PUBLIC CHARITABLE TRUST DEED

TRUST DEED

PUBLIC CHARITABLE TRUST

DEED OF TRUST

THIS DEED OF TRUST executed at _________________ on this ________________ day of __________________ 20 ____, BETWEEN ____________________________________ (Party of the first part) hereinafter called "SETTLOR” OF THE ONE PART

AND

1. _________________ S/O. ________________, residing at ____________ &

2. __________________S/O. ________________, residing at ____________ &

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

(Hereinafter called " The Trustees" which expression shall unless repugnant to the context or

meaning thereof be deemed to include the survivors or survivor of them and the trustees or

trustee for the time being of these presents and their heirs, executors and administrators of the

last surviving trustee, their or his assignees) of the other part;

WHEREAS the SETTLOR is possessed of the sum of Rs. ___________/- (Rs. __________

Only) and assets and properties mentioned in the Schedule hereunder as his absolute property

and he is desirous of creating a Religious/ Charitable/Educational Trust for the benefit of the

humanity at large.

AND WHEREAS each of the parties hereto of the "Other Part" 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 in this deed shall be deemed to authorize the trustees to do

any act which may in any way be construed statutory modifications thereof and all activities of

the 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 the Income Tax Act, 1961.

AND WHEREAS the trust is hereby expressly declared to be a public charitable trust and all the

provisions of this deed are to be constituted accordingly.

NOW THIS DEED OF TRUST WITNESSTH AS FOLLOWS:

1. Settlement

The party of the first part, the SETTLOR, does hereby settle the sum of Rs._______ /- (Rs.

__________ only) in Trust, with the name and for the objects hereinafter stated, by delivering

the said amount in cash which the party of the other part, the Trustees, have accepted the receipt

of which they do hereby acknowledge, to hold the same in and to the Trustees with the powers

and obligations as provided hereinafter.

2. Name

The name of the Trust shall be "____________________________".

3. Place

The principal office of the Trust shall be situated at ______________________. The Trust may

also carry on its work at any other place or places, as decided by the Trustees.

4. Objects

The objects of the Trust are -

a. Educational – to run, maintain or assist any educational or other institution for coaching, guidance, counselling or vocational training or to grant individual scholarships for poor, deserving and needy students for elementary and higher education.

b. Medical – to run, maintain or assist any medical institution, nursing home or clinics or to

grant assistance to needy and indigent persons for meeting the cost of medical treatment.

c. Relief of the poor – to give financial or other assistance in kind by way of distribution of

books, notebooks, cloths, uniforms, or meals for the poor and indigent and to the persons

suffer due to natural calamities.

d. Old age and Physically challenged - Establishment, conduct, maintenance of old age

homes, homes for physically challenged men, women and children and persons with

similar disabilities and also for granting financial assistance to institutions performing

similar activities.

e. Other objects of general public utility –

i. to acquire property for the sole use of the public by making it available for public

purposes, for example - a library, clinic, crèche or a community hall to be

available for public use as training classes, seminars, discourses and other public

functions for benefit of the community in general.

j. to undertake any other activity incidental to the above activities but which are not

inconsistent with the above objects.

The TRUSTEES do hereby agree that they shall hold and stand possessed of the said trust assets,

properties and funds (which expression shall include all investments in cash or kind or in any

nature whatsoever into and for which, the said property or a part or parts thereof may from time

to time be converted, varied or exchanged) and/ or such investments as may be held by the

TRUSTEES from time to time in relation to these presents together with all income, profits,

additions and accretions thereof, upon trust for the object set out above with and subject to the

provisions and conditions hereinafter contained in these presents.

5. Beneficiaries

The Trust is established for the benefit of citizens of India and the class of people mentioned

above without discrimination of caste, religion, creed or sex.

6. Properties

The Trust properties shall consist of

a. The amount Transferred by the SETTLOR as mentioned above, towards the Corpus

fund of the Trust.

b. The immovable properties and other assets transferred by SETTLOR as mentioned

above.

c. Any cash, kind, properties, movable and immovable that may be acquired by

purchase or otherwise or all manner of rights, title or interest in or over any property

movable or immovable

d. All additions and accretions to the Trust properties and the income there from

e. All donations, gifts, legacies or grants, in cash or kind accepted by the Trustees upon

Trust.

The properties of the Trust shall be utilized for the objects set forth herein above and subject to

the provisions and conditions herein mentioned.

