It is a trust, Approved by CBDT. It works on conditions imposed by central govt.  Conditions are mentioned under trust act.

It receives donations and gives 95% of such donation to political parties registered under representative of people Act.

Sec. 13 B - Conditions for exemption.

1. 95 % of the aggregate donation should be given to registered political party.

2. Such trust should perform its functions according to guidelines of central govt. 

Donation given by any person to such trust will be allowed as deduction u/s 80G

Electoral trusts are created as pass-through vehicles for routing donations to political parties, and are approved by the Central Board of Direct Taxes