A company can undertake its CSR activities through a registered trust or society, a company established by its holding, subsidiary or associate company or otherwise, provided that the company has specified the activities to be undertaken, the modalities for utilization of funds as well as the reporting and monitoring mechanism. If the entity through which the CSR activities are being undertaken is not established by the company or its holding, subsidiary or associate company, such entity would need to have an established track record of three years undertaking similar activities.

Hi

CSR initiatives can be undertaken through the following methods

1) Directly on its own by the company

2) Through its own (company) non-profit foundation set- up so as to facilitate this initiative( NO NEED FOR 3 YEAR TRACK RECORD IN THIS CASE)

3) Through independently registered non-profit organisations that have a record of at least three years in similar such related activities

4) Collaborating or pooling their resources with other companies ( NO NEED FOR 3 YEAR TRACK RECORD IN THIS CASE ALSO)

5) Contributions to Swach Bharat Kosh Setup and Clean Ganga Fund by Central Government also qualify as CSR Contribution.

6) Agencies to which Companies can fund under their CSR Fund also include :

i) Community based organization whether formal or informal.

ii) Elected local bodies such as Panchayats

iii) Voluntary Agencies (NGOs)

iv) Institutes/Academic Organizations

v) Trusts, Mission etc.

vi) Self-help groups

vii)Government, Semi Government and autonomous Organizations.

viii) Standing Conference of Public Enterprises (SCOPE)

ix) Mahila Mondals/Samitis and the like Contracted agencies for civil works Professional

Consultancy Organization etc.

Hope this helps.

One of the New Act's most startling changes—which came into effect on April 1, 2014—has been to impose compulsory corporate social responsibility obligations ("CSR") upon Indian companies and foreign companies operating in India. These obligations mainly come in the form of mandatory amounts companies must contribute to remediating social problems. This is a wholly new requirement; although companies were permitted, within certain limits, to make charitable contributions in the past, the New Act is essentially a self-administered tax.

There is a long list of permissible areas for CSR funding. They include such purposes as ending hunger and poverty; promoting public health; supporting education; addressing gender inequality; protecting the environment; and funding cultural initiatives and the arts.

A company can meet its CSR obligations by funneling its activities through a third party, such as a society, trust, foundation or Section 8 company (i.e., a company with charitable purposes) that has an established record of at least three years in CSR-like activities. Companies may also collaborate and pool their resources, which could be especially useful for small and medium-sized enterprises.

the New Act imposes significant bureaucratic requirements. It requires companies to prepare a detailed report, in a particular format, about the company's CSR policy, the composition of the CSR committee, the amount CSR expenditures, and the specifics of individual CSR projects. A company's board must include this report in its annual report to shareholders and publish it on the company's website.

The report must also include a statement from the CSR committee that the implementation and monitoring of the board's CSR activities is, in letter and spirit, in compliance with its CSR objectives and CSR Policy of the company.

You may ascertain the eligibility accordingly.

In case of an Indian subsidiary of a foreign company, or an Indian company which have foreign ownership of more than 50% need to ensure that in case they utilise the services of a non-profit entity to carry out their CSR activities, such entity must have obtained prior permission from the Central Government. This is available to only those organizations which are at least 3 years old. The permission, when granted, would apply to only a specific project and specific amount, which means that the NPO cannot use contribution for a different project or for any additional funding for the same project.

Third party company must have 3 year track record

The motive of your company should be clear and you can work the strategies accordingly including the mode of operation.

If your company is finalising the mode of operation to carry out the proposed act that way, it depends on the decision made by the company.