Write notes on the following : (iii) Trust as a non-profit organisation

Trust as a Non-Profit Organization Non-profit organizations in India (a) exist independently of the state; (b) are self-governed by a board of trustees or 'managing committee'/ governing council, comprising individuals who generally serve in a fiduciary capacity; and (c), are 'non-profit-making', in as much as they are prohibited from distributing a monetary residual to their own members. There are three pertinent legal forms of not-for-profit entities under Indian law: trusts, societies, and section 8 companies. Other forms also include cooperatives and trade unions. Trusts Public charitable trusts, as distinguished from private trusts, are designed to benefit members of an uncertain and fluctuating class. In determining whether a trust is public or private, the key question is whether the class to be benefited constitutes a substantial segment of the public. Legislation Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act, 1882 are applied. Many state and central government agencies have regulatory authority over trusts. For example, Trusts are required to file tax returns and audited account statements annually with various agencies. At the state level, the agency is Charity Commissioner. Main Instrument The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined.