education is the foundation for women empowerment in india

8/3/2019 Education is the Foundation for Women Empowerment in India

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EDUCATION IS THE FOUNDATION FOR WOMEN EMPOWERMENT ININDIA

Education is a potent tool in the emancipation and empowerment of women.The greatest single factor which can incredibly improve the status of women

in any society is education. It is indispensable that education enableswomen not only to gain more knowledge about the world outside of herhearth and home but helps her to get status, positive self esteem, and selfconfidence , necessary courage and inner strength to face challenges in life.Apparently it also facilitates them to procure a job and supplement theincome of family and achieve social status. Education especially of womenhas a major impact on health and nutrition as an instrument of developing asustainable strategy for population control. Moreover educated women canplay an equally important role as men in nation building. Thus there is nodenying fact that education empowers women. Indeed the different organsof the United Nations and experts on womens liberation argue for womens

education as the basic step to attain equality with men. One of therecommendations of National Policy on Education (1986) by the Governmentof India is to promote empowerment of women through the agency ofeducation and it is considered to be a land mark in the approach to womenseducation of illiterate. The National Literacy Mission is another positive steptowards eradication of illiteracy in the age group of 15-35 years. Womeneducation has assumed special significance in the context of Indias planneddevelopment, as it is incorporated in every Five-year plans as the majorprogramme for the development of women. Universalization of elementaryeducation. enrolment and retention of girls in the schools, promotion ofbalwadies and crutches, raising number of schools and colleges of arts ,

science, and professional for girls , politechniques, girls hostels, multipurposeinstitutions and adult education programmes are some of the steps beingtaken by both central and state governments in India to boost-up womenseducation

WOMENS EDUCATION: PROSPECTS AND CHALLENGES

In spite of the forceful intervention by a bastion of female privilege, feministcritics, constitutional guarantees, protecting laws and sincere efforts by thestate governments and central government through various schemes andprogrammes over the last 62 years and above all, the United Nations

enormous pressure with regard to the uplift of the plight of women in termseducation is still in the state of an enigma in India for several reasons. The2001 Census report indicates that literacy among women as only 54 percentIt is virtually disheartening to observe that the literacy rate of women India iseven much lower to national average i.e. 65.38 .The growth of womenseducation in rural areas is very slow. This obviously means that still largewomenfolk of our country are illiterate, the weak, backward and exploited.Moreover education is also not available to all equally. Gender inequality is
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reinforced in education which is proved by the fact that the literacy rate forthe women is only 54% against 76% of men as per 2001 Census. Accordingto the Table the pre-Independence time literacy rate for women had a verypoor spurt in comparison to literacy rate of men. This is witnessed from thefact that literacy rate of women has risen from 0.7 % to 7.3 % where as the

literacy rate of men has risen from 9.8 % to 24.9 % during these fourdecades. During the post-independence period literacy rates have shown asubstantial increase in general. However the literacy rate of male has almosttripled over the period e.g. 25% in 1951 and 76 % in 2001.Surprisingly thefemale literacy rate has increased at a faster pace than the male literacyduring the decade 1981 -2001. The growth is almost 6 times e.g. 7.9 % in1951 and 54 % in 2001. From this analyze one can infer that still the femaleliteracy rate (only half of the female population are literates) is waddingbehind male literacy rate (three fourth of the male population areliterates).The rate of school drop outs is also found to be comparativelyhigher in case of women. This higher rate of illiteracy of women is

undoubtedly attributing for women dependence on men and to play asubordinate role. The lack of education is the root cause for womenexploitation and negligence. Only literacy can help women to understand theIndians constitutional and legislative provisions that are made to strengthenthem. Thus promoting education among women is of great important inempowering them to accomplish their goals in par with men in differentspheres of life.

THE ROOT CAUSES FOR LOW LITERACY AMONG WOMEN IN INDIA

Women education is a multi-dimensional phenomenon. No single factor or

cause can be held responsible for very low literacy rate of women in India.Subsequently it is associated with combination of many factors includingsocial, cultural, economic, educational, demographic, political andadministrative and so on. The following are the some of the important factorswhich could be attributed for the present poor state of affairs of womenfolkin education.

The Lower Enrolment: The lower enrolment of girls in schools is one of thefoundational factors which stand as stumbling block for womenempowerment in India. Reliable sources indicate that more than 50 % of theNon-Starters (those who have never been to school) are girls. According to

the latest statistics, two out of every ten girls in the age group of 6-11 arestill not enrolled in schools.

Higher drop-out rate among girls from schools: The incidence andprevalence of drop outs among girls especially in rural, tribal and slumsareas seem to be quite high. According to available sources, occurrence ofdrop-out and stagnation amongst girls is nearly twice that of boys all overIndia


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without much financial difficulties. Bonded Child labor and Child laborpractice must be abolished with strict administrative measures and therelieved children form bondage should be integrated into schools withsuitable defense social mechanism. Appropriate steps should be taken by theeducational authorities with the participation of communities in order to

bring the girl children to the main stream of education and development atevery level including family and community. The female child in everyIndian family irrespective of socio-economic status should be molded toovercome the challenges of inferiority; subservience and domesticity whichplace sever limitations on her education and development. Every familyirrespective its socio-cultural and economic background can take it achallenge to bring up their girl children as dignified human being withempowerment in physical, mental, economic and social dimensions of life.The Midday meal scheme and other educational supportive services like freetext books, Note books , Fee uniforms , Free Bicycles, Free bus , scholarshipsFree bus pass and so on as done in the state of Tamil Nadu can be provided

in all states and union territories to lift up the literacy level among girls Associal evils like dowry, child marriage , caste system and other practicesdeprive rights of education for children belonging to poor andunderprivileged families and communities, they should eliminated throughwell-designed packages of mass awareness programmes and social welfaremeasures with full support of public, political parties, NGOs and governmentagencies. The electronic and print media can play significant role in buildinga good and positive image about girls and women in general in the societyby giving no focus for such advertisements and news fetching commercialgain at the cost of depicting women as an object. This would help inchanging the societys attitudes towards girls and their roles to treat every

girl or woman as human being with self respect and dignity. Government,voluntary sector and philanthropic organizations and individuals should comeforward to provide free education for poor girls and provide free hostelfacilities for girls studying in schools and colleges in every state of India. Thiswill certainly encourage children of poor families to pursue good and highereducation without many impediments The schools of social work,departments of women studies, Women Universities and other educationalinstitutions in hand with NGOs and social service organizations such asRotary Clubs, Lions Clubs, women lib organizations associations can worktogether to improve the educational status of the womenfolk in this countryon mutual respect and understanding. The parents of children belonging to

poor, underprivileged families must be specially educated with proper socialformula to help them to understand the significance of education for theirgirl children as foundation for empowerment Government, NGOs and publicshould work hand in hand to implement the minimum age at marriage(21and above) Awareness should be created to institutionalize it as atraditional practice cut a crossing castes, religions, community etc.Government officials, policy makers, political parties and others should haveadequate political will and conviction to empower women in India without


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double standard mind The law enforcing machinery should be made reallyeffective with efficient monitoring vigilant system to implement theconstitutional and legislative provisions and administrative measures toassure free and compulsory education for all children of this nation withoutany gender discrimination.

Possible revenue sources for nonprofits

Government Schemes

Donations - corporate, foreign funding agencies, charitable trusts,individuals

Fund-Raising Drives - on own or with "channel partners" e.g.schools, associations, ladies clubs.

Selling Products - made by self, made by others (obtained free or ata discount), old / new goods, jumble sales

Events e.g. dramas Weekend Activities for families - in or by a nonprofit Providing Volunteers to other organizations - ongoing or event-

based Rendering Services e.g. making clothes for a shop; keeping an area

clean; tending a garden; distributing flyers Teaching Skills e.g. folk-dance to kids group; how to provide support Training e.g. for corporate personnel e.g. team-building skills Getting "Adopted" e.g. by a corporate, Rotary Publishing Newsletters or doing research in some form

How a business can help nonprofits

Consulting services (management, advertising, marketing,

promotion, legal, taxation, financial, strategic planning, project

design, system development etc.)

