Financial self-sustainability is one of the key features to be considered while assessing any institution in terms of its continuance.
By financial self-sustainability we mean generating all the required financial resources from within (without depending on external donations). For financial self-sustainability of our institutions, some of the following means could be considered:
1. Creating a Healthy Corpus Fund: As we know, a corpus fund is the backbone of any institution. By having a healthy corpus, we can ensure the financial sustainability of our institution. For an institution with a regular income from within, the corpus can be built up by setting aside a portion of the income, if the auditor and the Commissioner of Income Tax would permit (for, normally, corpus is created out of donations from the third parties with an explicit written donation letter). If setting up a corpus out of one’s own income is not permitted, then we can set up other funds according to our needs. But for an institution with very little foreseeable income, it may be better to consider creating a corpus right at the time of starting the institution so that lack of finance doesn’t become a threat to its very existence. The corpus can be built up by making an appeal to third-party sources.
Fr Alex G. SJ
To read the entire article, click Subscribe
