Formation Of NGO: Differences Of Trust, Society, Foundation

Difference between trust, society, and nonprofit company. Before formation of a nonprofit or NGO

Formation of Nonprofit NGO :

Difference between trust, society, and nonprofit company. Before formation of a nonprofit or NGO, learn the difference between types of organizations in India. After your analysis you shall know how you can form a nonprofit organization.

This page is only for idealogical purpose and for knowledge learning. Its a best practice to consult with your Lawyer, Auditor and professional towards formation of NGO.

Please be clear before starting a social organisation. Several NGO organisations are sleeping only with certifications. If you do not have solid financial resource to run your organisation, please don't jump in formation of NGO, only with your desires and willingness to do for the society and public. You can join with other organisations to dedicated your social service mind.

Differencial factors	Trust	Society	Nonprofit Company
Basic Document	Trust Deed - which contains objects of the trust (bye-law)	Memorandum of Association Articles of Association with rules & regulations.	Memorandum of Association Articles of Association
Formation	Very Easy	Simple	Little Hard
Jurisdiction	Deputy Registrar / Charity Commisioner	Registrar of Societies - For Maharastra Charity Commissioner	Registrar of Comapnies
Legislation / Statute	Relavent state Trust Act - Bompany Public Trust Act 1950	Societies Registration Act 1860	Indian Companies Act 1956
Objects	Social benefits & Charitable	Literary, Charitable, Scientific and resource oriented	Nonprofit Activities
Re-ammendment or          Modification of Objects	Alteration can be undertaken only by the Founder or settler. If the founder deceased alteration of objects is impossible	Easy Legal Procedures	Complicated Legal Procedures
Required Members	Minimum = 2      Maximum = No limit	Minimum = 7      Maximum = No limit	Minimum = 7      Maximum = No limit
Registration	As Trust with the Registrar.	As Society with Society Registrar - Both as a society and a trust in some states like Maharastra.	As per Companies Act under Section 25
Stamp Duty	4% of Trust property Value will be executed in non judicial stamp paper with the registrar	No stamp paper required for Memorandum of association, and rules and regulations.	No Stamp paper required for Memorandum of association and articles of association.
Name	Very easy to choose	Very easy to choose	Prior approval required from Registrar of Companies.
Management Board	Trustees	Governing Body	Board of Directors &  Management committee
Succession in Management	By Election	By Election	By Appointment
Meetings	No provisions	Annual Meeting As per Law. Governing Body meeting as per the rules of Society.	Quite Extensive as per the provision of Company Law
Legal Status	Limited Legal Status	Limited Legal Status	Full Legal Status
Statutory Regulations	Nominal	Limited	Maturable - Exhaustive
Membership Transfer	Impossible	Impossible	Free or Control as per desire.
Member Admission	Not applicable	Governing Body Control	General Body or Board Control through issue of Capital.
Dissolution or Take over by State	Possible	Possible	Very risky and difficult
Payment to Members	As notified in Trust deed	Not restricted	As approved by Company & State.

- See more at: http://www.nonprofitngo.com/indian-ngo/formation-of-nonprofit-ngo/#sthash.PIPgxexZ.dpuf