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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 Trust and Society NGO Lawyers in India

Anilesh  Tewari

Anilesh Tewari

Advocate, Founder AT Law Chamber
Exp
Lucknow , Uttar Pradesh

Specialization

  • Trust and Society (NGO)
  • Cheque Bounce
  • Real Estate
  • Consumer Protection
  • Contracts and Agreements
Advocate Anilesh Tewari has been practicing and handling cases independently with a result oriented approach, both professionally and ethically and has now acquired many years of professional experience in providing legal consultancy and advisory services. He is an alumni of Jamia Millia Islamia. View Full Profile
Namitabh  Kothari

Namitabh Kothari

Advocate
Exp
Mumbai suburban , Maharashtra

Specialization

  • Trust and Society (NGO)
  • Civil
  • Criminal
  • Divorce
  • Cheque Bounce
18 Years of Legal Practice - Expert in Civil, Criminal, Family and all other types of Court cases Handling matters in Bombay High Court and all other Courts in Mumbai - Thane - Navi Mumbai - Pune View Full Profile
Total Answers Given : 75
Meenakshi  Iyer

Meenakshi Iyer

Lawyer
Exp
Bangalore , Karnataka

Specialization

  • Trust and Society (NGO)
Total Answers Given : 3
PARDEEP KUMAR DHINGRA

PARDEEP KUMAR DHINGRA

PARTNER WITH LAW FIRM
Exp
South Delhi , Delhi

Specialization

  • Trust and Society (NGO)
  • Arbitration and Mediation
  • Bankruptcy and Debt
  • Contracts and Agreements
  • Software License
16 years of Experience in fields of International & Domestic Arbitrations, Corporate & Commercial Litigation, Acquisition, Merger/Demerger, Regular Litigation in Property, Real Estate, Trade Mark, Copy Right, Recovery, Civil disputes, Contracts, Writ, LPA, SLP, FDI, ODI, NCLT (IBC, Insolvency)etc. View Full Profile
Total Answers Given : 2
gunjan  shah

gunjan shah

Advocate
Exp
North 24 Parganas , West Bengal

Specialization

  • Trust and Society (NGO)
  • Divorce
  • Arbitration And Mediation
  • Debt And Lending Agreement
  • Debt Collection
Practicing as an advocate/private attorney at the Hon’ble High Court, Calcutta, District Courts, Tribunals such as Land Administrative Tribunals, Central and State Administrative Tribunals and Forums including The Consumer Forums and dealing in Arbitration matters as representing counsel. View Full Profile
Vinay  Pratap Singh

Vinay Pratap Singh

ADVOCATE
Exp
Bhopal , Madhya Pradesh

Specialization

  • Trust and Society (NGO)
  • Civil
  • Advertising
  • Animal Laws
  • Aviation
kaustav  ghosh

kaustav ghosh

junior associate
Exp
Howrah , West Bengal

Specialization

  • Trust and Society (NGO)
  • Civil
  • Environment And Natural Resources
  • International Laws
  • Landlord And Tenant
I am a Law graduate from a reputed university and obtained first class in graduation. I am looking for a challenging career which demands the best of my professional ability in terms of legal and analytical skills, and helps me in broadening and enhancing my current skill and knowledge. I have speci View Full Profile
Total Answers Given : 1
ADVOCATE KRISHNA & ASSOCIATES

ADVOCATE KRISHNA & ASSOCIATES

Advocate
Exp
Chennai , Tamil Nadu

Specialization

  • Trust and Society (NGO)
  • Civil
  • Banking
  • Child Custody
  • Contracts and Agreements
ADVOCATE KRISHNA AND ASSOCIATES a full pledged Property , Family ,corporate lawyers , they are offering legal assistance in High Court and District courts of Chennai. Further the service of this advocates are extended to Family courts, Company low board, DRT & DRAT, labour Court and NCLT View Full Profile
Akhilesh  Jamdar

Akhilesh Jamdar

Advocate
Exp
Mumbai , Maharashtra

Specialization

  • Trust and Society (NGO)
  • Real Estate
  • Criminal
  • Will
  • Banking
I provide the following legal services: 1. Affordable Legal Notices 2. Real Estate Due Diligence and Advisory 3. Criminal Law View Full Profile
Total Answers Given : 2
Jaswan Singh  Katariya

Jaswan Singh Katariya

Advocate
Exp
Gurgaon , Haryana

Specialization

  • Trust and Society (NGO)
  • Civil
  • Contracts And Agreements
  • Documentation
  • Debt Collection
Advocate Jaswant Singh Katariya (MBA, BBA, LL.B) is a Gurugram based lawyer practising law since 2017, holding extensive experience in working in the most complex areas of Civil Cases, Consumer Protection, Cheque Bounce, Property Real Estate Law, Family Matters, GST Registration and Return & RERA. View Full Profile
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  • What is Trust?
  • Which Laws Govern the Functioning of Trust?
  • What is NGO(Society)?
  • Which Laws Govern Society?

What is Trust?


Trusts, by and large, under Indian law have a statutory premise, in particular the Indian Trusts Act, 1882. By and large, there are two sorts of trusts in India: private trusts and public trusts. The Indian Trusts Act, 1882 represents the private trusts. Public trusts are classified into charitable furthermore, religious trusts. The Charitable and Religious Trusts Act, 1920, the Religious Endowments Act, 1863, the Charitable Endowments Act, 1890, the Societies Registration Act, 1860, and the Bombay Public Trust Act, 1950 are the significant enactments for the acknowledgment and enforceability of public trusts. Besides, trusts can likewise be utilized as pooling vehicles for ventures, for example, mutual funds and venture capital funds. These trusts are administered by a different arrangement of regulations: the Securities and Exchange Board of India (Mutual Funds) Regulations and Securities and Exchange Board of India (Venture Capital Funds) Regulations.

The main necessity of the trust laws is that the creator of the trust ought to demonstrate by words or direct with reasonable certainty his goal to make a trust. Furthermore, the reason for which the trust is tried to be made ought to likewise show up with reasonable certainty. Thirdly, the people for whose advantage the trust it means ought to be sensibly sure. Ultimately, the property, which is to constitute trust property, ought to be assigned with certainty.

Which Laws Govern the Functioning of Trust?


According to Section 7 of Indian Trusts Act 1882, creation of a trust can happen by the following:

  • Persons competent to contract under Section 11 of the Indian Contract Act 1872
  • Hindu Undivided Family
  • By or on behalf of minors with the permission of a principal civil court of original jurisdiction
  • Company
  • Association of Persons (AOP)

What is NGO(Society)?


Non-Governmental Organization (NGO) refers to an organization that has no affiliation to the government and performs voluntary operations in the field of education, wildlife, etc. They are usually funded by the UN or by benefactors. The donations are then used to support their costs and activities in bettering the aspect that the organization focuses on. Some popular NGO's include the Word Wildlife Fund (WWF), The Red Cross, and many others.

Which Laws Govern NGO(Society)?


Some of the Central & State Laws applicable for NGO’s in India are:

  • Indian Trust Act 1882
  • Religious Endowment Act 1863
  • Charitable & Religious Trusts Act 1920
  • Wakf Act 1995
  • Indian Registration Act 1908
  • Sikh Gurdwara Act 1925
  • Trusteed & Mortgagees’ Powers Act 1866
  • Indian Trustees Act 1866
  • Society Registration Act 1860

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