FREQUENTLY ASKED QUESTIONS
Understanding CSR Project Duration
CSR
Question
What is the difference between Single-year and Ongoing projects?
Answer
Single-year projects: These agreements conclude within the same financial year.
Ongoing projects: These projects extend over multiple financial years, not exceeding three years excluding the year of commencement. They may include projects initially planned for one year but extended with board approval. Such extensions require reasonable justification.
Reporting Fund Utilization
CSR
Question
Is it necessary that all payments (funded by CSR donors) should be made by 31st March for it to be claimed in the utilization report to be submitted to the donors?
Answer
While it's ideal to complete all payments funded by CSR donors by 31st March, accrued liabilities can also be included in the utilization report, even if payments are not made by this date. However, it's essential to provide a note explaining reasons for outstanding payments.
Furthermore, we are pleased to share that we have covered an insightful article on CSR Compliance Considerations for Unutilized funds for NGOs this month. You can access the article - Link here.
In this article, we delve into key considerations for implementing NGOs regarding unspent CSR funds under Companies Act, 2013 / CSR Rules.