A Trust is defined as an obligation annexed to the ownership of property arising out of the confidence declared and accepted by the owner for the benefit of another, or of another and the owner. A public charitable Trust is usually floated when there is property involved in terms of land and building.
According to Societies Registration Act, 1860, the following societies can be registered under the Act: ‘charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.’
Non – Profit Company
A Non-Profit Company can be formed for any non-profit activity. It is identical to an ordinary company in all respects except that it is not established for profit and commercial gain. It is also called a Section 25 Company and is a voluntary association of people, registered under the Indian Companies Act. The accountability aspect of a non-profit company because of statutory disclosure requirements is a relevant advantage of a company’s operational transparency and ability to invoke and maintain public faith.