Businesswonder.com - Home Page

Cooperative Societies Act Advisory Services

Charitable Trust and Charitable Society- Differences

Legal Nature

The basic deference between Charitable Trust and Charitable Society lies with the very object of Charitable Trust and Charitable Society.

 

 


The very basic purpose of a trust is to protect a 'Property' for a specific purpose. Not every trust is a Charitable Trust. So classify a normal Trust as Charitable Trust we have to add some charitable purposes. The charitable purposes can be anything with in the legal limitation. But just having some 'Charitable Purposes' and a 'Property' is not sufficient enough to classify regular Trust as the Charitable Trust. We have to see the definition of beneficiaries. The beneficiaries are very important any trust. If there is no beneficiary then there is no trust, and for Charitable Trust the beneficiaries must be in accordance with the trust purposes.

Charitable Purposes
The Society can only be formed for charitable purposes only. It can not be formed to make profit. However, the 'Charitable' is only one of many types of Trust. It is possible to form a trust to earn profit as well.

Non-Political nature
The organizations registered under Society Registration Act must be non political in nature. The trust does not have this type of restrictions. Trust can be formed to support or as political party.

Distribution of power
The only aim of an organization registered under Society Registration Act is to do charity. That is why the organizations registered under Society Registration Act have proper distribution of power. The power to make rules, the power to manage funds and the power to run organization are the most important powers for any organization. These powers are properly defined and distributed in an organization registered under Society Registration Act.

On the other hand the trust is all about the preserving the property for a purpose. In order to do that the powers to make rules, the power to manage funds and the power to run trust are generally concentrated in on person or a group of persons.

The governing body of a Trust has more control over the assets of a trust the governing body of an organization registered under Society Registration Act.

Priority of Aims and Objects

The trust has to protect its property to serve the purpose and to maintain it existence. If there is no property there is no trust at all. Therefore for trusts the trust property has priority over its purposes. On the other hand the organization registered under Society Registration Act has to spend every last resource to serve its aims and objects.

Termination
Both Charitable Trust and Charitable Society are perpetual in nature. That is the none has any expiration date.

However, the trust can be terminated in two situations. First if there is no trust property and second if there is no beneficiary. For charitable trusts the first situation is more important because of the nature of trust property.

 

 



The Charitable Society however on the other hand can exist without any property. So even if there is no property an organization registered under Society Registration Act can survive but a Charitable Trust can not.

Our Expert Professionals are providing services for setting up Charitable Society and Trust and Legal Advice on it.

To know more details and avails service please e-mail to contact@businesswonder.com

Top 

 

HOME  About Us   Contact Us   Disclaimer   Privacy Policy