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Navjyoti Education Society, a registered non-profit on the SSE, plans a public issue of ZCZP instruments to fund a literacy programme. Which of the following is a requirement for such an issue under the SSE framework?

The issue must be tied to a stated social project, and the society must report use of funds and social impact in its annual disclosures. SSE fundraising is purpose-linked and transparency-driven, so general-purpose use or minimal disclosure is not permitted.

  1. AThe funds may be used for any general purpose of the society
  2. BThe society need not disclose anything beyond its audited accounts
  3. CIt need not appoint any auditor for social impact
  4. DThe issue must be for the specified social project, with fund use and impact reported in annual disclosuresCorrect

Explanation

SSE fundraising is purpose-linked. A non-profit organisation has to describe the project in the offer document and later report the use of funds and the social impact in its annual impact report. General-purpose use and limited disclosure run against this design, and social impact reporting is audited by an assessor.

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