Before we move ahead with TRUST meaning, purpose and object, it is very necessary to understand that what does mean by NGO. Literate meaning of NGO is Non Government Organization. NGO works for the environmental, on human or animal rights, improving health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art, science, commerce, political and religious purpose. Why we call it NGO. Since being a private entity trust is doing exactly that same work which government has to do or the work which are government responsibility NGO does that same work. That’s why we call it NGO. These are the reason why government promote the NGO. They always give extra benefits or tax exemption benefits to NGO’s since government know more NGO will give the strength to the society. NGO’s are NON-Profitable organizations. Any profit earn by NGO shall be use for the purpose of NGO only.

The brief definition of the charitable trust is that a trust an irrevocable trust established for charitable purpose. As the name suggest the objective is for the benefit of the people. Mainly Trusts is the obligation or responsibility placed on one in whom the responsibility is placed.

Section 3 of the Indian Trust Act, 1882 (herein after referred as "act") defines the ' "trust" is an obligation annexed to the ownership of the property, and arising out of confidence reposed in and accepted by the owner, or declared and accepted by him, for the behalf of another, or of another and the owner.'

• I. Public trusts:
  1. Charitable trusts
  2. Religious trusts
• II. Private trusts

• (a) The intention on his part to create there by a trust.
• (b) The purpose of the trust
• (c) The beneficiary
• (d) The trust property and (unless the trust is declared by will or the author of the trust is himself to be the trustee.

• Firstly, before you register your trust you will need to decide the following:
  • Name of the trust
  • Address of the trust
  • Objects of the trust(charitable or Religious)
  • One settler of the trust
  • Two trustees of the trust
  • Property of the trust-movable or immovable property (normally a small amount of cash/cheque is given to be the initial property of the trust, in order to save on the stamp duty).
• Secondly, the trust deed is formatted i.e. preparation of the trust deed on the stamp paper of the requisite value.
• Thirdly, requirement of registration under trust deed with local registrar under the Act
  • Trust deed on the stamp paper of requisite value
  • One passport size photograph & copy of the proof of identity of the settler
  • One passport size photograph & copy of the proof of identity of the two trustees
  • One passport size photograph & copy of the proof of identity of the two witness
  • Signature of the settler on all the pages of the trust deed.
• Submission of the trust deed to the local registrar along with the one photocopy for registration.
• The Registrar retains the photocopy and the returns the original registered copy of the trust deed.

• For registering the trust, two trustees are required, there is no bar on the maximum number of the trustees but the number of trustees should be mentioned in the trust deed. All the trustees together are called the board of trustees.
• When submission of trust deed with the local authority the photocopy of the deed should be signed by the settler in all the pages. Further, the settler and the two witness are required to be present at the time of registration along with their identity proof.
• Unlike societies the trustees can be related.
• Trusts are irrevocable, it cannot be wound up.
• Trustees cannot draw any remuneration
• There is no restriction on the NRIs being the trustees.
• Trust deed can be ammended through supplementary deed.
• Trust deed is exempted from Income tax. Further to avail this exemption after registration the person needs to acquire the certificate from the Income Tax department. This certificate is called u/s 12A.
• Donations to charitable institution is also exempted under this Act, need to acquire 80 G from the Income tax department.