NGO vs Trust vs Society
NGO, trust, and society are different legal forms or structures that organizations can adopt to pursue charitable, social, or non-profit objectives.
Here’s a brief overview of each:
NGO (Non-Governmental Organization):
NGOs are typically independent, non-profit organizations that operate independently from the government. They are established to address social, environmental, or humanitarian issues and often work on a local, national, or international level. NGOs can take various legal forms, such as non-profit companies, charitable trusts, or societies.
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Trust:
A trust is a legal arrangement where one or more individuals (trustees) hold and manage assets or property for the benefit of others (beneficiaries). In the context of non-profit or charitable activities, a trust can set up to manage and distribute funds or resources for specific charitable purposes. Charitable trusts are commonly used to support education, healthcare, poverty alleviation, and other social causes.
Society:
A society, also known as a non-profit society or association, is an organized group of individuals who come together to pursue common non-profit objectives. Societies govern by a governing body or managing committee and register under the relevant laws of a country. They can engage in a wide range of social, cultural, educational, or charitable activities.
The choice of legal form (NGO, trust, or society) depends on the specific legal requirements and regulations of the country where the organization operates. Each legal form has its own advantages, limitations, and compliance obligations. So, It is essential to consult with legal professionals or seek guidance from the relevant authorities to determine the most suitable form for your organization and to comply with the applicable laws and regulations.
FAQs
1. What is an NGO?
Ans: An NGO (Non-Governmental Organization) is an independent organization that works for social causes, without the goal of making a profit. It can operate at local, national, or international levels.
2. What is a Trust?
Ans: A Trust is a legal entity create to manage property or assets for a specific purpose, usually charitable. It is govern by a trustee who ensures that the trust’s goals are met.
3. What is a Society?
Ans: A Society is a group of people united for a common social cause. It is registered under the Societies Registration Act and typically focuses on areas like education, health, and culture.
4. How is an NGO different from a Trust?
Ans: An NGO is a broader term that includes various types of organizations, including trusts and societies. A Trust is a legal structure within the NGO category specifically for managing assets for charitable purposes.
5. How is a Society different from a Trust?
Ans: A Society is form by a group of people with shared interests and is manage through democratic processes. A Trust is often set up by one or more individuals to manage property or funds for charitable purposes and is governed by trustees.
6. What laws govern Trusts, Societies, and NGOs?
- Trusts are regulated under the Indian Trusts Act, 1882, while societies are governed by the Societies Registration Act, 1860
- NGOs can be registered under either act, depending on their structure, or as a company under Section 8 of the Companies Act.
7. Which is easier to form, a Trust or a Society?
Ans: A Trust is generally easier to form, as it requires fewer members (often just 2-3) and less paperwork. A Society requires at least 7 members and follows a more structured democratic process.
8. Which structure provides more transparency and accountability?
Ans: A Society offers more transparency as it requires annual meetings, elections, and regular updates to its members. A Trust has less public scrutiny but must follow the intentions of the trustees.
9. Can an NGO be both a Trust and a Society?
Ans: No, an NGO has to be register as either a Trust, Society, or a Section 8 company, but it can function as an NGO regardless of its legal structure.
10. Which is more suitable for charitable work: Trust, Society, or NGO?
Ans: It depends on the goal. Trusts are better for managing property or funds, Societies are ideal for community work with member participation, and an NGO offers flexibility as an overarching category that can adapt to various social causes.
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