NGO's in India

NGO Trust Formation in India 2014

Formation of an NGO as A Trust

What is a Trust ?

A trust is a convenient method whereby a limited number of persons may hold property on behalf of other persons, who may be a large or fluctuating body or who may include persons not yet born. Once the property has been vested in the trustees, they own the property, but they are compelled by law to exercise their ownership for the benefits of the beneficiaries and for them only. It means that legal ownership vests in the trustee or trustees but beneficiaries have de facto ownership.

ngo registration as trust


A” Trust” is an obligation annexed to the ownership of property, & arising our of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.

Author of Trust – The person who reposes or declares the confidence is called “the author of the trust”

• Trustee– The person who accepts the confidence is called the “trustee”.

Beneficiaries – The person for whose benefit the confidence is accepted is called the “Beneficiaries”

Trust property – The subject matter of trust is called “Trust property” or “Trust Money”.

Instrument of Trust – The instrument, if any, by which the trust is declared is called the “Instrument of Trust”.

Requisites for Creation of a Trust

i. there is a founder/settler/author of trust;

ii. there should be person(s) called trustee/trustees;

iii. there is a property of the trust which the settler gives;

iv. there is a person capable to enforce that obligation called cestuique trust;

v. there are beneficiaries who will enjoy benefits out of that property.,

vi. an intention of the author or founder to create a trust;

vii. the purpose of the trust;

viii. transfer of the property to the trustees.

Conditions for creation of a Trust

i. the settler has to give up ownership and all beneficial interests in the property,

ii. the property should be clearly described,

iii. the objects or purposes for creation of trust should be clearly indicated,

iv. formal deed or any other writing not required intention to create a trust may be shown through words. However, it is advisable to have a written trust deed for all practical purposes,

v. the settler must be a person competent to contract,

vi. the trust property must be properly transferable to the beneficiary. It must not be a merely beneficial interest.

Who may be Trustee?

Every person capable of holding property may be a trustee: but, where the trust involves the exercise if discretion, he cannot execute it unless he is competent to contract. No one is bound to accept a trust. Any number of persons may be appointed as trustees. However, no trust is defeated for want of a trustee. Where there is no trustee in existence, an official trustee may be appointed by the court and the trust can be administered.

Abhay N

Author : 

Abhay is the founder and managing editor of India Microfinance. He is passionate about microfinance, financial inclusion and social entrepreneurship in India.

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  1. Muhammad Abdul Jameel

    March 10, 2016 at 1:19 pm


    I like to start a Public Charitable Trust in My Home Town, Karimnagar, Telangana State, if possible please mail me Sample of Trust Deed and required other documents. Also required to minimum member for trust. If i need total two members its ok for trust. (

    Thank you

  2. umesh

    April 8, 2016 at 12:31 pm

    pls tell me what the documents & process of registration of trust at ngo in gurgaon.

  3. ML.Zulfiqar Alam Sheikh

    April 12, 2016 at 8:45 am

    I Like to started a educational and welfare trust in my village, Sora, kakching, Thoubal District Manipur state, if possible please mail me sample of trust deed and required other documents. Also required to minimum member for a trust. (

  4. rohit

    April 30, 2016 at 11:47 pm

    I have started an educational and welfare trust in my area (mohali), punjab state, if possible please mail me sample of trust deed and required other documents.

  5. Divya

    September 17, 2016 at 4:40 pm

    I am having temple in Bihar.Now I want to hand over my temple to and whom should I can do that?????

  6. satish

    May 19, 2017 at 1:10 pm

    I’m in the planning to form a public trust for conduct the activity under CSR. Please contact me on 9892002317

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