A non-governmental organization (NGO) is any non-profit, voluntary citizens’ group which is organized on a local, national or international level. While the term “NGO” has various interpretations, it is generally accepted to include private organizations that operate without government control and that are non-profit and non-criminal. Other definitions further clarify NGOs as associations that are non-religious and non-military. NGO as a charitable and religious associations manages private fund for development, distribution of Food, clothes, medicines, equipments, facilities and tools to needy persons and communities. At Last, NGO is non Profit making organization, works for no profit and no gain so it is also known and indentified as Non Profit Organization (NPO). In India, there are following three legal forms exist for an NGO or Non-Profit Organizations:
Nothing prevents our being able to do what we like best every pleasure is to be welcomed & every pain avoided certain circumstances.
1. Identify a minimum of 2 Trustees and 1 Author
For Registering a Trust , minimum 2 persons are required . Minimum 2 Trustees have to be there and anyone of them can become the author of the trust. Trustees could be individuals, Companies or LLPs. Trustees Registering Trust are usually known as founder Trustees.
2.Identify Trust Name and Location
Founder needs to identify and select the name of the Trust and they also need to decide upon the address for registered office of the Trust. Trust ½s Registered office need not be a commercial place. It can be residential address as well
3.Execution of Trust Deed
A trust deed containing Objects and rules and regulations for operation of trust has to be drafted and executed by the author and the trustees
Trust deed is executed on requisite value of stamp paper as applicable to the state where Registered Office of the trust is situated.
4. Submission of Trust Registration documents to Jurisdictional Sub-Registrar
For submission of document physical presence of at least one author with original ID proof is required.
5.Trust Registration and Certificate
Except where the State Act is prevailing ,Trust Deed is registered under Registration of Documents Act 1908 and original Trust Deed is returned to trustee with all NRN Details Finished on of.
- Who is trustee?
Corpus fund refers to money donated to a charity with the provisions that the principal will not be spent , But the income from the principal or corpus will be used for the charity. Corpus fund denotes a permananet fund kept for the basic expenditure needed for the administration and survival of the organisation interest on corpus fund is to be used for the acuities of the NGO. 15 % is exempt by default. Balance 85% is exempt to the extent that it is used for charitable purpose
- What is Corpus Fund?
Corpus fund refers to money donated to a charity with the provisions that the principal will not be spent , But the income from the principal or corpus will be used for the charity. Corpus fund denotes a permananet fund kept for the basic expenditure needed for the administration and survival of the organisation interest on corpus fund is to be used for the acuities of the NGO. 15 % is exempt by default. Balance 85% is exempt to the extent that it is used for charitable purpose.
- Who is author or beneficiary?
Marks and devious Semikoli but the Little Blind Text didn’t listen. She packed her seven versalia, put her initial into the belt and made herself on the way.
- BENEFITS: Using 80G the trust can raise local fund
Registration Certificate of Trust/ Society 80G registration means donors can claim exemption. Valid Postal Address along with address proof(like electricitybill, warebill etc) and NOC from land lord. Evidence of welfare activities carried out. Books of accounts and ITR since inception
- Can a trust open a school?
A trust can open a school but the purpose of opening a school should not be profits motive but must be for the overall welfare and development of the society . School must be opened by welfare of a community , needy and poor children who cannot get basic education trust cannot open school in Bihar and company U/s 25 cannot open a school.
- Whether 12A / 80G benefits are available to trust ?
Income of an organisation is exempted if a NGO has 12A registration. All income shall not be taxable after 12A registration. This is one time registration. 80G: If an organisition has obtained certification under 80G then donors of that NGO can claim exemption from Income Tax. This is not one time registration and this needs to get renewed after validity period 12A AND 80G benefits available to a trust. Trust deed, Registration certificate, Trust Pan Card, ID Proof, Books of accounts e.t.c are required for registration U/S 12A and 80G to avail the benefit.
- Procedure for enrollment process:
gather supporting documents complete the joinder agreement submit check with documents confirmation