Public charitable trusts (PCTs) are non-profit legal entities and act as social capital institutions that complement the government in achieving inclusive and sustainable development.
Role of Public Charitable Trusts in Promoting Inclusive Development
Expanding Access to Education – Eg- Azim Premji Foundation Trust – runs 3500+ schools and Azim Premji University to democratize education.
Strengthening Healthcare Access in underserved areas. Eg-Tata Trusts: Developed Cancer Care Network – 17 cancer centres in Tier-II cities.
Promoting Rural Livelihoods and Skill Development – Eg- Aga Khan Rural Support Programme benefited 1.5 million rural households through watershed and women’s cooperatives in Gujarat and MP.
Addressing Social Inequality and Marginalization – Eg-Smile Foundation runs Mission Education and Swabhiman programs benefiting 750,000 underprivileged children
Environmental Sustainability – Invest in water conservation, renewable energy, and afforestation projects. Eg- Go Green Initiative of Wadia trust
Disaster Relief and Humanitarian Response – Eg-Akshaya Patra Foundation delivered meals during COVID-19 lockdowns.
Promoting Democratic Participation and Rights Awareness – Eg- Centre for Equity Studies promotes policy reforms for migrant and urban poor welfare.
Promoting Research and Policy Innovation – Eg- PRIDE India documents and disseminates data on women’s representation in local governance.
Challenges in the Functioning of Public Charitable Trusts
Regulatory Complexity: Multiple laws (Income Tax, FCRA, Trusts Act) create compliance burden.
Transparency Deficit: Eg- CBI report: <10% NGOs file audited financial statements.
Urban Bias leaves rural regions underserved.
Duplication: Overlap among similar welfare programs reduces efficiency.
Funding Constraints – Heavy dependence on foreign or donor funding.
Anti Developmental Role – Eg- IB Report – NGO activism leading to loss of 2% of GDP
Way Forward
Vijay Kumar Committee Recommendations: ‘Light regulation’ of NGO
2nd ARC: enact a law to set up an independent National Accreditation Council
Create formal government-NGO platforms (as in Kerala’s Kudumbashree).
This can strengthen Public charitable trusts act as agents of equity and inclusion, aligning private philanthropy with public good.