Funding Schemes for NGO in India

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Funding Schemes for NGO in India

NGO-Specific Schemes and Funding in India (as of July 2025)
The government's approach continues to be multi-pronged, involving various ministries and financial institutions.
1. Ministry of Social Justice and Empowerment (MSJE): This Ministry is a major source of funding for NGOs working with marginalized and vulnerable sections of society.
  1. National NGO Grant Scheme (NNGS) / eAnudaan Portal: While the specific "NNGS" nomenclature might be part of broader grant-in-aid schemes, the Ministry actively provides financial assistance to NGOs for welfare programs targeting Scheduled Castes, Other Backward Classes, Persons with Disabilities, Senior Citizens, and victims of substance abuse. The eAnudaan portal (grants-msje.gov.in) is the primary online platform for NGOs to apply for grants under various schemes, including:
    1. Atal Vayo Abhyuday Yojana (AVYAY): For programs benefiting senior citizens, including running old age homes, daycare centers, and other welfare activities.
    2. National Action Plan for Drug Demand Reduction (NAPDDR): Supports NGOs involved in awareness, prevention, and rehabilitation for substance abuse.
    3. Scheme for Residential Education for Students in High Schools in Targeted Areas (SHRESHTA): Supports NGOs for providing residential education to Scheduled Caste students.
    4. Support for Marginalised Individuals for Livelihood and Enterprise (SMILE): Includes a sub-scheme "Garima Greh" for the welfare of transgender persons.
  2. Transparency and Digitalization: The MSJE has been focusing on making the grant process more transparent and efficient through the eAnudaan portal, with regular calls for proposals for both new and ongoing projects (e.g., for FY 2024-25, applications were open for various schemes).
2. Ministry of Women and Child Development (MWCD): This Ministry focuses on empowering, protecting, and ensuring the welfare of women and children.
  1. Mission Shakti: This umbrella scheme encompasses various sub-schemes aimed at women's safety and empowerment. NGOs can receive grants for:
    1. Sambal: Sub-scheme for safety and security of women (e.g., One Stop Centres, Mahila Police Volunteers).
    2. Samarthya: Sub-scheme for empowerment of women (e.g., Mahila Shakti Kendra, Beti Bachao Beti Padhao interventions, working women hostels).
  2. Anganwadi Services: While primarily implemented through state governments, NGOs often partner in providing supplementary nutrition and early childhood care.
  3. Rashtriya Mahila Kosh (RMK): While RMK still exists as an autonomous body, its role in directly providing microcredit to women-led NGOs for skill development and income generation has largely been taken over by mainstream banks and Self-Help Group (SHG) linkages under schemes like Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). RMK now largely acts as a facilitator and provides support to intermediary microfinance organizations (IMOs) and women's SHGs.
3. Corporate Social Responsibility (CSR) Funding:
  1. Mandatory CSR Spending: The Indian Companies Act, 2013, mandates certain companies to spend at least 2% of their average net profits on CSR activities. This remains a significant avenue for NGO funding.
  2. Key Focus Areas (Schedule VII): NGOs can align their projects with mandated areas such as education, healthcare, environmental sustainability, hunger and poverty eradication, women empowerment, rural development, and promotion of sports.
  3. Eligibility & Compliance: To receive CSR funds, NGOs typically need to be registered as a Trust, Society, or Section 8 Company, possess 12A and 80G certifications (for tax benefits to donors), and have CSR-1 registration on the Ministry of Corporate Affairs (MCA) portal. Companies also look for NGOs with a proven track record (often 3+ years) and robust financial transparency.
  4. Platforms: NGOs can find opportunities on the National CSR Portal, CSRBOX, NGOBox, and through direct outreach to corporate CSR departments.
4. National Bank for Agriculture and Rural Development (NABARD):
  1. Rural Development & Agriculture: NABARD continues to offer financial assistance and grants to NGOs involved in rural development projects, promotion of agricultural activities, rural infrastructure development, watershed management, tribal development, and livelihood creation.
  2. Grant-based Schemes: NABARD has various schemes for NGOs for capacity building of rural communities, promoting SHGs, Farmer Producer Organizations (FPOs), and supporting sustainable farming practices. These are often project-specific and require detailed proposals. NGOs may also participate in projects under the Rural Infrastructure Development Fund (RIDF) if the projects are submitted through the nodal department of State Governments.
5. Ministry of Tribal Affairs (MoTA):
  1. Welfare of Tribal People: MoTA provides funding to NGOs working for the welfare and upliftment of tribal communities. This includes schemes for:
