Beruflich Dokumente
Kultur Dokumente
Recently I had written about how to register a trust and the process of registering a
society in India. I have written several articles on the subject of NGOs in India. Today, I
though that I should present a summary of differences between trust and society.
These two are the main types of non prot organizations in India. Often people ask
Trust or Society, which is better?. There is no universal answer to this question. Both
society and trust have their own benets and drawbacks. You should spend some
time considering both these options. The following comparison table should help you
in deciding which is better for your circumstances and objectives.
http://techwelkin.com/differencebetweentrustandsocietyinindia 1/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
NGO:FrequentlyAskedQuestions
Democratic system.
Nature of control One man control, i.e. Settler Decisions are made by voting.
Power struggle may ensue.
Ofce holders Trustees generally hold period of time and may stand
tenure ofce for the whole life for re-election
1 Memorandum Of
1 Trust Deed Association
Main documents
2 Rules and Regulation
EarninLakhsPerMonth
redcoupon.com/franchisee
Breakevenwithin3monthsInRealEstate(FastestamonganyIndustry)
TopSIPInvestmentplans
CheckyourCIBILScore
DelhitoMumbai
TikonaBroadband4Mbps
Some people also gets confused about a trust and a foundation. I have written a
separate article to answer this question.
I hope this table of differences would make several things clear in your mind about
differences among Trust and Society. For more specic information you may read
more articles as listed below. In case you still have any questions, please ask them in
through the comments section. While asking questions, please write in details. Also,
http://techwelkin.com/differencebetweentrustandsocietyinindia 3/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
please do not ask questions without going through all my relevant articles. You will
nd most of your answers in one or the other articles. Thank you for using TechWelkin!
Comments
A Kapoor says
Dear Lalit,
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 4/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
A few Telugu friends residing in Noida ( NCR) opened a Bank account in the name & title
NOIDA TELUGU SEVA SAMITHI, NOIDA in year 2013 and carrying out socio-cultural
activities with the donations collected from like minded people; mostly Telugu people.
We have so far not registered and so havent got PAN card. Bank deducts 20% tax on FDs
taken with surplus.
We want to register as Trust for simple reason of convenience and obtain PAN &
eligibility to receive donations under 80 (G). We intend to have 7/8 trustees.
Can we have trust deed to make it democratic of equal rights to all members?
Reply
Reply
Chintu says
Indian Red Cross Society was formed by Indian Red Cross Society Act 1920. National
Head Quarter, State Branches, District Branches governed by this act. To collect
donations from peoples registration under Public Trust Act and / or Society Act is
required. The commissioner of Income Tax has issued letter to IRCS to register each
branch seperately under Trust/Society Act. one branch was registered in 1952 under
Bombay Public Trust Act 1950 , there is no any record with Charity Commissioner ofce
except certicate and trust deed. Trustees at that time were no more now there is 64
http://techwelkin.com/differencebetweentrustandsocietyinindia 5/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
years span.. in which no change report has given How can we continue this trust
activity of trust is still running by other members
Reply
Immani says
Hello Mr. Lalit. Thanks for your information. I would like to get some clarication. we, a
group of 6 friends, are contributing a xed amount monthly with the objective of
investment in some protable activity, so as to procure some assets in the future that is
common to all the members. This is completely for the future nancial benets to the
members with no plans for any charity. In this case, pls suggest me under which
category our group can be registered (trust/society/foundation/or any other), so as to
make all the monetary transactions legal. Thank You.
Reply
I can not give you any opinion because this article is about public charity. If your
purpose is to make prot, you should consult a lawyer to know how to go ahead.
Reply
Hi Lalit Sir,
I am an NRI,Me and my like minded friends have started a small organization for NRIs in
our village.We are trying to register as a society ,do some business and spend 60
percent of the prot for charity and 40 percent for the members.But when we submitted
the bylaw for registration, they said from collectrate that if it registered as society you
can not draw prot out from that.Anyway we are going ahead as charitable society. But
still we have the plan to do business. We are in a confusion now.Could you please
suggest an option for us to do business and charity and give some prot to our
members?
Thank you
http://techwelkin.com/differencebetweentrustandsocietyinindia 6/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
You can not take any prot from a charitable society or trust. Your main motive is
business -so you should register a company. Also register a trust or society. Do
business through you company and donate 60% of prot to the trust/society so that
it can do charity work.
