Trust/NGO/Society

Trusts, NGOs, and Societies are forms of non-governmental organizations (NGOs) established by individuals or groups with the primary objective of promoting social welfare, charitable activities, education, healthcare, environmental conservation, and other philanthropic endeavors. While they share common goals, each entity has distinct characteristics and legal frameworks governing their operations.

Features:

1. Trust: A trust is a legal arrangement where a trustee holds property or assets for the benefit of beneficiaries according to the terms specified in the trust deed. Trusts are managed by trustees who are entrusted with the responsibility of administering the trust for the fulfillment of its objectives.
2. NGO (Non-Governmental Organization): NGOs are organizations independent of government involvement, founded by citizens to address social, cultural, environmental, or humanitarian issues. They operate on a not-for-profit basis and may be formed as trusts, societies, or companies under Section 8 of the Companies Act.
3. Society: A society is an association of individuals formed for the promotion of charitable, educational, religious, literary, scientific, or cultural objectives. Societies are governed by a memorandum of association and bylaws, and they typically elect a governing body to manage their affairs.

Benefits:

1. Social Impact: Trusts, NGOs, and Societies play a crucial role in addressing social issues and promoting community development initiatives. They contribute to social welfare, education, healthcare, environmental conservation, and poverty alleviation, making a positive impact on society.
2. Flexibility: Trusts, NGOs, and Societies offer flexibility in organizational structure and operations, allowing individuals or groups to customize their governance, management, and activities based on their objectives and priorities.
3. Tax Exemptions: Registered Trusts, NGOs, and Societies may be eligible for tax exemptions under relevant laws, encouraging donations and contributions from individuals, corporations, and institutions.

Checklist of Documents Required for Registration:

1. Trust:
• Trust Deed
• Identity and Address Proof of Settler(s) and Trustee(s)
• Passport-sized Photographs
• Address Proof of Registered Office
• Minimum of two trustees required for trust formation
2. NGO/Society:
• Rules and Regulations (Bylaws)
• Identity and Address Proof of Members/Office Bearers
• Passport-sized Photographs
• Address Proof of Registered Office
• Declaration of the President of the Society
• Cover letter of society signed by all founders
• Minimum of seven members required for society formation

Steps Involved in Registration Process:

1. Trust:
• Draft a Trust Deed outlining the objectives, powers, and administration of the trust.
• Execute the Trust Deed on non-judicial stamp paper and get it registered with the local registrar or sub-registrar office.
• Obtain a certificate of registration along with a unique trust registration number.
2. NGO/Society:
• Draft a Memorandum of Association (MOA) and Rules and Regulations (Bylaws) specifying the objectives, governance structure, and operational procedures of the NGO/Society.
• Hold a meeting of members to adopt the MOA and Bylaws, elect office bearers, and appoint trustees or managing committee members.
• Apply for registration with the relevant authority, such as the Registrar of Societies or Charity Commissioner, along with the required documents and fees.
• Obtain a certificate of registration once the application is approved.

Time Involved in Registration:

The time involved in the registration of Trusts, NGOs, and Societies varies depending on the jurisdiction, documentation requirements, and processing time of the registering authority. Generally, the registration process may take anywhere from a few weeks to a few months to complete. Delays may occur due to the scrutiny of documents, verification of objectives, and administrative procedures. Efficient handling of documentation and compliance with regulatory requirements can expedite the registration process.