The 2013 law states that CSR spending should be a minimum of 2% of average net profit of the three preceding years. When the budget is based on profitability, companies tend to be risk-averse, said Neera Nundy, co-founder of Dasra, a strategic philanthropy foundation. “As a result, agreements with non-profits working on the ground will be year-to-year at times. Sometimes, there are only verbal commitments.”