Financial support (capital costs, feasibility studies, small business

start-up costs, credit facilities for purchase of assets, sponsorships,

travel grants, deficit finance etc.) Donate equipment (machinery, furniture, computers, office

equipment and other infrastructure)

Donate products (educational, health care, construction, raw

materials, etc.)


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Donate used material (furniture, equipment, stationery, etc) \

Donate products that cannot be sold (e.g. soiled rolls of tissue or

paper kitchen towels, torn packaging, etc.)

In-kind gifts (could be any products other than the companys lineof business)

Loan talent /executive sabbatical (paid time off to perform

volunteer work)

Public relations services (NGO branding through corporate

approaches)

Technical assistance

Use of corporate services/facilities (financial and administrative

support services, meeting space, mailing services, computerservices, printing and duplicating etc.)

Extend dealerships of products to NGOs

Have marketing partnerships for NGO products

Sponsor salaries of NGO professionals for a certain period

PROJECT PROPOSAL

Please write the project proposal in a narrative form, keeping the givenheadings. The bullet points under each heading should not be used asquestions to be answered directly but are meant as guidelines to make sureall the required information is included.

1. Profile of Implementing Organization (not more than 300 words) Nature of implementing organization (NGO or community group)

seeking an award Previous relevant experience for the proposed activityTrack record in community based work/experience with participatory

approaches. Details of the organization: history, governance and funding of the leadorganization, i.e. when established, how structured and organized,number of staff (Male /Female) and their expertise, membership, andtotal annual budget.

Capacity to carry out the proposed activity (other ongoing projects,staff capacity etc.).


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2. Justification for Support - Linkages with (not more than 300 words) What are the principal reasons why the project activity is needed? Clearly identify the problem the project aims to solve. How is the proposed activity linked to the objectives of the donor's

areas of support?

What are the global and local significance of the proposed projectsintervention

Explain how the donor's resources would be used towards achievingthe solution to the problem

3. Context/Baseline (not more than 300 words) Context of the activity, location, background, duration. Please include

photocopy of map of the project area. Describe how the problem was identified (consultations/case

study/survey? Assess and describe existing conditions of the project area. Give reference to other studies if available.

4.Project Objective and Proposed Activity (not more than 600 words)

Nature of the proposed activity Immediate objectives Expected project deliverables Description of the proposed activities required in order to realize the

projects objective, clearly indicating the sequence of activity (withtime frame, responsible party etc.)

Target beneficiaries in terms of socio-economics, geography andgender, should be elaborated

Strategy for development of indicators to assess project progress andachievements. The indicators should be specific, measurable,attainable, reliable ad time bound (SMART).

Project work-plan matrix with indicatorsand monitoring schedule

5. Project Strategy (not more than 600 words)The strategy of how the proposed activity will be carried out should include:. Institutional mapping/identification of stakeholders (such as governmentdepartments, academia, consultants, private sector, local communities)

Consultation with key stakeholders during project implementation Role of recipient organization Role of partner organization Provision for dialogue and networking with NGOs and community

groups Relationship, if any, to other development projects. Relationship to other NGO or private sector activities. Gender perspective (how are women included)


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How will the project be sustainable after grant funding is ended /postproject strategy/exit strategy?

6. Technical Feasibility (not more than 300 words) Description of technical details and requirements

Experience from similar projectsTechnical expertise with the NGOTechnical assistance required from the donor's programme Identification of local expertise; NGO, Govt. departments and academia

etc. and how it will be utilized by the project

7. Anticipated Results (not more than 300 words) Indicate impacts on participants/beneficiaries: Related to human such as health, social, economic and financial

impacts Related to environment such as land, water, air Demonstration value, value as a learning experience, any other

anticipated results Potential risks/bottlenecks and how to address these

8. Reporting, Monitoring and Evaluation (not more than 300 words)The mechanisms that will be used to monitor and evaluate the project,

the schedule for when these monitoring actions have to be carried outand who is responsible, the resources allocated for substantive reviewmeetings among stakeholders, how the work plan and budget will beupdated.

Reporting: assess capacity to prepare narrative and financial reports Evaluation: plan for project evaluation, how are the stakeholders

included in M&E?

9. Communication and Visibility Strategy (not more than 300 words) What type of communication material and reports will be prepared What are the strategies for communication lessons learned How will the project work with the media

10. Budget (narrative description not more than 600 words) Projected total project costs and proposed sources of funding What the community and/or NGO will contribute to the project, in cash,

in kind and/or in services. Funds already obtained from or committed by other sources (if any)

and the names of those sources. Amount requested from the donor Balance to be sought from other sources (if any) and the names of

potential sources.


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Baseline, national investment into local area; schools, healthinfrastructure, type of road, govt., budget for specific activity,allocations in annual development plan (P&D/PSDP)

Opening of separate bank account & maintaining financial record.Project budget itemized in table form including budget line for audit

costs.

In-kind donations for nonprofits

By closely managing corporate partnerships, nonprofit organizationscan ensure that they receive the goods and services they need. Corporationsare usually more willing to donate products and services than hard cash tononprofit organizations. Nonprofits, however, are generally less keen toreceive their donations in kind, because they fear getting the wrong productsat the wrong times (Exhibit 1). Yet our research suggests that carefullymanaged in-kind donations can do a lot to help nonprofitsespecially

international relief organizationsnarrow the gap between their aims andtheir resources. The trick is to create long-term partnerships betweennonprofits and donor companies and to make the benefits for bothsides explicit. This approach gives nonprofits more control over what theyreceive and when they receive itin effect, allowing them to look a gift horsein the mouth. An in-kind gifts market value can be more than double thevalue of a cash donation from the same donor, since the gifts cost to thedonor is only the products marginal cost, which might be only half of itsmarket price. Moreover, many corporations have spare capacity thatthey could put to use for nonprofits at a negligible extra cost tothemselves; for example, transportation or shipping companies may have

spare container space; IT consultancies, temporarily underutilizedcommunications engineers. Why should a corporation use its resourcesin these ways to benefit a nonprofit? Is it possible to change the basicfact that the recipient of a gift usually isnt in a position to discuss, let alonedictate, the terms of the donation? To build a more equal and businesslikepartnership in which donors assume the role of suppliers and nonprofits therole of customers, nonprofits must offer the donors somethingvaluable in return. One important benefit that corporations can derivefrom their in-kind gifts is the ability to meetand be seen to meettheircorporate social responsibilities: donations in kind can easily (and morecreatively than cash) be communicated externally for the purposes of public

relations. Companies can also benefit internally because employees takesatisfaction in working for good causes. The first step in creating mutualvalue of this kind is to determine the benefits of an in-kind donation for thenonprofit and the corporate donor. A timber company, for example, might atthe same time support both a social and an environmental cause byproviding construction materials to help repatriated or resettled refugeesbuild new homes for themselves and by donating timber grown outside thearea of settlement to ensure that scarce local vegetation wasnt cleared. The


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donors reward might be positive publicity triggered by press releases fromthe nonprofit organization. Similarly, an automotive company could gainvaluable exposure for a new product line by donating vehicles to a reliefagency working under the media spotlight. But nonprofit organizations mustsolve the problems associated with in-kind donations. In some cases,

companies use nonprofits to dump inadequate, second-rate productssay, ashipment of tents that couldnt withstand high humidity in a refugee camp.Sometimes the cost of transporting and maintaining in-kind donations is toohigh. Whats more, the timing and size of the donations are often hard tocontrol; if donated field kitchens, for example, dont arrive on time, the relieforganization must spend hard cash to buy substitutes. For in-kind donationsto work, a nonprofit organization must adopt an integrated approachinvolving not only its donations and fund-raising unit but also thedepartments that oversee its operations and manage its resources (Exhibit2). First, the operations unit needs to specify its requirements for theproducts and services it needs. Next, the resource-management and fund-

raising units should together break down the operational budget intocategories suitable for in-kind donations and provide minimum productspecifications and the like. These units should then rank potential targetcompanies, which ought to be approached with a business idea thatspells out exactly what benefits the nonprofit organization has to offer them.(Local information about human-rights and business issues could help acompany act in a socially responsible way, for instance, or the nonprofitmight offer courses in handling problems that arise when the companyspeople work in unfamiliar cultures. It could also help get the mediainterested in the joint project.) In one example of the kind of partnership werecommend, a telecom company provides equipment and expertise for an

international aid organizations field operations; among other things, thecompany installs telecom equipment in emergency warehouses. For the aidorganization, the value is substantial, since telecommunications invariablypresents a problem in such conditions. For the telecom company, the projecthelps to keep up the spirits of employees in an economic downturn. It isimportant to draw up a business contract, which should includedetails about the resources required and what both parties areexpected to deliver. The nonprofits resource-management unit shouldestimate the total cost of using the donationadministration, transport,maintenance, and repairsto see if it is truly worthwhile for the organization(Exhibit 3), as well as coordinate the logistics and procure any needed items

that are not being donated. Finally, most donors understandably wantfeedback on the progress of a project and their involvement in it. Suchinformationprovided, for example, through field visitsmust be deliveredin cooperation with the people who run operations.

