It can get difficult navigating the nonprofit industry in India. So many words describe groups aiming at working for the greater good.
NGOs work with policymakers to ensure the implementation of initiatives they lack time to handle. However, NGO trusts India are fully independent.
Charitable trusts exist to execute the following:
• Promotion of education
• Relief from poverty
• Activities beneficial to the community
• Promotion of religion
Steps to Follow for Trust Registration
In India, anyone interested in starting a charitable trust has to follow the following steps:
1. Selecting a suitable name
2. Drafting a trust deed (constitution)
3. Selecting trustees
4. Preparing an MOA (Memorandum of Association)
5. Paying the required fees
6. Collecting a trust deed copy
7. Submitting the trust deed to the registrar’s office
8. Obtaining the registration certificate
The Features of a Charitable Trust
There are public and private charitable trusts. Nonetheless, they have the following features which make them different from all other organizations.
• Perpetual existence and exemption from laws against perpetuity
• They are completely or partially exempted from paying taxes
• If the purpose is difficult to execute, another cause is selected as near to the original as possible
Why Set Up a Charitable Trust in India?
Individuals come up with trusts to give regularly to different causes. For example, the amount given to cater to the needy in the society can be a one-off gift. However, it can also include other parties contributing to the trust’s kitty.
Since a charitable trust is under charities, it can receive the money tax-free. This exemption aids the trust in carrying out its activities without many problems.
A trust can grow from a family institution to a large organization to offer solutions to India’s problems. Setting up an NGO trust in India is one of the best ways to help other organizations to offer services to the underprivileged.
