CSR activity and Sec 80G certification only

Yes, you can buy food and donate it to an NGO with Section 80G(5) registration for distribution among the poor, and claim it as a CSR (Corporate Social Responsibility) expense. Here's why: 1. *Eligible donation*: Donating food to an NGO with Section 80G(5) registration qualifies as an eligible donation under the Companies Act, 2013. 2. *CSR activity*: Providing food to the poor through an NGO aligns with Schedule VII of the Companies Act, 2013, which lists "eradication of hunger and malnutrition" as a permissible CSR activity. 3. *Section 80G(5)*: This section allows for donations to NGOs engaged in charitable activities, including poverty alleviation and food distribution. 4. *No requirement for Section 12A*: While Section 12A registration is essential for NGOs to claim tax exemptions, it's not necessary for donors like you to claim CSR benefits. 5. *CSR reporting*: Ensure the NGO provides you with a receipt and a report on how your donation was utilized, as you'll need this for your CSR reporting. Please consult your accountant or CSR advisor to ensure compliance with the necessary regulations and reporting requirements. Great job on contributing to social welfare!

CSR in kind is fine, but no 80G:

• Buying food and handing it to an NGO for distribution to the poor is a CSR activity (Schedule VII item (i): eradicating hunger). It counts as CSR spend if done through a registered implementing agency (CSR-1 registered NGO), or directly by the company as a CSR project.

• 80G: a donation in kind (food) isn't eligible for 80G, which allows only sums of money. CSR amounts contributed even in cash to 80G entities are restricted: Sec 80G(2)(iiihk)/(iiihl) excludes CSR contributions to certain funds, and Explanation 2 to Sec 37 bars CSR as a business expense. Many tribunals allow 80G on CSR donations to 80G NGOs, but it remains contested.

• Keep the NGO's acknowledgement, distribution report and CSR-1 number.

Donating food to an NGO for distribution to poor people can qualify as CSR, provided it is a genuine project or programme covered by Schedule VII to the Companies Act, 2013—such as eradicating hunger and poverty—and is approved and monitored under the company’s CSR policy. An NGO’s 80G(5) approval alone does not establish CSR eligibility; for an implementing agency, it must also meet the applicable Companies Act/CSR Rules requirements, which generally include registration under section 12A/12AB and CSR-1 filing. An NGO without section 12A/12AB may still be a CSR partner only if it falls within another permitted category, such as an eligible entity established by the company or government.

• Document the project, beneficiaries, food distribution, expenditure and monitoring; purchasing food directly does not by itself make the spend CSR.
• Check the NGO’s legal constitution, 12A/12AB status, CSR-1 registration and eligibility before routing funds through it. If the company distributes food directly, assess whether it is implementing the project itself and maintain adequate records.
• CSR treatment and income-tax deduction are separate: section 80G approval does not automatically make the company’s CSR expenditure deductible under section 80G; CSR spend is generally not treated as a business deduction under section 37(1).

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