Successful Fund Raising

a Good Fund Raiser:


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Must Believe in the cause

Should be Innovative

Should be an Effective Communicator

Should be Persistent and Determined

Income of Voluntary Organizations:

1. Donations:

Individuals,

Companies,

Trusts/foundations,

Government,

Foreign agencies,

Charity cash box, etc.;

Internet

2. Other Forms of Income

Interest/Dividends: On short/long-term investments;

Sale of products: usually prepared by beneficiaries of the

organization

Rent: If the organization leases out its property like office space,

hall, etc. Membership fees/subscriptions

(Entrance fee being in the nature of capital receipt, is not to be

treated as income.)

Types of Donations/Grants

i. Corpus

ii. General

iii. Earmarked

iv. Matching

v. Returnable


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Corpus/Endowment

It is a capital receipt and therefore not treated as income. Donor must

express the intent in writing that the donation is towards corpus. Corpus

donation should preferably be invested in long-term deposit and only the

interest used.

General Purpose

For general activities of the organization, including establishment expenses,

programming, etc. Earmarked

For specific programs/projects only. It could be earmarked by the donor as

corpus or otherwise

Matching or Challenge Grant

Donor agrees to give 50% of the amount required for a programme/project

provided the organization raises the balance.Returnable Grant

It is like a loan for two or three years to be returned after the program

becomes self-sustaining.

Sources of Funding

Individuals

Foundations, Trusts and Donor Agencies

Corporations

Government

Religious institutions

1. Individuals

According to Giving USA 2005 (The Annual Report on Philanthropy for

the year 2004),

Americans contributed $ 248.52 billion to charity,

Individuals donated an estimated $ 187.92 billion (75.6%).

Bequest giving was estimated at 19.80 billion (8%)

Foundations contributed $ 28.80 billion (11.6%) and

Corporations $ 12 billion (4.8%).


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Indian Survey:

According to a national survey covering around 28 percent of urban India

and concluded in August 2001 by Sampradaan:

96% of upper and middle class households in urban India donate to a

charitable cause. The total amount donated is Rs. 16.16 billion.

In terms of average annual donation, Christians in India take the lead,

followed by Hindus/Jains; Sikhs; and Muslims.

Christians also give the highest average annual donations to other

(non-religious) organizations (Rs. 301 per year).

The most popular purpose for which money is donated is to relieve

distress of victims of calamity, 21% donating for this purpose.

Important Reasons for Giving (According to the Survey):

i. Feeling of compassion (68%).

ii. Feels good (48%).

iii. Religious beliefs and practices (46%)

iv. Believed in the cause or the organization (29%).

2. Foundations, Trusts & Funding Agencies

According to a study by Charities Aid Foundation ( India ) and

Voluntary Action Network of India, it is estimated that an aggregate

Rs. 25,717 million (1997-98 data) comes into India by way of foreign

funds to the voluntary sector.

The study also revealed that, out of 18,700 organizations registered

under the Foreign Contribution (Regulation) Act, 12,000 filed nil

returns in 1998.

In other words, only 6,700 organizations are recipients of foreign

funds.

The same study estimates funds from government sources to

voluntary organizations to be around Rs. 2,000 million.

The bulk of foreign funds from bilateral and multilateral agencies

are channeled through government and are, to that extent,

indistinguishable from government funds.


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Only the funds of foreign funding agencies like Oxfam, Ford

Foundation etc., flow directly to private voluntary efforts, albeit with

government permission.

In the year 2000, India received foreign contributions aggregating

Rs. 4,000 crores.

2. Corporations

Corporate giving in India during the year 2000 was estimated to be Rs.

2000 crores.

Action Aid & IMRB Study:

According to a study of Indian companies with stated and unstated

policies on philanthropic activity, conducted by the Indian Market

Research Bureau & commissioned by ActionAid India , 83% of the surveycompanies saw themselves as major players in everything from rural

community development to running projects for the disabled to upgrading

infrastructure facilities for the underprivileged.

A. Reasons for Adopting a Philanthropic Policy:

a) 70% believe they have an obligation towards society upon whose

resources they are drawing;

b) 50% felt concern for a specific group;

c) 40% felt concerned for the underprivileged;d) 23% cited benefits to the organization.

B. Benefits Perceived by the Surveyed Companies

a) Satisfaction (in fulfilling social obligations) 45%

b) Improved credibility (with general public and the Government) 28%

c) Builds confidence and pride in staff 19%

d) Tax benefits 09%

C. Factors Influencing Corporate Giving/Partnerships:

a) Is the project for the community in which the industry operates?

-Is there scope for the company in projecting a caring-sharing image

about itself?

-Is there any tax benefit?


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D. Special Events

E. Payroll Deductions

F. Cause-related Marketing

USEFUL TIPS

Fund-raising is an art, not a science. Bring your own creativity to it and

remain flexible.

Recruit staff with commitment first, techniques second. Say what you

mean; mean what you say.

Make the donor feel he is an insider - that he owns the organization. He

will defend and support his institution.

Write copy as if from one person to another person; not from an

organization to a donor.

Make sure you see and read mail from donors. It is the way to knowwhat they are thinking about you.

In every piece of mail and all publications, including Annual Reports -

always provide the opportunity to give.

The person answering your phone represents your organization.

Please do not fund raiser if your organization is unable to cope with

opening the mail and answering it properly!

Tell the truth and facts always - credibility is important in fund-raising.

Tell your donors how their money helped to make a difference.

Emotion, rather than reason, leads to charity. Induce action; always use a reply envelope.

Be specific; speak of specific cases or individuals - avoid generalities.

Long words put donors to sleep and sleepy people cannot write

cheques.

Use more photographs one picture is worth a thousand words.

Do not write about a huge problem, which an individual cannot solve

through his donation.

Aim for something within the reach of an individual.

Talk about sponsoring a child and not 10,000 children.

A fund-raising communication should be one that:

Catches the eye


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Warms the heart, and

Stirs the mind.

