India’s corporate social responsibility (CSR) landscape is growing rapidly, creating new opportunities for non-governmental organizations (NGOs), nonprofits, and social enterprises. Moreover, domestic CSR funding is increasingly vital as international funding tightens and grants face scrutiny.
According to CRISIL reports, CSR spending by listed Indian companies reached approximately ₹22,563 crore in FY25, registering a 17.5% increase compared with the previous financial year. This growth highlights the increasing role of Indian businesses in supporting social development and addressing important challenges such as education, healthcare, environmental protection, rural development, and women’s empowerment.
Moreover, for NGOs working at the grassroots level, this development brings an important opportunity. Instead of depending heavily on international donors, organizations can explore partnerships with Indian companies that are willing to invest in meaningful social projects.
But what does this growth mean for NGOs, and how can they benefit from India’s expanding CSR funding ecosystem? Now, we will explore.
Furthermore, understanding the growth of CSR funding in India.
Moreover, corporate social responsibility is a system through which businesses contribute to social and environmental development. Instead of focusing only on profits and business expansion, companies are increasingly investing in initiatives that improve people’s lives and support sustainable development.
Consequently, in India, CSR spending became mandatory under Section 135 of the Companies Act, 2013. Companies that meet the prescribed financial criteria are required to spend at least 2% of their average net profits from the preceding three financial years on eligible CSR activities.
As a result, over the years, this framework has encouraged businesses to become more involved in addressing social challenges. What initially started as a legal responsibility has gradually developed into an important part of corporate planning and community development.
However, the latest CRISIL analysis shows just how much this funding ecosystem has expanded.
Additionally, in FY24, listed companies reported CSR spending of approximately ₹19,208 crore. As a result, it increased to ₹22,563 crore in FY25, representing a growth of 17.5%. The number of companies reporting CSR expenditure also increased by 20%, reaching 2,013 companies compared with 1,678 in the previous year.
Additionally, these figures indicate that more businesses are involved in social development activities, widening funding for public welfare programs.
However, where is India’s CSR funding going?
Moreover, the CRISIL findings show a broad spectrum of development areas receiving corporate support.
Although education and healthcare continue to receive the largest share of CSR funding, companies are also showing greater interest in environmental protection, rural development, and sports.
As a result, this highlights the major funding areas in FY25.
1. Education and Skill Development
Additionally, education and skill development remained the largest area of CSR investment, receiving approximately ₹9,182 crore, accounting for nearly 41% of total CSR expenditure.
Many communities across India still face challenges such as limited access to quality education, inadequate school infrastructure, a shortage of learning resources, and a lack of vocational training opportunities.
Furthermore, corporate funding can help address these challenges through:
- Additionally, developing school infrastructure and improving facilities.
- Additionally, scholarships for students from economically weaker backgrounds.
- Digital learning facilities and computer education.
- Vocational training and employment-oriented skill development.
- Educational programs for girls and underserved communities.
For NGOs working in education, this creates opportunities to develop long-term projects that improve learning outcomes and help young people build better career opportunities.
2. Healthcare and Sanitation
Healthcare and sanitation received approximately ₹5,386 crore, representing nearly 24% of total CSR expenditure.
Access to affordable healthcare remains a major challenge in many rural and underserved areas. Several communities struggle with limited medical facilities, inadequate sanitation infrastructure, and a lack of awareness about preventive healthcare.
CSR partnerships can support initiatives such as:
- Free medical camps and health check-ups.
- Maternal and child healthcare programs.
- Nutrition and awareness campaigns.
- Clean drinking water and sanitation facilities.
- Mental health awareness and community wellness programs.
NGOs with experience in healthcare delivery can collaborate with companies to take medical services and awareness programs to communities that need them most.
3. Environmental Protection and Climate Action
Environmental initiatives recorded one of the most significant increases in CSR investment during FY25. Spending in this area nearly quadrupled to approximately ₹2,371 crore.
This growing interest reflects the increasing importance of environmental sustainability in corporate development strategies.
Businesses are becoming more aware of environmental challenges, including climate change, water scarcity, deforestation, pollution, and biodiversity loss.
CSR funding can support projects involving:
- Tree plantation and forest restoration.
- Water conservation and rainwater harvesting.
- Waste management and recycling.
- Renewable energy awareness and adoption.
- Biodiversity conservation.
