How to create_a_trust,_mumbai_11th_feb

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How to create_a_trust,_mumbai_11th_feb

  1. 1. Creating a Trust/Foundation
  2. 2. Historical Context - Regulations <ul><li>Kautilya’s Temple Bull </li></ul><ul><li>Charity Uses Act, UK, 1597, </li></ul><ul><li>Charity Commission, UK, 1853 </li></ul><ul><li>Societies Registration Act, 1860 </li></ul><ul><li>Indian Trust Act, 1882 </li></ul><ul><li>Income Tax Act, 1922 </li></ul><ul><li>FERA and FCRA 1976 </li></ul><ul><li>FEMA 2000 </li></ul><ul><li>National Policy on VOs 2007 </li></ul>
  3. 3. Characteristics of NGOs <ul><li>Formal </li></ul><ul><li>Private </li></ul><ul><li>Self Governing </li></ul><ul><li>Not for Profit </li></ul><ul><li>Voluntary </li></ul><ul><li>Non Religious </li></ul><ul><li>Non Political </li></ul><ul><li>Public Benefit </li></ul>
  4. 4. Diverse categories of NGOs <ul><li>INGO to CBO </li></ul><ul><li>Advocacy to Relief </li></ul><ul><li>FC supported and Domestic </li></ul><ul><li>Generate their own resource </li></ul><ul><li>Corporate and CSR </li></ul><ul><li>Networks & Federations </li></ul><ul><li>Microfinance </li></ul><ul><li>Medicals and Universities </li></ul><ul><li>Chamber of commerce & Stock Exchanges </li></ul>
  5. 5. Forms of Registration <ul><li>Society </li></ul><ul><li>Trust </li></ul><ul><li>Company </li></ul><ul><li>(Charity Commissioner) </li></ul>
  6. 6. Setting up and Control <ul><li>Ease of Registration </li></ul><ul><li>Time </li></ul><ul><li>Cost </li></ul><ul><li>Minimum Number </li></ul><ul><li>Flexibility </li></ul><ul><li>Registering Authority compliances </li></ul><ul><li>Constitutional Changes </li></ul>
  7. 7. Common Compliances <ul><li>Income Tax </li></ul><ul><li>FCRA </li></ul><ul><li>Provident Fund and Gratuity </li></ul><ul><li>Other laws </li></ul>
  8. 8. Income Tax Issues <ul><li>Total exemptions – 85% </li></ul><ul><li>Creating Corpus </li></ul><ul><li>80 G </li></ul><ul><li>Inter Charity Grant </li></ul><ul><li>Relief to Poor – Business Activity </li></ul><ul><li>International Activity </li></ul><ul><li>Benefit to Trustees </li></ul><ul><li>Audit and Returns </li></ul>
  9. 9. Approvals & Permissions <ul><li>12AA Registration </li></ul><ul><li>80 G </li></ul><ul><li>PAN & TAN </li></ul><ul><li>10(23C)(iv) Registration </li></ul><ul><li>35AC Registration </li></ul><ul><li>35 Social Research Notification </li></ul>
  10. 10. Private Trust <ul><li>Irrevocable </li></ul><ul><li>Donation to Charity – Tax Benefit </li></ul><ul><li>Receiving Gifts </li></ul><ul><li>Whether can be charitable </li></ul><ul><li>Mixed and Partial Trust </li></ul>
  11. 11. Private Trust Taxability <ul><li>Shares are Determinate </li></ul><ul><li>Shares are Indeterminate </li></ul><ul><li>Receiving Gifts </li></ul>
  12. 12. Other Issues to Reflect <ul><li>Funding in Short and Long Run </li></ul><ul><li>Activities – Direct or Indirect </li></ul><ul><li>Liabilities of Trustees </li></ul><ul><li>Element of Philanthropy </li></ul><ul><li>Size and personal involvement </li></ul><ul><li>Group of Settlers </li></ul>

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