A government-appointed committee has recommended the implementation of real-time expense tracking systems for all public charitable trusts handling substantial donations. The proposed digital platform would require trusts to record expenditures as they occur, with automated categorization of spending against approved budgets. This system aims to eliminate delays in financial reporting and provide immediate visibility into fund utilization patterns. The recommendation follows several high-profile cases where audit discrepancies emerged months after funds were allegedly misused, making recovery difficult.  

The suggested tracker would integrate with existing banking systems to automatically capture transaction details while allowing manual entries for cash expenditures with mandatory receipt uploads. Special features would flag unusual spending patterns, such as disproportionate administrative costs or payments to unregistered vendors. Trusts receiving government grants would be prioritized for initial implementation, with the system generating automatic utilization certificates for releasing subsequent funding installments. The committee emphasized that such transparency measures could reduce compliance burdens by replacing multiple retrospective reporting requirements with continuous disclosure.  

Smaller trusts have raised concerns about the technological and administrative capacity needed to maintain such systems. In response, the proposal includes provisions for simplified mobile interfaces and training programs for rural-based organizations. The committee suggests phased implementation, starting with trusts handling annual donations above a specified threshold before expanding to smaller entities. Banking partners would be encouraged to develop standardized low-cost solutions tailored to nonprofit operations, with possible subsidies for deserving organizations.  

The proposal is under review by the Ministry of Finance, which has sought input from state charity commissioners and nonprofit associations. Early reactions suggest the system could significantly improve public confidence in charitable institutions if implemented with adequate support mechanisms. The committee has also recommended linking the expense tracker to the proposed central NGO database for cross-verification of financial data across regulatory bodies. Successful pilots in several states demonstrate the system’s potential to reduce fraud while streamlining oversight processes for compliant organizations.