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125 Years Of Philanthropy: Inspiring Story Of How Tata Trusts Work

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How does Tata Trusts work
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Tata Trust is a family legacy of over 125 years. Above all, it provides service for the common good using its income from dividend outflows of Tata Sons.

Tata Trusts represent compassion and socioeconomic advancement countrywide. Sir Jamshetji Tata founded the Tata Trust was founded approximately 125 years ago. The “Father of Indian Industry” was a visionary and a business legend. His staff policies infused a sense of security and confidence among its members.

Sir Dorabji Tata and Sir Ratan Tata built this flourishing business empire by carrying forward their father’s dream of constructive philanthropy. Once a visionary’s dream, Tata Trust owns a two-thirds stake in Tata Sons, the apex Tata group company. Until 1993, the chairpersons of Sir Ratan Tata Trust and Sir Dorabji Tata Trust were always different. Sri Ratan N Tata has been the chairman and the guiding force of Tata Trusts since 1995. He has transformed the organization from a responsive charity to a premier philanthropic foundation.

Overview of the Tata Trusts

Since its inception, Tata Trusts has aided the impoverished members of our community. Tata Trust is a conglomerate of 14 public Trusts that control almost 66% stake in Tata Sons, an unlisted company. A few of the causes supported by Tata Trusts include the following-

  • Healthcare and Nutrition
  • Education
  • Water and Sanitation 
  • Migration and Urban Habitat
  • Social Justice and Inclusion
  • Disaster Relief and Rehabilitation
  • Digital Transformation
image 7
Source: Registrar of Companies, Annual Reports of Trust

Sir Ratan Tata Trust and Allied Trusts

Sir Ratan Tata Trust was established in 1919 under the leadership of Sir Ratanji Tata. Sir Ratan Tata has the second-highest stake in Tata sons at 23.56%.

The grants made by the Trust are broadly classified as follows:

  • Grants to organizations that improve rural livelihoods, community welfare, and education.
  • Endowment funds are used to sustain positive social change.
  • Grants for Small Welfare Organizations
  • Individuals can apply for grants to cover medical expenses and to further their education.
Trust/ SchemeYear of Inception
Sir Ratan Tata Trust1919
Navajbai Ratan Tata Trust1974
Tata Education and Development Trust2008
Bai Hirabai J.N Tata Navsari Charitable Institution1923
Sarvajanik Sewa Trust1975

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Sir Dorabji Tata Trusts and Allied Trusts

Sir Dorabji Tata Trust is the brainchild of the elder son of Sir Jamshetji Tata. Sir Dorabji Tata has the highest stake in Tata Sons, at 27.98%. Sir Dorabji Tata Trust is a testament to his belief that wealth should be used constructively. Through his will, he transferred his substantial shareholdings of Tata Sons, Indian Hotels, and allied companies to Sir Dorabji Tata Trusts.

Trust/ Scheme Year of Inception
The JN Endowment for the Higher Education of Students1892
Sir Dorabji Tata Trust1932
Lady Tata Memorial Trust1932
Lady Meherbai D Tata Education Trust1932
JRD Tata Trust1944
Jamshetji Tata Trust1974
JRD and Thelma J Tata Trust1991
Tata Education Trust, Tata Social welfare Trust, and RD Tata Trust1990

About Tata Trusts: Themes of Engagement

Tata Trusts deploys the income generated for communities’ welfare striving to improve their quality of life. The premier Trust primarily serves the vulnerable and deprived population still struggling for their basic needs. In addition, philanthropic Trust helps in measuring, monitoring, and improving livelihood opportunities.

Tata Trust operates in 655 districts across 33 states and Union Territories. To assist as many households as possible, it has partnered with over 900 organizations for various causes. It covers all fields with the goal of sustainable development, from health, and rural development, to environmental conversations or sports.

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About Tata Trust: Source of Revenue Generation

The salt-to-software conglomerate earns its income through dividends from Tata Sons. Tata Sons’ revenue mainly depends on two companies- Tata Consultancy Services (TCS) and Jaguar Land Rover (JLR).

Tata Trust 02
Source: https://timesofindia.indiatimes.com/business/india-business/aid-from-tata-trusts-up-10-fold-in-10-yrs

In the fiscal year 2021-22, Tata Sons, the unlisted company of Tata group, declared a dividend of Rs. 10000 per share (@ 1000 percent). As a result, Tata Trust earned a whopping Rs. 267 crores in FY 2021-22, which it intends to use to address development in various sectors. 

In the Annual Report released in March 2022, directors’ remuneration and expenses are clearly stated. In the battle against Covid, Tata Trust donated Rs. 1000 Crore in FY 2021. However, the dividend distribution led to an outflow of funds to the tune of Rs. 404 crores for FY 2022. 

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With an 18.5% stake in the company, Mistry Family received Rs. 75 crores as dividend income. The Chairman of Piramal Group, Ajay Piramal, received a commission of Rs. 2.25 Cr in FY 2021. Former Managing Director of Titan Company, Mr. Bhaskar Bhatt, earned a similar amount on account of commission on profits. Tata Sons recorded a massive gain of more than Rs. 17,000 crores on total revenue of approximately Rs. 24,132 crores in FY 2022. The reason for such a spurt is attributed to generous dividends from TCS.

Tata Trust 01
Source: The Economic Times (https://m.economictimes.com/news/company/corporate-trends/)

Key Takeaways

Tata Trust enjoys respectable recognition as one of the oldest philanthropic institutions rendering valuable service to society. This prestigious charitable institution has come a long way in touching millions of lives and ensuring their basic needs -from health and sanitation to education are met. The Tata Trusts strive to build a stronger nation every day.

FAQs

How Tata Trust contributes to providing better health facilities?

Tata Trust has been contributing towards better health facilities over decades. Adopting a multi-pronged approach, it tackles communicable and non-communicable diseases. In addition, it works to improve people’s well-being via its multispecialty hospitals to bridge the gap in healthcare professionals.

What is Tata Trust’s contribution to transforming rural India?

Under its Transforming Rural India (TRI) mission, Tata Trust aims to provide nutrition-focused health services and good career opportunities. As a result, it will help people become self-reliant and overcome poverty.

What is Tata Trust symbolic of?

Tata Trust represents humanity and compassion. They believe in growing as a nation; you must first empower citizens. Provide better facilities and opportunities to catalyze development.


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