Many trusts are started by influential people to park their black money. Giving tax-free status to trust should not be done. Rather whether it is charity or education, let it be treated as a service and tax be paid to the government.

Even non-profits and NGOs who end up handling large amount of money should be asked to act as for-profit organization and come under the watch of appropriate regulators like SEBI.

Generally co-operative societies and other bodies, monitoring and follow up is slack.

In fields like education, which does take lot of investment and lot of private participation is there, it may be better for institutions to disclose their profits. This will reduce the roll of black money. Institutions should be encouraged to have uniform standardized fees, with waivers for meritorious and economically weaker section. Single uniform fee may be a healthier practice than that of cross-subsidization which is practised right now.

Ideally, as Government gets cleaner and more transparent , Government itself should set up funds like Prime Minister’s relief fund to cater to disaster, child/woman empowerment, poverty alleviation, education and health.

Permission for trusts and NGOs be given very sparingly.

Social Media/tools can also make it possible for people to pay directly to beneficiaries with no/minimal involvement of intermediaries.

 

 

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