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NGO – Trust or Society ?

Non Governmental Organisation (NGO) or Non Profit Organisation (NPO) can be registered by many registration process in India like Society, Company, Trust or any valid formation but status of the registered organisation is equal and equally recognised as NGO (Non Governmental Organisation / Non Profit Organisation).
Registration process of NGO under Indian Trust Act, Society Registration Act, Company Registration Act or any other act/ law are different but status of the registered organisation is equal as NGO. There is no difference in the status of NGO to get funding from Central/State Government Departments/ Ministries, Foreign funding agencies, Indian funding agencies, companies for Corporate social responsibility, individuals or any support agencies.
NGO registered through any process/ act can get registered under Income Tax Act, Foreign Currency Regulation Act (FCRA) or any kind of registration with any Government requirement. Every registered NGO are not eligible for the registration under various departments' registration. The NGO must fulfills the registration process and parameters as required by the concerned department or authority. But the basic registration parameters do not matter that by which act the Voluntary Organisation is registered as NGO.
Just check here the comparison, difference and similarity between Trust, Society and Non Profit Company: Trust, Society and Company.
So now question is that how to register and under which act you have to register NGO? What kind of NGO is suitable to operate and manage? For answer and solution you can discuss with NGO Consultants at NGOsIndia.net.

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After Registering the Public Charitable Trust

What to do after registering the NGO as the Public Charitable Trust?

Resolutions

After you receive the registration certificate of your Trust you can begin working. You can formulate an executive committee. There are no limitations like maximum or minimum number of people in the executive committee. Certain resolutions to be passed by the Trust are:
Resolution regarding the addition, removal or any other change in the Board members/ governing council or Trustees.

  • Resolution regarding the executive committee like the names of members in it, defining their role, awarding them designations like the Chairman, Secretary, Treasurer etc. Designations can be decided as per the number of members.
  • Resolution to decide certain executive bodies or members for long term like patronizing council or managing trustees etc.
  • Resolution to open new branches or offices and deciding the working area.
  • Resolution to decide activities programs and projects etc. Assigning duties to each member in this regard.
  • Resolution to form any subcommittee or forum at regional or local level.
  • Resolution to associate with other Trusts/ organization in future.
  • Resolution to conserve minutes of each meeting.
  • Resolution to prepare legal seal and stamp of the Trust.
  • Resolution to obtain a Pan Card in the Trust’s name.
  • Resolution to open a bank account. The resolution should contain every minute detail regarding the operation of bank account, members authorized by the Trust to operate it, whose signature shall be considered valid for the bank transactions etc.
    To open a bank account in the name of the Trust you will have to produce the original Trust Deed and its duly attested photocopy to the bank official. It can be opened by a single person if authorized in the resolution. The registered office address mentioned in the Trust deed can be used while opening the bank account. In case you wish to use another address it should be passed by a resolution. Though not clearly defined by RBI and government but some bank officials make Pan Card in the Trust’s name compulsory for opening bank account. Due of lack of knowledge about legal parameters sometimes bank officials pose obstacles in opening a bank account. If this is the case and any official is challenging a document presented ask them for a written reply. You can even file a complaint with higher authorities or RBI in such case.
    To avoid unnecessary delay in opening bank account office bearers of the Trust can contact banks and ask them to clear the exact process. After opening a bank account you can change operating members any time after passing a resolution. Nobody can refuse to open a bank account based on the area of operation.
  • Resolution to make any change in the Trust Deed. In such case a new Trust Deed will be formed, signed by each member and registered at the Registrar office.

Remember, all the resolutions must be printed and signed by every member. Each resolution is passed democratically by upholding the decision of majority.

Management of NGO


Public Charitable Trust Registration

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