A glossary of CSR and NGO terms

This glossary explains 80 terms you’ll meet in corporate social responsibility (CSR) and in the work of the NGOs that CSR funds, in plain words. Each definition is short and links to the guide that covers the subject in full.

The terms follow Indian law as in force in October 2026: the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014 (the CSR Rules), the Income-tax Act, 2025, which replaced the 1961 Act on 1 April 2026, and the Foreign Contribution (Regulation) Act, 2010, with its Rules as amended on 22 June 2026. Where a name has changed, the current one comes first and the old one follows in brackets, because many people still search for it.

A

Accreted income, tax on. An exit tax at the maximum marginal rate on a charity’s net assets, which can apply if its registration is cancelled, it misses a deadline to re-register, it converts into an ineligible form or it doesn’t pass its assets to another registered charity within 12 months of dissolving (Section 352 of the Income-tax Act, 2025, formerly section 115TD). See income-tax registration for NGOs.

Administrative overheads. The general costs of running a company’s CSR function, such as its CSR team’s salaries, training and travel. They can’t exceed 5% of total CSR expenditure for the year (Rule 7(1)). The costs of designing, running, monitoring and evaluating a particular project aren’t overheads. See CSR budgets and overheads.

Annual action plan. The plan for a year’s CSR, recommended by the CSR committee and approved by the board under Rule 5(2): the projects, how each will be carried out, how and when the money will be used, how projects will be monitored, and any need and impact assessment. The board can alter it during the year with reasonable justification. See the CSR policy and annual action plan.

Annual report on CSR. The CSR section of a covered company’s board’s report, in the format in Annexure II to the CSR Rules: the policy, the committee, the obligation, what was spent, unspent money, capital assets created and the reasons for any shortfall. See the annual report on CSR.

Anonymous donation. A donation for which a charity doesn’t keep a record of the donor’s name, address and other prescribed details. Anonymous donations above ₹1 lakh or 5% of the total donations received, whichever is higher, are taxed at 30% (Section 337 of the Income-tax Act, 2025, formerly section 115BBC), with exceptions for religious organisations. See corpus, anonymous and other special donations.

AOC-4. The form a company uses to file its financial statements with the Registrar of Companies, within 30 days of its annual general meeting. Form CSR-2 is linked to it and filed after it. See Form CSR-2.

Aspirational districts. Districts picked under NITI Aayog’s Aspirational Districts Programme for faster progress on key development indicators. The BRSR asks listed companies, as a voluntary indicator, how much CSR they spend in them. See CSR and government schemes.

Average net profit. The average of a company’s net profits for CSR over the three immediately preceding financial years, or over the years it has completed if fewer. A covered company must spend at least 2% of it on CSR each year. See how much a company must spend on CSR.

B

BRSR. The Business Responsibility and Sustainability Report, which SEBI, the markets regulator, has required from the top 1,000 listed companies by market capitalisation since 2022-23. It reports performance against the nine principles of the National Guidelines on Responsible Business Conduct, and includes questions on CSR. See the BRSR explained.

BRSR Core. A set of key BRSR indicators under nine ESG attributes that must be independently assessed or assured, phased in from the top 150 listed companies in 2023-24 to the top 1,000 in 2026-27. See the BRSR explained.

C

Capital asset. A building, piece of equipment or other lasting asset created or bought with CSR money. Under Rule 7(4) it must be held by a Section 8 company, registered public trust or registered society with charitable objects and a CSR registration number, by the project’s beneficiaries as a self-help group, collective or entity, or by a public authority, never by the company. See capital assets in CSR.

CFO certificate. The certificate from a company’s chief financial officer, or the person responsible for financial management, that CSR money disbursed has been used for the purposes and in the manner the board approved (Rule 4(5)). See monitoring CSR projects.

Charitable purpose. For income tax, the purposes a registered charity can pursue: relief of the poor, education, yoga, medical relief, preservation of the environment, preservation of monuments and places of artistic or historic interest, and the advancement of any other object of general public utility (Section 2(23) of the Income-tax Act, 2025, formerly section 2(15)). See income-tax registration for NGOs.

Collaboration. Two or more companies funding one CSR project together, which is allowed if each company’s CSR committee can report on it separately (Rule 4(4)). See collaborating on CSR.

