“NGO” stands for “Non-governmental Organization” while “trust” is the word trust itself. ... Trusts have their own policies since they can be public or private trusts. It does not need any aid from the government or any organization. NGOs can receive financial assistance from the government while trusts cannot.
A Public Charitable Trust is known as non profit NGO. The Income Tax Act gives Trust, Society or Section-8 Company, equal treatment, in terms of granting 80G certificates and exempting their income (12A).
A. The elements of that Trust deed which should be present in it are:
From a legal standpoint, there is hardly any difference. An NGO or a Foundation cannot be registered. The legal viewpoint is that an NGO has one of three entities; its either a Public Trust or a Society or a not-for-profit organization or foundation. ... Such organizations are fundamentally rooted in trust.
The society can exist as long as the members wish, but there is always a possibility of complete renewal of members and objects can be modified easily. It is easier to wind up a society than it is to wind up a trust. A minimum of seven members are required to form a society.
But as for NGO Registration Trust under Indian Trust Act the NGO can be registered with the same and similar name with that name/words any NGO is already registered previously in any jurisdiction or in the same jurisdiction or under the same Registrar/Sub Registrar.
The basics of trust creation are fairly simple. To create a trust, the property owner (called the "trustor," "grantor," or "settlor") transfers legal ownership to a family member, professional, or institution (called the "trustee") to manage that property for the benefit of another person (called the "beneficiary").
Step by Step Procedure of Trust Formation
|No. of minimum members required at the time of registration||Minimum 2 trustees.|
|The geographical area of operation||The whole of India.|
|Main documents supporting the formation||Trust deed.|
|Legal title of the property||Vests in the hands of trustees.|
A non-profit company must have at least three incorporators and three directors and may be registered with or without members. A non-profit company is not required to have members.
Here are a few steps through which you can easily start an NGO in India:
Many community foundations can set up a fund for $1,000 or less if you give regularly. But it usually takes at least $250,000 in assets to make a private foundation worth the cost.
The differences between a foundation and a charity can be summarised as follows: A foundation is usually created by a single entity and is funded by one main, private entity. A public charity depends on funds from the general public and the government and puts these funds into action to support its cause.
A non profit Company can be registered under section 8 of Companies Act with the Registrar of Companies. To start, setup and run social entrepreneurship as in form of NGO, the founder(s) must be with a team decide and organise team of the members that will be the board of directors of the organisation.