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

Meera Trust, a charitable trust, wants to maintain a permanent capital base and spend only the income it earns each year on scholarships, so that the scholarships continue for generations. Which form of philanthropic vehicle does this approach best describe?

This describes an endowment-style foundation. The corpus is held permanently and only the income generated is used for scholarships, allowing the charitable work to continue over generations. Models that spend funds immediately or distribute profits to owners do not preserve capital for long-term philanthropy.

  1. AAn endowment-style foundation where the corpus is preserved and only the income is applied to the causeCorrect
  2. BA crowdfunding campaign where the whole sum is spent immediately
  3. CA for-profit social enterprise distributing dividends to owners
  4. DA donor-advised pass-through that disburses all receipts within the month

Explanation

An endowment model keeps the principal intact and applies only the yield to the charitable purpose, giving long-term sustainability. Crowdfunding and pass-through models spend funds quickly, and a dividend-paying enterprise is not charitable.

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