Reply
Is it possible for a particular association to get registration under Trust which is already
registered as Society under The Societies Registration Act
Reply
Reply
DILEJAN says
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 7/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
atul says
Dear Lalit ji, I have one small question. Can I use Trust word in my NGOs name while
registering as society?
Reply
Reply
Arun says
Hi Lalit
Can I register a trust on my share of property/home if civil case is going in the court
among shareholders of that property?
Regards
Reply
A lawyer can answer this question better. But I guess it is not advisable to register a
trust ofce on a disputed piece of property.
Reply
ARUN says
http://techwelkin.com/differencebetweentrustandsocietyinindia 8/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Thank you Lalit. I think you are doing a good job to work for the interest of many needy
future trustees and social workers. Best wishes for having a nice cause for many causes.
God help us to make our planet worth leaving. Regards
Reply
Reply
Subramanian says
Dear Lalit
Thanks a lot for such an excellent article on the difference. I read your other articles too
about registration of trust and society. They are extremely useful. I have a query. We are a
group of friends planning to contribute a monthly amount and donate that amount to
less privileged orphanages/homes. To avoid any tax implications to an individuals bank
account we are planning to register a trust or society to do this. My friends are located
across India. Can you please advise what is the recommended option here ? Or do we
need to register at all to do this kind of donation?
Reply
Well, it is recommended that you either register a trust or society for this purpose.
There is no recommended option as to whether you should register a trust or a
society. It depends on your organizational needs. In both cases you will open a bank
account, apply for a PAN, apply for 80g and 12a. This will save you from paying
Income Tax as you will not be directly receiving money as an individual. As an
individual, you should not accept monetary donations but if you do -then you will have
to pay Income Tax on the donations received -even if you use the donations for
charitable purpose.
http://techwelkin.com/differencebetweentrustandsocietyinindia 9/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
Alakh says
Dear Lalit, thanks very much for this information. For long time I was in search of such an
article providing clear information.
Reply
Ishu says
Can a trustee earn in any form if he has no other occupation other than running school as
a trustee
Reply
A trustee can not take anything from trust fund just because he/she is a trustee. But
if the trustee is doing some professional work for the trust, then he/she can take a
reasonable reimbursement.
Reply
Jitendra says
Dear lalit can we use Foundation word with the name of society
Reply
Yes you can. There should not be any problem in using the word Foundation in the
name of a society.
http://techwelkin.com/differencebetweentrustandsocietyinindia 10/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
Jay says
Hello Lalith,
I have an educational society registered in 2010. Since then there are no activities
conducted on this society due to various reasons. Now that we wanted to start, we
wanted to apply for 80G for the registered society. Please help me with all what is
required for getting 80G for our society.
Also, the society is registered in Andhra Pradesh before its bifurcation. We are helping 4
students with their education in the bifurcated state Telangana. Can we continue on the
same society or should we register one more in the new state. Please help with your
knowledge.
Regards,
Jay
Reply
Hi Jay, I am not sure about how bifurcation of Andhra Pradesh has affected your
soceitys ability to work in Telangana. You should contact the registrar of societies
for this. As for 80G exemption certicate, I have an article on that. You can read it.
Reply
Rajeev says
We, ve friends together, have decided to contribute some funds out of our salary per
month that we want to spend on education for deprived children who have not gone to
school or left it incomplete. We dont want to open any ofce for it but there is a need of
http://techwelkin.com/differencebetweentrustandsocietyinindia 11/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
a bank a/c for it. Is it mandatory to name our group? Please let me know the procedure
to have bank a/c open with a bank. And also do we need to have trust deed.
Reply
Hi Rajeev, you should go to the bank of your choice and ask them about how to open
an account. May be you and your friends can open a joint bank account and thats it.
If that sufce your purpose, you would not need to register an NGO.
Reply
I have gone thru all of the above. Can u guide me one question. Suppose ve friends have
made one trust and after some years they want to make individual trusts, then the
original trust fund and property etc can it be divided equally among them i.e. in the name
of their individual trusts.
pl guide.
rabi dash
Reply
No, this is not so straightforward! The funds that you collected were given to you to
carry out a certain social work. If your trust deed allows, you may donate your trust
funds to the other trusts with similar objectives but you can not just divide the funds
like you said.
