A Non Governmental Organization (NGO) is perceived to be a body of individuals or an association of persons formed with non-profit motive. NGOs can be formed in India by two methods:
A Trust is an agreement between group of individuals (called trustees) to manage property (movable or immovable including intellectual property rights) over which they have control either to benefit other individuals (called beneficiaries) or for charitable purposes. This group of trustees may be incorporated as a board under the Charitable Trusts Act 1957 if the objects are charitable.
A Trust can either be a private trust or a public charitable trust. Private trusts are governed by the Indian Trusts Act (1882) and are used for private purposes, such as running a private estate or institution. Private trusts are not given any tax benefits by the Government of India. If you want to do some charitable work for public –you can set up a public charitable trust. India does not have a national level law to govern charitable trusts.
This document contains all the information about the Trust and is printed/written/typed. Along with these papers you would need to attach a Rs. 100 Non-Judicial stamp paper (please check the latest stamp act of respective state). All the Trustees are required to give thumb impressions and signatures on these papers. Same process is applicable for witness too. You will need a competent professional to draft the same.
Following elements must be mentioned in the Trust Deed Document:
For registering a trust you need minimum two trustees (i.e. one settler and another person). You can decide the maximum number of trustees and this number must be mentioned in the trust deed. All the trustees together are called Board of Trustees. This board collectively governs the trust. Unlike societies, in case of trusts all or some of the trustees can be related persons (i.e. they may belong to the same family). Trusts are irrevocable –unless it is mentioned in the trust deed. This means that the trust cannot be wound up.
Trustees are usually life-long members or their tenure is specified in the deed. Electoral process is not involved in the appointment of trustees. Board of Trustees can also have various designations for trustees. Common designations are Chairperson and Managing Trustee Trustees cannot draw any remuneration from the trust fund. However, they may take reasonable compensation for the professional services they provide to the Trust. Profits earned by the Trust (e.g. interest gained from bank) cannot be distributed among the trustees. Trust Deed can be amended through a Supplementary Trust Deed.
Most important part of the Trust Deed that you should pay special attention to is objectives of the trust. You should be as thorough as possible in writing down trust objectives so that you can function smoothly without any problems. The Professional you appoint will provide you detailing of filing process with Registrar office and timeline.
SOME COMMON CHARACTERISTICS OF TRUSTS INCORPORATED UNDER THE CHARITABLE TRUST ACT 1957 ARE:
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DOCUMENTS REQUIRED FOR REGISTRATION OF A CHARITABLE TRUST
Any seven or more persons associated for any literary, scientific or charitable purpose, or for any such purpose, as is described in Section 20 of this Act, may subscribe by their names to a Memorandum of Association, and [filing the same with the registrar form themselves] into a society under this Act.
Our team of highly qualified professionals at Ask4compliance.com can help you to establish a Society to start your social work as a non government oraganisation and to avail host of benefits.
DOCUMENTS REQUIRED FOR REGISTRATION OF THE SOCIETY