7. Funds

The Trustees may accept donations, grants, subscriptions, aids or contributions from any person,

Government, Local authorities or any other charitable institutions, in cash or in kind including

immovable property without any encumbrance, but the Trustees shall not accept any receipt with

any condition or terms inconsistent with the objects of the Trust. While applying such receipts to

the objects, the Trustees shall respect the directions, if any, by the granter. Any receipt with

specific direction to treat the same as part of the corpus of the Trust or separate fund shall be

funded accordingly.

8. Investments

a. All monies, which will not be immediately required for current needs shall be

invested by the Trustees in eligible securities and investments, or in banks. Such

investments shall be in the name of the Trust.

b. That the trustees shall invest the trust fund, carry on any business with the trust

fund and/or enter into partnership on behalf of the trust, as they may deem fit.

c. That the trustees shall manage the trust fund and investments thereof as a prudent

man would do the same. They shall recover all outstanding and meet all recurring

and other expenses incurred in the upkeep or management thereof.

d. That the trustees shall receive and hold the income of the trust on behalf of and

for the benefit of the beneficiaries under the trust.

9. Number of Trustees and their Term

The Trust will be managed by a Board of Trustees consisting of not less than 2 trustees and not

more than 9 trustees. The parties of the Other Part will be First Trustees and they shall

automatically form the Board of Trustees.

The first Managing Trustee shall be the SETTLOR and he will hold office for his life time. After

the demise or relinquishment of office of the Managing Trustee or in the event of the first

Managing Trustee failing to nominate his successor in office, the remaining trustees shall elect

one of the other Trustees as Managing Trustee.

The term of office of First Trustees shall be for their respective lives. The Board of Trustees

shall have the power to increase the total number of Trustees upto the maximum number stated

above and fix their term as per provisions contained herein.

Any Trustee, including the Managing Trustee may retire from the Trusteeship hereof by giving

two months notice in writing of his or her intention to do so, to the Board of Trustees and after

the expiry of the period of notice, the Trustee shall cease to be a Trustee of these presents.

Any vacancy caused by death of any one of the First Trustees, or any vacancy caused by the

resignation of any of the Trustees, may be filled up by co-option by the Board of Trustees.

The Trustees who are not First Managing Trustee or First Trustees shall hold office for a period

of one year from their date of appointment by the Trustees. At the end of this one year period,

the Board of Trustees may reappoint them for subsequent term or appoint other persons as

Trustees in such a manner that the total number of Trustees does not exceed the approved

maximum number of Trustees.

The Managing Trustee shall have the power to remove a Trustee suffering from physical or

mental disability or if he is accused of misfeasance of trust funds or property or misconduct, after

satisfying himself on enquiry and such action of the Managing Trustee shall be final.

The proceedings of the Board of Trustees shall not in any way be invalidated due to any post or

posts remaining vacant. During the time when a vacancy is yet to be filled up, the remaining

Trustees shall act as “Full Board”, subject to the presence of Quorum in the meetings. Any

vacancy in the Board of Trustees or illegality in the appointment of Trustees or their proceedings

shall not invalidate any prior act or decision of the Board.

10. Administration of Trust and Power of Board

The Board of Trustees shall have power to:

a. To administer the Trust, its properties and affairs and do all the things which will

fulfill the performance of the objects for which the Trust is established and for

this purpose the Board can apply the whole or any part of the Trust property

towards the payment of the expenses of the Trust.

b. The income and the properties of the Trust will be solely utilized towards the

objects of the Trust and no portion of it will be utilized for payment to the Settlor

or Trustees or their relatives by way of salary, allowances, profit, interest,

dividend etc.

c. To open one or more bank accounts and operate the same or provide for operation

of the said accounts by any two among them authorized on their behalf.

d. To invest the Trust funds in the manner not prohibited by any provisions of the

Income Tax Act, 1961.

e. To buy, sell, mortgage, grant, lease, hire or otherwise alienate all or any of the

properties of the Trust in its discretion for adequate consideration. However any

sale or alienation of immovable properties of the trust can be done only after

obtaining the prior approval of the appropriate authorities.

f. To execute Power of Attorney or Powers of Attorney to any person for the

purpose of executing, administering or managing the whole or any part of the

Trust for the purpose of all or some objects of the Trust.

g. To borrow money with or without security and to repay the same.

h. To receive, collect and enforce recovery of all monies due or payable to the Trust

and grant receipts and discharges therefore.

i. To settle, compromise or compound any disputes or refer the same to arbitration

or litigation.

j. To receive voluntary contributions from any person or persons from India or

outside, after complying with the statutory formalities, by way of donation, gifts

or in any other manner and to hold the same upon Trust for the objects set forth

herein.

