1. Introduction
Sammaan Foundation is committed to financial transparency, accountability, and the responsible utilization of funds to achieve its mission of social welfare. This policy ensures that all financial transactions adhere to legal requirements and best practices.
2. Sources of Funds
The foundation receives funds from:
- Corporate Social Responsibility (CSR) contributions
- Grants from government and non-government organizations (excluding foreign
contributions)
- Donations from individuals, businesses, and philanthropic institutions
- Revenue from fundraising initiatives
- Bank interest and investment income (if applicable)
3. Budgeting and Fund Allocation
An annual budget is prepared, reviewed, and approved by the Board of Trustees.
Funds are allocated to the foundation’s key initiatives, including:
- Neem Karoli Baba Old Age Home – Providing free shelter, food, medical care, and essential
services for homeless elderly individuals.
- Sammaan Pathshala – Offering education, study materials, and nutritional support to
underprivileged children.
- Community Kitchen – Providing free meals to the homeless and underprivileged.
- Other social welfare projects as per the foundation’s objectives.
A contingency reserve is maintained to manage unexpected expenses.
4. Fund Utilization & Financial Controls
All expenses require pre-approval and must be properly documented.
- Cash transactions are minimized, and electronic payments are preferred.
- A transparent procurement process ensures fair pricing and vendor selection
- Separate accounts are maintained for CSR funds, general donations, and operational
expenses for clear financial tracking
- Internal monitoring ensures that funds are used efficiently and for their intended
purposes.
5. Financial Reporting & Audit
Monthly and annual financial statements are prepared and reviewed by the management
team.
- An independent auditor conducts an annual audit to ensure compliance with statutory
norms.
- Regular financial reports are shared with donors and CSR partners to maintain transparency.
- The foundation complies with all tax regulations, including proper filing of returns and
adherence to the Income Tax Act (e.g., 12A, 80G certification).
6. Donations & CSR Fund Management
CSR funds are strictly used for designated projects as per donor agreements.
- Donations are recorded systematically, and acknowledgment receipts are issued
- Impact reports are provided to donors to ensure transparency in fund utilization.
7. Salary & Honorarium Policy
Salaries of employees and honorariums for consultants/volunteers are determined based
on industry standards and approved budgets.
- No financial benefits or personal gains are extended to trustees or governing members.
8. Fraud Prevention & Ethical Standards
Strict measures are in place to prevent financial mismanagement, fraud, or misuse of funds.
- An internal grievance mechanism allows employees and stakeholders to report financial
concerns confidentially.
- Financial dealings are conducted with integrity, and any violations result in corrective
action
9. Investment & Reserve Policy
Any surplus funds are placed in low-risk investments, in compliance with legal
requirements.
- A contingency fund is maintained to handle emergencies and sustain ongoing programs.
10. Policy Review & Amendments
The financial policy is reviewed annually by the Board of Trustees.
- Amendments are made as required to align with regulatory changes and organizational
needs