Directory of Donor Organizations

it consists of 4 types of data:

I. Indian Trusts and Foundations

II. -Foreign Donor Organizations

III. Organizations giving Scholarships/Fellowships

IV. CSR- Corporate Social Responsibility Organizations

The various types of donor - ngo relationships

The range of donor-recipient positions that exists includes the following:

i. Laissez-faire: Funded NGOs should be trusted to do as they say, and

not harassed by donors. This view is possibly less common than in the

past, and can be seen as a rationalization of the minimalist position

given below. Some church donors seem to take this position.

ii. Minimalist (defensive): Donor information demands can distract and

undermine the effectiveness of NGOs in their work and therefore

should be minimized. This view seems relatively widespread, especially

amongst donor NGOs.

iii. Minimalist (self-interested): Donors are overwhelmed with the

practical tasks associated with funding (identification, appraisal,approval, disbursement and documentation) and do not have enough

time to read and make use of information about project activities and

impact so they do not bother asking for much more than they already

receive. This implicit rationale seems to be very common.

iv. Apologetic/realist: Donors have obligations to their own donors and

thus must ask for information from the NGOs they fund, though they

feel/know that this can be a burden on the funded NGO. Again this

seems to be fairly common rationale.

v. Facilitator: Information is needed from funded NGOs so that other

NGOs can learn from their experiences. A related rationale is the need

to support development education in the donors own country. This

rationale, especially the former, is not widely used.

vi. Interventionist: The process of requesting information can have a

positive impact on NGOs' institutional development (defined as above


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in terms of increased responsiveness). This is uncommon but a

rationale that needs much more attention.

vii. Hard-line: Funded NGOs have signed a contract and therefore have

an obligation to produce the goods, which in this case is information

Organizational Structure of a Nonprofit - an example

1. Founders

ensuring delivery to beneficiaries / beneficiary groups

2.Office Team - can be volunteers also; person can fill multiple roles till org

grows,

fundraiser

Liaison person - with government, corporate, donors, sponsors, banks,

etc. project / campaign manager and an assistant

volunteer co-coordinator

marketing person if org selling products

human resource manager - after the org grows

Volunteers or part-time staff or free / paid service providers

accountant

strategy advisors and evaluators

communicator - reply to phones, letters, emails, marketing / mba students - to document processes, experiences,

learnings, write articles, add info to website, newsletter

speakers - to go to various forums e.g. Rotary Clubs, PTAs, Ladies

Clubs, Beneficiary Groups

public relations / publicity

delivering the actual services to the beneficiary group

Tax Exemption for Ngos and Deduction for Donors

Tax Exemptions

1. General SchemeThe Income Tax Act, 1961, which is a national all-India Act, governs taxexemption of not-for-profit entities. Organizations may qualify for tax-exempt status if the following conditions are met: The organization must beorganized for religious or charitable purposes; The organization must spend


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85% of its income in any financial year (April 1st to March 31st) on theobjects of the organization. The organization has until 12 months followingthe end of the financial year to comply with this requirement. Surplus incomemay be accumulated for specific projects for a period ranging from 1 to 5years; The funds of the organization must be deposited as specified in

section 11(5) of the Income Tax Act; No part of the income or property of theorganization may be used or applied directly or indirectly for the benefit ofthe founder, trustee, relative of the founder or trustee or a person who hascontributed in excess of Rs. 50,000 to the organization in a financial year;The organization must timely file its annual income return; and The incomemust be applied or accumulated in India. However, trust income may beapplied outside India to promote international causes in which India has aninterest, without being subject to income tax.

2. Corpus DonationsCorpus donations or donations to endowment are capital contributions and

should not be included to compute the total income of the organization.

3. Business IncomeUnder amendments to Section 11(4A) of the Income Tax Act 1961, a not-for-profit organization is not taxed on income from a business that it operatesthat is incidental to the attainment of the objects of the not-for-profitorganization, provided the entity maintains separate books and accountswith respect to the business. Furthermore, certain activities resulting inprofit, such as renting out auditoriums, are not treated as income from abusiness.

4. Disqualification from Exemptionthe following groups are ineligible for tax exemption: all private religioustrusts; and charitable trusts or organizations created after April 1, 1962, andestablished for the benefit of any particular religious community or caste.But note that a trust or organization established for the benefit of "ScheduledCastes, backward classes, Scheduled Tribes or women and children" is anexception; such a trust or organization is not disqualified, and its income isexempt from taxation.

Tax Deduction for DonorsThe Income Tax Act, section 80G, sets forth the types of donations that are

tax-deductible. The Act permits donors to deduct contributions to trusts,societies and section 25 companies. Many institutions listed under 80G aregovernment-related; donors are entitled to a 100% deduction for donationsto some of these government funds. Donors are generally entitled to a 50%deduction for donations to non-governmental charities. Total deductionstaken may not exceed 10% of the donor's total gross income.

The following are examples of governmental charities listed in


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section 80G, contributions to which entitle the donor to a 100%deduction: the Prime Minister's National Relief Fund; the PrimeMinister's Armenia Earthquake Relief Fund; the Africa (PublicContributions India) Fund; and the National Foundation forCommunal Harmony.

As to those entities not specifically enumerated in section 80G,donors may deduct 50% of their contributions to such organizations,provided the following conditions are met:

the institution or fund was created for charitable purposes in India; the institution or fund is tax-exempt; the institution's governing documents do not permit the use of income

or assets for any purpose other than a charitable purpose; the institution or fund is not expressed to be for the benefit of any

particular religious community or caste; and the institution or fund maintains regular accounts of its receipts and

expenditure. Note that donations to institutions or funds "for the benefit of any

particular religious community or caste" are not tax-deductible. A not-for-profit organization created exclusively for the benefit of a particularreligious community or caste may, however, create a separate fund forthe benefit of "Scheduled castes, backward classes, Scheduled Tribesor women and children." Donations to these funds may qualify fordeduction under section 80G, even though the organization, as awhole, may be for the exclusive benefit of only a particular religiouscommunity or caste. The organization must maintain a separateaccount of the monies received and disbursed through such a fund.

In-kind donations are not tax-deductible under Section 80G. Receiptsissued to donors by not-for-profit organizations must bear the numberand date of the 80G certificate and indicate the period for which thecertificate is valid.

The Income Tax Act contains a number of other provisions permittingdonors to deduct contributions. Under section 35AC of the Act, donorsmay deduct 100% of contributions to various projects, including 1)construction and maintenance of drinking water projects in rural areasand in urban slums; 2) construction of dwelling units for theeconomically disadvantaged; and 3) construction of school buildings,primarily for economically disadvantaged children. Furthermore, under

section 35CCA of the Act, donors may deduct 100% of theircontributions to associations and institutions carrying out ruraldevelopment programs and, under Section 35CCB of the Act, 100% oftheir donations to associations and institutions carrying out programsof conservation of natural resources. A weighted deduction of 125% isalso allowed for contributions to organizations approved under section35(1)(ii) (a scientific research institute or a university, college or otherinstitution) specifically for "scientific research," and for contributions


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made under section 35(1)(iii) specifically for "research in social scienceor statistical research."

NATIONAL POLICY ON THE VOLUNTARY SECTOR

Voluntary Action Cell

Planning Commission

Government of India

May 2007

Government of India Planning Commission (Voluntary Action Cell)

NATIONAL POLICY ON THE VOLUNTARY SECTOR - 2007

1. Preamble

1.1This Policy is a commitment to encourage, enable and empower anindependent, creative and effective voluntary sector, with diversity in formand function, so that it can contribute to the social, cultural and economicadvancement of the people of India.

1.2The voluntary sector has contributed significantly to finding innovativesolutions to poverty, deprivation, discrimination and exclusion, throughmeans such as awareness raising, social mobilization, service delivery,

training, research, and advocacy. The voluntary sector has been servingas an effective non-political link between the people and the Government.This policy recognizes the important role that the voluntary sector has toplay in various areas and affirms the growing need for collaboration withthe voluntary sector by the Government, as well as by the private sector,at the local, provincial and national levels.

2. Scope of the Policy

2.1 In the Policy, voluntary organizations (VOs) mean to includeorganizations engaged in public service, based on ethical, cultural,

social, economic, political, religious, spiritual, philanthropic or scientific& technological considerations. VOs include formal as well as informalgroups, such as:

i. Community-based organizations (CBOs); non-governmentaldevelopment organizations (NGDOs); charitableorganizations; support organizations; networks or


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federations of such organizations; as well as professionalmembership associations.

ii. To be covered under the Policy, VOs should broadly havethe following characteristics: They are private, i.e.,separate from Government, They do not return profits

generated to their owners or directors, they are self-governing, i.e., not controlled by Government,They areregistered organizations or informal groups, with definedaims and objectives.

3. Objectives of the Policy

3.1The specific objectives of the policy are listed below:

3.1.1 To create an enabling environment for VOs that stimulates theirenterprise and effectiveness, and safeguards their autonomy;

3.1.2 To enable VOs to legitimately mobilize necessary financial resourcesfrom India and abroad;

3.1.3 To identify systems by which the Government may work together withVOs, on the basis of the principles of mutual trust and respect, and withshared responsibility; and,

3.1.4 To encourage VOs to adopt transparent and accountable systems ofgovernance and management.

The following paragraphs describe how these objectives are to be achieved.