- Climate resilience and sustainable agriculture.
For environmental NGOs, the growth in corporate investment creates opportunities to build partnerships around measurable environmental outcomes.
Organizations working in climate adaptation, ecosystem restoration, and community-led conservation can explore CSR funding as an additional source of support.
4. Rural Development
Rural development received approximately ₹1,632 crore in FY25, highlighting growing corporate interest in improving living conditions beyond major cities.
Rural communities often experience challenges related to employment, infrastructure, agricultural productivity, education, healthcare, and access to basic services.
CSR-supported rural development projects can focus on:
- Improving village infrastructure.
- Supporting farmers and agricultural communities.
- Creating livelihood opportunities for rural families.
- Promoting women’s self-help groups.
- Improving access to clean water and sanitation.
- Providing vocational training to rural youth.
NGOs with strong local networks can play an important role in implementing these initiatives because they understand community needs and have direct experience working with local populations.
5. Sports and Youth Development
Sports also experienced considerable growth in CSR investment. Spending in this category nearly tripled to approximately ₹753 crore during FY25.
Sports programs can contribute to physical fitness, confidence, teamwork, discipline, and youth development. They can also create opportunities for children from disadvantaged communities who may not have access to proper sports facilities.
Companies can support:
- Community sports facilities.
- Training programs for young athletes.
- Sports equipment for government schools.
- Girls’ participation in sports.
- Coaching and talent development programs.
For NGOs working with children and young people, sports-based development initiatives can become another area for potential corporate partnerships.
These figures are based on CRISIL’s FY25 analysis. It is worth noting that improved reporting also influenced comparisons across certain spending categories, as nearly ₹9,900 crore of FY24 CSR expenditure had been reported without an activity-wise breakdown.
Why Is Domestic CSR Funding Becoming Important for NGOs?
For many years, international foundations, foreign donors, and development agencies have played an important role in financing India’s nonprofit sector. However, changes in international funding priorities, tighter compliance requirements, and increased scrutiny of foreign contributions have made fundraising more challenging for some organizations.
This has encouraged NGOs to explore alternative funding opportunities within India.
Domestic CSR funding offers an important possibility because it connects organizations working on social challenges with businesses that have resources to support development projects.
There are several reasons why this funding source deserves greater attention.
1. A Growing Pool of Domestic Funding
The increase in CSR spending to ₹22,563 crore demonstrates that Indian businesses are allocating significant financial resources to social development.
As more companies participate in CSR activities, NGOs have an opportunity to approach a wider range of potential funding partners.
This is particularly important for smaller organizations that may struggle to compete for large international grants.
2. Opportunities for Long-Term Partnerships
CSR funding is not limited to one-time donations. Companies may support multi-year projects focused on education, healthcare, environmental protection, and community development.
Such partnerships can help NGOs plan their activities more effectively, maintain programs over longer periods, and reach more beneficiaries.
However, long-term funding depends on company priorities, project performance, and the terms of individual partnerships.
3. Greater Support for Local Development
Domestic CSR initiatives can create opportunities for organizations working in specific districts, villages, and underserved communities.
Local NGOs often have valuable knowledge about regional challenges, community needs, and cultural practices.
By working with these organizations, companies can support projects that are more closely connected to the needs of the communities they aim to serve.
4. Reduced Dependence on a Single Funding Source
Depending heavily on one donor or funding channel can create financial difficulties when funding priorities change or grants are discontinued.
Exploring CSR partnerships allows NGOs to diversify their funding sources.
A balanced fundraising strategy may include domestic CSR contributions, Indian foundations, individual donations, institutional grants, and eligible international funding.
CSR should not necessarily replace foreign grants. Instead, it can become another important part of an NGO’s financial sustainability strategy.
How Can NGOs Access Corporate CSR Funding?
Although the growth in CSR spending is encouraging, receiving corporate funding requires more than simply approaching companies and requesting financial assistance.
Businesses generally look for organizations that have clear project objectives, implementation experience, financial transparency, and the ability to demonstrate measurable results.
NGOs interested in accessing CSR funding should consider the following steps.
1. Understand CSR Funding Priorities
Before approaching a company, NGOs should understand its CSR policy and identify the areas in which it invests.
For example, a company focusing on education may be interested in supporting school infrastructure, scholarships, or vocational training rather than an unrelated environmental project.
NGOs should research:
- The company’s CSR policy and annual reports.
