Public charitable trust
Topic: Civil Society, Pressure Groups, NGOs and Self-help Groups · NCERT: Beyond NCERT
Meaning
A public charitable trust is an arrangement in which trustees hold property for a public religious or charitable purpose. A trustee is a person who manages property for the benefit of others. These trusts are governed by state laws, such as the Maharashtra Public Trusts Act 1950. A public charitable trust is one of the three main legal forms of NGOs in India. The other two are a society and a Section 8 company.
Example
Suppose a donor in Maharashtra gives land and money to run a free school. Trustees can hold it as a public charitable trust under the Maharashtra Public Trusts Act 1950 and must use it only for that public purpose.
Don't confuse with
- Private trust: it benefits named people, such as family members, and comes under the Indian Trusts Act 1882. A public trust serves the public.
- Society: under the Societies Registration Act 1860, at least seven persons form a society with a memorandum and a governing body. A trust is run by its trustees.