Difference Between Trust, NGOs & Society

Trusts, Non-Governmental Organizations (NGOs), and Societies play essential roles in the fields of philanthropy and community advancement. Despite sharing the overarching objectives of tackling societal problems and driving positive change, they diverge in organizational structures and distinct attributes. This article aims to highlight the significant difference between Trust, NGOs, Societies, and the relevance of NGO Registration in formalizing their operations.

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What is the meaning of Trust, NGOs & Society?

Meaning Of Trust:

Trust is considered as the oldest form of a charitable organization. In a trust, it essentially involves a contract between parties where ownership of one partner is retained by another. Additionally, Trust can be formed to save time and reduce paperwork & estate taxes.

Circumstances on which a Trust can be formed:

If more than one member of the family is engaged in running a business.
If you prefer, the Trustee remains the same for lifetime without putting any election.
In addition to benefit distribution flexibility, privacy is also important.

Meaning Of NGOs:

NGOs stands for non-government organization, established with the purpose of social welfare that runs on its own. Therefore, they don't enjoy profit or distribute dividends among themselves. NGOs are private owned organizations, operating independently of government control.

NGOs can work at different levels such as local, national or international depending on their goals or mission. NGOs or non-government organization includes non-profit organization, charitable foundation, advocacy groups

Meaning Of Society:

A society is a union of individuals united by mutual consent to consider, determine and cooperate for everyday purposes. Societies are characterized by models of connections (social relations) between individuals who share a unique culture and institutions.

A given society may be described as the total of such relationships among its constituent members. Societies are usually registered to promote charitable activities such as education, health, environment, arts, religion, culture, music, sports, etc.

Difference Between Trust, NGOs & Society

Trust, NGOs & Society have several differences & they are as follow:

Basis	Trust	NGOs	Society
Purpose	Manage and distribute assets for beneficiaries	Address social, environmental, or humanitarian issues	Foster well-being, connection, culture, learning, and innovation
Legislation	Indian Trust Act, 1882	Companies Act, 2013	Society Registration Act, 1860
Registration Period	2-7 days required to register as a Trust	15-30 days required to register as a NGOs	Typically spans week
Registration Authority	Charity Commissioner/ Sub Registration of Registration	Registrar of Company	Under government or relevant regulatory authorities' jurisdiction
Funding	Endowment or donation based funding	Sources include donations, grants, sponsorships, etc.	Sources include donations, grants, memberships, and fundraising initiatives.
Legal Framework	Governed by trust laws and trust deed	Registered under nonprofit or charitable laws	Defined by its constitutions & laws
Name Approval	Approval not required	Name of an NGO must be issued by making an application to the registrar of companies.	Approval from Relevant Regulatory Authority
Decision Making	Trustee makes decision based on trust deed	Strategic decision made by Board Of Director	Members of society makes decision through democratic processes

**These are the major differences between Trust & NGOs. Although there can be many differences between Trust & NGOs.

Registration Of Trust, NGOs & Society

Registration Of Trust

Trust needs to register itself under Indian Trust Act, 1882. In order to register a trust several steps needs to be followed & they are as follow:

Choose a unique name for your Trust
Prepare Trust Deed
Obtain required documents
Visit the local sub-registrar office or online portal, they submit the documents and pay required fees.
Once the documents submitted, they will be verified by the Authority
If the registrar approved the documents, Trust will be registered & a certificate will be provided
Open a bank account with trust name & compl with any tax and reporting obligation.
Start operating trust with its objectives

Remember Documents Requirements or fee can be varied from state to state or country to country. Take legal expert help for arranging all the documents and other requirements.

Registration Of NGOs

NGOs can be register in India as a Trust, Society & Company under several acts such as:

Trust can be registered under the Indian Trust Act, 1882
Society can be registered under the Society Registration Act, 1860
Section-8 Companies registered under the Act, 2013

Registration Of Society

The Process of Society Registration is as follow:

Choose a unique name for your Society
Draft MoA and Rules & Regulations
Arrange for the required Documents such as identity proof, residential proof, list of members, etc.
Visit Local registrar office or online portal
Submit all the documents and registration fee
Registrar can approve the application or may ask for more detail documents
If the application is approved, certificate of society registration will be issued

Conclusion

Trusts and NGOs are separate organizations that play crucial roles in advancing social welfare and resolving various societal problems. While NGOs work under a broad mandate to bring about constructive change in society through projects, programs, and advocacy efforts, trusts generally concentrate on managing and distributing assets for the benefit of specific beneficiaries.

It is essential for people and organizations wishing to participate in philanthropy or make a contribution to community development to comprehend the distinctions between these two types of entities. For Registration connect with Professional Utilities.

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