Philanthropy & CSR: The Tata Trusts is said to have rewired its governance structure to ensure stricter audits and tighter internal controls.
In the new structure, the delegation of power and allocation of grants will be approved by a professional chief executive officer (CEO) along with the trustees, and will require endorsement from the entire Board. The Trusts have also plugged other gaps in its structure and functioning, in order to ensure good governance.
The CEO and the trustees will ensure there is greater oversight on operations and fund allocation, officials told the Economic Times. In February 2020, the Trusts appointed Tata Group veteran Srinath Narasimhan as its first CEO—signalling the move towards professionalising its leadership team. In addition, development consulting firm, The Bridgespan Group, has been advising the Trusts with regard to professionalisation of its operations.
The Tata Trusts have been under scrutiny for allegedly violating Indian laws by holding about 66 percent of Tata Sons. Indian income tax laws prohibit charitable trusts from claiming tax-exempt status in buying and selling shares, and benefiting from such activity. However, the Income Tax Appellate Tribunal upheld the tax-exempt status of Tata Trusts on December 28, 2020.
Read this article on how funders in India can better manage the risks of big philanthropy.
