Corpus Fund
Be our Permanent Partner!
‘Corpus Donation’ is a permanent donation, somewhat like an organization's capital. A donation qualifies as a ‘Corpus Donation’ only when the donor makes a specific written direction that such donation should form part of the organization’s corpus. The Corpus Donation is intended to provide a fixed interest income on investments made from corpus funds.
‘PARD INDIA has created a Corpus Fund exclusively supporting our “V-kid Educational Fund”. The Corpus Donation we receive shall be invested as a “Fixed Deposit” with the Bank, and the annual/periodic interest earned shall be routed to “V-kid Educational Fund” to continue our services in the donor's name.
‘This fixed interest income helps our NPO to continue with our ongoing Programs under the READ Project, supporting the educational needs of disadvantaged children (V-kids who hail from a rural background and are often denied equal opportunities in their upbringing, study environment, and exposure to the competitive world).
Please Donate to our Corpus Fund
Please download the Letter for Donating to PARD INDIA Corpus Fund in MS Word and send the duly filled-in and signed document to donorcare@pardindia.org. We shall contact you soon.
Our Bank Account Details
| Name of the Beneficiary | Pragathi Association for Rural Development |
|---|---|
| A/c. No | 16730200000136 |
| Account Type | Current Account |
| IFSC Code | BARB0YERNAG ('0' is ZERO) |
| Bank Address | Bank of Baroda, Yernagudem, East Godavari District, Andhra Pradesh. |
Alternatively, please Donate to our V-kid Educational Fund
FAQs About Corpus Fund
Donations received by an NGO / NPO are taxable under the Income Tax Act 1961 provisions. But this was not true with ‘Corpus Donation’ until the Financial Year 2020-21. However, from Financial Year 2021-22, a significant change has been introduced by Finance Act 2021 regarding the taxability of corpus donation.
From a layman’s point of view, a corpus fund should be understood as the organization’s capital, the funds generated and kept for the existence and sustenance of the organization.
The following Questions & Answers provide clarity on Corpus Donations:
‘Corpus Donation’ is a permanent donation, somewhat like an organization's capital. Not every donation received by an NGO / NPO is a corpus donation.
A donation qualifies as a ‘Corpus Donation’ only when the donor makes a specific written direction that such donation should form part of the organization’s corpus. If the donor gives no such advice, the donation shall be treated as a “voluntary contribution” or “general donation” for the purpose of the Income Tax Act.
Please download the Letter for Donating to PARD INDIA's Corpus Fund and send the signed document to email id – info@pardindia.org
Corpus donation is permanent and is like capital for an organization. Any NGO’s primary source of income is donations or grants, which are not regular. So, every trust/NGO needs some fixed source of income to meet its fixed expenditures like salary, rent, etc.
The Corpus donation is intended to provide a fixed interest income / dividend income on investments made from corpus funds. This fixed income helps the NGO manage its daily expenditures related to administration, management, and fulfilling its charitable and social objectives.
Corpus Fund is a fund that an NGO can use when its survival is under threat or during a phase/period where project funds are minimal. It can also be called an “Emergency Fund” as it is also used to help sustain the problematic times of an NGO. Given its nature, this is also called a subsistence fund.
An essential aspect of the Corpus fund is that, with general body meeting approval, it can also be used to keep continuity in an organization’s activity, say, when the grant is still not received from the donor organization. If an NGO has limited funds, any delay in the grant will lead to a pause or delay in the project activity. In such cases, Corpus works as a temporary grant arrangement to continue the activity.
1.Income or surplus: There may be different rules in the other countries towards this. For example, in India, as per the Income Tax Act, only 15% of the organization’s income or surplus can be transferred to the corpus fund. Rest 85% must be used to fund program activities.
2.Donations: Corpus can be received as a donation. But any donation received this way must be clearly stated in writing by the donor that they contribute to the corpus. Without any written consent from the donor, the funds cannot be transferred to the corpus.
General Fund Donation Options: General Fund is not earmarked money. This is a reimbursement of expenses incurred from your resources that no donor covers (for example, overheads/ admin costs). NGOs may choose how they spend from this Fund. You are not required to provide feedback for this option.
Corpus Fund Donation Options: Corpus Fund Options can only be created by organizations with one. The NGO must submit a report of the total Corpus Funds raised till 31st March of the previous year as well as the organization's upcoming activities towards which the interest from Corpus Fund would be utilized.