Procedure for registering Trust & Society

Trusts
A public charitable trust is usually floated when there is property involved, especially in terms of land and building. 

Legislation : Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.

Main Instrument : The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property. 
Trustees : A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees. 

Application for Registration : 
The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.

After providing details (in the form) regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of Rs.2/- to the form and pay a very nominal registration fee which is depending on the value of the trust property. 

The application form should be signed by the applicant before the regional officer or superintendent of the regional office of the charity commissioner or a notary. The application form should be submitted, together with a copy of the trust deed. 

Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter. 

Society
According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: ‘charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.’

Legislation : Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally, under the Bombay Public Trusts Act. 
Main Instrument : The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.

Trustees : A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee 

Application for Registration : 
Registration can be done either at the state level (i.e., in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies).(2)

The procedure varies from state to state. However generally the application should be submitted together with: (a) memorandum of association and rules and regulations; (b) consent letters of all the members of the managing committee; (c) authority letter duly signed by all the members of the managing committee; (d) an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp; and (e) a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society. 

All the aforesaid documents which are required for the application for registration should be submitted in duplicate, together with the required registration fee. Unlike the trust deed, the memorandum of association and rules and regulations need not be executed on stamp paper.

• How to apply for 35 ac approval for NGO projects & Schemes.

Nonprofit NGO organization shall apply for 35 ac approval to provide tax exemption to donors who donates for Government approved social welfare projects.

How to apply for 35 ac? Nonprofit NGO organization shall apply for 35 ac, to get approval to provide tax exemption to the donors who donates funds only for a specific social welfare project or social welfare schemes. Also through 35 ac nonprofit NGO organization cannot raise funds from Government. It can raise funds only from public for the specified projects.

Several people are still in dream that they shall get 35 ac certificate approval for their nonprofit NGO organization. But its not so easy. Because, only the best reputation with credibility of a nonprofit NGO organization, may help to get such approval from the National committee of Central Government. Even several mediators, consultants and brokers are playing with donors and with organization by giving false information and assurances towards 35 ac tax exemption.

Now first of all, you should understand that the Central Government of India is not giving approval of 35 ac for all nonprofit NGO organizations. It shall provide 35 ac approval only for the organization which has the basic object, which supports at least the following sectors.

01. Family Welfare and immunization
02. Tree plantation
03. Social Forestry
04. Development of Irrigation Resources
05. Rural Sanitation – Construction of low cost latrines
06. Medical camps in rural areas
07. Rural Health Programs
08. Land development and recovering of waste land with special concern on ecological improvement
09. Soil and water conservation including harvesting of run off water
10. Non formal education and literacy, especially for children and women
11. Rural and non farm activities.
12. Creation of employment opportunities for urban and rural population living below the poverty line.
13. Supportive services for women to engage in productive work (Children care of working women)
14. Leprosy eradication
15. Promotion of sports
16. Construction of dwelling units for the economically weaker sections
17. Construction of school building for children belonging to the economically weaker sections of the society
18. Establishment and running of non-conventional and renewable sources of energy systems
19. Any other program for uplift of the rural poor or the urban slum dwellers.

The national committee of central Government of India approves 35 ac for a period of 3 years normally. Extension may be provided as per the satisfactory implementation of project. The National committee may also approve new object oriented projects if it is finding useful for the society or if they are satisfied as per the requirement of the community.

How to apply for 35 ac approval?

If you have above specific objects and if you have a special cause to do a social welfare project, you can avail this 35 ac approval, if you feel that you have best fundraising source. Also the donors can get 100% tax exemption for the fund they are donating towards this 35 ac projects. When they donate funds to 35 ac project, as a receiver (nonprofit NGO) you should provide the certificate FORM 58A. You shall know more details here how the donor is tax exempted under 35 ac.

Even if you get such 35 ac approval, if you do not have proper fundraising source, then please do not waste your time and efforts. Please read and fill the below 35 ac application form with required attachments and enclose proper files. You can download the editable 35 ac application form and after filling as per the instruction in the given form, Make 4 sets of this application ( 2 sets- For your office copy and send the balance 2 sets to the below address)

The Secretary, National Committee for Promotion of Social and Economic Welfare, Department of Revenue, Ministry of Finance, Room No. 149, North Block, New Delhi-110 001

After you have sent the application, it will take much time to receive your approval and there are several possibilities to reject your application. So please fill the 35 ac form with due care.

If you got the approval, don’t misuse it. The misuse of 35 ac by giving fake donation receipt may lead you, up to 7 years of imprisonment and several penalties both for the donor and for the organization.