The term “social auditor” has been replaced with “social impact assessor” in the nomenclature, although this shift represents a larger shift in the NPO’s operational philosophy. According to Makarand M. Joshi, Founder of MMJC & Associates, it’s not only important to confirm that the use was made for the intended purpose; it’s also crucial to ascertain the impact on the disadvantaged or beneficiaries of the use or intervention made by non-profit organizations (NPO).
At the most recent SEBI board meeting, a proposal to rename social auditors as “social impact assessors” was adopted.
In response to the SEBI board’s approval of a lowering in the minimum application and issue sizes on social stock exchanges, Joshi said that Indian firms had already spent close to Rs 25,000–30,000 crores on corporate social responsibility. Thus, there is a huge market for NPO money raising. For individuals who want to work in social work and have an influence, there is thus a chance. The lack of funding for quality work has ended.
The SEBI Board authorized actions to encourage non-profit organizations to raise money on the Social Stock Exchange.
This includes lowering the minimum issue size from Rs 1 crore to Rs 50 lakh in the event that NPOs publicly issue Zero Coupon Zero Principal Instruments (ZCZP) on the SSE.
Lowering the minimum application amount from Rs 2 lakh to Rs 10,000 in the event that NPOs issue ZCZP publicly on SSE, allowing a larger range of subscribers, including retail ones, to participate.
In order to reassure NPOs and project a favorable image of the social sector, it also authorized replacing the term “Social Auditor” with “Social Impact Assessor.”
allowing non-profit organizations to use previous social impact reports in their fund-raising materials in accordance with current procedures, provided that important details like the number of beneficiaries, cost per beneficiary, and administrative overhead are disclosed.