Start a Public Charity Trust After I Register an NGO

The article deals with all the important aspects of registering as a Public charitable trust. The basics, as well as advanced steps, are discussed to provide a clear about Trusts.

After registering an NGO, you may choose to start a public charity trust to further your philanthropic efforts. To begin, you must identify the cause or issue that your trust will address and determine the scope of your operations. Next, you will need to draft a trust deed that outlines the objectives of your trust and the guidelines for its management. This document should be prepared in accordance with the applicable laws and regulations in your jurisdiction.

Once you have a draft trust deed, you must convene a meeting of the trustees to discuss and approve the document. It should then sign the trust deed in the presence of witnesses and have it registered with the relevant authorities. You may also need to obtain various licenses and registrations depending on the activities of your trust.

After the NGO registration process is complete, you can begin accepting donations and carrying out charitable activities. It is important to maintain proper records of all transactions and comply with all legal requirements related to the operation of your public charity trust. Consider seeking guidance from professionals or experienced individuals to ensure that your trust is established and operated in a lawful and effective manner.

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

Table of Contents

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. It 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.

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

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
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.
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.
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.
After writing the memorandum/deed of your trust, submit your trust deed. Always ensure to have a photocopy of your 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.
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.

Conclusion

If you go through this article you will get everything you need to know about the public charitable trust. The given resolution provided is the main and key points which have been mentioned there are lots of resolutions so do check out them but basic info which is needed to require to understand how to get the registration certificate, etc. is provided well enough

If you want to serve society and want the betterment of society, lower poverty, and enhance the quality of education by building schools and providing free food to the poor, you must opt for trust.

All the basic knowledge is provided and you can end up doing great work and helping the poor. Serving your society is one of the best things you can do in your whole life. Performing these tasks is never a child’s play thus it is always advisable to take help from a professional. One can choose Vakilsearch for getting the right assistance at a reasonable price and quality service.

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