Contribution in kind. Goods or services given instead of money, such as a company’s own products. The FAQs of the Ministry of Corporate Affairs (MCA) say CSR contributions can’t be made in kind and given a money value, so they don’t count towards the obligation; buying goods for a project does. See what doesn’t count as CSR.

Corpus. A charity’s permanent fund or endowment. A donation given with the donor’s specific direction that it form part of the corpus is treated separately for income tax (Section 339 of the Income-tax Act, 2025, formerly section 11(1)(d)), and contributions to the corpus of any organisation haven’t counted as CSR since 22 January 2021. See corpus, anonymous and other special donations.

CSR (corporate social responsibility). In general, a company taking responsibility for its effect on society. In Indian law, the activities a company undertakes to meet its obligation under Section 135 of the Companies Act, 2013, following the CSR Rules. See what is CSR.

CSR committee. A committee of the board that recommends the CSR policy, the amount to spend and the annual action plan, and monitors the policy. It isn’t needed if the obligation is ₹50 lakh or less, unless money sits in an Unspent CSR Account. A listed company’s committee has at least three directors, one of them independent. See the CSR committee.

CSR obligation. The amount a covered company must spend on CSR in a financial year: at least 2% of its average net profit, plus surplus from earlier CSR projects, minus any excess spending the board has resolved to set off. See how much a company must spend on CSR.

CSR policy. The board-approved statement of a company’s approach to CSR, including its focus areas and how it chooses, runs and monitors projects (Rule 2(1)(f)). It is disclosed in the board’s report and on the company’s website. See the CSR policy and annual action plan.

CSR Rules. The Companies (Corporate Social Responsibility Policy) Rules, 2014, which fill in the detail of Section 135: definitions, implementing agencies, the committee, spending, reporting and impact assessment. They were rewritten in January 2021 and last amended on 27 May 2026. See the CSR Rules explained.

CSR-1. The form an organisation files with the Ministry of Corporate Affairs to register as a CSR implementing agency, compulsory since 1 April 2021 and revised from 14 July 2025. A practising chartered accountant, company secretary or cost accountant must verify it, and the system then generates a unique CSR registration number, which companies quote in their CSR filings. The number shows the organisation is registered as eligible, not that its work is good. See Form CSR-1.

CSR-2. The annual report on CSR that covered companies file with the Registrar of Companies, with project-level detail, under Rule 12(1B) of the Companies (Accounts) Rules, 2014. It is linked to Form AOC-4 and filed after it. See Form CSR-2.

CSR-washing. Using CSR projects to look responsible while the business itself causes harm, or presenting CSR spending as proof of good ESG performance. See CSR, philanthropy, ESG and sustainability.

D

Due diligence. The checks a company makes before funding a partner: legal form and registrations, CSR-1, finances, governance, track record and safeguarding. It is the company’s own job, and no registration or listing replaces it. See choosing an NGO partner.

E

Employee volunteering. Employees giving their time to community work. The MCA’s FAQs say employees’ involvement in CSR can’t be given a money value, so volunteering hours don’t count towards the CSR obligation, though companies are encouraged to involve their staff. See employee volunteering.

ESG. Environmental, social and governance: a way of judging how a whole business manages its effects and risks, used by investors and reported in India mainly through the BRSR. ESG is broader than CSR, and CSR is one input to it. See ESG explained.

Excluded activities. The six kinds of activity that never count as CSR under Rule 2(1)(d): activities in the normal course of business, activities outside India (except training Indian sports personnel), contributions to political parties, activities designed only for the company’s own employees, sponsorship for marketing benefit, and activities another law requires. See what doesn’t count as CSR.

F

FAQs on CSR. The MCA’s General Circular 14/2021 of 25 August 2021: questions and answers explaining how the ministry reads the CSR law. FAQs aren’t law, and at least one answer, on impact assessment costs, is out of date. See the CSR Rules explained.

FC-4. The annual return an organisation with FCRA registration or prior permission files with the Ministry of Home Affairs by 31 December for the year ending 31 March, even if it received no foreign contribution. Since 22 June 2026 it asks for more, including how foreign contribution was used project by project and, where money came through intermediaries, the ultimate donors. See FCRA compliance.

FCRA. The Foreign Contribution (Regulation) Act, 2010, which controls how organisations in India receive and use money from foreign sources. An NGO needs FCRA registration or prior permission from the Ministry of Home Affairs before it accepts foreign contribution. Registration lasts five years. Since 22 June 2026, each certificate names the purposes and the states or union territories it covers, and renewal needs at least ₹10 lakh of foreign contribution used in the last two financial years. See what is FCRA.