4. Establishing an Enabling Environment for the Voluntary Sector

IV.1 The independence of VOs allows them to explore alternativeparadigms of development to challenge social, economic and politicalforces that may work against public interest and to find new ways tocombat poverty, deprivation and other social problems. It is thereforecrucial that all laws, policies, rules and regulations relating to VOscategorically safeguard their autonomy, while simultaneously ensuringtheir accountability.

IV.2 Voluntary organizations may be registered as societies, ascharitable trusts, or as non-profit companies under Central or Statelaws. Some States have adopted the Societies Registration Act (1860),with amendments, while others have independent laws. Similarly, lawsrelating to charitable trusts vary across States. Over time, many ofthese laws and their corresponding rules have become complex andrestrictive, thus leading to delays, harassment and corruption. As thenodal agency for interface between the Government and the Voluntary


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Sector, the Planning Commission will encourage State Governments toreview prevailing laws & rules and simplify, liberalize and rationalizethem as far as possible. In order to facilitate registration of non-profitcompanies, the Government will examine measures to simplifyprocedures under section 25 of the Companies Act (1956), including

those for license, registration, and remuneration to member-employees.IV.3 The Government will also examine the feasibility of enacting a

simple and liberal central law that will serve as an alternative all-Indiastatute for registering VOs, particularly those that wish to operate indifferent parts of the country and even abroad. Such a law would co-exist with prevailing central and state laws, allowing a VO the option ofregistering under one or more laws, depending on the nature andsphere of its activities.

IV.4 There has been much public debate on the voluntary sector,particularly its governance, accountability, and transparency. It is

widely believed that the voluntary sector must address these issuesthrough suitable self-regulation. The Government will encourage theevolution of, and subsequently accord recognition to, an independent,national level, self-regulatory agency for the voluntary sector.

IV.5 At the same time, there is need to bolster public confidence inthe voluntary sector by opening it up to greater public scrutiny. TheGovernment will encourage Central and State level agencies tointroduce norms for filing basic documents in respect of VOs, whichhave been receiving funding by Government agencies and placingthem in the public domain (with easy access through the internet) inorder to inculcate a spirit of public oversight.

IV.6 Public donation is an important source of funds for the voluntarysector and one that can and must increase substantially. Taxincentives play a positive role in this process. Stocks and shares havebecome a significant form of wealth in the country today. In order toencourage transfer of shares and stock options to VOs, theGovernment will consider suitable tax rebates for this form of donation.The Government will also simplify and streamline the system forgranting income tax exemption status to charitable projects under theIncome Tax Act. At the same time, the Government will considertightening administrative and penal procedures to ensure that theseincentives are not misused by paper charities for private financial gain.

IV.7 International funding of voluntary organizations plays a small,but significant part in supporting such organizations and their work inthe country. An organization seeking foreign funding must beregistered under the Foreign Contribution (Regulation) Act. This lawprescribes stringent screening norms that often restrict the ability ofVOs to avail foreign funds. When approved, there are problems likefunds must be held in a single bank account, thus presentingenormous difficulties to VOs working at different locations. The


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Government will review the FCRA and simplify its provisions that applyto VOs, from time to time, in consultation with the joint consultativegroup to be set up by the concerned Ministry (as suggested under Para5.4).

IV.8 The Central Government has framed guidelines for bilateral

agencies to give direct assistance to voluntary organizations forprojects of social and economic importance. It controls access to suchfunds and their utilization, both through the FCRA and throughregulation by the Department of Economic Affairs. This system needsto be simplified in consultation with the joint consultative group to beset up by the concerned Ministry (as suggested under Para 5.4).

IV.9 The Government will encourage all relevant Central and StateGovernment agencies to introduce pre-service and in-service trainingmodules on constructive relations with the voluntary sector. Suchagencies should introduce time bound procedures for dealing with theVOs. These would cover registration, income tax clearances, financial

assistance, etc. There would be formal systems for registeringcomplaints and for redressing grievances of VOs.

5 Partnership in Development5.1The voluntary sector can play an important role in the development

process, particularly through community participation. VOs can offeralternative perspectives; committed expertise; an understanding ofthe local opportunities and constraints; and perhaps mostimportantly, the capacity to conduct a meaningful dialogue withcommunities, particularly those that are disadvantaged. It istherefore essential that the Government and the Voluntary Sector

work together. Where feasible, such partnership may also includeother entities such aspanchayati raj institutions, municipalities,academic institutions, and private sector organizations.

5.2 Partnership between Government and VOs implies identifyingshared goals and defining complementary roles. It must be basedon the basic principles of mutual trust and respect, with sharedresponsibility and authority. These principles must be explicit in theterms and conditions of the partnership. They must also be evidentin the formal and informal systems of collaboration.

5.3This Policy recognizes three instruments of partnership, viz., (i)consultation, through a formal process of interaction at the Centre,

State and District level; (ii) strategic collaboration to tackle complexinterventions where sustained social mobilization is critical over thelong term; and (iii) project funding through standard schemes. TheGovernment will ensure that these three instruments of partnershipare given due attention in Annual Plans prepared by Ministries andStates. The action that will be taken in respect of each of the threeinstruments is discussed in the following paragraphs.


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5.4The Government will encourage setting up of Joint ConsultativeGroups / Forums or Joint Machineries of government and voluntarysector representatives, by relevant Central Departments and StateGovernments. It will also encourage district administrations, districtplanning bodies, district rural development agencies,zilla parishads

and local governments to do so. These groups will be permanentforums with the explicit mandate to share ideas, views andinformation and to identify opportunities and mechanisms ofworking together. The Government will introduce suitablemechanisms for involving a wide cross-section of the voluntarysector in these Groups / Forums.5.4.1 The expertise of the voluntary sector will also be utilized, by

including experts from VOs in the committees, task forces,and advisory panels constituted by the Government from timeto time to help address important issues.

5.5 The country faces a number of complex problems that requireadaptive, multi-sectored solutions where sustained socialmobilization is particularly important. These include povertyalleviation, skill promotion, entrepreneurship development,empowerment of women, population stabilization, combatingHIV/AIDS, managing water resources, elementary education andforest management, to name a few. Such areas urgently requirestrategic collaboration between the Government and VOs, throughnational level programmes that are long-term in duration, andutilize multiple strategies, methodologies and activities to achievetheir objectives. The Government will identify national collaborative

programmes to be implemented in partnership with VOs. Eachnational collaborative programme will involve a finite set of reputed,medium or large VOs with a proven track record, and the ability towork on a reasonably large scale. The Government will ensure thatsuch national collaborative programmes are given due importancein Plan documents.

5.6 The third instrument of partnership between the Governmentand the voluntary sector is project funding. A large number ofGovernment agencies operate schemes for financial assistance toVOs. These schemes usually deal with activities such as surveys,

research, workshops, documentation, awareness raising, training,creation and running of public welfare facilities, and so on. Projectgrants are a useful means for the Government to promote itsactivities without its direct involvement. They are also a valuablesource of support to small and medium VOs. Nevertheless, there arelegitimate concerns regarding the effectiveness of grant-in-aidschemes. Out-dated design of funding schemes, arbitraryprocedures, selection of unsuitable VOs, poor quality of


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implementation, and misuse of funds are some of the reasons forthe possible defeat of the objectives of such funding. ConcernedGovernment agencies would be encouraged to ensure properaccountability and monitoring of public funds distributed to VOs.

4.6.1 Some Central agencies have achieved good results by decentralizingthe process of project funding. Rather than administering variousschemes directly, they appoint regional or State level intermediaryorganizations to do so on their behalf. This allows for closer interactionfor better selection and monitoring of VOs. Intermediaries couldinclude umbrella VOs, professional or academic institutes, StateGovernment agencies, or multi-stakeholder standing committees. TheGovernment will review the experience of such decentralized fundingand make suitable recommendations to Central agencies.

