CSR Volunteering Guidelines Under Indian Law in 2026: A Guide for Companies and NGOs

Corporate Social Responsibility (CSR) has become a cornerstone of business operations in India. Introduced through the Companies Act, 2013, CSR mandates certain companies to contribute positively to society. As we move into 2026, employee volunteering has emerged as one of the most effective ways to fulfill CSR obligations. It allows companies to engage their workforce directly in social causes, creating meaningful impact while boosting employee morale.

This guide explains the CSR volunteering guidelines under Indian law in 2026. It covers the legal framework, key rules, implementation steps, benefits, and compliance requirements. Whether you are a company looking to start CSR volunteering programs or an NGO seeking partnerships, this article provides clear, practical insights. With a focus on accessible and impactful initiatives, employee volunteering aligns perfectly with India's CSR goals, especially in areas like education, health, environment, and community development.

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Understanding the CSR Framework in India

The Foundation: Section 135 of the Companies Act, 2013

Section 135 of the Companies Act, 2013, along with the Companies (Corporate Social Responsibility Policy) Rules, 2014, forms the backbone of CSR in India. This was the world's first statutory CSR mandate, making it mandatory for qualifying companies to spend on social welfare.

In 2026, the core requirement remains: eligible companies must spend at least 2% of their average net profits over the previous three financial years on CSR activities.

Applicability Criteria in 2026

A company qualifies for CSR obligations if, in the immediately preceding financial year, it meets any of these thresholds:

• Net worth of ₹500 crore or more

• Turnover of ₹1,000 crore or more

• Net profit of ₹5 crore or more

These thresholds have remained consistent as of early 2026, despite some discussions on potential changes in previous years. Foreign companies with branches in India may also fall under these rules if they meet the criteria.

Smaller companies, even if not mandated, often adopt voluntary CSR to build goodwill.

Approved CSR Activities: Schedule VII

CSR funds must be directed toward activities listed in Schedule VII of the Companies Act. Key areas include:

• Eradicating hunger and poverty

• Promoting education and skill development

• Ensuring environmental sustainability

• Supporting health and sanitation

• Empowering women and rural development

Employee volunteering fits seamlessly here, especially in education, skill training, and environmental projects.

Evolution of CSR Laws Leading to 2026

Key Amendments Over the Years

Since 2013, CSR rules have evolved through several amendments:

• 2014 Rules: Initial framework with focus on spending and reporting.

• 2021 Amendments: Introduced impact assessment for large projects, allowed ongoing projects, and capped administrative overheads at 5%.

• 2025 Updates: Enhanced transparency with the new web-based CSR-1 form for implementing agencies and stricter registration for NGOs.

As of 2026, these changes emphasize accountability and genuine impact. Employee engagement, including volunteering, is strongly encouraged to make CSR more meaningful.

Focus on Employee Engagement

Recent guidelines highlight employee participation as a way to deepen CSR impact. While direct financial contributions remain the primary measure, costs associated with organizing volunteering programs such as logistics, training, and partnerships are fully countable as CSR expenditure.

Employee Volunteering in CSR: Key Guidelines for 2026

What is CSR Volunteering?

CSR volunteering involves employees dedicating time to social causes as part of the company's CSR initiatives. This can include teaching underprivileged children, tree plantation drives, health camps, or skill workshops.

In 2026, volunteering is recognized as a high-impact method to implement CSR projects.

Exploring the Role of Employee Volunteering in Corporate Social Responsibility Spending

Direct monetization of volunteer hours (imputing salary value) is not permitted as CSR expenditure under strict interpretation. However, all actual costs related to volunteering programs qualify, including:

• Travel and material expenses

• Training sessions for volunteers

• Fees paid to implementing agencies (NGOs)

• Event organization costs

Many companies allocate dedicated budgets for volunteering, often 2-5% of total CSR spend, making it an integral part of compliance.

Limits and Conditions

• Volunteering must align with Schedule VII.

