Do donations through MFS work?

If you wish to donate a part of your income but didn’t know where to start, then help is at hand. HDFC Asset Management Co. Ltd has launched the third version of HDFC Charity Fund for Cancer Cure (HCC3). Quantum Asset Management Co. Ltd has launched a facility whereby you can donate a part of your annual earnings from its existing schemes.

HCC3 is a roughly threeyear closed-end scheme. It invests your money in underlying instruments and generates dividends, which are meant to go towards charity. It has a tie-up with the Indian Cancer Society, one of India’s oldest anti-cancer NGOS. The aim is to donate the dividends declared (either 50% or 100%, depending on what you choose) to the NGO, which will then disburse it. At the end of the scheme’s tenure, investors get the capital back.

This scheme’s earlier variants were also of roughly three years; the second ver sion is due for maturity. But unlike the previous two versions, which were just debt schemes, this time HDFC AMC is also launching an arbitrage scheme.

Quantum, instead of launching new schemes, has introduced options in five of its existing schemes, whereby investors in growth and dividend options can donate part of their earnings to charities. The fund house has earmarked six charities that cover causes like skills and job creation, cancer treatment, education, child malnutrition, social services for the poor and Make-awish Foundation of India. Investors can select up to two of these causes.

Those who have invested in the growth plan can contribute 5% or 10% of the total value of their folios as on 30 September. The fund house will redeem the units, equivalent to the value plus exit load (if applicable) and pay to the charity. Investors with dividend plans can contribute the higher of the two amounts: 75% of dividend declared throughout the year or 5% or 10% of the total portfolio value as of 30 September plus dividend declared in the year.

In addition to ensuring that your money reaches the right hands, these avenues can generate a handsome corpus to be donated. HDFC AMC generated about ₹12 crore from its first scheme and about ₹22.22 crore from the second scheme (the last contribution tranche at the end of this month, when the scheme winds up, will be added to this kitty). In addition, HDFC has contributed ₹25.25 crore from its side as part of the second tranche. In HCC3, it has committed to donate ₹15 crore every year for the next 3 years. Don’t expect HCC3 to make any money for you if you choose the 100% dividend option. But if giving is on your agenda, this is an avenue to consider.

Quantum AMC’S schemes are well managed and the donation facility is designed to make money for you as well as the chosen charity. If the cause is appealing, this one works as well