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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

Asha Seva Trust, a registered public charitable trust in Pune, runs a free night school for migrant workers' children. It is governed by a board of trustees, receives only donations, and distributes no profit to anyone. Which description best fits this organisation in the social governance framework?

Asha Seva Trust is a non-profit voluntary organisation and part of civil society. It is privately constituted, self-governing, funded by donations and does not distribute surplus to its trustees, which separates it from state bodies and profit-seeking enterprises.

  1. AA non-profit voluntary organisation forming part of civil societyCorrect
  2. BA for-profit social enterprise that may share surplus with trustees
  3. CA government department acting through its trustees
  4. DA listed company whose shares are held by donors

Explanation

The trust is privately formed, self-governing, depends on donations and distributes no surplus. These are the typical features of a non-profit voluntary organisation that forms part of civil society. The for-profit option fails because surplus cannot be shared with trustees.

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