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 12/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Great work brother I, truly appreciate your research and information and thanks for
sharing the same.
Reply
Dear Lalit Sir, Why the registration for society is so complicated and tough compared to
Trust which is easily done though , in my opinion, both trust and society are enjoying
almost equal powers . Why then people opt for society registration and not trust.
Reply
Durga Prasad ji, people opt for a Society when they want to have a democratic
structure. That is the main reason behind making a society.
Reply
Vipul says
We need to take a PAN in the name of the Registered Society. What should be the status
of the applicant: Trust / Association of Persons OR Body of Individual
Reply
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 13/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Biswajit says
Dear Sir,
Is it possible to get an NGO registered both as a Trust and as a Society? If Yes, then
would it be better to get it registered as a Trust rst and then go for the Society? If NO,
then why?
Reply
You can not register an NGO both as a trust and as a society. The reason is because
there is no need to do so!
Reply
Debashree says
A registered public charitable trust wants to sell utility articles to public at large for
which registration under vat/cst etc.are required. However proceeds out of this selling
activity will not be distributed among trustees but will be treated as receipts and used
for further welfare. Can the trust do so and accordingly how should the deed be altered
so as not to invalidate the nature of its existence.
Reply
A trust can have business income of upto Rs. 10 lakh. If your income by selling
utility articles go beyond Rs. 10 lakh, you may have to pay income tax on that.
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 14/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
First of all thanks a lot for this good info. I have already registered a society under 1956
act and a school is running under this society. I need to ask you whether I can change this
society into a trust?
Please advise.
Regards,
Brij
Reply
No, you can not change a society into a trust. You will have to register a new trust.
Reply
MOHSIN says
Sir,
In maharshtra if you register a Society then that society gets a Trust Registration
also automatically. My Society has Trust registration also.
Pls can you tell I can enjoy which type of benets either of Trust or of Society. As
it is registered as both.
Regards,
Mohsin
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 15/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
I am interested in providing legal aid to the poor and organising awareness camp for
them. Which should be best option for me trust or society?
Reply
Trust is better or society is better it does not depend on what social work you want
to do. It depends on who are the people involved. I have written about the differences
between trust and society, you should be able to make decision.
Reply
Rameesh says
Please let me know a society registered under the Karnataka societies registration act
1960 can be a trustee of the trust. And Can a trust registered under indian trust act 1882
be a member of society.
Reply
Well, as far as I know, it is not possible. Trustees and governing body members are
individuals -and not organizations. But you may consult a good lawyer about this.
Reply
Snehal says
http://techwelkin.com/differencebetweentrustandsocietyinindia 16/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
If i registered trust in city patna, bihar state then it be registered at all India level or i have
to registered it from some particular state to work at all india level. And the name of
trust is also registered. Or some other charges or process to registered name at india
level.
That no other origination use my trust name.
Reply
Trusts work at all India level. You dont need to register it separately in different
Indian states. I do not have enough information about exclusive rights on the name of
the trust. May be a reader will shed some light on this matter.
Reply
Dear Sirs,
I was made trustee along with one more person by the alone surviving trustee in the year
2010. Later I came to know that in this particular registered deed, in last a paragraph
was included And this indenture further witness that this Religious & Charitable Trust
HAZARIBAGH ROAD SHREE RAM KRISHNA aSHRAM BEING REGISTERED UNDER
SOCIETIES REGISTRATION ACT XXVIof 1961 having Registered Ofce at Kolkata in the
Schedule in part recited in the Deed of Trust shall vest in the new trustees along with the
continuing trustees without any further assurance in that behalf.
Actually I came to know that this society was made by old trustees with other members
to make a Governing body of the trustee, while our this trust was made in year 1945 by
registering a deed in Kolkata and this Society was made in the year 1994-95. After
holding the ofce of Trustees, we removed the Governing Body and taken full control of
the trust.
Now my question is how we can rectify this error? What will be the effect of this error on
us? As we have given a part of our property on lease to a school and by ling one PIL,
one person has made party to the Society in that lease matter case, while only we
trustees has signed on the lease agreement paper.
http://techwelkin.com/differencebetweentrustandsocietyinindia 17/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
Ramesh ji, you need to speak with a good lawyer about this issue.
Reply
Parth says
Hello Sir,
Nice Article. I want to ask that is it which form will be better if we want to get foreign
funding, trust or society?
