Understanding the difference between Trust Registration and NGO Registration: A Simple Guide

Trusts and NGOs (Non-Government Organizations) are two organizations that are used for public purposes. However, they are completely different in structure, purpose, and compliance. Provides thorough knowledge for those considering setting up such businesses in West Bengal, especially in Kolkata
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Understand of Trusts and NGOs

Definition and Purpose

Trust: A trust is a legal structure under which a trustee controls and administers assets for the benefit of beneficiaries. Trusts can be either private or public, with public charity trusts focused on philanthropic activities such as education, health care, and poverty reduction.
NGO: An NGO never profits itself. They work independently of the government. Non-Governmental Organizations (NGOs) strive for social, environmental and humanitarian goals and are often funded by contributions, donations

Formation and Registration

Trust: Formed through a trust deed, which outlines the trustee, beneficiary, and terms of the trust. In West Bengal, Trust Registration can be done under the Indian Trusts Act, of 1882.
NGO: Can be registered under various acts such as the Societies Registration Act, 1860, or the Companies Act, 2013. NGOs require a governing body or board of directors.

Governance and Regulation

Trust: Governed by the terms set out in the trust deed and the Indian Trusts Act. Trustees are responsible for managing the trust’s assets by the deed.
NGO: Regulated by the registration authority and must comply with reporting and transparency requirements to ensure accountability.

Funding and Tax Benefits

Trust: Can receive donations, grants, and endowments. Public charitable trusts in India enjoy tax exemptions under Section 11 of the Income Tax Act of 1961.
NGO: Donations, grants, and memberships all help to fund the organisation. NGOs can claim tax breaks under Sections 12A and 80G of the Income Tax Act of 1961, subject to certain conditions.

Trust vs. NGO: Essential Facts You Need to Know

Feature	Trust	NGO
Purpose	Managing assets, estate planning, charity	Social, environmental, and humanitarian goals
Formation	Trust deed	Registration under relevant acts
Governance	Trustees	Governing body or board of directors
Regulation	Indian Trusts Act	Societies Registration Act, Companies Act
Funding	Donations, grants, endowments	Donations, grants, memberships
Tax Benefits	Section 11 of the Income Tax Act	Sections 12A and 80G of the Income Tax Act

How Trusts and NGOs Differ: An Informative Guide

Understanding the key distinctions between Trust Registration In Kolkata and NGO Registration In Kolkata will help you decide which organisation is appropriate for your needs. Here are the main distinctions.

Legal Framework:

Private trusts are controlled by the Indian Trusts Act of 1882, whereas public charity trusts follow the charity and Religious Trusts Act of 1920.
NGOs can be registered under either the Societies Registration Act of 1860 or the Companies Act of 2013.

Operational Focus:

- Trusts often focus on specific charitable activities, managing assets, or family estate planning.
- NGOs typically address broader social issues, engage in advocacy, and provide various services.

Management:

- Trusts are managed by trustees appointed according to the trust deed.
- NGOs are managed by a board of directors or a governing body elected by its members.

Compliance:

- Trusts must adhere to the terms of the trust deed and maintain proper records.
- NGOs have stricter compliance and reporting requirements to ensure transparency and accountability.

Trust or NGO: Which One Fits Your Purpose?

Choosing between a Trust Registration and an NGO Registration depends on your specific needs and goals. Here’s a quick guide to help you decide:

If you choose a trust:

Trust registration is right for you if you want to manage individual assets or provide for beneficiaries.
If you think you have a specific charitable purpose, such as education or healthcare, a trust is right for that
Trusts are ideal if you prefer a simpler governance structure with less compliance requirements.

If You choose an NGO:

If your main goal is to tackle social issues and engage in advocacy then NGO is right for you
If you are planning to work on multiple projects. In that case, the right NGO for you needs flexibility
If you want to cooperate with international organizations and donors, your main objective should be NGO.

Conclusion

Understanding the distinctions between Trust Registration West Bengal and NGO Registration In West Bengal is critical for making sound judgements. Whether you choose to form a Trust Registration or an NGO Registration, be sure it corresponds with your objective and meets legal criteria.

If you want to do your trust registration In West Bengal or NGO registration In West Bengal, feel free to contact B. Pramanik & Associates directly via WhatsApp, mail or their website.

Currently the best four top Trust Registration Consultancy in West Bengal

B.Pramanik & Associates – NGO & Trust Consultancy in India having its office located at 158, Dumdum Road, Kolkata – 700074, West Bengal | Phone: +91 6289064067
Banshi Professional – Corporate Legal Consulting Company in India having its office located at First Floor – 211, SDF Building, Sector V, Salt Lake City, Kolkata – 700091, West Bengal | Phone: +91 7003513864
Kolkata Law Firm – Advocates & Solicitors having its office located at Delta House, 7^th Floor, North Government Place, Kolkata – 700001, West Bengal, India | Phone +91 9339055647
Banshi Advocates – Lawyers & Law Firm in India B. Pramanik & Associates having its office located at Dahiya House No. 4, Badarpur Border, New Delhi – 110044, Delhi, India | Phone: +91 9560236647