- Its preferred development sectors.
- The geographical areas where it operates.
- Its previous CSR projects and partnerships.
- Its current funding priorities.
This research helps organizations approach companies with relevant proposals instead of sending the same funding request to every potential donor.
2. Prepare a Strong Project Proposal
A well-developed project proposal is essential when approaching corporate funders.
It should clearly explain the problem an organization wants to address, the proposed solution, the communities that will benefit, and the expected outcomes.
An effective CSR project proposal should include:
- Project Background: Explain the social problem and why it needs attention.
- Objectives: Clearly define what the project aims to achieve.
- Target Beneficiaries: Identify the communities and people who will benefit.
- Activities: Describe the work that will be carried out.
- Implementation Plan: Provide a realistic timeline and explain how the project will be managed.
- Project Budget: Present a detailed breakdown of the financial requirements.
- Expected Outcomes: Explain how the project will improve the lives of beneficiaries.
- Monitoring and Evaluation: Describe how progress and impact will be measured.
Companies need to understand not only how their money will be spent but also what difference their investment is expected to make.
3. Maintain Legal and Financial Compliance
Transparency and legal compliance are essential when applying for CSR funding.
Under the Companies (CSR Policy) Rules, eligible implementing agencies must meet the applicable registration and eligibility requirements. These can include registration under Section 8 of the Companies Act or as a public trust or registered society, relevant tax registrations under Sections 12A and 80G, and a three-year track record in similar activities, depending on the category of implementing agency.
Eligible implementing agencies are also required to register through the MCA’s CSR-1 filing process.
NGOs should maintain:
- Registration certificates and statutory documents.
- Audited financial statements.
- Annual activity reports.
- Details of previous projects.
- Financial records and expenditure statements.
- Relevant tax registrations and CSR-1 registration.
Having these documents organized makes it easier for companies to evaluate an organization’s credibility and suitability for a partnership.
4. Build Relationships with Corporate CSR Teams
Finding the right corporate funding partner is an important part of successful fundraising.
NGOs can identify companies operating in sectors that match their development activities and connect with their CSR or sustainability teams.
For example, a company in the healthcare sector may be interested in supporting community health programmes, while a manufacturing company may prioritize environmental sustainability, vocational training, or rural development.
Organizations should focus on building genuine relationships rather than approaching companies only when they need immediate financial assistance.
5. Demonstrate Measurable Social Impact
Corporate funders increasingly want to understand the results of their CSR investments.
Instead of simply reporting that a project conducted several activities, NGOs should explain what changed because of those activities.
For example:
- Number of children who received educational support.
- Number of women who completed vocational training.
- Number of households that gained access to clean drinking water.
- Number of farmers trained in sustainable agricultural practices.
- Number of communities benefiting from healthcare programmes.
Clear indicators, regular progress reports, photographs, beneficiary feedback, and financial records can help organizations demonstrate their impact.
Challenges NGOs May Face in Accessing CSR Funding
Despite the growth in corporate social responsibility spending, accessing these funds is not always easy.
The availability of a larger funding pool does not automatically mean that every NGO will receive financial support. Companies have their own priorities, eligibility requirements, and project selection processes.
Some important challenges include:
1. Competition Among NGOs
Thousands of nonprofit organizations are working across different development sectors. As more NGOs approach companies for CSR partnerships, competition for funding can become stronger.
Organizations need to communicate their strengths, experience, and project outcomes clearly.
2. Preference for Established Organizations
Some companies prefer working with organizations that have an established track record, professional management systems, and experience handling large projects.
This can make it difficult for newly established and smaller grassroots NGOs to secure funding, even when they are doing valuable work.
3. Geographic Concentration of Funding
CSR spending is not distributed equally across all regions.
According to CRISIL, Maharashtra received the highest CSR expenditure in FY25, at approximately ₹11,356 crore, followed by Delhi and Karnataka. The top 10 states accounted for around 95% of total CSR expenditure.
Aspirational districts continued to receive a relatively small share, with CSR expenditure in these districts accounting for only around 10% of the total.
This creates an important challenge for NGOs working in remote and underserved regions, where development needs may be significant but corporate investment remains limited.
4. Limited Fundraising and Proposal-Writing Capacity
Many small NGOs do not have dedicated fundraising teams or professional grant writers.
