Ethics.

When we speak of public money (whether collected from citizens through taxes, or raised from donors through a public appeal), there are strict principles and rules that govern its collection and use. Misusing or diverting funds, even for a “good cause,” can create a breach of trust and sometimes legal violations.

Here’s a structured answer:

1. Importance of Purpose Adherence

Trust factor: Donors or taxpayers give money with the understanding it will be used for the announced purpose. Using it elsewhere (even for another noble cause) is a breach of trust.

Accountability: Every rupee must be traceable to its intended outcome.

Transparency: If purposes change, donors/citizens must be informed and, ideally, their consent taken.

2. General Rules for Collection and Disbursement of Public Money

A. Collection Rules

1. Clear Objective Stated – Any fundraising appeal must specify the purpose (education, health, relief, infrastructure, etc.).

2. Authorized Channel – Funds must be collected only through official, auditable channels (government treasury, approved bank accounts, registered trusts/NGOs).

3. Receipting – Every contribution should be receipted and accounted for.

4. Segregated Accounts – Separate accounts for different projects to prevent mixing of funds.

B. Disbursement Rules

1. Use Only for Stated Purpose – The money must be spent strictly for the project announced.

2. Approval Mechanism – Any change in purpose requires approval by the governing body or authority.

3. Donor Consent (in voluntary donations) – If diversion is necessary, donors should be informed and given an option to approve or request refund.

4. Auditing – Regular independent audits to ensure compliance.

5. Public Disclosure – Periodic reporting of how funds were used (government publishes budgets/expenditure statements; NGOs publish annual reports).

3. Legal/Policy Framework (India as example)

Government/Public Funds → Governed by Constitution of India, Comptroller and Auditor General (CAG), General Financial Rules (GFRs), and budgetary approval by Parliament/Assemblies.

Charitable Donations (NGOs/Trusts) → Governed by Societies Registration Act, Indian Trusts Act, FCRA (if foreign funds), and mandatory audits under Income Tax Act.

CSR or Institutional Funds → Regulated under the Companies Act 2013.

4. Key Ethical Principles

Transparency: Always disclose.

Consent: Don’t assume—ask.

Accountability: Be ready to show records.

Fiduciary Duty: Treat public money as sacred—it belongs to the people, not the collector.

 In short: Diverting funds without disclosure and consent is a breach of trust and often unlawful. Even if the alternative project is deserving, rules and ethics demand that money collected for “X” must be spent on “X,” unless formally re-approved.

Can't collect Guru dakshina during navratri and use the money for another project  specify why the collection and follow rules . Many people do this especially now during Dasara.  Totally wrong.