FCRA Account. The account at the State Bank of India’s New Delhi Main Branch in which an organisation must receive all its foreign contribution, since 1 April 2021 (Section 17 of the FCRA). See FCRA bank accounts.

Financial year. For most companies, the year from 1 April to 31 March (Section 2(41) of the Companies Act, 2013). CSR coverage is tested on the previous financial year, and unspent money must move within 30 days or six months of its end. See how CSR works in India.

Foreign contribution. A donation, delivery or transfer of money, in rupees or foreign currency, or of an article or security, from a foreign source. Interest earned on it is foreign contribution too. See what is FCRA.

Foreign source. Under the FCRA, includes foreign governments, foreign companies and foreign citizens, and an Indian company more than half of whose shares are held by foreigners, unless that holding is within the limits set under FEMA. CSR money from a company that is a foreign source is foreign contribution. See who counts as a foreign source.

Forms 113 and 114 (formerly Forms 10BD and 10BE). Under the Income-tax Act, 2025, the annual statement of donations that a charity approved for donors’ deductions files (Form 113), and the certificate it gives each donor (Form 114). They are used for donations received from 2026-27; donations received in 2025-26 were reported on Form 10BD under the old Act. See donation statements and certificates.

I

Impact assessment. An independent study of what a completed CSR project achieved. It is compulsory for a company whose average CSR obligation over the three preceding years is ₹10 crore or more, for projects of ₹1 crore or more completed at least a year earlier, and its cost can count as CSR up to 2% of the year’s CSR spending or ₹50 lakh, whichever is higher. See impact assessment under the CSR rules.

Implementing agency. An organisation that carries out CSR projects for a company: the company’s own foundation, a body set up by a government or by law, or an independent Section 8 company, registered public trust or registered society with the required income-tax registrations and a three-year track record. Every agency must be registered on Form CSR-1. International organisations can help design, monitor and evaluate projects, but can’t implement them. See ways to implement CSR.

Income-tax Act, 2025. The law that replaced the Income-tax Act, 1961 from 1 April 2026. It renumbered the provisions NGOs and donors rely on: registration is now under Section 332 (formerly sections 12A and 12AB), donors’ deductions under Section 133 (formerly section 80G) and the charity’s approval for them under Section 354. It uses the “tax year” instead of the assessment year. See the Income-tax Act, 2025 for NGOs.

K

Key functionary. Under the FCRA Rules as amended on 22 June 2026: an organisation’s directors, partners, trustees, office-bearers and members of its governing body or managing committee, and anyone else who controls or is responsible for its management. The Ministry of Home Affairs can ask for their identity documents (Section 12A), and an organisation with foreign nationals, other than those of Indian origin, as key functionaries is ordinarily not eligible for registration or prior permission. See FCRA registration and prior permission.

L

Local area preference. Section 135(5) asks companies to give preference to the local area and the areas around where they operate. The MCA reads this as “directory and not mandatory”: companies should balance it with national priorities. See Section 135, clause by clause.

M

MCA. The Ministry of Corporate Affairs, which administers the Companies Act, 2013, runs the MCA21 filing portal and the National CSR Portal, and makes the CSR Rules. See what is the Companies Act, 2013.

N

National CSR Exchange Portal. An MCA portal, at csrxchange.gov.in, where implementing agencies with a CSR registration number and companies can list and search for CSR projects. See finding the right CSR partner.

National CSR Portal. The MCA’s website, csr.gov.in, which publishes the CSR data companies file, by state, year, company and project, sorted into about 29 development sectors. See India’s CSR in numbers.

Net profit (for CSR). Profit before tax calculated under Section 198 of the Companies Act, 2013, leaving out profits of overseas branches and dividends from Indian companies that comply with Section 135 (Rule 2(1)(h)). It decides both the ₹5 crore test and the 2% amount. See calculating net profit for CSR.

Net worth. Broadly, paid-up share capital plus reserves created out of profits, the securities premium and the profit and loss balance, minus accumulated losses, as per the audited balance sheet, leaving out revaluation reserves (Section 2(57)). A net worth of ₹500 crore or more brings a company under Section 135. See which companies must spend on CSR.

NGO. A non-governmental organisation. It is a common name, not a legal form: most Indian NGOs are public charitable trusts, registered societies or Section 8 companies. See what is an NGO.

