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Corporate Social Responsibility Gets a Makeover with Blended Finance and Outcome Based Funding

Toolkit

 

May 06, 2025
 

 

In a bold step towards transforming corporate philanthropy in India, a new toolkit titled “Corporate Social Responsibility (CSR): Evolving from Traditional Grant Giving to Blended Finance & Outcome Based Funding” is set to redefine how businesses, non profits, and other development sector stakeholders approach social impact.

Developed through the collaborative efforts of 360 ONE Foundation, Sattva Consulting, and the Nishith Desai Associates, the toolkit exemplifies case studies from 360 ONE Foundation. It offers a clear, practical guide for evolving CSR strategies from one-time grants to more catalytic, outcome-oriented models powered by Blended Finance (BF) and Outcome Based Funding (OBF) that deliver exponential impact.

The toolkit is particularly valuable for CSR donors who are seeking to align with emerging CSR trends but often face uncertainty around BF & OBF structures, operationalizing them, and legal and regulatory considerations. It introduces them to innovative approaches like Returnable Grants, Risk Guarantees, and Social Impact Bonds, while also demystifying the concept of Blended Finance, which refers to the strategic use of CSR and philanthropic capital to unlock larger pools of commercial or public capital.

At its core, the toolkit advocates for Outcome Based Funding, where a meaningful proportion of CSR funds are disbursed only upon achievement of pre-agreed, independently verified results. This marks a shift from traditional funding linked to inputs, activities, or output milestones, encouraging a stronger focus on improving performance and measurable and sustainable outcomes.

It also addresses crucial legal and regulatory considerations, ensuring compliance with India’s Companies Act and CSR Rules.

This toolkit provides a roadmap to reimagine CSR as a strategic lever for systemic change, enabling deeper collaboration, financial innovation, and long-term development outcomes.

Please click here to access our paper.

For any queries, please connect with us at CSRBlendedFinance@nishithdesai.com

 


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