k. To appoint, suspend, dismiss or otherwise deal with the staff required for the

administration of the Trust, to frame rules relating to their salaries and other

benefits and generally to exercise all powers ancillary and incidental to effectively

carry out the objects of the Trust.

l. The Board shall have power to make and rescind rules and regulations for the

management and administration of the Trust.

m. No Trustee shall commit any act or breach of Trust of the Trust fund or property

or cause any loss to the Trust property or commit fraud in the administration of

the Trust fund / property.

n. The Trustees shall hold honorary office and shall not be entitled to any Salary,

allowances or perquisites, except for the reimbursement of actual expenses

incurred in connection with attending to the Trust matters.

o. The Board of Trustees will follow the instructions given by any donor who makes

substantial contribution towards furtherance of the objects of the Trust, so long as

such instructions are not detrimental to the attainment of the objects of the Trust

and are in conformity with the provisions of the Income-tax Act, 1961.

p. For the management and administration of the Trust, the Trustees shall elect one

amongst themselves for each of the offices of Vice President, Secretary and

Treasurer. The term of office for Vice President, Secretary and Treasurer shall be

for a period of one year from their date of appointment and they may be re-elected

for further terms. No Trustee including the Managing Trustee shall hold more

than one of the above offices at the same time. The persons holding these offices

of Vice President, Secretary and Treasurer shall be under the administrative

guidance and supervision of the Managing Trustee and will report to him directly.

11. Roles and Responsibilities

The Roles, Responsibilities and powers of all the officers are detailed below. In addition to these,

the Managing Trustee may grant additional roles, responsibilities and powers to any of the

Trustees.

a. Managing Trustee –

The Managing Trustee shall preside over the meeting of the Board of

Trustees. The Managing Trustee is authorized to sign all documents,

including bank documents, acknowledgements for the contributions received,

and agreements with individuals, Government Institutions and other

organizations, on behalf of the Board of Trustees. The Managing Trustee shall

have all the residuary powers, not explicitly assigned to any of the other

officers in these presents.

The Managing Trustee is authorized to sign along with the Treasurer, bank

cheques, deposit release vouchers etc. The Managing Trustee is empowered

to remove any Trustee from the Trust and its offices, if he finds that his/her

activities are not congenial to the activities of the Trust.

The Managing Trustee is responsible for ensuring that the Trust pursues its

Objects and for maintaining the dignity of the Trust organization and shall use

his influence to promote the activities of the Trust.

b. Vice President –

The Vice President shall discharge the duties of the Managing Trustee, in the

absence of the Managing Trustee of the Trust and shall have the power and

authority delegated and assigned to him/her by the Managing Trustee.

c. Secretary

The Secretary shall maintain the records of the trust, prepare and circulate

agenda for Board of Trustees’ meeting for the approval of the Managing

Trustee and also prepare the minutes of the Board meeting.

The Secretary shall be also responsible for the day to day administrative

activities of the Trust. The Secretary shall deal with correspondence received

by the Trust, send replies in consultation with the Managing Trustee, Vice

President and/or the Treasurer wherever necessary. He/she will be

responsible for the safe custody of all the properties and records of the Trust.

The Secretary shall represent the Trust in all legal matters, sign the papers

related to legal cases, attend to courts or represent the Trust in Government

offices.

d. Treasurer

The Treasurer will prepare Annual Budget, monthly and yearly expenditure

statements get the expenditure audited by auditor duly appointed by the Board

of Trustees and place them before the Board of Trustees for approval. The

Treasurer is responsible to maintain cash book and prepare vouchers for the

payments made, receive contributions, sign acknowledgements for the

amounts or articles received by the Trust and prepare monthly and yearly

statements of revenue and expenditure, as well as, the register of assets of the

Trust and place them before the Board of Trustees for their approval.

The Treasurer is authorized to sign bank cheques, application for drafts and

payment instructions jointly with the Managing Trustee and draw money from

the bank, upto the limits defined by the Board of Trustees in their meetings.

The Treasurer is responsible for safe custody of cash, bonds, securities etc. of

the Trust.

