Charitable & Religious Trusts
A Charitable or Religious Trust is a special legal structure created with the objective of promoting philanthropy, social welfare, and religious activities. Unlike business entities that are driven by profit, these trusts are formed purely for non-profit purposes such as education, healthcare, poverty relief, cultural promotion, spiritual development, and public service.
Key Features of Charitable & Religious Trusts
- Non-Profit Objective – The primary aim is to serve society, not to generate profits.
- Legal Recognition – A registered trust enjoys legal status and protection under Indian law.
- Asset Ownership – The trust can hold and manage property, funds, and other resources for charitable use.
- Tax Benefits – Donors as well as the trust itself may enjoy exemptions under the Income Tax Act (e.g., 80G & 12A registrations).
Why Establish a Charitable / Religious Trust?
- To promote education, healthcare, and social welfare initiatives.
- To preserve and propagate religious or cultural values.
- To create a legally recognized platform for fundraising and donations.
- To ensure long-term sustainability of charitable activities.