Corpus Fund
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Donation to Corpus Fund is a permanent contribution, somewhat like an organization's capital. A donation qualifies as a ‘Corpus Donation’ only when the donor makes a specific written direction that such a 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 the “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 with the help of Donation to Corpus Fund by 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).
Donate to PARD INDIA - Donation to Corpus Fund for the empowerment of V-Kids
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 and 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 or NPO are taxable under the provisions of the Income Tax Act 1961. However, this was not true with ‘Corpus Donation’ or ‘Donation to Corpus Fund’ 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 organization's existence and sustenance.
The following questions and 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 or NPO is a corpus donation (Donation to a Corpus Fund). A donation qualifies as a ‘Corpus Donation’ only when the donor makes a specific written direction that such a 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 – donorcare@pardindia.org
A 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 and management and fulfill its charitable and social objectives.
A Corpus Fund is a fund that an NGO or NPO can use when its survival is under threat or during a phase or period when project funds are minimal. It can also be called an “Emergency Fund,” as it is used to help sustain an NGO's problematic times. Given its nature, this is also called a subsistence fund.
An essential aspect of the Corpus fund is that, with the approval of the general body meeting, it can also be used to maintain continuity in an organization’s activity, for example, when the grant has yet to be 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. The remaining 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: The General Fund is not earmarked money. It reimburses expenses incurred from resources that no donor covers (for example, overhead or admin costs). An NGO or NPO may choose how to spend this fund, and it is not required to provide feedback for this option.
Donation to Corpus Fund Options: Corpus Fund Options can only be created by organizations with one. The NGO or NPO must submit a report on the total Corpus Funds raised until 31 March of the previous year and the organization's upcoming activities toward which the interest from the Corpus Fund would be utilized.