Ours is a registered Trust, and we have recently received our first sanction and disbursement under CSR. We would like to seek your guidance on whether a portion of these funds can be allocated towards administrative overheads. If permissible, kindly let us know the percentage of the sanctioned amount that may be utilized for this purpose, in line with applicable CSR provisions.
Your advice in this regard will be greatly appreciated.
Thanks for your query.
The admin overhead provision in CSR law is for the corporate making the contribtuion. The ceiling is 5% of the total CSR allocation. This means that corporate will spend on admin overhead for its staff from its CSR allocation.
Allocating your NGO’s overheads from CSR project will depend on the budget sanctioned. If there is overhead budgeted, please spend as per the allocation.
CS Sharad Bhargav
Thank you so much for your clarification, Sharad garu.
PSN Murthy
Please follow the approved budget and conditions laid down in the grant agreement. The clause of 5% admin ceiling is applicable for the CSR and not for implementing NPO