Donor / Funding Documentation

Stage 1 — Proposal Phase:

• Concept Note — 2–3 page overview for initial donor interest
• Expression of Interest (EOI) — aligned with donor format requirements
• Full Proposal — complete grant application with budget and M&E framework
• Due Diligence Package — compliance credentials and financial track record

Stage 2 — Grant Execution Phase:

• MoU / Grant Agreement — legally binding terms covering scope, budget, reporting, and accountability
• Fund Receipt Acknowledgement — formal acknowledgement with tax donation receipt (80G)
• Quarterly Progress Reports — narrative and financial updates
• Beneficiary Registers — signed records of individuals/communities served
• Expenditure Statements — voucher-supported fund utilisation reports

Stage 3 — Project Close-Out:

• Utilisation Certificate (CA-certified) — confirming end use of all grant funds
• Final Project Report — comprehensive close-out with outcomes and financial reconciliation
• Impact Assessment Report — quantified change attributable to the project
• Auditor Certificate — for donor's own audit and compliance records

• Issue formal donation receipts with NGO name, PAN, 80G registration number, and date
• Form 10BE mandatory from FY 2021–22 onwards — issued annually by the NGO through Income Tax portal
• Cash donations above Rs.2,000 do not qualify for 80G deduction — receipts must record mode of payment
• Corporate donors require Section 80G(5) approval details for their tax filing
• FCRA donors (foreign) receive utilisation certificates in the format specified in their grant agreement

Q: When must Form 10BE be issued to donors?
From FY 2021–22, NGOs must issue Form 10BE to donors (the statutory donation certificate replacing the earlier manual receipt). Form 10BE must be downloaded from the Income Tax portal and shared with donors by 31st May of the following financial year. MFiling generates and distributes Form 10BE to all donors as part of the annual compliance retainer.

Q: Does MFiling draft MoUs with corporate CSR donors?
Yes. MFiling drafts CSR MoUs covering project scope, fund disbursement schedule, quarterly reporting obligations, audit arrangements, intellectual property, branding rights, and dispute resolution. We review MoUs sent by the corporate donor to identify any terms that could create compliance issues for the NGO before the NGO signs.

Institutional donors — bilateral aid agencies, international foundations, and large corporate CSR programmes — conduct structured due diligence before funding an NGO. The documentation they request is standardised, and NGOs that are unprepared for this process lose months in delays or fail the assessment entirely. Understanding what institutional donors look for — and why — helps NGOs prepare the right documentation from the start.

Tier 1 Non-Negotiables (No exceptions — application rejected without these):

• Valid registration certificate (Trust/Society/Section 8)
• Valid 12A certificate (Income Tax exemption)
• Valid 80G certificate (donor deduction)
• Active NGO Darpan profile with current-year update
• FCRA registration (for international/foreign-source grants)
• ITR-7 filings for last 3 years with acknowledgements
• Audited accounts for last 3 years

Tier 2 Quality Assessment (Determines scoring in competitive selection):

• Annual reports with disaggregated beneficiary data and outcome evidence
• Previous donor references — at least 2 institutional donors who can verify implementation quality
• Administrative cost ratio below 20% of total income
• Governance documentation: board meeting minutes, attendance records, conflict-of-interest policy
• Financial management systems: accounting software, internal controls, bank reconciliation practices
• Human resources: key personnel CVs, HR policy, staff retention rates
• Site visit readiness: field office accessible, beneficiary communities willing to engage with donor representatives

MFiling prepares comprehensive institutional due diligence dossiers that present every piece of documentation in the standard format expected by bilateral donors, foundations, and corporate CSR committees.