Industry or Sector Micro Description of Venture
In recent years, the number and influence of organizations in the social sector have grown significantly. However, data from the Ministry of Social Justice and Empowerment reveals that out of 1,615 FCRA registration applications received in 2021-22, only 772 were approved, representing just 44% of applicants. The rejections were primarily due to non-compliance with the FCRA 2010 provisions and eligibility criteria.
This gap in due diligence is a major barrier to securing foreign donor contributions, including NRIs, UHNIs, HNIs, and retail funders. It highlights the need for NGOs to adapt to evolving FCRA and CSR regulations, which demand proof of legal status, programmatic impact, third-party monitoring, global reporting standards, and ESG compliance.
While these regulations aim to ensure accountability in the sector, they impose significant administrative burdens on implementing organizations, diverting valuable time away from impactful work. To address this challenge, Mahalaya supports social organizations by helping them navigate these complex regulatory landscapes, enabling them to focus on creating lasting social impact. Mahalaya also promotes systemic thinking, encouraging organizations to co-create solutions with communities for sustainable, deeply rooted programs. Mahalaya further aims to assist incubators, grassroots CBOs, and NGOs in designing systems and processes that align with regulatory requirements, offering guidance on strategic program implementation, compliance, and reporting.
Ecosystem
With the amended CSR Act of 2021, the FCRA Act of 2022, and strict adherence to Global Reporting Standards, it has become mandatory for CSOs and NGOs to meet rigorous compliance requirements for funding eligibility. Registration in NGO Darpan, along with the submission of a unique registration number for CSR proposals, poses significant challenges for grassroots organizations that often lack compliance expertise.
Despite the urgency, there is a lack of agencies providing the necessary guidance to help these organizations navigate the complex process. Mahalaya aims to fill this gap, offering comprehensive support for compliance and acting as a critical third-party evaluator for the projects undertaken by partner organizations.