Demonetisation affects fund flow of charitable trust

AURANGABAD:The effect of demonetisation has not waned just yet. According to a charitable trust, their fund raising drive is not running well because of prevailing cash crunch.
The charitable trust, which distributes foodgrain among the needy every year during the holy month of Ramzan, said that it has been failing to generate the targeted funds because of slowdown in the market.
Mufti Anees Ur Rahman, an office-bearer of Safa Baitul Maal, said, “Over 200 members of the trust along with many other generous people contribute for the noble cause. We receive donations throughout the year and spend it before Ramzan. But due to demonetisation, many donors have cut short the amount to be released on account of zakat (obligatory tax for economically sound Muslims). We had planned to offer foodgrain to about 500 needy persons in the current season for which we are in need of Rs 10 lakh, but so far our collection has reached Rs 8.5 lakh mark,” he said.
“The trust will have to take financial loan from the market to meet the demand. It is not the first time when we have to avail loan, but this season the loan amount is certainly more than the previous occasions. Last year, we had to take loan of Rs 50,000 whereas in the current season the loan amount will be Rs 1.5 lakh,” Rahman said.
But undeterred by the shortage of funds, the trust is planning to go ahead with its plan and has initiated the process of distributing food grains among the needy persons. “We have faith in the almighty and thus we are confident of repaying the loan amount soon after Ramzan,” he said.
Interestingly, the office-bearers have increased the number of beneficiaries from 400 to 500 for the current season for which they have started procuring the material.
Every year the trust distributes wheat, rice, pulses, sugar, spices, edible oil, dry fruits and soaps among other commodities to over 400 needy persons before the holy month. On an average, the trust spends about Rs 1,500 per person for procuring these items.