NGO Darpan. NITI Aayog’s portal, ngodarpan.gov.in, now also called NPO Darpan, where non-profits register for a unique Darpan ID. The ID is mandatory for NGOs seeking grants from central ministries and departments. It isn’t a certification of an NGO’s work. See NGO Darpan.

NGRBC. The National Guidelines on Responsible Business Conduct, issued by the MCA in March 2019 in place of the National Voluntary Guidelines of 2011. Their nine principles are the framework of the BRSR. See the BRSR explained.

O

Officer in default. An officer the Companies Act holds responsible for a company’s default. Section 2(60) sets out who counts, starting with whole-time directors and key managerial personnel. For a CSR transfer default, each faces a penalty of one-tenth of the amount that should have been transferred, or ₹2 lakh, whichever is less. See penalties for breaking the CSR rules.

Ongoing project. A multi-year CSR project with a timeline of no more than three years, not counting the financial year in which it started, including a one-year project the board has extended with reasonable justification (Rule 2(1)(i)). Unspent money for it goes to the Unspent CSR Account. See unspent CSR money.

P

Penalty (CSR). Under Section 135(7), a company that fails to transfer unspent CSR money on time is liable to a penalty of twice the amount it should have transferred or ₹1 crore, whichever is less, and each officer in default to one-tenth of that amount or ₹2 lakh, whichever is less. It has been a civil wrong, not a crime, since 22 January 2021. One person companies, small companies, start-ups and producer companies pay at most half, up to ₹2 lakh for the company and ₹1 lakh for each officer (Section 446B). See penalties for breaking the CSR rules.

PM CARES Fund. The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund. Contributions to it count as CSR under item (viii) of Schedule VII, added in May 2020 with effect from 28 March 2020. See CSR for veterans, sports and government funds.

Prime Minister’s National Relief Fund. A government fund named in item (viii) of Schedule VII, so contributions to it count as CSR. Companies can also transfer unspent CSR money to it. See CSR for veterans, sports and government funds.

Prior permission. Under the FCRA, permission to receive a specific amount from a specific foreign donor for specific activities, for organisations not yet eligible for registration. Since 22 June 2026, each later instalment needs Form FC-3BB and is released only after 75% of the previous one has been used and a field inquiry. See FCRA registration and prior permission.

Public authority. As defined in the Right to Information Act, 2005: broadly, a body set up by or under the Constitution, a law or a government order, or owned, controlled or substantially financed by government, such as a gram panchayat or a municipal corporation. Public authorities can hold CSR-funded capital assets. See capital assets in CSR.

R

Registered non-profit organisation. The Income-tax Act, 2025’s name for a charity with valid income-tax registration, whether under Section 332 or under the old sections 12A, 12AA, 12AB or 10(23C). See the Income-tax Act, 2025 for NGOs.

Registered public trust. A charitable trust registered under a state public trust law, such as Maharashtra’s, or by registering its trust deed where the state has no such law. For CSR, in states where public trusts needn’t register, a trust registered under the Income-tax Act counts (FAQ 5.4). See how to register a charitable trust.

Registered society. An association of at least seven people registered under the Societies Registration Act, 1860, or a state law, for charitable, literary, scientific or similar purposes. State laws can differ. See how to register a society.

Related person (formerly “specified person”). Under Section 355(h) of the Income-tax Act, 2025: a charity’s founder, its trustees and managers, donors who gave more than ₹1 lakh in the tax year or ₹10 lakh in all, relatives of the founder, trustees and managers, and businesses in which any of them has a substantial interest. Income applied for their benefit is taxed at 30%. The new Act uses “specified person” for something else. See the NGO board.

S

Schedule VII. The list in the Companies Act, 2013 of the activities CSR money can be spent on: 13 items as of October 2026, from hunger, health and education to disaster management and the Social Stock Exchange. See Schedule VII at a glance.

Schedule VII fund. One of the government funds named in Schedule VII, such as the PM National Relief Fund, the PM CARES Fund, the Swachh Bharat Kosh or the Clean Ganga Fund. Unspent CSR money that must be transferred goes to one of these. See unspent CSR money.

Section 8 company. A company formed under Section 8 of the Companies Act, 2013 for charitable or other non-profit objects. It must apply its income to those objects, can’t pay dividends to its members and needs a licence from the government. See how to register a Section 8 company.

