Grants from foundations and government

Foundations and governments both give grants to NGOs, but on different terms. Indian philanthropic foundations set their own rules, so they can often fund what CSR can’t; a foreign foundation’s money is foreign contribution, so you need FCRA registration or prior permission first; and government grants come through published schemes, with set eligibility rules and cost norms, a Darpan ID, and utilisation certificates before each new instalment.

This guide is for NGO founders and fundraisers looking beyond CSR. It compares the main sources of grants, then covers Indian foundations, foreign foundations, government schemes, applying and reporting.

How the main sources compare

Most NGOs need more than one source. Individuals give flexible money (see individual giving and crowdfunding), CSR funds projects (see how NGOs can get CSR funding), foundations can back new ideas and growing organisations, and government schemes can carry proven work to scale. Try not to depend on any one funder for more than half your income.

Indian philanthropic foundations

India’s philanthropic foundations range from family trusts to large endowed foundations. Because their money isn’t CSR, Section 135 doesn’t bind them. Depending on its own rules, a foundation may fund:

• organisations in their first years, before they have the three-year track record an independent NGO needs to implement CSR;
• core costs and organisational strength, such as leadership, finance systems and fundraising;
• research, pilots and work outside the company priorities that shape most CSR.

Foundations find partners in three main ways: open calls for proposals on their websites, invitations to organisations they already know, and fellowships or awards. Many say plainly that they don’t accept unsolicited proposals; respect that, and look for an introduction or an open call instead.

Read a foundation’s published priorities and annual reports before you write. Expect due diligence much like a CSR team’s: your registrations, accounts, governance, track record and policies. See the documents CSR teams ask for, which most foundations ask for too.

Foreign foundations and agencies

A grant from a foundation, trust or NGO abroad is foreign contribution, and so is a grant from a foreign company or a foreign government agency. Under the FCRA you may accept it only with:

• FCRA registration, generally for organisations at least three years old that have spent at least ₹15 lakh on their aims, excluding administrative costs, in the last three financial years; or
• prior permission, a one-off approval to receive a specific amount from a specific donor for specific activities, backed by the donor’s commitment letter.

The money must arrive in your FCRA account at the State Bank of India’s New Delhi Main Branch. No more than 20% of the foreign contribution received in a year may go on administrative expenses, and since 2020 you can’t pass any of it on to another organisation, so you can’t sub-grant it to partners. Since 22 June 2026, each registration names the purposes and states it covers, and renewal requires at least ₹10 lakh of foreign contribution used in the previous two financial years.

Grants from the United Nations and its specialised agencies, the World Bank, the IMF and certain other notified agencies aren’t foreign contribution, because the FCRA doesn’t treat them as foreign sources.

See what FCRA is and FCRA registration and prior permission.

Government grants and schemes

Central ministries and state departments fund NGOs through schemes: programmes with published guidelines that say who is eligible, what will be funded, at what rates, and how to apply. According to NITI Aayog, about 49 central ministries and departments have released grants to NGOs under central schemes.

Start with NGO Darpan. NITI Aayog’s NGO Darpan portal (now also called NPO Darpan) gives each registered organisation a unique Darpan ID. NITI Aayog says the ID “is mandatory for all NPOs who are seeking grants from the Ministries/Departments of Government of India”. More than 5 lakh organisations had registered, according to NITI Aayog’s annual report for 2025-26. Keep your details there current: board members, address and registrations. See NGO Darpan.

Find the schemes. Each ministry lists its schemes on its website. Read the guidelines for eligibility (legal form, years of work, experience in the field, sometimes a minimum size), the cost norms (fixed rates for staff, rent and other items), the share of costs you must meet yourself, and how proposals are screened.

State governments run their own schemes through departments such as women and child development, social justice, health and education, often with their own portals and calls for proposals. District offices can tell you which schemes are open.

Grants and contracts aren’t the same. Some government work comes as a contract for services, won through a tender, rather than a grant. A contract can bring GST, tax deducted at source and penalties for late delivery, so read the terms with your finance lead. See GST for NGOs.

Applying well

Whatever the source, the same habits win grants:

1. Read the guidelines twice, and check you meet every eligibility condition before you start.
2. Answer every question in the funder’s format, and use its budget headings and cost norms.
3. Show the need with evidence and the change with numbers, as in a CSR proposal.
4. Attach current documents: registration, PAN, tax registrations, Darpan ID, audited accounts, annual reports and FCRA status where relevant.
5. Apply well before the deadline, since portals slow down on the last days, and keep copies of everything you submit.
6. Plan your cash. Government money can arrive months after costs begin, so know how you’ll cover the gap.

Reporting and keeping grants

Foundations usually ask for narrative and financial reports and utilisation certificates, as their agreements set out. Foreign contribution brings its own duties too: an annual return on Form FC-4 by 31 December for the year ending 31 March, filed even when nothing was received, and your FCRA accounts on your website.

Government grants follow the General Financial Rules, 2017. A ministry giving a grant to an organisation asks for a utilisation certificate in Form GFR 12-A. For recurring grants, it releases the next year’s money only after a provisional certificate for the previous year’s grant arrives, and more than 75% of it only after the certificate and an audited statement for that grant. The rules also provide for electronic utilisation certificates on the government’s PFMS portal. Expect inspections, too.

In every case, report honestly and on time. Late or missing reports are a common reason funders stop, and for FCRA they can lead to cancellation. See reporting to funders.

Common mistakes

• Accepting a foreign grant before FCRA registration or prior permission is in place.
• Passing foreign contribution on to a partner NGO.
• Applying for a scheme without reading its eligibility and cost norms.
• Letting your Darpan details go out of date.
• Starting work on a government grant with no plan for late payments.
• Treating every foundation the same: each has its own focus and rules.