    1. Grants-in-Aid to Voluntary Organizations: For running educational complexes, vocational training centers, and other welfare activities in tribal areas.
    2. Development of Particularly Vulnerable Tribal Groups (PVTGs): Focuses on holistic development of the most vulnerable tribal communities.
    3. Promotion of Tribal Arts and Culture: Supports initiatives for preserving and promoting tribal heritage.
  2. Increased Budget: The Ministry has seen substantial budget increases to support these initiatives, with a focus on comprehensive development in tribal villages.
6. Ministry of Health and Family Welfare (MoHFW):
  1. Healthcare and Public Health: MoHFW offers financial assistance to NGOs involved in healthcare delivery, public health initiatives, disease control programs (e.g., TB elimination, AIDS control), family planning, maternal and child health, and awareness campaigns.
  2. National Health Mission (NHM): NGOs are vital partners in implementing various components of the NHM, especially at the grassroots level, focusing on primary healthcare, outreach, and community mobilization.
  3. Department of Health Research (DHR): DHR under MoHFW also invites research proposals and offers grants for health-related studies and interventions, often involving NGOs.
7. Ministry of Environment, Forest and Climate Change (MoEFCC):
  1. Environmental Protection & Sustainable Development: This Ministry supports NGOs working on environmental protection, conservation, climate change mitigation, sustainable development, pollution control, biodiversity conservation, and awareness campaigns.
  2. Schemes: While direct grant disbursement from MOEFCC to NGOs for general purposes is less common, NGOs are often engaged as implementing agencies for specific projects under various schemes related to afforestation, wildlife protection, waste management, and environmental research.
8. Foreign Contribution (Regulation) Act (FCRA) Registration:
  1. Receiving Foreign Funds: NGOs intending to receive foreign contributions must be registered under the FCRA, administered by the Ministry of Home Affairs (MHA).
  2. Latest Amendments (FCRA Rules 2025 - effective Jan 2025): Significant changes have been introduced for increased transparency and stricter compliance:
    1. Real-time disclosures: NGOs must now upload details of foreign contributions (amount, donor, purpose) on the FCRA portal within 7 days of receipt.
    2. Administrative Expenses: The 20% limit on administrative expenses remains, but stricter justifications and prior approvals are required for exceptions.
    3. Registration Cycle: The validity period for FCRA registration has been standardized to 3 years (from 5 years previously), with interim audits influencing renewal.
    4. Due Diligence Disclosure: NGOs must provide detailed information about their leadership, funding sources, and foreign expenditure for government scrutiny.
    5. Transfer of Tax Refunds: Clear guidelines for transferring foreign contribution components from tax refunds back to the FCRA bank account.
  3. Compliance is Paramount: Non-compliance can lead to severe penalties, including suspension or cancellation of FCRA registration.
9. State Government Schemes:
  1. State-Specific Opportunities: Beyond central government schemes, each state government in India has its own set of schemes and funding opportunities for NGOs working within that state, tailored to local needs and priorities. These can cover areas like education, health, sanitation, livelihood generation, women's self-help groups, and welfare of specific communities within the state. NGOs should regularly check the websites of relevant state government departments (e.g., Social Welfare, Women & Child Development, Rural Development departments of their respective state).
Key Recommendations for NGOs:
  1. Stay Updated: Regularly visit the official websites of relevant central ministries and state government departments, as funding opportunities, guidelines, and application windows are frequently updated. Portals like eAnudaan (MSJE) and the National CSR Portal (MCA) are crucial resources.
  2. Compliance: Ensure full compliance with all legal and regulatory requirements, especially regarding Udyam Registration (if applicable), GST, 12A, 80G, and FCRA (if receiving foreign funds).
  3. Strong Proposals: Develop well-researched, impactful project proposals that clearly align with the objectives of the funding scheme and demonstrate the NGO's capacity and past track record.
  4. Financial Transparency: Maintain meticulous financial records, undergo regular audits, and ensure transparency in all financial dealings.
  5. Networking: Build strong networks with government officials, corporate CSR teams, other NGOs, and community leaders to identify opportunities and forge partnerships.

By proactively engaging with these schemes and maintaining rigorous compliance, NGOs can significantly enhance their ability to secure funding and contribute effectively to India's development agenda.