4.6.2 5.6.2 There is reason to believe that accreditation of VOs will lead tobetter funding decisions and make the funding processes more

transparent. Further, accreditation may provide incentives for bettergovernance, management and performance of VOs. No reliableaccreditation system is in place at present. The Government willencourage various agencies, including those in the voluntary sector, todevelop alternative accreditation methodologies. It will allow time forsuch methodologies to be debated and gain acceptability in thevoluntary sector, before considering their application to Governmentfunding of VOs.

6. Strengthening the Voluntary Sector

6.1The Indian society has a well-established tradition of philanthropy. While aregime of tax concessions facilitates donations to charitableorganizations, there is considerable untapped potential to channelizeprivate wealth for public service. The Government will support andencourage existing, as well new, independent philanthropic institutionsand private foundations to provide financial assistance to deserving VOs.It will also promote a dialogue among public and private grant makers sothat they may take advantage of the best practices in grant making andfund-raising strategies.

6.2 6.2 Accountability to all stakeholders and transparency in functioningare key issues in good governance. The voluntary sector is expected to

set its own benchmarks in these areas. Since VOs vary in their objectivesand activities, it would be impractical to expect uniform norms foraccountability and transparency. The Government will encourage supportorganizations, and VO networks & federations to facilitate discussion andconsensus building on these issues. It will also encourage such agenciesto advise and assist VOs to adopt norms that they find acceptable anduseful. The Government will recognize excellence in governance amongVOs by publicizing best practices.


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6.3 6.3 Training is a crucial requirement for people working in thevoluntary sector. However, this is often neglected on account of limitedavailability of good quality training courses that are reasonably priced.The Government will support and encourage organizations that trainaspirants to enter the voluntary sector, as well as those already working

in the sector. It will make available physical facilities currently availablewith its training institutes as a measure of such support.6.4 Innovation in institutional, technical and social approaches to

development problems is an essential ingredient of voluntary action. TheGovernment will encourage and recognize innovative & pioneering work.

a. Databases of VOs working in different fields and at differentlevels are useful for communication within the voluntarysector, as well as between the voluntary sector and the public& private sector. The Government will commission suitableagencies to prepare and update such databases.

b. Information on Government policies and programmes is oftendifficult for VOs to access. The websites of variousGovernment agencies will be re-designed to provide links tokey documents and databases, including those related toproject funding schemes.

c. The Government will encourage involvement of volunteers inpublic services, such as, at family welfare centers, primaryhealth centers, hospitals, schools, vocational training centers,sanitation campaigns, etc.

This National Policy on the Voluntary Sector-2007 is the beginning of a

process to evolve a new working relationship between the Government andthe Voluntary Sector, without affecting the autonomy and identity of VOs.

Once you have decided to start an NGO First of all you have to go the officeof Charity Commissioner/Asst charity Commissioner's office and you have toprepare by laws according to the Performa

The procedure is as follows:

You have to conduct meeting of the proposed NGO. In the meeting you haveto

mention aim, objective, president, vice president, treasurer, advisor,member etc. You have to pass the resolution of forming NGO and all membermust sign on it with date and proposed name of NGO Thereafter you have togo to Charity Commissioner/Asst charity commissioner's office and buy theform (it cost 5 or 10 RS). Thereafter according to the Performa you have tocomplete following documents:

a. power of attorney in the name of president/secretary


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b. Consent letter of all members/trusteesc. Resolutiond. by laws of NGO as Performa (Draft an MOA)e. NOC from the premises owner of the address in which NGO to be

registered

f. Declaration of all movable and immovable assets of NGO on 20 RS nonjudicial stampg. other document as required

Thereafter, you have to apply to the same office under Registration ofSocieties Act 1860 and Public Trust Act of respective states (In Maharashtrait is Bombay Public Trust Act 1950 /section 25 of the companies act. Youshould get your registration certificate within 1 months of Society and within2 months of Trust and you will get registration number if you want taxexemption, as soon as you get registration number, apply to Income Taxdepartment for tax exemption under section 80(G) . In case of Foreign

Funding then one needs to Apply for FCRA Once the procedures ourcompleted then you need to take care of the Other Important DepartmentsOf the NGOs like-

Fundraising Marketing techniques Strategy Management Monitoring and evaluation Accounting guide

Introduction to Types of NGO Registrations Methods

In India nonprofit / public charitable organizations can be registeredas trusts, societies, or a private limited nonprofit company,under section-25 companies. Non-profit organizations in India (a)exist independently of the state; (b) are self-governed by a board oftrustees or managing committee/ governing council, comprisingindividuals who generally serve in a fiduciary capacity; (c) producebenefits for others, generally outside the membership of theorganization; and (d), are non-profit making, in as much as theyare prohibited from distributing a monetary residual to their ownmembers.

Section 2(15) of the Income Tax Act which is applicableuniformly throughout the Republic of India defines charitablepurpose to include relief of the poor, education, medical relief andthe advancement of any other object of general public utility. Apurpose that relates exclusively to religious teaching or worship isnot considered as charitable. Thus, in ascertaining whether apurpose is public or private, one has to see if the class to be


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benefited, or from which the beneficiaries are to be selected,constitute a substantial body of the public. A public charitablepurpose has to benefit a sufficiently large section of the public asdistinguished from specified individuals. Organizations which lackthe public element such as trusts for the benefit of workmen or

employees of a company, however numerous have not been heldto be charitable. As long as the beneficiaries of the organizationcomprise an uncertain and fluctuating body of the public answeringa particular description, the fact that the beneficiaries may belongto a certain religious faith, or a sect of persons of a certain religiouspersuasion, would not affect the organizations public character.

Whether a trust, society or section-25 company, the IncomeTax Act gives all categories equal treatment, in terms of exemptingtheir income and granting 80G certificates, whereby donors to non-profit organizations may claim a rebate against donations made.Foreign contributions to non-profits are governed by FC(R)A

regulations and the Home Ministry. CAF would like to clarify thatthis material provides only broad guidelines and it is recommendedthat legal and or financial experts be consulted before taking anyimportant legal or financial decision or arriving at any conclusion.Formation and Registration of a Non -Profit organizations inIndia1) Trust2) Society3) Section-25 CompanyAdditional Licensing/ Registration

1. Trusts

A public charitable trust is usually floated when there is property involved,especially in terms of land and building.

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 anyparticular state or territory the general principles of the Indian Trusts Act1882 are applied.

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. In every trust deed, the minimum andmaximum number of trustees has to be specified. The trust deed shouldclearly spell out the aims and objects of the trust, how the trust should bemanaged, how other trustees may be appointed or removed, etc. Thetrust deed should be signed by both the settler/s and trustee/s in thepresence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of


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the trust property.Trustees: A trust needs a minimum of two trustees; there is no upperlimit to the number of trustees. The Board of Management comprises thetrustees.

Application for Registration:The application for registration should be made to the official havingjurisdiction over the region in which the trust is sought to be registered.After providing details (in the form) regarding designation by which thepublic trust shall be known, names of trustees, mode of succession, etc.,the applicant has to affix a court fee stamp of Rs.2/- to the form and pay avery nominal registration fee which may range from Rs.3/- to Rs.25/-,depending on the value of the trust property. The application form shouldbe signed by the applicant before the regional officer or superintendent ofthe regional office of the charity commissioner or a notary. Theapplication form should be submitted, together with a copy of the trust

deed. Two other documents which should be submitted at the time ofmaking an application for registration are affidavit and consent letter.

What is Trust Deed?

