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 Statue||Private 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 |
|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.
|Amendments||Can 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 available||A bit difficult to get the desired|
name it may be already registered
|Bank Account operation||Controlled by one person, Settler||Two persons, either President or|
Secretary and Treasurer
|Office holders’ tenure||Trustees generally hold office|
for the whole life
|Members hold office for a period|
of time and may stand for re-election
|Winding-up||Trust is generally irrevocable,|
Cannot be wound-up.
|Can be wound up if 3/5th of the|
members so desire
|Family members||Can become trustees||Registrar objects on family|
members becoming part of the
|Governed by||Board of Trustees||Governing Body|
|Main documents||1. Trust Deed||1. 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.|