Does the Corporate Social Responsibility (CSR) law apply to your company ?
What is CSR?
The Companies Act, 2013, envisioned that the private sector can contribute towards achieving the listed sustainable and henceforth, nation-building goals. With that, India is also the first country in the world to make corporate social responsibility mandatory.
If a company falls under the ambit of the Corporate Social Responsibility (CSR) law, it shall invest at least 2 percent of its average net profits in projects in the field of education, water supply, health care, environment, social empowerment, sports, culture, through a registered trust, a registered society or a non-profit (section 8) firm.
Is Corporate Social Responsibility (CSR) applicable to your company?Yes if during the financial year your company has:
- a net worth of Rs. 500 crores or more or,
- a turnover of Rs. 1,000 crores or more or,
- a net profit of Rs. 5 crores or more.
How mandatory is the law?In 2019, an amendment made the Corporate Social Responsibility (CSR) norms in India stricter. It is now mandatory that the unspent CSR money in a financial year be transferred to an escrow account specially meant for CSR activities. These remaining funds must be used within three years. Later, any unspent amount must be transferred to a government-specified fund.
Non-compliance of the law shall entitle both the company and the entrusted individuals with fines ranging from Rs. 50,000 to Rs. 25 lakhs. The amendment also makes the defaulters liable for imprisonment up to 3 years.
Know more about corporate social responsibility in India on the National CSR Portal of the Government of India.
How to pick the right Corporate Social Responsibility (CSR) Project ?Corporate Social Responsibility encourages companies to enact positive change. While it does present an opportunity to strengthen your brand, it is essential to find the right partner organisation and to associate with the right cause. You need excellence in your Corporate Social Responsibility (CSR) activities and TARA qualifies for it. Today TARA protects and educates 150 vulnerable children who gradually become responsible and productive citizens.
You may wonder, several child welfare organizations are working in the capital, so what makes TARA unique and why would it be the right Corporate Social Responsibility (CSR) partner?
Here are three main reasons:
We offer a range of solutions to protect children from vulnerability and abuse
- We prevent family separation: TARA Outreach Center works at the community level to identify situations of abuse, mobilize family resources so they can find their own solutions.
- We accommodate the child on a judicial order when the danger in the community is too high: TARA Homes for Children provide quality, long-term care and a family-like accommodation for children who cannot live with their families. We make sure that these placements are done only when they are absolutely necessary. Per Home, we take no more than 20 children as we aim at holistic development of each and every child.
- We help the children fly their own wings: TARA Big Birds enables young adults having grown in TARA Homes to access autonomy.
We are 100% compliant with the Norms of Child Protections enacted by the Government
- All children are placed in TARA Homes by a Bench of Magistrates (Child Welfare Committee) and all placements are revised quarterly.
- All legal provisions are strictly implemented: Juvenile Justice Act 2015, Juvenile Justice Rules 2016, POCSO Act 2012, Tax Rules, FCRA and Labour Laws.
- The Programs are regularly inspected by the District Child Protection Unit, Commission for Protection of Child Rights, Childline.
- We have established strong policies to ensure the best standards of care and education
We are transparent
- We provide detailed impact reports to highlight the results that help the donor company to proudly share it among its staff and customers.
- Our accounts are audited by an internal and an external auditors, fully published on our website.
- We can receive foreign donations as we are registered under the Foreign Contribution Regulation Acts (FCRA).
TARA is the right choice to associate your company with an experienced and diligent organisation that clearly, visibly, makes this world a better place.
To know more about us, you can download our presentation here.