Difference between trust and Society You may hear the name of NGO and think about how to make it. Today we will tell you that NGO is not an entity it
Difference between trust and Society
You may hear the name of the NGO and think about 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 1860 ( in Madhya Pradesh MP SOCIETY REGISTRIKARAN ADHINIYAM, 1973)
- Charitable Public Trust under the Indian Trust Act or
- A Charitable Company under section 8 of the Companies Act.
| Basis | Trust | Society |
|---|---|---|
| Applicable Statue | Private trusts are governed by the Indian Trust Act, of 1882. whereas Public charitable trusts do not have a national-level governing law. | Societies Registration Act, 1860 and state Law if any |
| Minimum number of members | Two 2 | Seven 7 |
| The geographical area of activities | All India (no need to mention this in the Trust Deed) | Separate registration for the 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. A 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 |
| Officeholders’ tenure | Trustees generally hold office for their whole life | Members hold office for a while 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 | The registrar objects to family members becoming part of the Governing Body |
| 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 the objective should be under the Indian trust act. | Have to be specific. and as per the Society Act. |
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