Understanding the Differences Between Donating to PM CARES and CM Relief Funds
As disaster response and aid continue to play a critical role in emergency scenarios, it is essential to understand the unique aspects of donating to different public charitable funds. This article delves into the key differences between donating to the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) and the Chief Minister's Relief Funds (CM Relief Funds).
Framework and Legal Background
At the heart of the discussion is the legal and regulatory framework governing these funds. The Supreme Court of India has explicitly endorsed the PM CARES Fund as a ‘public charitable trust’ and has stated that there is 'no occasion' for the Comptroller and Auditor General (CAG) to audit such a charity, independent of budgetary support or government money (Supreme Court, June 2020). This decision underscores the unique nature of the PM CARES Fund and its voluntary contributions, distinguishing it from budgetary-based funds.
PM CARES Fund: A Detailed Overview
The PM CARES Fund, established to address emergencies and distress situations, operates under a unique set of circumstances. It receives voluntary contributions from individuals and organizations, making it distinct from the statutory National Disaster Response Fund. Here are some key points:
Charitable Nature: The PM CARES Fund is considered a charitable organization, receiving funds from individuals and organizations on a voluntary basis. No Budgetary Support: Unlike other relief funds, the PM CARES Fund does not receive any budgetary support. This ensures that it remains independent and operates purely on voluntary contributions. Micro-donations: The fund enables micro-donations, allowing a large number of people to contribute with small denominations, ensuring accessibility and inclusivity. Tax Exemptions: Donations to the PM CARES Fund are tax-exempt and can count towards corporate social responsibility (CSR) obligations. Foreign Contributions: The fund accepts foreign contributions, although the Centre has previously refused foreign aid for other disaster relief, such as the Kerala floods.PMNRF: The Legacy and Scope of Chief Minister’s Relief Funds
The Prime Minister's National Relief Fund (PMNRF), established in 1948, serves a different but overlapping purpose. It provides immediate relief to families and victims of natural calamities, major accidents, and riots. Here are the key differences:
Key Differences: Although both funds aim to provide relief, the PMNRF is managed centrally and primarily by the Prime Minister. The PM CARES Fund, on the other hand, operates under the chairmanship of the Prime Minister and administers a board of trustees that includes eminent persons in relevant fields. Corporation and Audits: Unlike the PM CARES Fund, the PMNRF has independent auditors, making it subject to different scrutiny mechanisms. Voluntary Contributions: While both funds rely on voluntary contributions, the PMNRF also accepts certain budgetary support, which the PM CARES Fund does not.Recent Developments and Controversies
Despite the benefits of the PM CARES Fund, some opposition leaders and critics question its efficacy and necessity. They argue that the PMNRF and other Chief Minister's Relief Funds fulfill similar roles and that state governments already manage and respond to emergency situations. Here are some of the concerns:
RTI and Accountability: Some queries under the Right to Information (RTI) Act have been refused, citing the Supreme Court's observation that indiscriminate demands could be counterproductive. CSR Contributions: The decision to allow uncapped corporate donations to count as CSR expenditure deviates from previous guidelines, leading to debates about the efficiency of such practices. Compliance with Guidelines: There are concerns regarding the compliance with guidelines such as the Foreign Contribution Regulation Act (FCRA) and the Income Tax Act.Understanding the differences between donating to PM CARES and CM Relief Funds is crucial for donors, organizations, and policymakers. Each fund serves a unique purpose and operates under distinct legal and administrative frameworks. By familiarizing oneself with these differences, one can make more informed decisions about where to allocate resources for disaster relief and aid.