Preparing detailed proposals, developing budgets, researching corporate priorities, and managing compliance requirements can require considerable time and resources.
This can make it difficult for smaller organizations to compete with more established nonprofits.
5. Reporting and Accountability Requirements
Companies need to ensure that CSR funds are used for their intended purposes.
As a result, NGOs may be required to provide regular progress reports, financial statements, utilization certificates, and evidence of project outcomes.
Organizations without proper documentation and monitoring systems may find it challenging to maintain corporate partnerships.
How AI Can Help NGOs Find and Access CSR Funding
As the CSR funding landscape becomes more competitive, technology can help NGOs improve their fundraising processes.
Artificial intelligence (AI) is becoming a useful tool for organizations that want to spend less time on administrative work and more time on their development activities.
AI-powered tools can support different stages of the fundraising process.
1. Finding Relevant CSR Funding Opportunities
Searching for potential corporate donors can be time-consuming.
NGOs may need to review company websites, CSR reports, annual reports, and funding announcements to identify suitable opportunities.
AI-powered research tools can help organize this information, identify companies working in relevant sectors, and shortlist potential funding partners.
For example, an NGO working on women’s empowerment can use AI-assisted research to identify companies that have previously supported livelihood programmes, skill development, or women’s education.
2. Simplifying CSR Proposal Writing
Writing a professional proposal requires a clear understanding of the project, its objectives, activities, budget, and expected outcomes.
AI-powered proposal generators can help NGOs prepare structured first drafts using the information they provide.
Instead of starting with a blank document, organizations can use AI to organize their ideas and develop a proposal that can later be reviewed and customized according to the company’s CSR priorities.
3. Preparing Project Budgets
A realistic budget is an important part of every CSR proposal.
AI budget-building tools can help NGOs organize project expenses, identify common budget categories, and prepare structured financial estimates.
This can be especially useful for smaller organizations that do not have dedicated finance or fundraising teams.
However, all budget estimates should be checked against actual costs, organizational requirements, and the company’s funding guidelines.
4. Preparing Concept Notes
Before submitting a detailed project proposal, NGOs may need to share a shorter concept note with potential corporate partners.
AI tools can help structure the problem statement, project objectives, target beneficiaries, activities, and expected outcomes into a clear document.
This makes it easier for NGOs to communicate their ideas to potential funders.
5. Improving Research and Communication
AI assistants can also help organizations summarize CSR policies, understand funding requirements, prepare donor communication, and organize project information.
These tools can reduce repetitive administrative work and allow NGO teams to focus more on project implementation and community engagement.
However, AI-generated content should always be reviewed by the organization. It cannot replace an NGO’s understanding of local communities, guarantee funding, or ensure that a proposal meets every company’s requirements.
The Future of CSR Funding in India
The increased spend on CSR is creating change in the Indian business scenario and perhaps, you would be curious to know – what it means for all these stakeholders? Businesses are learning the lesson that they are not just here to generate profits and employ people but to address social disparities, uplift society and further sustainable growth.
The thing is that, as companies get more and more engaged in CSR, there’s more opportunities for NGOs to establish relationship with the private sector. However, bear in mind that, only if CSR funding manages to reach out to the worthy-communities, it truly counts.
We need to do more to reach out to underserved districts, grassroots organizations and development projects that usually do not get corporate patronage. There is an opportunity to forge alliance of companies, NGOs, government bodies and local communities to address real development concerns rather than superficial solutions.
For NGOs, now is the time to intensify fundraising strategies, increase financial transparency, professionalize project planning and find matching companies willing to partner.
Conclusion
How much is being spent on CSR in India? You might find it surprising, but FY25 is expected to see an unprecedented spend of ₹22,563 crore! That’s a jaw-dropping increase of 17.5% in CSR spend, and higher number of Indian companies participating in the fund making domestic CSR fundings a significantly large opportunity for all of you working towards a better future!
When international donor funding can become complicated for certain NGOs, partnering with business might open new pathways for funding and sustainability. However, it’s not as simple as just requesting it. Using such collaborations to raise funding requires readiness, clarity, project planning and management, and demonstrating tangible results.
What this means for NGOs: CSR fund is not just an additional source of income. It is an opportunity for meaningful collaboration with corporates, improve community programmes and create a larger social impact. India’s rapidly growing CSR ecosystem, if unlocked appropriately, can make real difference to sustainable local development.
