What is Society & Trust?
Society and Trust are two distinct legal entities commonly used for non-profit or charitable purposes. Here’s an overview of what a Society and Trust entail, who is eligible for registration, their criteria, benefits, positives, negatives, compliance requirements, risks, and more:

Society:

• Definition: A Society is a registered association of individuals or groups formed for a charitable, literary, scientific, or cultural purpose. It is governed by the Societies Registration Act, which varies from country to country.
• Eligibility for registration: Any group of individuals sharing a common objective and desiring to promote charitable, literary, scientific, or cultural activities can register as a Society. The members of the society typically elect a governing body or managing committee.
• Criteria: The criteria for registration may differ based on the applicable laws, but generally involve drafting a constitution or memorandum of association, specifying the aims and objectives, rules and regulations, and composition of the governing body.
  Benefits and positives:
• Separate legal entity: Once registered, a Society becomes a separate legal entity distinct from its members.
• Tax benefits: Societies may be eligible for tax exemptions on income earned for charitable purposes.
• Fundraising: Societies can seek donations and grants from individuals, corporations, and government agencies for their activities.
• Perpetual existence: A Society continues to exist even if the members change, ensuring continuity in pursuing its objectives.
  Negatives and risks:
• Compliance requirements: Societies must adhere to the legal requirements and compliances set by the governing authorities.
• Limited commercial activities: Societies cannot engage in significant commercial activities and should primarily focus on their charitable or non-profit objectives.
  Trust:
• Definition: A Trust is a legal entity where property or assets are held by a trustee for the benefit of specified individuals or beneficiaries. It is governed by the Trusts Act or applicable laws in the respective jurisdiction.
• Eligibility for registration: Any person or group intending to create a Trust and hold assets for charitable, religious, educational, or social purposes can register as a Trust. A trust typically requires a settlor (who creates the trust), trustee(s) (who manage the trust), and beneficiaries (who benefit from the trust’s assets).
• Criteria: The criteria for trust registration may involve drafting a trust deed specifying the objectives, assets, trustees, and beneficiaries of the trust.

Benefits and positives:

• Legal protection: Trusts provide a legally recognized structure for managing and protecting assets for the benefit of beneficiaries.
• Flexibility: Trusts offer flexibility in managing assets and distributing income for the specified purposes.
• Tax benefits: Charitable trusts may be eligible for tax exemptions on income generated for charitable purposes.
  Negatives and risks:
• Administrative responsibilities: Trustees have fiduciary duties and responsibilities in managing and administering the trust, which can involve significant administrative tasks.
• Regulatory compliance: Trusts are subject to compliance requirements and reporting obligations as per the applicable laws.

In summary, Societies and Trusts are legal entities used for non-profit or charitable purposes. Societies are associations of individuals formed for specific objectives, while Trusts involve the holding of assets for the benefit of beneficiaries. Eligibility, registration criteria, benefits, positives, negatives, compliance requirements, and risks can vary depending on the jurisdiction and applicable laws. Both entities offer benefits such as legal recognition, tax benefits, and fundraising opportunities, but also involve compliance responsibilities and limitations on commercial activities.