Electoral bond is a promissory note, through which donations are made to political parties but the name of the donor is not made public.
After the ban on electoral bonds, the donations received by political parties will reduce.
- Donations received by parties from the corporate sector were controlled under the Companies Act 2013.
- Section 182 says that the party making the donation must be 3 years old.
- Apart from this, the company cannot donate more than 7.5 percent of its profit.
Other ways for political funding
Electoral Trust
The electoral trust was started in 2013. This is a non-profit company. They can also receive donations from companies and distribute them among parties.
Crowd funding
Political parties also raise money through crowd funding.
Membership campaign
Parties adopted various methods to collect money, including member campaigns. Understand in simple language, that person had to pay some fees for taking membership of the party.
