CSR- contribution to charitable trust
This query is : Resolved
03 March 2025
Is monetary contribution considered CSR only if given to funds listed in Schedule VII?
Is a contribution to a local registered charitable trust eligible as CSR expenditure?
Is a contribution to a local registered charitable trust eligible as CSR expenditure?
12 August 2025
Great question on CSR contributions! Here’s a clear explanation:
1. Is monetary contribution considered CSR only if given to funds listed in Schedule VII?
No, not only those funds.
Schedule VII of the Companies Act, 2013 lists various activities eligible for CSR expenditure, including contributions to:
The Prime Minister’s National Relief Fund
Funds specified by the government for socio-economic development
Other activities promoting health, education, environment, etc.
Monetary contributions to these specified funds are definitely eligible.
2. Is a contribution to a local registered charitable trust eligible as CSR expenditure?
Yes, it can be eligible if the trust’s activities align with the CSR objectives under Schedule VII.
Important conditions:
The trust should be registered and recognized under applicable laws (e.g., Trust Act, Societies Act).
The trust should be engaged in activities listed under Schedule VII.
The company must ensure the trust is not involved in activities outside CSR scope.
Proper documentation, such as registration certificates and activity proof, should be maintained.
The company should monitor the utilization of funds for CSR purposes.
1. Is monetary contribution considered CSR only if given to funds listed in Schedule VII?
No, not only those funds.
Schedule VII of the Companies Act, 2013 lists various activities eligible for CSR expenditure, including contributions to:
The Prime Minister’s National Relief Fund
Funds specified by the government for socio-economic development
Other activities promoting health, education, environment, etc.
Monetary contributions to these specified funds are definitely eligible.
2. Is a contribution to a local registered charitable trust eligible as CSR expenditure?
Yes, it can be eligible if the trust’s activities align with the CSR objectives under Schedule VII.
Important conditions:
The trust should be registered and recognized under applicable laws (e.g., Trust Act, Societies Act).
The trust should be engaged in activities listed under Schedule VII.
The company must ensure the trust is not involved in activities outside CSR scope.
Proper documentation, such as registration certificates and activity proof, should be maintained.
The company should monitor the utilization of funds for CSR purposes.
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