Section 133 deduction and Section 354 approval (formerly section 80G). Under the Income-tax Act, 2025, donors deduct gifts to approved charities and listed funds under Section 133: usually 50% of the gift, within 10% of the donor’s adjusted gross total income, or 100% for some funds. The charity’s approval that makes its donors eligible is under Section 354, formerly section 80G(5), and approvals granted under the old Act carry on until they expire. Individuals on the default tax regime can’t claim the deduction, and there is none for cash gifts over ₹2,000 or for gifts in kind. See tax deductions for donors.

Section 135. The section of the Companies Act, 2013 that makes CSR compulsory for larger companies: who is covered, the committee, the board’s duties, the 2% rule, unspent money and penalties. See Section 135, clause by clause.

Section 332 registration (formerly sections 12A and 12AB). An NGO’s registration for income-tax exemption under the Income-tax Act, 2025. It is applied for in Form 104 for provisional registration (formerly Form 10A) or Form 105 for regular registration and renewal (formerly Form 10AB), and the orders are issued in Form 106 or Form 107 (formerly Forms 10AC and 10AD). Registrations under the old sections, and under section 10(23C), carry on until they expire. The CSR Rules still cite the old section numbers. See income-tax registration for NGOs.

Set-off. Using excess CSR spending from one year to reduce the obligation in up to the next three financial years, by board resolution (Rule 7(3)). Surplus can’t be set off, and only excess spent from 2020-21 onwards qualifies. See setting off excess spending.

Social Stock Exchange. A separate segment of a recognised stock exchange, regulated by SEBI, where registered not-for-profit organisations and other social enterprises raise money. Both NSE and BSE run one. See the Social Stock Exchange.

Spent. For CSR, money counts as spent when it has actually been used on CSR activities. Money paid to an implementing agency counts only once the agency uses it (FAQ 7.4). See how much a company must spend on CSR.

Surplus. Income generated by CSR activities, such as interest an implementing agency earns on CSR funds, revenue from a project or money from selling materials used in it. It can’t become business profit: it must go back into the same project, into the Unspent CSR Account, or to a Schedule VII fund within six months (Rule 7(2)). See setting off excess spending.

Sustainability. Meeting the needs of the present without compromising the ability of future generations to meet their own, as the UN’s Brundtland Commission defined it in 1987. See CSR, philanthropy, ESG and sustainability.

Sustainable Development Goals (SDGs). The 17 goals and 169 targets adopted by all UN member states in September 2015, to be met by 2030. India tracks them through NITI Aayog’s SDG India Index and MoSPI’s National Indicator Framework. See CSR and the SDGs.

T

Tax year. The Income-tax Act, 2025’s name for the financial year from 1 April to 31 March, replacing the old “previous year” and “assessment year”: financial year 2026-27 is tax year 2026-27. See the Income-tax Act, 2025 for NGOs.

Theory of change. An explanation, worked backwards from a long-term goal, of how and why a programme’s activities are expected to lead to the change it wants, with the assumptions along the way. See theory of change.

Tranche. An instalment of a CSR grant, usually released when agreed milestones are met and the previous instalment has been accounted for. See CSR budgets and overheads.

Trusteeship. Mahatma Gandhi’s idea that people with more wealth than they need should hold the surplus in trust for society. It is often linked to the Indian idea of CSR. See a short history of CSR in India.

Turnover. The gross revenue a company recognises in its profit and loss account from selling goods or providing services in a financial year (Section 2(91)). A turnover of ₹1,000 crore or more brings a company under Section 135. See which companies must spend on CSR.

U

Unspent CSR Account. A special account a company opens at a scheduled bank for a financial year, into which it must move unspent money for ongoing projects within 30 days of the year’s end. The money must be spent within three financial years, and any balance then goes to a Schedule VII fund. See unspent CSR money.

Utilisation certificate. A statement from an implementing agency showing how a grant or tranche was spent against the agreed budget. CSR teams rely on them to support the CFO’s certificate. See reporting to funders.

Z

Zero coupon zero principal instrument (ZCZP). A security issued by a not-for-profit organisation registered on a Social Stock Exchange that pays no interest and returns no principal: in effect, a recorded donation. Since 27 May 2026 a company can count subscriptions to them as CSR, up to 10% of its total CSR expenditure for the year (Rule 4A). See the Social Stock Exchange.