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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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Consult Top Arbitration and Mediation Lawyers in India

Prashant  Mane

Prashant Mane

Advocate
Exp
Pune , Maharashtra

Specialization

  • Arbitration and Mediation
  • Civil
  • Cheque Bounce
  • Consumer Protection
  • Commercial
Iam Prashant Mane more than 10 year of experience in civil, contract, arbitration, consumer, labour, insurance, cheque bounce cases. I also have experience in corporate documentation. View Full Profile
Total Answers Given : 51
Advocate Upadhye & Associates

Advocate Upadhye & Associates

Director /Advocate/Head counsel
Exp
Pune , Maharashtra

Specialization

  • Arbitration and Mediation
  • Divorce
  • Cyber, Internet, Information Technology
  • Corporate and Incorporation
  • Advertising
Chief Legal Counsel at Advocate Upadhye and Associates View Full Profile
Total Answers Given : 36
parangat  PANDEY

parangat PANDEY

lawyer
Exp
South Delhi , Delhi

Specialization

  • Arbitration and Mediation
  • Civil
  • Adoption
  • Aviation
  • Bankruptcy And Debt
very sincere and also updated about the latest cases--client is the king for me View Full Profile
Total Answers Given : 7
Fareed  Ahmed

Fareed Ahmed

Verum Legal Associates - Partn
Exp
Mumbai City , Maharashtra

Specialization

  • Arbitration and Mediation
  • Civil
  • Debt And Lending Agreement
  • Financial Markets And Services
  • International Laws
Total Answers Given : 3
Jitendra  Kumar

Jitendra Kumar

Lawyer
Exp
Noida , Uttar Pradesh

Specialization

  • Arbitration and Mediation
  • Adoption
  • Criminal
  • Divorce
Senior lawyer View Full Profile
Total Answers Given : 3
Kunwar  Chandresh

Kunwar Chandresh

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

Specialization

  • Arbitration and Mediation
  • Commercial
  • Government Contracts
  • Contracts and Agreements
  • International Laws
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
Total Answers Given : 1
monika  tyagi

monika tyagi

ADVOCATE
Exp
South Delhi , Delhi

Specialization

  • Arbitration and Mediation
  • Civil
  • Bankruptcy and Debt
  • Contracts and Agreements
  • Cyber, Internet, Information Technology
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
Total Answers Given : 1
Lawkhart  Legal

Lawkhart Legal

Founder Advocate of Mehrotra & Associates
Exp
Mumbai City , Maharashtra

Specialization

  • Arbitration and Mediation
  • Cheque Bounce
  • Divorce
  • Domestic Violence
  • Will
I have been providing legal advice and services in various fields of law including Criminal law, Divorce law, Property Law, Default or Fraud Law. We specialize in providing quality and honest legal services at a reasonable rate, so that justice can become affordable. View Full Profile
Total Answers Given : 1
Debasis  Mitra

Debasis Mitra

BA.LLB
Exp
Kolkata , West Bengal

Specialization

  • Arbitration and Mediation
  • Civil
  • Power Of Attorney
  • Landlord And Tenant
Debasis Mitra & Associates is one of the most renowned and has experience in the legal domain representing various clients from different court ,forums & Tribunal. We have an extensive network of Lawyers and Counsels for support of our clients throughout India. View Full Profile
Total Answers Given : 1
Manish  Priyadarshi

Manish Priyadarshi

Advocate
Exp
Jaipur , Rajasthan

Specialization

  • Arbitration and Mediation
  • Commercial
  • Real Estate
  • Will
  • Contracts And Agreements
I have extensive experience in Civil and Corporate litigation with special emphasis on land related issues including Land Due Diligence, Arbitration matters, Commercial matters, Debt related matters/Banking matters, Insolvency proceedings, Constitutional Law, drafting of various kinds of agreements. View Full Profile
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  • What is Arbitration law?
  • What is Mediation law?
  • How are Arbitration and Mediation different?
  • Can meditator become an arbitrator?
  • What are laws relating to it in India?

Traditional litigation requires a lot of time and procedural formality to be followed for coming into a conclusion. At times, the person who wins a case realises that he has actually won a pyrrhic victory. That’s why the concept of Alternate Dispute Resolution is gaining prominence. Arbitration and Mediation are two forms of Alternate Dispute Resolution.

Arbitration in India:


The governing law for Arbitration in India is the Arbitration & Conciliation Act 1996. It is heavily influenced by the UNCITRAL Arbitration Rules 1976 & the 1985 UNICITRAL Model Law on International Commercial Arbitration, provisions of the Indian Oath’s Act 1969 are also attracted.
There are certain features which distinguish arbitration from traditional litigation. Some of the features are-

  • Role of the Courts have been minimised, their role is to refer parties to arbitration in presence of an arbitration agreement and for providing interim reliefs, and for the appointment of an arbitrator
  • Section 11 of the Arbitration & Conciliation Act, 1996 deals with the appointment of arbitrators and in the case of S.B.P & Co. the Supreme Court held the function under Section 11 to be of a judicial nature.
  • ‘Arbitrators are masters of their own procedure’, they have the power of guiding their proceedings in the way they deem fit. Code of Civil Procedure, Evidence Act are not binding on the arbitration proceedings
  • Supreme Court in the case of ‘TDM Infrastructure (P) Ltd. v. UE Development India (P) Ltd’ observed that companies incorporated in India have to make Indian law as the principal law of the arbitration proceedings.
  • As per the case of Renu Sagar Power Co. Ltd v. General Electric Co., an award which is contrary to the public policy of India cannot be enforced in India and can be set aside.

Mediation in India:


  • Mediation if a type of ADR mechanism which is spoken of in Section 89 of the Code of Civil Procedure, 1908 as well.
  • Procedures for mediation are to be the ones that are prescribed by the Court
  • Confidentiality is upheld in Mediation proceedings
  • Mediator, unlike an arbitrator, does not have the powers of giving a binding decision on the parties involved in the dispute.
  • Mediation completes with an agreement between the concerned parties
  • Mediation refers to interactive procedure of apt negotiation techniques being involved with the aim of assisting the parties at concluding to the best solution for their dispute.

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