Reply
There is no difference.
Reply
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 18/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Hello Aamir, there is no difference between trust and society as far as possibility of
funding is concerned. If you do the good work, youll nd funding.
Reply
Hi Lalit jee,
Your articles are very much helpful.
I am running a trust. But my trustees want to kick me out of my organization. I need your
help. Help me please sir.
Reply
Rakhi ji,
This is your trusts internal matter. I am afraid I can not help in this regard. You should
take advice from your lawyer.
Reply
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 19/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Well, no body stops you from doing any social work. But technically, you can not (and
should not) utilize trust funds for the activities that are not mentioned as objectives
in the Trust Deed. People donate to you for the work that is mentioned in the trust
deed.
Reply
Reply
No, you can not (and should not) work outside the objectives of your trust deed. If
you want to work in other areas, you should register a new trust.
Reply
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 20/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
brijesh says
Reply
Brijesh, social work is all about putting ones own resources to the welfare of society.
Surely, one can seek governments help but essentially it should mainly be about
making good use of resources that are there at your disposal. If youll do good work,
help will come. If youll just keep on thinking about government help, then probably it
will be too late to begin. So, my friend, just go ahead and begin the good work.
Reply
Dear Sir,
Details provided by you is really precious. One more query is whether a trust is entitled
for any grant/donation if the husband holds position of Secretary whereas wife is
President in the same trust while treasurer is not a relative either of the two ?
Rajesh Kumar,Ranchi,
Jharkhand
http://techwelkin.com/differencebetweentrustandsocietyinindia 21/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
Yes, in case of charitable trusts, family members can become trustees and hold
whatever positions agreed among the board of trustees. You can also apply for
government grants but agencies are free to refuse grant if they are not satised with
your work or organization.
Reply
Thanks
Reply
good learning from this site. it felt nice to know the compression between Trust &
society
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 22/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
R.Stephen says
Dear sir,
Your comparison of Trust and Society gives a clear picture. Thank you for making things
so simple. On reading your article, I have immediately decided to register our institution
under trust.
We are running a training institute, IDEAS ( Institute to Develop English, Attitude & Soft
skills). If time permits, visit our website, and pass on your suggestions.
All the very best to all your efforts.
Stephen
Reply
Alka says
Dear Lalit,
Many thanks for your article, well written and very informative. I have a query related to
the legal status of a trust. We want to enter into a contract with a Trust and as per our
rules, we can enter into contracts with legal entitiesonly. Is a Trust legal entity?
Reply
Dear Alka,
Yes, a registered trust is a legal entity which is bound by its own constitution (called
Trust Deed). Please note that the trust must be a registered one. If youre entering
into a legal contract with a trust, you should check their Trust Deed and see if there is
any clause that you may not like. Later on, if the contract is breached, you can drag
the Trust to courts. But remember that a Trust is allowed to do activities which is
permissible in the Trust Deed. So, it is important for you to check the Trust Deed.
Hope it helps.
http://techwelkin.com/differencebetweentrustandsocietyinindia 23/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
Alka says
Hi Lalit,
Many thanks. Indeed it is very helpful.
Alka
Reply
Ananya says
I want to form an animal welfare ngo. Kindly do suggest which is better for this trust or
society?
Would i be able to get donation in trust?
Plzz advice me benets and dis advantages of both
Thank u
Reply
Dear Ananya, I have written these articles exactly for the purpose to let readers know
all the details about Trust and Society. Please read the articles and ask very specic
questions, if you have any.
Reply
chandrabhan says
Hi,
I along with 10 more guys from my village are planning to start a society for
development of our village. We are not sure to register a society or trust. Also most of us
http://techwelkin.com/differencebetweentrustandsocietyinindia 24/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Can you help if we should start with society or trust. Also what all things that we need to
initiate are goals.
thanks
Reply
Hello Chandrabhan, I can not go in details but I feel that you should register a Society.
You can get the PAN card issued in the name of your Society. For more details and
chalking out ner steps, I would suggest that you consult a good lawyer.
