Difference Between Trust and Society

Basis of
Trust Society
Difference
Private trusts are governed by
Indian Trust Act, 1882. Public
Statute/Legislation Societies Registration Act, 1860
charitable trusts do not have a
national level governing law.
Minimum number of
Two Seven
members
A separate registration for All
Geographical area All India (no need to mention India level is required (8
of activities this in the Trust Deed) members from different states
required)
Democratic system. Decisions
Nature of control One man control, i.e. Settler are made by voting. Power
struggle may ensue.
Relatively more difficult. Both
Can easily be done via a Memorandum of Association
Amendments
supplementary trust deed and Rules and Regulations
need to be changed
A bit difficult to get the desired
Names Easily available
name
Controlled by one Two persons, either President
Bank a/c operation
person, Settler or Secretary and Treasurer
Members hold office for a period
Office holders’ Trustees generally hold office
of time and may stand for re-
tenure for the whole life
election
Trust is generally irrevocable, Can be wound up if 3/5th of the
Winding-up
Can not be wound-up. members so desire
Registrar objects on family
Family members Can become trustees members becoming part of the
Governing Body
Governed by Board of Trustees Governing Body
1. Memorandum Of
Main documents 1. Trust Deed Association
2. Rules and Regulation
Objectives Can be general Have to be specific