CSR Funds use competition between applicants to identify the best solution to a pre-defined development problem.
Most CSR Funds announce a “New Investing Project” where entrepreneurs can apply for funding. Applicants must have a business that has positive impact on sustainable development. The entrepreneurs that have applied are assessed against each other and the businesses that best fills a number of pre-set criteria are given a grant to implement their ideas. While applicants usually have to adhere to certain criteria, they are given freedom in designing their solutions.
Many CSR Funds also offer additional services to grantees, such as technical assistance, that strengthen the capacity of entrepreneurs to take their business innovations even further.