Difference between trust and Society


You may heard the name of NGO. and think how to make it. Today we will tell you that NGO is not an entity it is and category of entities. one can create an NGO by way of Creating
  • Society under Society Act
  • Charitable Trust under Indian Trust Act or
  • A Charitable Company under Companies Act.
we are giving some difference between society and charitable trust so it will help to choose which one will helpful to you.
Applicable StatuePrivate trusts are governed by
Indian Trust Act, 1882. where as Public
charitable trusts do not have a national level governing law.
Societies Registration Act, 1860 and state Law if any
Minimum number 
of members
Two Seven
Geographical area of activities All India (no need to mention
this in the Trust Deed)
A separate registration for All
India level is required (8 members
from different states required)
Nature of control  One man control, i.e. Settler Democratic system. Decisions are
made by voting. Power struggle may ensue.
AmendmentsCan easily be done via a
supplementary trust deed. Easy...
Relatively more difficult. Both
Memorandum of Association and
Rules and  Regulations need to be
changed. ie Bye laws and gyapan need to be amended.
Names Easily availableA bit difficult to get the desired
name it may be already registered
Bank Account operationControlled by one person, SettlerTwo persons, either President or
Secretary and Treasurer
Office holders’ tenureTrustees generally hold  office
for the whole life
Members hold office for a period
of time and may stand for re-election
Winding-upTrust is generally irrevocable,
Cannot be wound-up.
Can be wound up if 3/5th of the
members so desire
Family membersCan become trusteesRegistrar  objects on family
members becoming part of the
Governing Body
Governed by Board of Trustees Governing Body
Main documents1.  Trust Deed1.  Memorandum Of Association / Bye Laws
2.  Rules and Regulation / Gyapan
Objectives Can be general. But objective should be under Indian trust act. Have to be specific. and as per Society Act.



DGfreebies Dg's Blog: Difference between trust and Society
Difference between trust and Society
DGfreebies Dg's Blog
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