Electoral Trusts are unique non-profit companies established to facilitate corporate and individual donations to political parties. Governed by the Electoral Trusts Scheme, 2013, they provide a layer of institutionalized transparency.
The Operational Framework
- Registration: These trusts are registered under the Central Board of Direct Taxes (CBDT).
- Mandatory Disbursement: A strict rule requires these trusts to distribute at least 95% of the contributions received in a financial year to registered political parties.
- Transparency Levels: While they must disclose any donation above ₹20,000 to the Election Commission of India (ECI), the specific breakdown of which donor’s money went to which specific party is not publicly disclosed—only the total amount received and total amount disbursed per party.
Recent Trends (FY 2024-25)
A report by the Association for Democratic Reforms (ADR) recently highlighted key data:
- Dominance of One Party: Approximately 5% of the total funds disbursed by these trusts went to the ruling party.
- Top Contributing State: Maharashtra emerged as the largest source of contributions, followed by Telangana and Haryana.
- Sectoral Contribution: The Manufacturing sector remains the biggest donor, contributing nearly 28% of the total funds.