Reply
I want to form a non prot organization for improvement of science and technology
development where various institution across the globe will be member and participate
for improvement of science technology development by assisting training, R & D Set up
and there will be some other specic objectives..I am confused which I should form
society or trust or company, but I am afraid if it is formed as society under society act
and I may be thrown by voting of other members and my objective will not fullled but if I
formed as trust or company then democracy may not be there.
a) I want my security towards my objectives
b) I want democracy, so that it can work good for its objectives
d) I want active participation of public and institution
can you help me
e) organization will be eligible to collect fund international source
my mail is director.iaqm@gmail.com or call me 9830051583
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 25/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Well, Sambhu ji, I guess registering a Trust should be good for you. No one can kick
you out of your own Trust. Moreover, in Trust, you are free to make decision making
as democratic as you want. Societies HAVE TO be democratic and Trusts CAN BE
made democratic.
Reply
But I understand Trust is less credible to take grant from govt, corporate and
foreign companies.
I understand, any one will donate have right to select member in the committee
even any body Rs 100 as donation
Trust will allow me to open ofce anywhere ?
How the trust will be acceptable for foreign investor/donor
Reply
A lot of big NGOs have been registered as Trusts and they get lots of funding
for their objectives. So, its not that Societies get better funding.
I would suggest that you nd a good lawyer who can give you more detailed
advice.
Reply
I want to help of acid victim. what is better to help them by collect crowd funding trust or
ngo?
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 26/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Dear Sir,
is it possible to work as company in ngo or trust
pease revert me on my mail
Reply
satyanarayana says
Sir,
kindly do let me know the which do i needed to registers ,,,as per my deed,,,i would like to
take few children form the poor community and give them tution and make them to
educated by staying with us full of year,,,and we like to provide them food, and helth care
as well,by collecting nationa; fund these are the deeds we wanted to do,,,so under which
one do i need to go for registered as a SOCIETY, trust or non prot org.
satyanarayana.v
Reply
Type of organization is not really linked with what you want to do. You can
established either a trust or a society -both will work ne.
Reply
vinod says
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 27/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Reply
Subhash says
Great Article by Lalit, Wish him all the success in his life.
Thanks
Reply
Reply
Reply
Reply
It would be nice to know how the government (state and central) looks at these two
entities from the point of view of giving aid (funding), subsidies, etc. I know that private
funding is harder to receive by trusts but dont know if thats true for tax-exempt trusts.
Thank you.
Reply
prabhakar says
Reply
Sir,
Thanks , very important information given. Pl.support us all time to com.
yours
Rabi
Reply
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 29/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
KVK says
Reply
S.N.Tiwaary says
I have registered an education trust at Thane Maharastra. How to make it valid for all
India so that school can be open any part of India on the same Registration Number.
Please also reply on email id: s.n.tiwary@hotmail.com
Reply
Trusts are valid all over India by default. You dont need to do anything.
Reply
Pooja says
We have a Trust registered under Karnataka Societies Act. We also got registered
under section 12A of Income Tax act, 1961 in the same state. Now we want to
transfer its jurisdiction in Delhi. So do we have to get it registered again in Delhi
Societies registration act?
Reply
Trusts can function on all India basis. You dont need to re-register your trust
in Delhi.
Reply
http://techwelkin.com/differencebetweentrustandsocietyinindia 30/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
kishore says
Reply
Reply
Nice piece of research. This comparative table is worth saving. Thanks for this one :-)
Reply
Leave a Reply
Your email address will not be published. Required elds are marked *
Comment
Name *
Email *
http://techwelkin.com/differencebetweentrustandsocietyinindia 31/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Website
Post Comment
Tools
Find how old is a website
Hindi typing
Letter Counter
http://techwelkin.com/differencebetweentrustandsocietyinindia 32/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Find Facebook ID
Character Maps
Bootstrap Icons
More Stories
http://techwelkin.com/differencebetweentrustandsocietyinindia 33/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
Difference between
Static and Dynamic
Web Pages
Download Rupee
Symbol :: Indian
Rupee Font
Difference Between a
Foundation and Trust
Text Art Newsletter and S...
Difference Between C
http://techwelkin.com/differencebetweentrustandsocietyinindia 34/35
11/09/2016 DifferenceBetweenTrustandSocietyinIndia
2007-2016 TechWelkin.
The content is copyrighted to Lalit Kumar and may not be reproduced on other websites.
TechWelkin displays Google AdSense ads. See how Google uses data when you're on TechWelkin |
Privacy Policy
Publish
For publishing your articles on
gmail.com
http://techwelkin.com/differencebetweentrustandsocietyinindia 35/35