What is Charitable Trust?
A charitable trust allows you to donate assets to a chosen tax-exempt charitable organization or nonprofit and comes with certain tax benefits to help you minimize what you might owe to the government. Charitable trusts can also be structured to provide a reliable income stream to you and your beneficiaries for a set period of time.
What is NGO?
A non-governmental organization (NGO) is a group that functions independently of any government. It is usually non-profit. NGOs, sometimes called civil society organizations, are established on community, national, and international levels to serve a social or political goal such as a humanitarian cause or the protection of the environment. in other wards NGO stands for non-governmental organization. While there is no universally agreed-upon definition of an NGO, typically it is a voluntary group or institution with a social mission, which operates independently from the government.
For example, NGOs might focus on activities in areas involving health or health emergencies, education, infrastructure, advocacy of minority rights, support of the poor, and the reduction of crime.
- NGOs, or non-governmental organizations, play a major role in international development, aid, and philanthropy.
- NGOs are often non-profit and may run budgets of millions or up to billions of dollars each year.
- NGOs rely on a variety of funding sources, from private donations and membership dues to government grants.
- Advocacy NGOs work to influence public policy.
- Some well-known NGOs include the American Red Cross, the Salvation Army, and Amnesty International.
Type of NGO based on Registration / Incorporation
A non governmental organization (NGO) may be formed and registered as-
(1) Trust: As a public charitable trust. A public trust, whether relating to movable or immovable property, may be created by mere delivery of possession with a direction that the property is to be held under trust. However, a written instrument of trust signed by the author and registered, is always desirable.
(2) Society: Section 20 of the Societies Registration Act lays down that charitable societies and societies established for the promotion of science, literature of the fine arts may be registered under that Act. A society registered under the said Act is a legal entity apart from its members and under section 6 of the said Act, it can sue or be sued in the name of its President, Chairman, Secretary or members of the governing body or Trustees. In Secretary of State India v. Radha Swami Satsangh it was held by the Bombay High Court that the registration of a charity under the Societies Registration Act 1860 was a prima facie evidence of valid dedication of property for charitable purposes.
(3). Company: An association may be registered under Section 25 of the Companies Act, 1956 if the Central Government is satisfied that it is about to be formed as a limited company for promoting commerce, are, science, religion, charity or any other useful object and it intends to apply its profits, if any, or other income in promoting its objects and to prohibit the payment of any dividend to its members. In such cases the Central Government may by license direct that the association may registered as a company with limited liability without the addition to its name of the word “Limited” or the words “Private Limited”.
Documents for NGO Registration
Here we list down the mandatory documents required for registration of an NGO
- A requesting letter for registration signed by founding members stating purpose of formation
- Certified copy of MOA [Memorandum of Association]
- Copy of the rules and regulations members will abide by
- Name, Address, Occupation of all members of society with signatures
- Minutes of meeting
- Declaration by President of Society
- Sworn affidavit from the President or Secretary, declaring the relationship between subscribers
- Address Proof of Registered office and No-Objection Certificate (NOC) from the landlord
Time duration for Approval of NGO
Time limit for name approval is all about between 1-2 Months Approx.