Identifying CSR Implementing Agency

Identifying an appropriate Implementing Agency for undertaking Corporate Social Responsibility (CSR) activities is an important task as the proper utilization of funds allocated depends on how capable the Implementing Agency is.

While finalizing the Implementing Agency, the following points should be kept in mind:

1. The Implementing Agency should have well established track record of 3 years or more.
2. The Implementing Agency should not have any association with any political party – directly or indirectly. Otherwise the whole purpose may deviate.
3. The Implementing Agency should not have any conflict of interest with the employees of the company. There should be no direct or indirect benefit to any of the employees of the company or their family members.
4. The Implementing Agency should have registration under section 12AB and section 80G of the Income Tax Act and from 1st April, 2021 onwards such agency should also be registered with the MCA ( Form CSR-1)for undertaking CSR activities.
5. If the Implementing Agency has FCRA registration it is an added advantage since it is vetted by Ministry of Home Affairs, Govt. of India. FCRA is needed if the Company is a Foreign Subsidiary.
6. The antecedents of the Implementing Agency, its past reputation, the reputation of persons associated with the same should also be subjected to scrutiny before selection.
7. Any other requirement as may be prescribed by Government / Regulatory Authorities is being followed by the Implementing Agency.
8. Make sure the implementing Agency is Grassroot Organization, they will know the need of the particular intervention.

Unspent amount for FY 2023-2024 has to be transferred by by 30th September 2024. Click here for more details !

You can Claim 80G deductions for Companies CSR as per The Income Tax Appellate Tribunal (ITAT) bench rulings. Click here for more details !