Trust established to attract diaspora fund for philanthropy

New Delhi, Jan 6 (PTI) Seeking to unify fragmented
contributions by the diaspora for social causes and match them
with the nation's development plans, the government is to
launch the India Development Foundation (IDF) during the
upcoming Pravasi Bharatiya Divas.

The Cabinet has already given its nod to the Ministry of
Overseas Indian Affairs (MOIA) to establish the IDF as a
not-for-profit trust.

Indian Prime Minister Manmohan Singh is set to announce
the initiative at the Pravasi Bharatiya Divas to be held in
Chennai, the capital of India's southern state of Tamil Nadu.

The government is keen on the trust acting as a single
window dedicated to leading Diaspora philanthropy towards
India's development efforts.

"After several governments started recognising the
economic and social capital of their diaspora, India too was
keen to set up something like the IDF. We have already had the
body registered and it is to be Chaired by the MOIA minister,"
MOIA Secretary K Mohandas said.

Though any final announcement on the board members of the
IDF is still awaited, key activities of the body has been set
out for areas like rural development, infrastructure,
education and health.

"The intention is to draw the middle class among the
diaspora to participate in philanthropic activities as they
often get left out from participating as they are not able to
meet regulatory requirements. Donors would also have the say
to choose priorities for their contributions based on certain
broad parameters," OIA Minister Vyalar Ravi told PTI.

"The goal here is to match development activities in
backward areas in keeping with the Eleventh five year plan.
The IDF will engage NGOs of repute to carry out these
development activities," Ravi said.

Eight of the thirteen trustees would consist of eminent
people among overseas and resident Indians. The trust would
also ascertain the bonafides of the contributors prior to
their donations are received.

The trust would be exempted from the provisions of the
Foreign Contribution Regulation Act (FCRA) under Section 31 of
the Act as it is fully owned and managed by the Government.

For a period of three years, the MOIA will meet the costs
of establishing the trust and its operations with a budget
allocation of Rs 50 lakhs per year.

An initial start up expenditure of rupees one crore will
also be provided from the Ministry's budget. After three years
of support from the ministry, the trust is expected to be self
sufficient. PTI