CSR-Gawande Foundation

CSR in India has been normally associated with altruism. Typical to Indian culture, philanthropy is carried out but never discussed. CSR activities at their core have had a very national spirit, right from philanthropic institutions being a part of Indian Freedom movement to relentlessly standing up for a plethora of causes in the modern world today.

With the advent of modern ways to communicate & broadcast, CSR has moved from merely institutional structures (educational, research related or cultural) to community building & development. While CSR is seen mostly from a community development & change making perspective, for companies it is also strategic in nature, further elevating its importance.

Clause 135 in Companies Act 2013 by the Ministry of Corporate Affairs (with amendments in 2014 as well) governs implementation of CSR in India. The clause has associated the concept of CSR with a disclose-or-explain mandate ushering greater transparency for businesses.

Rules laid out for CSR:

– The CSR rules are applicable to companies with:
   – An annual turnover of 1,000 crore INR or more OR
   – A net worth of 500 crore INR or more OR
   – A net profit of 5 crore INR OR more.
– Such companies require to set up a CSR committee including their board members and at least one independent director.
– Such companies must mandatorily spend at least 2% of their average net profit of previous three years on CSR. (Net profit is the profit before tax in the books of accounts, excluding profits from branches outside India.)
– The activities eligible for CSR are prescribed in Schedule VII. The board can deliberate and approve one or more of these.
– Surplus coming from CSR activities also has to be invested in CSR initiatives (above the 2% figure).
– Companies can implement CSR using following methods:
   – Through their own respective non-profit organization set up especially for CSR initiatives
   – Through independent non-profit organizations with a record of at least 3 years in those or related initiatives
   – Collaborating with other companies & working on joint CSR initiatives
– CSR activities must be carried out only in India.
– A format for the board CSR report has been provided by the Act. In the report, companies need to mention amongst other details, a responsibility statement that the CSR policy, implementation and monitoring are in compliance with the CSR objectives in writing and in spirit; signed by either the CEO, or the MD or a director of the company. Companies have to disclose contents of their report and publish details on their corporate website. If the company fails to spend prescribed amount, then the board has to specify the reasons in its report.
– Contribution directly or indirectly to political parties will not be considered under CSR. Any activity or project that benefits only the employees of a company and their families too will not count as CSR activity. Basically, any activity resulting in direct or indirect benefit to the company will not qualify as CSR.
CSR(Companies Act) -Gawande Foundation

Broad Areas for CSR activities as covered under Schedule VII of the Companies Act:

– Eradicating Hunger, Poverty and Malnutrition
– Promoting Health Care
– Promoting Education
– Ensuring Environmental Sustainability and Ecological Balance
– Promoting Rural Development
– Promoting Socio-economic Equality and Development
– Promoting Gender Equality and Women Empowerment
– Protection of National Heritage, Art and Culture
– Measures for the benefit of armed forces veterans, war widows and their dependents
– Contributing to technology incubators within approved academic institutions
– Promoting all kinds of sports


In accordance with the rules as stated in Clause 135, Sandesh and Smita Gawande Foundation vows to do its best to support companies choosing us for their CSR. The following will be made public on this website:

– Complete cash flow and expenses
– Details about every field visit
– Activities carried out and further progress


We hope to utilize CSR laws & policies and make an impact in nation’s best interests.