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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 Power of Attorney Lawyers in India

Neeraj  Kumar

Neeraj Kumar

Advocate
Exp
Patna , Bihar

Specialization

  • Power of Attorney
  • Cheque Bounce
  • Employment and Labour
  • Bankruptcy and Debt
  • Contracts and Agreements
I am a practicing Advocate at Patna High Court & Delhi High Court having experiences in handling the cases related with Family Disputes, Property Disputes, Service Matters and also the matter related under SARFAESI Act. Apart from the above I am having experiences in Consumer and Labor Cases too. View Full Profile
Total Answers Given : 129
anil reddy  s

anil reddy s

Proprietor
Exp
Bangalore , Karnataka

Specialization

  • Power of Attorney
  • Property
  • Advertising
  • Debt And Lending Agreement
  • Environment And Natural Resources
Total Answers Given : 14
Fareed  Ahmed

Fareed Ahmed

Verum Legal Associates - Partn
Exp
Mumbai City , Maharashtra

Specialization

  • Power of Attorney
  • Civil
  • Debt And Lending Agreement
  • Financial Markets And Services
  • International Laws
Total Answers Given : 3
Bharat  Majmundar

Bharat Majmundar

Advocate
Exp
Vadodara , Gujarat

Specialization

  • Power of Attorney
  • Civil
  • Industrial Laws
  • Family
  • Criminal
• Pleading on the platforms including Civil Suits, Labour Laws, Motor Accident Claims, Consumer Protection Claim, Accident, Cheque Return cases under The Negotiable Instruments Act, Divorce, Documentation, Family Court Cases, Gift Deed, Industrial Laws, Medical Legal Cases, Land related matters et View Full Profile
Total Answers Given : 1
Lawkhart  Legal

Lawkhart Legal

Founder Advocate of Mehrotra & Associates
Exp
Mumbai City , Maharashtra

Specialization

  • Power of Attorney
  • 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

  • Power of Attorney
  • Civil
  • Arbitration And Mediation
  • 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
Adrian  Phillips

Adrian Phillips

Partner
Exp
Mumbai City , Maharashtra

Specialization

  • Power of Attorney
  • Real Estate
  • Property
  • Human Rights
  • Sexual Harassment At Workplace
An Advocate for 19 years. Worked in the Areas of Criminal and Civil Law as well as in Advocacy. Been on National Drafting Committees and have appeared in the Supreme Court and High Courts in 9 States. Still continue to appear in trial courts across the country. No case is too small or too big. View Full Profile
HARISH  KAUSHIK

HARISH KAUSHIK

Advocate
Exp
Central Delhi , Delhi

Specialization

  • Power of Attorney
  • Civil
  • Criminal
  • Cheque Bounce
  • Domestic Violence
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
Asha Narayan Nair

Asha Narayan Nair

BA.LLM (Senior Advocate)
Exp
Mumbai City , Maharashtra

Specialization

  • Power of Attorney
  • Criminal
  • Advertising
  • Animal Laws
  • Debt and Lending Agreement
PRIYA  KULKARNI

PRIYA KULKARNI

LAWYER
Exp
Pune , Maharashtra

Specialization

  • Power of Attorney
  • Trust And Society (NGO)
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  • What is Power of Attorney?
  • What is the necessity of Power of Attorney?
  • Who can make Power of Attorney?
  • Is registration necessary for Power of Attorney?
  • How Can Power of Attorney be Revoked?

The governing law in this matter is the ‘Power of Attorney Act, 1882’, along with Section 2(21) of the Indian Stamp Act, 1899 as per which Power of Attorney is inclusive of any instrument sanctioning a definite person for acting for & in the name of the person executing it. It is applicable to the whole of India except the State of Jammu and Kashmir.

What is Power of Attorney?


A Power of Attorney refers to an instrument authorizing a person as the agent of attorney of the person granting it. Being a lawyer is not an essential ingredient for holding the power of attorney, and it can be held by any trusted person.

What are the Laws Applicable to Power of Attorney?


The governing law in this matter is the ‘Power of Attorney Act, 1882’, along with Section 2(21) of the Indian Stamp Act, 1899 as per which Power of Attorney is inclusive of any instrument sanctioning a definite person for acting for & in the name of the person executing it. It is applicable to the whole of India except the State of Jammu and Kashmir.

What are the Exclusive Features of Power of Attorney?


  • There are three types of Power of Attorney-
    • General Power of Attorney, which sanctions an agent to take certain general decisions in relation to the subject matter. The scope of powers in such a document has a very wide ambit
    • Special Power of Attorney, refers to an agent being selected by the principal for certain specific acts which are duly mentioned in the document itself. There is lesser scope for misuse & abuse of powers here as the specific powers and scope for decision-making is specified. A person may opt for the option of issuing multiple Special Power of Attorney’s instead of opting for making a General Power of Attorney.
    • Durable Power of Attorney, refers to a special type of arrangement, wherein, the Power of Attorney continues even after the principal reaches a state of mental incapacitation.
  • >A Power of Attorney cannot be used to override a specific provision of a statute which requires that a particular act should be done by a party in person.

    It was observed in the case of ‘ T.C. Mathai v. District and Sessions Judge’that When the Code requires appearance of an accused in a Court it is no compliance with it if power of attorney holder appears for him.
  • The holder of the Power of Attorney can enjoy various legal powers such as; the power of execution of the contracts/deeds and so on, the power of leasing/mortgaging and so on, to file a legal complaint on behalf of the principal by way of suing, the power of filing tax returns, etc.
  • A Power of Attorney can be executed by anyone and the holder can also be anyone, who has the competency of entering into a contract. A Power of Attorney is a legal and binding document, which should be notarized and subsequently authenticated by the registrar/sub-registrar of assurances in accordance with the policies of the ‘Registration Act, 1908’, however the registration of a Power of Attorney isn’t compulsory except in situations wherein an interest regarding an immovable property is created.
  • Non Resident Indian Principals have the option of getting their Power of Attorney attested in the presence of two witnesses at the Indian Embassy of the relevant country

How can Power of Attorney can be revoked?


  • By Acts of Principal, principal revoking it, or him becoming insolvent or of unsound mind
  • When there is a Breach of Contract, the case of Svenska Handelsbanken v. Indian Charge Chrome Ltd. observed that in instance of a Specific Power of Attorney holder acting involving powers which are of the nature of General Power of Attorney then he would have committed a breach of contract.
  • The case of ‘Govindkoss Krishna Koss v. Gopesjhwar lalaji Maharaj’ observed that a power of attorney can be revocable on grounds of gross mismanagement on the holder of Power of Attorney’s part.

What is the Status of Power of Attorney Holder?


Holder of a Power of Attorney is basically an agent, which has been spoken of in Section 182 of the Indian Contract Act, 1872.

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