Trust -- urgent

What is the difference between earmarked fund and corpus fund in trust?

Replies (2)

 Earmarked fund is for a specific purpose. Can be used only for that particular thing like building a wall or buying a new idol etc.

But Corpus is the main fund It may not be tied to a particular activity.

 

To be sustainable, NGOs need to build up a strong organisation. Given the erratic nature of funding, developing a corpus/general fund is one way that NGOs can do this. When you donate to the corpus/general fund, this helps NGOs to design long-term programmes without worrying about programme support from aid agencies, and to meet organisational costs that no one else is willing to bear.

 

Essentially corpus/general fund donations are not earmarked for a specific purpose, and the NGO is thus free to use them as required [e.g., to meet fundraising costs, to conduct a training programme to upgrade skills of its own staff, or to launch a new project, etc.]

 

Funds in the general fund can be used at any time, whereas money in a corpus can normally not be touched - the organisation is supposed to use only the interest that accrues from investments made out of corpus donations, without touching the principal itself.

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