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How Do I Start a Public Charity Trust After I Register an NGO?

An NGO (non-governmental organisation). These non-profit organisations work independently and are not controlled by the government. The motive of NGOs is to serve the nation for any social or political issue.But they are funded by the government group of people and even foreign companies, and some NGOs rely heavily upon the government for funding.A big NGOs annual budget can be more than crores or even more than that, so heavy funding is the main reason for the existence of non-government organisations. If the NGO’s records are maintained and the performance profile is managed beautifully, the age of experience to run the NGO is also one of the main reasons to be get funded by an organisation or by the government.

There are various types of NGOs like,

  • NGO (National non-governmental organisation),
  • INGO (International non-governmental organisation),
  • GONGO (government-organised non-governmental organisation),
  • BINGO (Big international non-governmental organisation),
  • ENGO (Environmental NGO).

A Few Points to Be Noted :There are 3 acts to be followed to get a registered NGO

  • For trust registration, the Indian Trust act of 1882.
  • For Society registration, the Society Registration Act of 1860.
  • For Company registration, the Companies Act of 2013 section 8.

Here You have to Understand a Few Terminologies 

  • An Author– A person who takes the responsibility or declares the credence is known as the “author of trust or settlor of trust”. 
  • Trustee– A person who accepts the credence is known as a “trustee”. A person or people who hold the property.
  • Deed– To submit for the trust you need to send a memorandum, that memorandum is known as a deed
  • Beneficiary– A person who gets the profit from the credence reposed by the author. A beneficiary is a person who is capable to hold the property

There Are 2 Types of Trust

  • Public 
  • Private

In public trust beneficiary(a person who gets the advantage from a particular situation) includes the general public or a respective part of it. Category of public trust is Public charitable trust and public religious trust.

In a private trust, the beneficiary includes the family or individuals. Category of private trust are Private specific trust and Private Discretionary 

The Indian Trust act of 1882

As we have discussed above, for any NGO or a charitable trust, we need to understand how to choose and why to choose this method. Charitable purposes include the betterment of education, relief from poverty, and public health. Anything related to a religious figure, worship, or teaching is not considered charitable. Public charitable trust is usually controlled by the public trust act of that particular state and the Indian Trust act of 1882, both state and central government have the right to control the public charitable trust.

Trusts which are contributing to society are eligible and are most likely to get funded. But you should not believe that after the 2 to 3 days of registration you will be getting funded and given projects. To receive the projects and funds you should complete certain parameters such as the age of experience, performance profile, etc.

Steps of Registering a Trust

  1. Select the name of trust while remembering certain points. The name should not be used which is restricted use, or it should not suggest any kind of support from the government
  2. Declare the author or settlor and trustee of the intended trust. There is no clearly defined rule that how many authors should be there in a trust, but traditionally there is one settler or author. 2 trustees are required and here also no maximum limit is therefore maximum. There is no qualification needed to become a trustee. You can imagine by this that even an illiterate person can become a trustee.
  3. The minimum age to become a trustee is 18 for females and 19 for males, and sometimes the average of both the ages is 18.5 taken as the minimum age to become a trustee.
  4. Prepare a memorandum(a written message used in business) as your trust deed. This deed of your trust is very essential for you to prove that you have existing trust. Your trust deed should have clauses.
  5. After writing the memorandum/deed of your trust, submit your trust deed. Always ensure to have a photocopy of your trust deed. At the time of registration, trustees and witnesses must be there with proven identity. The point to be remembered is that some states make the presence of a trustee necessary, but in some states a consent letter with their proven identity is sufficient. 
  6. After submitting the deed it will take about 7 days to get a registration certificate.

After you have received the registration certificate, you can formulate an executive community. There is no limitation for forming 100 people, 1000 people, or even 1 lakhs people if you are able to gather them in an executive community. You have to determine a certain resolution that is a must.

These certain resolutions are like:

  • Resolution about the name of a community member, awarding them, etc.
  • Resolution about opening the new branches and setting up the working area.
  • Resolution about opening the periodic debates, etc.
  • Resolution about making a legal stamp and seal.
  • Resolution about making a bank account and every minute detail about the transaction, amount funded, and where all that fund invested to maintain all these calculations.
  • Resolution about making changes in deeds. In the future, if there is a need to change the deed, the majority can do it easily by singing by each member in the registered office.

All the resolutions must be followed and signed by each and every member of the community. The majority of members should agree with that resolution. 

 

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