A public charitable trust is a legal entity (established under the Indian Trusts Act of 1882) that serves the public by carrying out charitable activities. They are created to pool resources and assets to achieve philanthropic goals. Eg-  Tata Trusts, Azim Premji Foundation,etc. 

Public Charitable Trusts and Their Role in Inclusive Development in India

1. Poverty Reduction – Eg- Tata Trusts’ Lakhpati Kisan Initiative in Jharkhand aims to create sustainable livelihoods by empowering tribal farmers with improved agricultural practices
2. Educational Enhancement: Eg. scholarships by Dhirubhai Ambani Foundation .
3. Healthcare Accessibility: Eg. telemedicine services by Piramal Swasthya initiative  in Assam have delivered over 5 million consultations.
4. Empowerment Through Skill Development – Eg- The Self-Employed Women’s Association (SEWA) has uplifted over 1.5 million women by providing vocational training and access to financial services.
5. Infrastructure Development – Eg- The Infosys Foundation focuses on building infrastructure such as schools, hospitals, and sanitation facilities in rural areas. 
6. Complementing Government Efforts: Charitable trusts assist in implementing government schemes, such as Swachh Bharat, by providing water, sanitation, and health services in rural areas.
7. Social Inclusion- Eg-  The Aga Khan Rural Support Programme (AKRSP) works in tribal regions of Gujarat, promoting social inclusion through watershed management and livelihoods for marginalized communities.
8. Environmental Sustainability – The Sundarban Social Development Centre in West Bengal works on mangrove restoration and eco-friendly livelihoods, supporting 10,000 families while preserving the environment.
9. Leveraging CSR for Development: Eg- Azim Premji Foundation signed pact with karnataka government to provide eggs in mid day meals.

Issues with public charitable trust in india

1. Misuse of Funds: In 2020, the Pandit Deendayal Upadhyay Smriti Manch faced scrutiny after the Delhi High Court flagged irregularities in fund usage, with donations being misappropriated for non-charitable purposes.
2. Governance Issues: The Tata Trusts were involved in a legal dispute with the Income Tax Department over misuse of tax exemptions.
3. Lack of Accountability: In 2021, the Gandhi Smarak Nidhi Trust faced criticism for lack of transparency and ineffective program implementation, raising concerns about accountability.
4. Impact Measurement Challenges: McKinsey’s India Impact Evaluation Report 2020 revealed that only 12% of public charitable trusts have mechanisms to track long-term social outcomes effectively.
5. Dominant top-down approach: Development programs driven by donors often impose a top-down approach, where external organizations dictate priorities and goals instead of considering local needs and perspectives.
6. External interference: Relying heavily on donor funding diminishes the ability to negotiate and involve communities due to the conditions imposed by donors.
7. Dependency Theory: Dependency theory suggests that international aid, including that provided by donor agencies, can create a cycle of dependency among recipient nations. The aid leads to reliance on foreign funds rather than fostering domestic growth and self-sufficiency.

Way forward

1. Monitoring: There should be better coordination between Ministries of Home Affairs and Finance in terms of monitoring and regulating illicit and unaccounted funds. 
2. Streamlined Registration Process: Simplify and standardize the registration process for charitable trusts across states to reduce bureaucratic hurdles. This can encourage more organizations to formalize their operations.
3. Capacity Building and Training: Provide training programs and resources for trustees and staff of charitable trusts to enhance their governance skills, financial management, and operational efficiency.

“Public charitable trusts and NGOs are crucial pillars of democracy. They fill the gap between government actions and societal needs, ensuring more inclusive development.” – Amartya Sen.