well established service clubs like Lions, Rotary, Round Table etc and promote CSR

Participation of Staff in CSR

V. Capacity Building: Staff assists NGOs in their capacity building, building human resources and adopting innovations

VI. Shram Daan: Spending time at NGOs and providing need based services, promoting their reach and adopting newer approaches

Participation of Staff in CSR

VII.Use of Individual Talent:

Staff assists NGOs in

promoting social

networking, mobilization of

resources, enhancing public

relations and use once

unique talents for

promoting service delivery

Participation of Staff in CSR

VIII.Daan Utsav: 2nd to 8th

October – every year – Joy

of Giving any thing to any

as per needs – a concept of

charity as per capacity and

individual needs

Conclusion

"A good company delivers great products and services but a great company does that and makes the world a better place". William Ford Junior

Thank you

CSR does not mean Corporate Social Responsibility, it also stands for Collective

Responsibility.

Together We Can Do More