Trust is the easiest to get started with like the minimum strength required to form a trust is just two—the author and the trustee. And the author could also be the trustee.
So, if you want to start small or if you do not have many people who share your vision or objectives, then trust is your best bet.
For a trust to be formed, there has to be the author or the person at whose instance the trust comes into existence, a clear intention by the author to create a trust, a purpose for the trust, property belonging to the trust (usually bequeathed by the author as part of the trust deed, to start with) and beneficiaries of the trust. The ownership of the trust is divested by the author in favor of the beneficiary or the trustee.80 g registration can also be performed for a trust to grant more funds from outsourcing.
A trust is set up on a basis of a trust deed and cannot be dissolved unless it is provided for in the trust registration.
Trusts also get tax exemptions on parts of their income.
tax exemption in public or charitable trust
Charity is a matter of state jurisdiction. So, different states have different legislation in the form of trusts or endowment Acts to govern and regulate public charitable trusts. For example, the Bombay Public Trusts Act, 1950, governs all public charitable trusts in the state. Other state acts are more or less similar to the Bombay Trusts Act. In case a state does not have a specific Act, then the general principles of the Bombay Public Trusts Act, 1950, apply. There are also private trusts governed by the Indian Trusts Act of 1882.
But that is outside the scope of this discussion.
Between trust and society, a trust offers more democracy and transparency than any other form of registration, but the fallback for a trust is the fact that all the trustees are equally empowered and one dissenting partner can be the cause of the trust to become non-productive.
“When it comes to a trust, the Act empowers all the members, better known as trustees, equally. Though there is ahead of the committee designated as the chairman, all the decisions, under this Act, are taken after discussion with all the trustees. This sometimes can end up in delays and the functioning gets cumbersome,” says Rodney Ryder. “A trust is like a partnership—one for all, all for one. Whereas society is similar to sole proprietorship—one person makes all the decisions and the work is fast”, concludes Ryder. Apply in ngo consultancy and get proper guidance.
In terms of documentation, the main instrument for the registration of a trust is the trust deed, which sets out the aims and objectives of the trust, the number of trustees (a minimum of two) and other details about your trust.