• Programs can be conducted during office hours with paid leave (volunteering leave is common).

• Partnerships must be with registered implementing agencies (those with CSR-1 registration from the Ministry of Corporate Affairs).

Step-by-Step Guide to Implementing CSR Volunteering Programs

Step 1: Form a CSR Committee

Companies above certain thresholds must have a CSR committee with at least three directors, including one independent director.

Step 2: Develop a CSR Policy

The policy should explicitly include employee volunteering as a strategy.

Step 3: Partner with Credible NGOs

Choose NGOs registered with the MCA via Form CSR-1. These agencies ensure transparency and proper utilization of funds.

Step 4: Plan and Execute Activities

Organize events like workshops or clean-up drives. Track participation and impact.

Step 5: Report in Annual Returns

Detail volunteering initiatives in the annual CSR report (Annexure in Board Report).

Best Practices for Successful CSR Volunteering

Engaging Employees Effectively

• Offer paid volunteering leave (1-2 days per year is common).

• Provide choices in causes to increase participation.

• Recognize top volunteers through internal awards.

Measuring Impact

Use metrics like hours volunteered, beneficiaries reached, and feedback surveys.

Partnering with the Right NGO: Spotlight on Marpu Foundation

A prime example of an effective partner is the Marpu Foundation. This NGO specializes in education, rural development, and environmental projects, making it ideal for CSR volunteering.

Companies partnering with Marpu Foundation have organized successful employee drives, such as skill development workshops in rural Delhi areas and tree plantation events. These initiatives not only meet CSR guidelines but also create lasting community impact. Marpu Foundation's transparent operations and MCA registration ensure seamless compliance.

Benefits of CSR Volunteering Programs

For Companies

• Improved employee satisfaction and retention

• Enhanced brand reputation

• Team-building opportunities

For Employees

• Sense of purpose and skill development

• Personal growth through community interaction

For Society and NGOs

• Direct support to underserved communities

• Sustainable projects through skilled volunteer input

In 2026, with growing emphasis on ESG (Environmental, Social, Governance), volunteering strengthens overall corporate sustainability scores.

Compliance Requirements and Common Pitfalls

Reporting and Disclosure

Companies must disclose CSR policy, spending, and projects on their website and in annual reports.

Impact Assessment

Mandatory for companies with large CSR spends (average ₹5 crore or more over three years).

Penalties for Non-Compliance

Failure to spend can lead to penalties, including transfer of unspent amounts to specified funds.

Common mistakes to avoid:

• Treating volunteering as a substitute for financial spend

• Partnering with unregistered agencies

• Poor documentation of activities

Successful CSR Volunteering with Marpu Foundation

Imagine a mid-sized IT company in Delhi partnering with Marpu Foundation in 2025-26. Employees volunteered 500 hours in education programs for underprivileged children. The company covered logistics costs (counted as CSR spend), resulting in skill training for 200 students. This initiative met compliance, boosted employee engagement scores by 30%, and earned positive media coverage.

Such collaborations demonstrate how Marpu Foundation helps companies achieve meaningful CSR volunteering under Indian law.

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Conclusion

CSR volunteering guidelines in India for 2026 offer a flexible yet structured way for companies to contribute to society while engaging employees. By focusing on approved activities, partnering with registered NGOs, and ensuring proper compliance, businesses can create real change. Employee volunteering not only fulfills legal requirements but also builds a culture of responsibility.

As CSR evolves, initiatives like volunteering will play a bigger role in sustainable development.

Ready to launch or enhance your CSR volunteering program in 2026? Partner with Marpu Foundation a trusted, MCA-registered NGO dedicated to impactful projects in education, environment, and community development. Our expert team can help design customized volunteering opportunities that align perfectly with your CSR policy and Schedule VII requirements.

Contact Marpu Foundation today at www.marpu.org to discuss collaboration. Let's work together to make a difference one volunteer at a time.