Charitable and religious trust act 1920, provide effective management and supervision of the Charitable and Religious institutions. The primary object of charitable and religious trust is to obtain information relating to the charitable and religious institutions created for the benefit of the public and facilitate the trustees to obtain Court orders in the issues connected therewith. The Act also intends to formulate special provisions to pay off the expenses incurred in the court proceedings against the trustees
Charitable and religious trusts in India are trusts which aims to help socially, physically and deprived people from different religious community. These trusts are not for profit organisation but for purpose of helping deprived people.
The creation of religious charitable trusts is governed by the personal laws of the religion. The administration of these religious trusts can either be left to the trustees as per the dictates of the religious names or it can be regulated to a greater or lesser degree by statute such as the Bombay Public Trusts Act, 1950
How to start a Charitable Trust and Religious Trust
For creating charitable and religious trust the author must express its acts by words or act. There is no formal language required to express. The author intended to constitute a trust binding in law on himself or the person to whom the property was given
The author intended to benefit a definite person or persons in a definite way
The author intended to bind definite property by trust
A trust is a transfer of property of a person to another with the intention that it is administered for the benefit of the owners/others. The person who transfers the property is called a settlor of the trust and the person to whom the property is transferred is called the trustee.
Trust registration is one of the three ways to register an NGO in India (Under the Indian Trust Act, 1882, Societies registration Act, 1862 and the Indian Companies Act, 2013).
A trust can be formed as per Section 4 of Indian Trust Act 1882 for a lawful purpose. A trust should have a document written and signed by the trustees. A trust can be formed through a will also. Objectives of the trust should be clear and unambiguous.
Trust can be formed under Sec.7 of the Indian Trusts Act 1882. A person capable of making contract can form a trust. Trust can be formed on behalf of minor with permission of Civil Court.
Trust can be cancelled at the will of the trustees and if there is provision for cancellation in the deed
Trust registration fee depends upon the value of the property which is the subject matter of trust. It is 1% of the value of the property.
There is no restriction on an NRI become a trustee in an Indian trust.
Both trust and society can do social work as NGOs. The main difference between trust and society lies in the controlling body of these two types of organizations.