Time to expand the Electoral Trust instrument to support Political Action Committee (PAC) style organizations for India

  1. The trust can only spend up to Rs. 5 lacs for its own expenses in 1st year and Rs. 3 lacs from 2nd year onwards. This limits the formation of trust to big players with deep pockets who may start Electoral Trust and another “leverage” over political parties. It is well known that it takes nearly 30–45% “cost” to raise funds for a NGO/Social Cause. Crowd-funding campaigns are expensive — digital marketing, social media costs, cost of meetings, paid events is / will be much higher than Rs. 5 lacs limit.
  2. The trust can ONLY donate to political parties. Now in our system, the political parties already have excessive control / power over their MLAs/MPs thru the “whip” and defection laws. This means even if PACs supported good candidates, the candidates could not introduce bills / support bills as per the PACs agenda. Party agenda is supreme (and usually short term oriented)
  3. The trust HAS to spend 95% of the funds collected in the same year by giving it away to parties (some carry over is allowed). Why? The objective of the PAC may be to collect funds thru a 5-year term and deploy the same against the top 10–20 candidates who are aligned to its vision.
  4. The trust can not pay for political campaigns, volunteers, advertisements and other ‘expenses”. It MUST give funds only to political parties. Now parties may not deploy the funds meant for ‘Candidate A” endorsed by the PAC and may spend it sub-optimally. Instead, giving the flexibility to the PAC to spend as it deems fit on the campaign will utilize professional skills that its members/donors have towards more effective campaigns.

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Innovator. Entrepreneur. Mentor. Investor. Learner. Love technology, sports, arts and literature. Strive to be fair. http://t.co/UFEkCAnU

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Arvind Jha

Arvind Jha

Innovator. Entrepreneur. Mentor. Investor. Learner. Love technology, sports, arts and literature. Strive to be fair. http://t.co/UFEkCAnU

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