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CSR in India

How SaaS tools can help amplify CSR activities

SaaS tools

SaaS tools to amplify CSR activities

SaaS tools – The term “crowdsourcing” refers to the process of gathering information from multiple sources in order to create a centralized database. The vast majority of donors donate based on NGO popularity, social media ads, or word of mouth recommendations, with only a small percentage using the internet to’research’ NGOs before donating to them.

There is also a category of donors – known to all of us – who believe in helping the less fortunate in their own circle, typically their domestic help, chauffeurs, and so on, by providing groceries, clothing, or even sponsoring the cost of their children’s education. These donors want to do good and make a difference in the world. However, due to a lack of knowledge about NGOs or perhaps a lack of trust, they opt for a simpler philanthropic journey rather than a structured and strategic one.

People in the final category of donors are those who are extremely clear and fixated on the cause they want to support because it resonates with them so strongly. For example, a donor who has witnessed a loved one suffer from terminal illness will support NGOs working to improve the lives of the terminally ill.

SaaS tools

By establishing a legal framework for CSR in 2014, India became the first country to make Corporate Social Responsibility (CSR) mandatory. The Ministry of Corporate Affairs’ pioneering move has resulted in inflows of Rs 1.27 trillion to the development sector to support a variety of causes. This is a watershed moment in the process of achieving the 17 UN Sustainable Development Goals (SDGs), a shared blueprint for peace and prosperity for people and the planet that has been adopted by all UN Member States.

The only way to find out is to ask. However, there is a significant disparity in the allocation of CSR funds across causes and geographies.

Geographic imbalance: Only five states – Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Andhra Pradesh – receive 33% of the funds, while the remaining 20 states and union territories receive just over 4%. Only 1.4% of CSR spending went to the North Eastern states!

CSR funds were rerouted to combat the COVID-19 pandemic as a result of the pandemic. Healthcare and poverty eradication saw an increase in CSR expenditure in FY21, while other sectors such as art and culture, vocational skills, and sports saw a decrease compared to previous years.

The data presented above clearly demonstrates the skewed distribution of CSR expenditure and the bias towards specific sectors and geographic locations.

The corporate sector is becoming more conscious of its responsibility to contribute to global goals. It is encouraging to see countries in the business world considering how to effectively discharge their social responsibilities. Companies and CSR committees play an important role in ensuring India’s stability by efficiently planning their CSR commitments, focusing on ESG principles, and working towards the 17 UN SDGs.

While every rupee given for a good cause counts, there are some inherent limitations that NGOs face due to having a small pool of funds at their disposal. Because of economies of scale, with a larger pool of funds on hand, the impact could be multiplied many times over at a much lower cost per beneficiary.

Based on years of research, we have discovered that the vast majority of non-governmental organisations (NGOs) work hard to raise funds for their programmes. They frequently lack the time, expertise, and resources to manage fund-raising campaigns. As a result, they waste valuable resources in the process. This will now provide companies with a one-of-a-kind opportunity to raise funds for existing CSR projects or select new projects vetted by us from our curated database of 700 NGOs across India working to achieve the 17 UN SDGs.