The instrument by which the trust is declared is called instrument of Trust,and is generally known as Trust Deed. It is well settled that no formaldocument is necessary to create a Trust as held in Radha Soami Satsung vs.CIT- (1992) 193 ITR 321 (SC). But for many practical purposes a written

instrument becomes necessary under following cases

i. When the trust is created by a will irrespective of whether the trust ispublic or private or it relates to movable or immovable property. This isbecause as per Indian Succession Act, a will has to be in writing

ii. When the trust is created in relation to an immovable property of thevalue of Rs.100 and upwards, in case of a private trust. In case ofpublic trusts, a written trust deed is not mandatory, even in respect ofimmovable property, but is optional.

iii. Where the trust/association is being formed as a society or company,the instrument of trust; i.e., the memorandum of association, and

Rules and Regulations has to be in writing.A written trust-deed is always desirable, even if not requiredstatutorily, due to following benefits :d. a written trust deed is a prima facie evidence of existence of atrust ;e. it facilitates devolution of trust property to the trust;f. it clearly specifies the trust-objectives which enables one to ascertainwhether the trust is charitable or otherwise;


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g. it is essential for registration of conveyance of immovable propertyin name of the Trust;h. it is essential for obtaining registration under the Income-tax Act andclaiming exemption from tax;i. it helps to control, regulate and manage the working and operations

of the trust;j. it lays down the procedure for appointment and removal of thetrustee(s), his/their powers, rights and duties; andk. it prescribes the course of action to be followed under anyeventuality including dissolution of the trust.

3. Types of Instrument of Trust

Trust deed, where a trust is declared intervolves; i.e., by settlingproperty under Trust.

A will, where a trust is declared under a will;

A memorandum of association along with rules and regulations,when the association/institution is being formed as a societyunder the Societies Registration Act, 1860.

. A memorandum and articles of association where theassociation /institution is desired to be formed as a Company.

3. Trust Deed-Clausesa person drafting the deed of a public charitable trust has to bear in mindseveral enactments, particularly the Indian Trusts Act, any local enactmentrelating to trusts, like the Bombay Public Trusts Act for the State ofMaharashtra and the Income tax Act. Such a person has also to keep in mind

the relevant judicial pronouncements dealing with the scope of "charitablepurpose" and accordingly decide whether a particular purpose is charitableor not. An instrument of Trust or association/institution created orestablished should contain inter alia the following clauses:

0. Nothing contained in this deed shall be deemed to authorise the trusteesto do any act which may in any way be construed as statutory modificationsthereof and all activities of the trust shall be carried out with a view tobenefit the public at large, without any profit motive and in accordance withthe provisions of the Income-tax Act, 1961 or any statutory modificationthereof.

1. The trust is hereby expressly declared to be a public charitable trust andall the provisions of this deed are to be construed accordingly.The Trust Deed generally contains the following clauses:2. Preamble3. Trust name by which Trust shall be known4. Place were its office shall be situated5. Author or settler of the trust


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6. Names of the Trustees7. Beneficiaries8. The property settled, for Trust In case of immovable property, it shouldcontain full description of the property sufficient to identify it9. An express intention to direct the trust property from the trustees

10. The objects of the Trust11. Minimum and maximum number of Trustees12. The procedure for appointment, removal, replacement of trustees13. Trustees rights, duties and powers14. Administration of trust15. Provision for maintenance of accounts, auditing etc.16. Clause enabling, spending and utilization of the Trust funds or corpus.17. Bank Account operations18. Borrowing money on security for the purpose of the Trust19. Investment of the Trust funds and dealing with Trust properties20. Alienation of immovable property of the Trust

21. Amalgamation clause22. Dissolution of Trust23. Irrevocable nature of the trust.

MODEL TRUST DEED OF A PUBLIC CHARITABLE TRUST

THIS DEED OF TRUST executed on this _______________________ day of

__________________ year 20____, _______________________ BETWEEN__________________________________________ (Party of the first part) hereinaftercalled " SETTLOR OF THE TRUST"________________________________________________________________________________________________ AND_____________________________________ .

1. SHRI. S/O. SHRI , of ____________ &

2. SHRI. S/O. SHRI. , of ____________ &

3. SMT. W/O SHRI. , of ____________

(Hereinafter called " The Trustees" which expression shall unless repugnantto the context or meaning thereof be deemed to include the survivors orsurvivor of them and the trustees or trustee for the time being of thesepresents and their heirs, executors and administrators of the last survivingtrustee, their or his assignees) of the other part;


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WHEREAS the party hereto of the first part is possessed of the sum of Rs.___________/- (Rs. __________ only) as his absolute property and he is desirousof creating a Religious/ Charitable/Educational Trust for the benefit of thehumanity at large. AND WHEREAS each of the parties hereto of the "OtherPart" has individually and jointly has agreed to act as Trustees of the Trust,

proposed by the party of the first part. AND WHEREAS nothing contained inthis deed shall be deemed to authorize the trustees to do any act which mayin any way be construed statutory modifications thereof and all activities ofthe trust shall be carried out with a view to benefit the public at large,without any profit motive and in accordance with the provisions of theIncome-tax Act, 1961 or any statutory modification thereof. AND WHEREASthe trust is hereby expressly declared to be a public charitable trust and allthe provisions of this deed are to be constituted accordingly.

NOW THIS INDENTURE WITNESSTH AS FOLLOWS :

1. SETTLEMENTThe party of the first part, the settler, does hereby settle the sum ofRs._______ /- (Rs. __________ only) in Trust, with the name and for the objectshereinafter stated, by delivering the said amount in cash which the party ofthe other part, the Trustees, have accepted the receipt of which they dohereby acknowledge, to hold the same in and to the Trustees with thepowers and obligations as provided hereinafter.

2. NAMEThe name of the Trust shall be "____________________________".

3. PLACEThe principal office of the Trust shall be situated at ______________________ orsuch other place as the Trustees may from time to time decide. The Trustmay also carry on its work at any other place or places, as decided by theTrustees.

4. OBJECTS

A. Educational to run, maintain or assist any educational or otherinstitution for coaching, guidance, consoling or vocational training or to grantindividual scholarships for poor, deserving and needy students for

elementary and higher education.

b. Medical to run, maintain or assist any medical institution, nursinghome or clinics or to grant assistance to needy and indigent persons formeeting the cost of medical treatment.


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c. Relief of the poor to give financial or other assistance in kind by wayof distribution of books, notebooks, cloths, uniforms, or meals for the poorand indigent and to the persons suffer due to natural calamities.

d. Other objects of general public utility

I. to acquire property for the sole use for public good by making itavailable for public purposes as for example, housing a library clinic, crcheand/or as a community ball to be available for public use as training classes,seminars, discourses and other public functions for benefit of the communityin general.

ii. To undertake any other activity incidental to the above activitiesbut which are not inconsistent with the above objects. PROVIDED the Trustmay assist/donate the other TRUST to carry out the various objectsmentioned in the objects clause in such manner and to the extent the

Trustees may decide upon from time to time.

5. FUNDSthe Trustees may accept donations, grants, subscriptions, aids orcontributions from any person, Government, Local authorities or any othercharitable institutions, in cash or in kind including immovable propertywithout any incumbrance, but the Trustees shall not accept any receipt withany condition or terms inconsistent with the objects of the Trusts. Whileapplying such receipts to the objects, the Trustees shall respect thedirections, if any, by the granter. Any receipt with specific direction to treatthe same as part of the corpus of the Trust or separate fund shall be funded

accordingly.

6. INVESTMENTS

I. All monies, which shall not immediately required for current needsshall be invested by the Trustees in eligible securities and investments, or inbanks. Such investments shall be in the name of Trust or Trustees.

ii. That the trustees shall invest the trust fund, carry on any businesswith the trust fund and/or enter into partnership on behalf of thetrust, as they may deem fit.

iii. That the trustees shall manage the trust fund and investmentsthereof as a prudent man would do the same. They shall recover alloutstandings and meet all recurring and other expenses incurred inthe upkeep or management thereof.

iv. That the trustees shall receive and hold the income of the trust onbehalf and for the benefit of the beneficiaries under the trust.


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5. POWER OF TRUSTEES

That the trustees shall have the following powers: to manage all theassets and/or properties of the trust including the conduct of business;

to appoint employees and to settle the terms of their service,remuneration and termination; to look into the management of the trust; to invest the funds of the trust, in bank or in the purchase of

company shares or securities or other movable and movable andimmovable properties;

to sell, alter, vary, transpose or otherwise dispose or alienate thetrust properties or any investment representing the same forconsideration and to reinvest the same;

to pledge or mortgage the trust properties for raising loans; to open the bank accounts in the name and on behalf of the trust

and to operate the same; To enter into a partnership on behalf of the trust with any other

party or parties; To pay all charges, impositions and other outgoings payable in

respect of the trust properties and also to pay all cost of theincidental to the administration and management of the trustproperties;

To file suit on behalf of the trust and to refer to arbitration allactions proceedings and disputes touching the trust properties andto compromise and compound the suits filed;

To accept any gift, donation or contribution in cash or in kind fromanyone for the objects of the trust; To seek legal opinion of lawyers and/or Chartered Accountants as

and when required; To nominate their representatives for any of the aforesaid purposes.

