Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

October 2022

Uncharitable Treatment to Charities?

By Dr. CA Mayur B. Nayak
Editor
Reading Time 5 mins
“I slept and dreamt that life was a joy. I awoke and saw that life was service. I acted and behold, service was a joy.” – Rabindranath Tagore.

India is a land of philanthropists for ages. Karna and King Bali are glaring mythological examples of donors who never refused anyone coming to their door for any help. Those who have experienced the joy of giving would go all out to help others. And India is fortunate to have many such philanthropic people who are engaged in helping others in a big way.

In a country of 1.40 billion plus people with 25 per cent below the poverty line, a literacy rate of 77 per cent and an unemployment rate of about 8 per cent, the Government’s efforts need to be complemented by that of NGOs. According to World Poverty Clock, almost 83 million people in India live in extreme poverty. As per NITI (National Institution for Transforming India) Aayog’s Sustainable Development Goals (SDG) Index, India ranked 66th among 109 countries in the Global Multidimensional Poverty Index (MPI) 2021, which considers factors like education, health, child mortality, nutrition, the standard of living, etc. Various Government schemes/programs launched with the objective of reducing poverty have been doing well. However, looking at the magnitude of the challenge, the role of NGOs is crucial.

The laws relating to Trusts, Trustees, Charities and Charitable Institutions are part of the Concurrent List of