A registered trust or society that works for the development, welfare, and progress of the public is called as a Non-Government Organization (NGO). The objective of NGOs can be cultural, religious, educational, social, or economic. The sources of revenue for NGOs are donations, gifts, grants, membership fees, and interests on investments. The profit obtained from the activities of the NGOs are utilized for non-profit activities.
Trusts are created for various purposes that include education, medical relief, relief of poverty, provision of facilities for recreation, or any other activities of public utility. The activities of the trusts are regulated by the Indian Trusts Act or Bombay Public Trust Act, 1950. The jurisdiction of the trusts is under the Sub Registrar or charity commissioner. For registration as a trust, there is a minimum requirement of two trustees. There is no limit for the maximum number of trustees. The trusts are managed by the trustees or the board of trustees. The registration under Trust Act has national validity and it can operate throughout India.
A trust cannot receive payments. But, it can receive payments if the trust is providing a professional service.
Societies are also meant for charitable purposes. Societies are similar to trusts but are different in certain aspects. The activities of the societies are regulated under the Societies Registration Act, 1860. The societies are under the jurisdiction of the Registrar of societies. Minimum seven members are required for registering as a society. There is no upper limit for the maximum number of members. The societies are managed by the governing body or council or managing or executive committee. Members of the same family cannot become members of society. A society can be operated throughout the country if it is registered as a National level society. If the society is registered in one state only, then its operation is possible in only one state.