As per section 181 of the Companies Act 2013, a company can donate or contribute to the bona fide Charitable Trust or NGO. Company can make a donation of maximum up to the 5% of average net profit of the immediately 3 proceedings year of the company by passing board resolution. However if company wants to donate more than 5% of average net profit of the immediately 3 proceedings years than prior approval of shareholders is also required by passing a resolution in general meeting.
Note: You can download the format of board resolution for making donation or contribution to NGO or Charitable Trusts in word file from the link provided at the end of this post.
Also Check: Board Resolution for donation/contribution to political parties.
On Company Letterhead
Board Resolution for Donation to NGO or Charitable Trust
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF [Name of Company], HELD ON [Date], AT [Address].
RESOLVED THAT in accordance to the section 181 of the Companies Act 2013, rules made thereunder and other applicable provisions, the consent of the board of directors is hereby accorded to make donation of an amount of up to [Rs. XXXXXX], which is up to the 5% of average net profit of the immediately preceding three financial years, during the financial year [20XX-XX] from time to time to the following NGO or Charitable Trusts:-
| S. No. | Name of NGO or Charitable Trust | Amount |
RESOLVED FURTHER THAT Mr./Mrs. [Name of Director], director of the company, be and is hereby authorised to submit documents and sign all the papers and documents for the said purposes and to do all such acts , things and deeds to give effect to the said resolution.
CERTIFIED TRUE COPY
For [Name of Company]
[Name of Director]
Director
DIN: [XXXXXXXX]
Date: [XX/XX/20XX]
Download Link:-
Download Format of Board Resolution for Making Donation to NGO / Charitable Trust in Word Format