A legal arrangement where one party (the trustee) holds property or assets for the benefit of another (the beneficiary). Trusts are governed by the Indian Trusts Act, 1882.

          Typically registered as a society under the Societies Registration Act, 1860, NGOs focus on various social causes and receive funding from the government or private donors.

           All income and assets must be utilized for charitable purposes and cannot be distributed among members or trustees.

          Once registered, the organization becomes a separate legal entity from its founders, capable of owning property, entering contracts, and suing or being sued.

          The organization continues to exist despite changes in trustees, members, or management, ensuring continuity of the cause.

           Charitable organizations are eligible for tax exemptions under Section 12A and 80G of the Income Tax Act.

           Trusts, NGOs, and charities must adhere to regulatory requirements, including annual filings, audits, and compliance with the applicable laws.

          These organizations allow individuals or groups to work towards societal betterment, addressing important social, environmental, or cultural issues.

          Registered trusts and NGOs can receive grants and donations from government bodies, international organizations, and private donors.

           Donors contributing to registered charitable organizations are eligible for tax deductions, and the organizations themselves can avail of tax exemptions.

           A clear governance structure allows for the effective management of charitable activities, ensuring that resources are utilized for the intended purposes.

           Being registered gives the organization legal recognition, enhancing its credibility and ability to engage with other stakeholders.

           Clearly outline the objective of the trust, NGO, or charity, specifying the social, cultural, or environmental cause it intends to support.

           Select a unique name for the organization that reflects its purpose and complies with the respective laws governing trusts, societies, or Section 8 companies.

For Trusts: Draft a Trust Deed that specifies the objectives, governance structure, trustees’ roles, and powers. This document must be signed by the settlor (person creating the trust) and trustees.

For NGOs/Societies: Draft the Memorandum of Association (MOA) and Rules & Regulations, specifying the organization’s objectives, membership criteria, governance, and operational rules.

            Appoint the trustees (for Trusts) or board members/directors (for NGOs and Section 8 Companies). A minimum of two trustees or directors is required.

For Trusts: Register the Trust Deed with the local Sub-Registrar Office. Stamp duty must be paid based on the value of the trust property.

For NGOs/Societies: Register under the Societies Registration Act, 1860 with the Registrar of Societies.

For Section 8 Companies: Apply for incorporation with the Registrar of Companies under Section 8 of the Companies Act, 2013.

            Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) in the name of the organization for tax filing and compliance purposes.

            Open a current account in the name of the organization for receiving donations, grants, and managing expenses.

Section 12A: Enables the organization to claim tax exemptions on its income.

Section 80G: Allows donors to claim tax deductions for their contributions to the organization.

            If the organization intends to receive foreign contributions, apply for registration under the Foreign Contribution Regulation Act (FCRA), 2010.

GST Registration: Register under GST if the organization’s turnover exceeds the prescribed limit or if it engages in trade or commerce.

Professional Tax Registration: Required in some states based on the number of employees or the organization’s location.

              Register the organization’s name, logo, or brand to protect its identity.

              Register for Corporate Social Responsibility (CSR) to be eligible for CSR funds from companies.