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 is and category of entities. one can create an NGO by way of Creating
  • Society under Society Act
  • Charitable Trust under the Indian Trust Act or
  • A Charitable Company under Companies Act.
we are giving some difference between society and charitable trust so it will help to choose which one will help you.
Basis Trust Society
Applicable Statue Private trusts are governed by the Indian Trust Act, 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 Seven
The geographical area of activities All India (no need to mention this in the Trust Deed) Separate registration for 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 the 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 Registrar objects on 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 objective should be under the Indian trust act.  Have to be specific. and as per the Society Act.

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