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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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Hetvi Sancheti

(See Reviews)

Experience

: {{lawyerExperience}}

Designation

: Litigation Attorney

Practicing Court

: Gujarat High Court

Location

: Gujarat, Ahmedabad

State Bar Council

: Gujarat

Reviews & Ratings(View Reviews)

We specialize in Corporate and commercial Litigation, Insolvency, Corporate frauds, Insolvency disputes, Arbitration disputes, cheque bounce cases and related litigation and operating in legal advisory market for over 13 years. We represent clients in NCLT, Gujarat High Court, Arbitral Tribunals.

Professional Summary

  • Corporate: - Mismanagement and oppression, Insolvency, Corporate frauds related litigation in NCLT and Gujarat High Court.
  • Criminal: Special Laws like Negotiable Instruments (Dishonor of cheques), Food Adulteration, Corruption, Narcotics, offences under Penal Code, etc related litigation in Gujarat High Court, Sessions Court and other District Courts situated in Ahmedabad.
  • Civil: Works Contract (Public Works Department) related Arbitration and other litigation, Revenue matters, T.P Schemes, SEZ, Land Acquisition, Writs related litigation of AUDA, AMC,
  • Consumer Disputes, Unfair Trade Practices in State Consumer Commission


Expertise In

Bankruptcy and Debt

Experience 13 years

Number of Cases 150

Cases falling under IBC handled in NCLT, Ahmedabad

Cheque Bounce

Experience 13 years

Number of Cases 400

Extensively conducted Trials of cheque bounce cases, filed quashing matters in Gujarat High Court

Commercial

Experience 13 years

Number of Cases 200

Commercial Litigation in Gujarat High Court.

Criminal

Experience 13 years

Number of Cases 400

? Litigated extensively in Criminal cases including cases falling under special laws like Narcotics, Corruption, Negotiable Instruments, Food Adulteration in Gujarat High Court as well as Trial Courts (Sessions Court, CBI Special Court, and Ahmedabad Rural). The nature of matters dealt with includes Criminal Appeals, Bail, Revision, Quashing, and Writ Petitions

Arbitration and Mediation

Experience 13 years

Number of Cases 300

Expertise in enforcement of Foreign Arbitration Awards, Construction Contracts , Stock Exchange, Shipping services, Media related Arbitration

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