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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