Companies (CSR) Amended Rules 2021 – Imperative of Management Accounting for Partner NGOs and Best Practices for Successful Corporate NGO Partnership

Abstract

The recent amendments to CSR Rules 2021 under Companies Act 2013, has placed on Corporates the responsibility of monitoring the end use of donations by NGOs and in some cases conducting an impact study of the benefits of such CSR projects. A good management accounting system in the partner NGO is a must for the above purpose. This article discusses the relevant provisions of the Amended CSR rules and also examines the best practices in implementation, accounting and reporting which partner NGOs should follow to enable Corporates to meet the CSR provision requirements in true letter and spirit and most importantly ensure maximum value delivery to the beneficiaries.