For any NGO, sustainability is not only about securing funds — it’s about managing those funds wisely. A well-planned corpus fund acts as a financial backbone, ensuring that the organization can continue its work even during funding gaps or project delays. In simple terms, the corpus is an NGO’s safety net — a reserve built over time that supports core operations, staff salaries, and essential activities when external funding is uncertain. However, how this corpus is managed determines whether it simply exists or truly grows into a long-term sustainability engine.
Traditionally, most NGOs keep their corpus in saving accounts or fixed deposits, assuming these are the safest options. While they are secure, they often yield very low returns (3–6% annually) and have limited liquidity when needed. In today’s economic environment, NGOs must explore diversified and compliant investment options that offer both safety and better growth. Under Section 11(5) of the Income Tax Act, registered NGOs can legally invest their corpus in approved instruments like government bonds, mutual funds, or specific financial institutions that align with charitable objectives. By professionally managing the corpus, NGOs can generate higher returns, reduce dependency on project-based funding, and create a steady income to sustain operations and innovation.
Effective corpus management is not just about investing — it’s about strategy and discipline. NGOs should establish clear investment policies approved by their governing board, defining risk levels, withdrawal conditions, and transparency measures. They can also engage with financial advisors specializing in the development sector to ensure compliance and performance monitoring. In addition, creating a corpus growth strategy through surplus allocation from administrative savings, small recurring donations, or endowment campaigns can strengthen long-term resilience. A well-managed corpus doesn’t just earn interest — it ensures that an NGO can plan ahead, retain talent, and respond quickly to community needs without waiting for the next donor grant.