Charitable Trust: A Path to Making a Difference
A Charitable Trust in India is a legally structured entity designed to facilitate the promotion of charitable activities. It serves as a powerful tool for individuals, nonprofit organizations, and groups looking to create meaningful and lasting contributions towards societal welfare. Whether focusing on education, healthcare, poverty alleviation, or environmental conservation, a charitable trust enables philanthropists to channel their efforts effectively.
The Formation of a Charitable Trust
Establishing a charitable trust in India involves executing a Trust Deed, which lays down the objectives, governance structure, and operational guidelines of the trust. The Trust Deed must clearly define the scope of the charitable activities the trust will undertake.
Why Choose a Charitable Trust?
✅Community Upliftment: Contribute significantly to addressing the needs of marginalized sections of society.
✅Tax Benefits: Charitable Trusts in India enjoy tax exemptions under the Income Tax Act, 1961, making contributions more impactful.
✅ Control Over Funds: Maintain control over how the trust’s assets are utilized to achieve your charitable goals.
✅ Legacy Creation: Establish a lasting legacy through your contributions to the community.
Charitable Trust Registration Process
1.Schedule Call with Lawyer
Discuss requirements and share trust details.
2.Drafting the Trust
The lawyer drafts the Trust Deed based on your instructions.
3.Registration Appointment
Schedule an appointment for registration.
4.Trust Registration
Register the trust at the Sub-Registrar’s office.
Essential Components of a Charitable Trust
Settlors
The individuals or organizations responsible for creating the trust.
Assets and beneficiaries
The general public or specific disadvantaged groups who benefit from the trust’s activities.
Trustees
Individuals or organizations tasked with managing the trust.
Trust Objectives
Clear goals and operational guidelines outlined in the Trust Deed.
Trust Property
Assets or funds used to achieve charitable objectives.
Prerequisites for Drafting a Charitable Trust
Trust Deed
The primary document outlining the trust’s objectives, trustees, and operational procedures.
Identity Proof
Identity proof for all trustees.
Proof of Property
Proof of the trust’s registered office (ownership deed or rental agreement).
No Objection Certificate (NOC)
If the trust office is rented, an NOC from the landlord is required.
Deliverables of Express Will
Guidance throughout the process of setting up your trust.
Assistance in drafting a legally sound Trust Deed.
Frequently asked Questions
To start, you need to determine your trust’s assets, decide on beneficiaries, and work with a professional to draft the trust document.
Yes, a charitable trust can earn income, which may be used for its charitable purposes.
A charitable trust is a legal entity designed for philanthropic purposes, while an NGO is a nonprofit organization that may focus on various causes and activities.
Yes, a single individual can form a charitable trust.
Registration Process
Why Choose Us
Expert Guidance
We provide end-to-end assistance, from documentation to post-incorporation compliances.
Fast & Easy
Get legal contracts drafted from expert corporate lawyers. Agreement drafts are delivered within a maximum of 2 days
Secure & Confidential
Documents and information are always kept private. Information shared with the lawyer are 100% confidential.
Still have Questions?
Ask LitiExpert
If you have any questions related to the product.
Chat with an LitiExpert expert
Call our Agent at +91-85 8888 7480
Monday - Saturday: 9AM - 9PM
Sunday: 9AM - 2PM
Related Services
Will Registration
Legal registration of your Will for added authenticity.
Testamentary Trust
A Testamentary Trust is established through a Will and becomes effective only after the testator’s death. It provides long-term management of assets for beneficiaries, often for minors or individuals with special needs.
Succession Certificate
A Succession Certificate is granted by the court to legal heirs, enabling them to inherit and manage the deceased’s debts and assets. It is essential for accessing bank accounts and other assets.
Public Trust
A Public Trust is established for the welfare of the public, typically to support social, cultural, or educational causes. It is managed by a trustee and focuses on community benefit rather than individual interests.
Legal Heir Certificate
A Legal Heir Certificate certifies an individual’s relationship with the deceased and is necessary to claim the deceased’s assets. It establishes the rightful heirs according to law.
Public Trust
A Public Trust is established for the welfare of the public, typically to support social, cultural, or educational causes. It is managed by a trustee and focuses on community benefit rather than individual interests.