Corporate NGO Partnerships

CAP ensures that NGO-Corporate partnerships are legally compliant. Corporate NGO partnerships are usually collaborations with a short timeline and very focused objectives – events, campaigns, programmes or projects, where the key business of the corporate enterprise, and the work area of the NGO, converge.

How We Help

  • Ensuring the alliance is effective and successful. Sound documentation and knowledge of regulation safeguards the interest of the corporate foundation and the non-profit.
  • Identification & Due Diligence – Assist in identifying suitable and credible NGO partners that meet CSR criteria. Due diligence of implementing nonprofits.
  • Documentation Drafting & Review – Advise and guide in drafting grant agreements, the terms of reference (TOR) and memorandum of understanding (MOU) between the corporate foundation & NGO partners
  • Compliance for Partnerships – Non-applicability of TDS and GST on CSR grants and other compliance necessities.

Frequently Asked Questions

What documentation would be needed for a sound partnership?

A clear MOU stating the basic expectations from both entities.

Does CAP assist with providing ready to use policies?

No one size fits all. We encourage organisations to create their own documents. We provide a template framework & guidance and hand-hold and review the documents to ensure it is relevant to the organisation.

Does CAP conduct due diligence on behalf of the corporation foundation?

CAP can recommend compliant NGOs from the pool of those who have completed the CAP’s certification pogramme. CAP also assists corporate foundations review or create their due diligence systems.

What they say

CAP’s guidance on setting up Arvind Foundation, designing a format for giving and receiving grants from parent and subsidiary companies and setting up partnership basics for our Health Project with Swasth foundation has been very satisfying. CAP’s advisory has always been timely and apt – with follow-ups for clarifications and explanations. With its studied approach CAP ably balances the letter and the spirit of law. I define the value that CAP brings as one that guides our social goals smoothly beyond practical constraints.

We were unaware that TDS deductions on grants would deem such grants as business contracts and could put our 12A at risk. CAP gave us clarity about it, but we had difficulty in convincing one of our donor to not deduct the tax. CAP came to our rescue, discussed the matter with the corporate funder on our behalf, and we received our grant without any deductions! We would also recommend CAP’s certification programme – Be ready for a very involved process, with many specific inputs and much revision of documents but very much worth it!