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How is an NGO, a Trust and a Foundation Different?

From a legal standpoint, there is hardly any difference. An NGO or a Foundation cannot be registered. The legal viewpoint is that an NGO has one of three entities; its either a Public Trust or a Society or a not-for-profit organization or foundation. Under the Income Tax Act, all 3 entities are tax-exempt entities.Both trust and society alike are two types of a non-profit or non-government organization in India. Therefore if anyone intends on doing social work and for this purpose needs a legal entity, then either a trust or a society can be registered. One can also register a company under section 25 but in most cases, a registered is a norm or society for benevolent work.Trust is a comparatively simpler entity and can be easily registered and operated. Such organizations are fundamentally rooted in trust. Donations are purely based on trust that the donated funds would be fully utilized to serve the purpose mentioned in one’s trust deed. Trustees do not owe any explanation to anyone other than the Charity Commissioner and the applicable laws. Any tax breaks u/s 80g and 12a can be revoked if trustees do not abide by the rules, laws, and regulations of the Income Tax department. Analyzing NGO Registration people seem to think that even with lack of funds if NGO registration is done then their goals and objectives can be attained. Truth is as quickly as some NGOs are being registered they are also winding up quickly or even leaving it in the middle. If NGOs are registered with the intention or mindset of obtaining external grants and donations then such NGOs would not be sustainable in the long run. A company donating a chunk of funds to charity on a regular basis, then in such cases an NGO can be registered with enhanced sustainability planning.  In India, there are many registered NGOs only on paper and only about a little over half of NGOs are actually working for the betterment of society. NGOs can be formed in no time at all. However, when project funds from local government schemes or contributions from foreign countries are on hold indefinitely then the entire NGO comes to a screeching halt. Rather than looking for easier options for forming an NGO, for NGO registration its imperative to analyze the actual requirement and the strength to form, manage and maintain such NGO is far more important.Call 7604047601 for consultation with a registered expert Trust and Society NGO lawyers on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Why is RTI Amendment Bill So Controversial?

Although the Lok Sabha has passed and ratified The Right to Information Amendment Bill 2019 the Opposition is dead against it. Invectives like ‘dangerous’ and ‘dark day for democracy’ have been hurled against the bill. Changes have been suggested in regard to the terms and conditions of appointment of information commissioners at the center and state levels. The three provisions of the RTI amendment bill have been challenged by the members of Opposition in Parliament and by protesters in the field.Nonetheless, prior to going forward, the basic things that the RTI Act of 2005 does is based on the existing law which says that the public authorities are required to disclose on·        their organization, functions, and structure·        rights and duties of its officers and employees·        financial dataIf the public authorities do not provide the required information of their own volition, then, in that case, its citizen’s right to demand it from them based on the RTI Act. "Public authorities" refer to ministers and government servants among others.The head of the central information commission is the chief information commissioner and other information commissioners appointed by none other than the President representing the Central Government for a fixed term of five years with the salary of the chief election commissioner’s, as well as the election commissioner's salary respectively. The intent and purpose of this initiative were granting autonomous powers to the central information commission as well as provide protection from government surveillance. The amendments ` ` ` `The RTI amendment bill of 2019, excludes the five years tenure of the chief information commissioners and the information commissioners. The payouts on account of salary have been revised. Separate notifications will be sent by the government to both. Politically, what this means is that the government can and will pose a threat or entice the chief information commissioner and information commissioners with random removal or extension and curtailment or increase in salary depending upon their suitability for the ruling dispensation.Call 7604047601 for consultation with a registered expert right to information lawyer on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Managing Partner
Exp
South Delhi , Delhi

Specialization

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The Firm is engaged in diverse areas of Law provides spectrum of legal services to domestic and international clients which includes multinationals, (PSU) and private corporate. The firm has dedicated team of lawyers, technical experts, chartered Accountants and Company secretaries committed to meet View Full Profile
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Parangat Pandey

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South Delhi , Delhi

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I have experience of working on variety of civil matter and criminal matter. My approach towards a case is to understand the correct legal position in favour of my client along with clarity about the facts. I have worked in Supreme Court, Delhi High Court and several tribunals and district courts. View Full Profile
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KSSA Law Firm

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South Delhi , Delhi

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This a full-service firm, providing varied services inclusive of civil, taxation, commercial, corporate and writ litigation as well as general corporate and transactional services. We are Delhi based law firm having offices at Delhi, Jabalpur, Patna. View Full Profile
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Kunwar Chandresh

Advocate & Arbitration counsel, Ex-IES, Executive Engineer
Exp
South Delhi , Delhi

Specialization

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Kunwar Chandresh helps client in Contract Management, Dispute Avoidance, Negotiation, Claim Preparation & Documentation for Arbitration and litigation in Courts of Delhi including NCLT and Commercial courts. He also appears before various courts mostly for civil matters. He is a member MCIArb (UK). View Full Profile
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monika tyagi

ADVOCATE
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South Delhi , Delhi

Specialization

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I AM AN ADVOCATE HAVING 7 YEARS OF PROFESSIONAL EXPERIENCE IN THE FILED OF CIVIL AND CRIMINAL LAW AND IS CURRENTLY PRACTISING IN ALL FORUMS INCLUDING DISTRICT COURT, HIGH COURT . I HAVE HAD THE OPPORTUNITY TO WORK ON PROPERTY DISPUTES, FAMILY MATTERS, COMPANY MATTERS ETC. View Full Profile
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Tanu Singhal

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Delhi , Delhi

Specialization

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Advocate,Handling over 100 independent cases, at HIGH COURT OF DELHI, NCDRC, State Commission, all District courts across Delhi-NCR. Well versed with all the CIVIL Property disputes, all MATRIMONIAL MATTERS, Dowry, criminal complaints under section 156(3), 200,498A, 467/468/420,IPC,138 NIA, etc. View Full Profile
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Sanjeev Srivastava

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Delhi , Delhi

Specialization

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Practicing in Delhi Ghaziabad & Noida CIVIL AND CORPORATE , RERA, DRT, PROPERTY, ARBITRATION, NCLT, DRT, SUPREME COURT, CHEQUE BOUNCE, FAMILY -MATRIMONIAL View Full Profile
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Nidhi Mathur

Managing Partner
Exp
New Delhi , Delhi

Specialization

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20 years' experience in Legal & HR fields. Practicing in Supreme Court & Delhi High Court.Practice area include, Litigation,Civil Law, Family Law,Commercial Laws,Sexual Harassment Law, Labour Law, Real Estate, Consumer Law, Cheque bouncing,Contract drafting, NGO, Company Law matters, IPR, Insolvency View Full Profile
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Tejasv Anand

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Delhi , Delhi

Specialization

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I am a lawyer practicing on the commercial, civil, economic crimes, corporate and regulatory field of law in the courts in Delhi, including the District Courts, Hon'ble Delhi High Court and the Hon'ble Supreme Court along with other Tribunals including the NCLT, DRT, APTEL etc. View Full Profile
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HARISH KAUSHIK

Advocate
Exp
Central Delhi , Delhi

Specialization

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Advocate Harish Kaushik has been practicing and handling cases independently with a result oriented approach, both professionally and ethically and has now acquired over 8 years of professional experience in providing legal consultancy and advisory services. View Full Profile
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