The number of the trustees shall not be less than two but not morethan five.

In case of any difference between the trustees, the opinion of theminority shall

prevail. . Every trustee will be at liberty to nominate or appoint attorneys or

agents and to delegate all or any of the duties and powers vested inhim to such attorney or agent, and to remove such attorney oragent and reappoint other or others in his place.

No trustee shall be responsible or liable for any loss or any act ofomission or commission by his constituted attorney or agent or


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employees or other trustees unless occasioned by his willful neglector default.

Any of the trustees may retire on giving one months notice inwriting to the other trustee(s).

If any trustee dies or retires or becomes incapable or unfit to act,

the continuing or surviving trustee or trustees shall appoint asuccessor in the place of such trustee.

If at any time the number of the trustees is less than two, theexisting trustee shall appoint one or more trustees.

Upon the appointment of a new trustee the trust properties shallvest in the new trustee jointly with the continuing or survivingtrustees, with the duties and power of the trustees set outhereinabove in this deed.

If the trust is determined by efflux of time, the corpus of the trustshall be divided amongst the beneficiaries in the shares as fixed bythe trustees.

17. BANKING ACCOUNTAll income, subscription and pecuniary donations for the general purposes ofthe Trust and the income, investments and all other moneys from time totime forming part of the general revenue of the Trust shall on the samebeing received be paid into a banking account with any scheduled bank forthe purpose of the Trust. The bank accounts shall be operated by theManaging Trustee along with any one of the remaining Trustees.

18. ACCOUNTS AND AUDIT

The Trustee shall keep proper books of account of all the assets, liabilitiesand income and expenditure of the Trust and shall prepare an Income andExpenditure Account and Balance Sheet for every year as on the last day ofMarch.

The accounts of every year shall be audited by a Chartered Accountant or afirm of Chartered Accountants who shall be appointed for that purpose bythe Trustees and the audited accounts shall be placed at a meeting of theTrustees, which shall be held before the end of the succeeding year.

19. IRREVOCABLEThis Trust is irrevocable.

20. AMALGAMATIONthe trustees may amalgamate the trust with another Charitable Trust orInstitution having similar objects with prior permission of the CharityCommissioner/Court/any other law as may be applicable for the time being.


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21. WINDING UPIn the event of dissolution or winding up of the Trust the assets remaining ason the date of dissolution shall under no circumstances be distributedamongst the Trustees but the same shall be transferred to some othersimilar Trust/Organization whose objects are similar to those of this Trust

with the permission of the Charity Commissioner / Court / any other law asmay be applicable for the time being. The Trustees shall be indemnifiedagainst all losses and liabilities incurred by them in the execution of theTrust and shall have a lien over the funds and properties of the Trust for suchindemnity.

IN WITNESS WHEREOF, The Parties hereunto have signed and delivered thepresents on the day and year first hereinabove written.SETTLORWITNESS: 1. TRUSTEE____________

1. 2. TRUSTEE____________2. 3. TRUSTEE____________

Registration Procedure -Society

According to section 20 of the Societies Registration Act, 1860, the followingsocieties 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 politicaleducation, the foundation or maintenance of libraries or reading rooms forgeneral use among the members or open to the public, or public museumsand galleries of paintings and other works of art, collection of natural history,mechanical and philosophical inventions, instruments or designs.

Legislation: Societies are registered under the Societies Registration Act,1860, which is a federal act. In certain states, which have a charitycommissioner, the society must not only be registered under the Societies

Registration Act, but also, additionally, under the Bombay Public Trusts Act.Main Instrument: The main instrument of any society is the memorandumof association and rules and regulations (no stamp paper required), whereinthe aims and objects and mode of management (of the society) should beenshrined.

Trustees: A Society needs a minimum of seven managing committeemembers; there is no upper limit to the number managing committee


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members. The Board of Management is in the form of a governing body orcouncil or a managing or executive committee

Application for Registration:Registration can be done either at the state level (i.e., in the office of the

Registrar of Societies) or at the district level (in the office of the DistrictMagistrate or the local office of the Registrar of Societies). (2) The procedurevaries from state to state. However generally the application should besubmitted together with: (a) memorandum of association and rules andregulations; (b) consent letters of all the members of the managingcommittee; (c) authority letter duly signed by all the members of themanaging committee; (d) an affidavit sworn by the president or secretary ofthe society on non-judicial stamp paper of Rs.20-/, together with a court feestamp; and (e) a declaration by the members of the managing committeethat the funds of the society will be used only for the purpose of furtheringthe aims and objects of the society. All the aforesaid documents which are

required for the application for registration should be submitted in duplicate,together with the required registration fee. Unlike the trust deed, thememorandum of association and rules and regulations need not be executedon stamp paper.Section-25 CompanyAccording to section 25(1)(a) and (b) of the Indian Companies Act, 1956, asection-25 company can be established for promoting commerce, art,science, religion, charity or any other useful object, provided the profits, ifany, or other income is applied for promoting only the objects of thecompany and no dividend is paid to its members.Legislation: Section-25 companies are registered under section-25 of theIndian Companies Act. 1956.

Main Instrument : For a section-25 company, the main instrument is aMemorandum and articles of association (no stamp paper required)Trustees : A section-25 Company needs a minimum of three trustees; thereis no upper limit to the number of trustees. The Board of Management is inthe form of a Board of directors or managing committee.Application for Registration :1.An application has to be made for availability of name to the registrar ofcompanies, which must be made in the prescribed form no. 1A, together witha fee of Rs.500/-. It is advisable to suggest a choice of three other names bywhich the company will be called, in case the first name which is proposed isnot found acceptable by the registrar.

2. Once the availability of name is confirmed, an application should be madein writing to the regional director of the company law board. The applicationshould be accompanied by the following documents:

Three printed or typewritten copies of the memorandum and articles ofassociation of the proposed company, duly signed by all the promoterswith full name, address and occupation.


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A declaration by an advocate or a chartered accountant that thememorandum and articles of association have been drawn up inconformity with the provisions of the Act and that all the requirementsof the Act and the rules made there under have been duly compliedwith, in respect of registration or matters incidental or supplementary

thereto. Three copies of a list of the names, addresses and occupations of the

promoters (and where a firm is a promoter, of each partner in thefirm), as well as of the members of the proposed board of directors,together with the names of companies, associations and otherinstitutions in which such promoters, partners and members of theproposed board of directors are directors or hold responsible positions,if any, with description of the positions so held.

A statement showing in detail the assets (with the estimated valuesthereof) and the liabilities of the association, as on the date of the

application or within seven days of that date. An estimate of the future annual income and expenditure of the

proposed company, specifying the sources of the income and theobjects of the expenditure.

A statement giving a brief description of the work, if any, already doneby the association and of the work proposed to be done by it afterregistration, in pursuance of section-25.

A statement specifying briefly the grounds on which the application ismade.

A declaration by each of the persons making the application thathe/she is of sound mind, not an undercharged insolvent, not convicted

by a court for any offence and does not stand disqualified undersection 203 of the Companies Act 1956, for appointment as a director.

3. The applicants must also furnish to the registrar of companies (of thestate in which the registered office of the proposed company is to be, or issituate) a copy of the application and each of the other documents that hadbeen filed before the regional director of the company law board.

4. The applicants should also, within a week from the date of making theapplication to the regional director of the company law board, publish anotice in the prescribed manner at least once in a newspaper in a principal

language of the district in which the registered office of the proposedcompany is to be situated or is situated and circulating in that district, and atleast once in an English newspaper circulating in that district.

5. The regional director may, after considering the objections, if any,received within 30 days from the date of publication of the notice in thenewspapers,

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