District Corpus Fund Update
There are 33 districts (as of January 8, 2019, with the announcement of Kallakurichi as a new district) in Tamil Nadu. Several of these districts were bifurcated or trifurcated from the original 13 districts established in 1956. The link provides more details on the evolution of these districts
Although TNF USA is sending about $ 1 Million annually to support various projects in Tamil Nadu, “Mann Vaasanai” is the single largest fund raising and corpus initiative since the formation of TNF in 1974. Only the interest generated from these funds will be used to expand and sustain TNF’s educational and humanitarian projects in those specific districts.
The goal of “Mann Vaasanai” initiative, launched by the TNF Board in 2018, is to ensure sustainability of selected TNF USA Board sponsored projects that will be implemented in all the 33 districts and the Union Territory of Pondicherry and for continued statewide presence of TNF.
- This will be achieved by establishing a corpus fund for each of the 33 districts and the Union Territory of Pondicherry
- Funds raised will be invested in India, in government approved safer and high yielding options for NGOs, and in accordance with FCRA guidelines
- Focus will be to protect the principal and secure interest higher than traditional CDs offered by the banks
- TNF Chennai trustees will make the prudent investment decision based on input from their financial experts and in accordance with government policies
- The objective is to raise $250,000 (Rs. 1.75 crore @ Rs70/$) for each of the 33 districts and Pondicherry in 3 phases (Rs 50 lakhs each for Phase1 and Phase 2 and the remaining funds in Phase 3). At 8.5% annual interest rate, upon completion of the three phases, this will generate about Rs. 15 lakhs interest per year
- Only that interest will be used for that specific district to implement TNF USA Board sponsored selected projects in the areas of education (e.g. ABC education initiative), women empowerment, rural development and health and hygiene
- Initial focus will be education – expanding the ABC project to all 33 districts and Pondicherry and in sustaining those projects. As funds increase, we will include projects in the other 3 core areas
- TNF USA Board will choose projects that are unique and cost effective with statewide replicability potential. Currently (as of February 2019), it is ABC education projects and that may change with time and future Boards in consultation with TNF Tamil Nadu Chapter trustees will reshape the strategy as time evolves
- If a district gets further bifurcated or trifurcated, TN Chapter Trustees, in consultation with TNF USA Board, will make the decision on how the corpus fund in that district gets allocated to the parent and the newly formed districts
- Funds required for the current and next academic year of the ABC project will be kept in separate accounts for districts where we have started the ABC projects and the remaining amount will be invested in the corpus fund
- If there is a temporary shortfall for a district in continuing the ABC project because the funds were invested in corpus fund, TNF USA Board will take the ownership to continue the project and transfer funds back to its general funds when the district’s funds become available
- For districts where we have not started the ABC project, we will start with one or two schools, secure the funds needed for that in non-corpus fund and invest the rest of the donations in corpus funds