PM CARES Fund: Overview, Composition, and Funding

Why the scheme is in the news?

According to official records, the PM CARES Fund received a total of Rs 535.44 crore in foreign donations over the past three years.

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Overview of the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)

Established:

• PM CARES was established in March 2020.
• It has been registered as a Public Charitable Trust.

Objective:

• The Trust is authorized to carry out and support relief or assistance of any kind about public health emergencies or any other type of emergency, calamity, or distress caused by humans or nature. This may include establishing or improving healthcare or pharmaceutical facilities, developing necessary infrastructure, providing funding for relevant research, or any other type of support.
• The Trust may provide financial assistance, issue grants, make money payments, or take any other necessary measures deemed appropriate by the Board of Trustees to aid the affected population.
• The Trust is empowered to undertake any other activity that is not inconsistent with the aforementioned objectives.

Composition:

• The Prime Minister of India is the Chairman of the PM CARES Fund, and the Minister of Defence, Minister of Home Affairs, and Minister of Finance are the ex-officio Trustees of the Fund.
• The Chairperson of the Board of Trustees has the authority to nominate three eminent persons in fields such as research, health, science, social work, law, public administration, and philanthropy, to serve as Trustees on the Board of Trustees.
• Any individual appointed as a Trustee is expected to act pro bono, meaning they are not compensated for their services.

Funding:

The PM CARES Fund is solely funded by voluntary donations from individuals and organizations and does not receive any financial assistance from the government budget.

Exemptions:

• Contributions made to the PM CARES Fund are eligible for 100% exemption under section 80G of the Income Tax Act, 1961.
• Donations to the PM CARES Fund can be considered as part of the Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
• The PM CARES Fund has received clearance under the Foreign Contribution (Regulation) Act (FCRA), and a separate account has been opened to receive foreign donations.

Registration:

The Registration Act, of 1908, has been utilized to register the trust deed of PM CARES Fund.

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