12. Meeting of the Board of Trustees

The Board of Trustees should meet atleast once in every calendar quarter and may meet more

often when required.

a. The meeting of Board of Trustees shall be convened by the Managing

Trustee and he shall preside over the meetings. In his absence, the

Managing Trustee may authorize the Vice President to be the Chairman of

such meetings. In the event the Managing Trustee or Vice President are

not able to attend the meeting already convened, any of the Trustees

present in the meeting may elect one amongst themselves to be the

Chairman of the meeting.

b. One half of the Board of Trustees or a minimum of two trustees,

whichever is higher, shall constitute the Quorum for the Board of Trustee

meetings.

c. All decisions shall be carried out by the majority decision of the Board but

in the event of equality of votes, the Chairman presiding over the meeting

shall have a casting vote.

d. Any resolution in writing signed by all the Trustees by circulation shall

have equal force as though it has been passed at a meeting of the Board of

Trustees.

e. The meeting of the Board shall be conveyed after giving at least a week’s

notice unless all the Trustees agree to accept a shorter notice.

f. The Board of Trustees may invite other persons interested in the objects

and functioning of the Trust to attend the meetings of the Board, but they

shall not be entitled to vote in the meetings of the Board.

13. Bank Account

All income, subscription and pecuniary donations for the general purposes of the Trust and the

income, investments and all other money from time to time forming part of the general revenue

of the Trust shall on the same being received be paid into a bank account with any scheduled

bank for the purpose of the Trust. The bank accounts shall be operated by the Managing Trustee

along with any one of the remaining Trustees. One or more Bank Accounts may be opened in

any Bank and/or Banks in the name of the Trust.

14. Accounts And Audit

The financial year of the Trust shall be from 1st April to 31st March of the following year, unless

otherwise decided by the Board of Trustees.

The Trustee shall maintain proper books of account of all the assets, liabilities and income and

expenditure of the Trust and shall prepare an Income and Expenditure Account and Balance

Sheet for every year as on the last day of March. The accounts of the Trust shall be annually

audited by a Chartered Accountant or a firm of Chartered Accountants who shall be appointed

for that purpose by the Trustees and the audited accounts shall be placed at a meeting of the

Trustees, which shall be held before the end of the succeeding year.

15. Irrevocable

This Trust is declared irrevocable.

16. Amendments

While this Trust shall be irrevocable, the Board of Trustees may amend any of the clauses except

those relating to objects of the Trust. The First Managing Trustee and First Trustees may do so,

at a duly convened meeting of the Board with at least two weeks’ notice, and by a resolution

passed by atleast three-fourth majority of the Board of Trustees present and voting. The

amendments to the Trust deed can only be passed by a resolution of the Board of Trustees in an

actual meeting and not by circulation.

If any alteration or amendment is necessary, the same shall be affected through supplementary

deed/deeds with the previous approval of the Commissioner of Income Tax and these shall be

read together with the main Trust deed.

17. Amalgamation

The trustees may amalgamate the Trust with another Charitable Trust or Institution having

similar objects with prior permission of the Charity Commissioner/Court/any other law as may

be applicable for the time being.

18. Settlor and their Relatives

Notwithstanding the powers vested with the Trustees, no part of the income of the Trust shall

benefit directly or indirectly the trustees and no part of the income of the property of the Trust

shall be used or applied directly or indirectly for the benefit of:

(a) SETTLOR, Managing Trustee, Trustees or any person who makes a substantial

contribution to the Trust or of any relative of the SETTLOR, Managing Trustee,

Trustees or the person who makes a substantial contribution.

(b) Any “related concern” in which any of the above persons has substantial interest.

(c) For the purpose of this clause, the word “relative” and the phrases “related concern”,

“substantial interest” and “substantial contribution” shall have the meanings assigned

to them in the Income Tax Act, 1961.

19. Applicability Of Trust Act

The provisions of the Indian Trust Act, 1882 (or any other applicable state specific trust Act)

shall apply to all matters not specifically mentioned in these presents.

20. Dissolution

In the event of dissolution or winding up of the Trust the assets remaining as on the date of

dissolution shall under no circumstances be distributed amongst the Trustees but the same shall

be transferred to some other similar Trust/Organisation whose objects are similar to those of this

Trust with the permission of the Charity Commissioner / Court / any other law as may be

applicable for the time being.

The Trustees shall be indemnified against all losses and liabilities incurred by them in the

execution of the Trust and shall have a lien over the funds and properties of the Trust for such

indemnity.

SCHEDULE

At present, the Trust has no property or assets, either movable or immovable, other than the

Trust Fund and the immovable properties, donated by the SETTLOR, as described in the

Schedule below:

1. Cash contribution to the Corpus Fund of the Trust of Rupees --------------- (Rupees ---

------------------------------------------------------------------------ only)

2. Properties of --------------------------------------------------------------------------

3. Assets of -----------------------------------------------------------------------------

IN WITNESS WHEREOF, The Parties hereunto have signed and delivered the presents on the

day and year first hereinabove written.

SETTLOR

WITNESS: 

1. TRUSTEE ____________ 2. TRUSTEE ____________ 3. TRUSTEE ____________

DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.

THE AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.