Once you have successfully registered your NGO as a Public Charitable Trust, you’ve taken a significant step towards realizing your philanthropic vision. However, the registration is just the beginning of your journey. To transform your noble intentions into meaningful actions and positive impacts, it becomes imperative to establish a well-defined plan and organizational structure before commencing any activities.
Creating a strategic roadmap and a robust framework is essential for several reasons. First and foremost, it provides clarity and direction to your NGO’s mission, ensuring that your efforts are aligned with your intended goals. A clear plan also helps in efficiently utilizing resources, both human and financial, maximizing your NGO’s potential to make a difference.
What is a Public Charitable Trust?
Public Charitable Trusts are organizations established to engage in endeavors, such as initiatives, religious practices, educational pursuits, literary contributions or any other activities aimed at benefiting the general public. These trusts are governed by the Trusts Act of the state in which they are officially registered. The registration of an NGO as a public charitable trust involves a crucial step of adhering to this act.
Public Charitable Trusts aim to contribute to society and operate under the guidelines specified by the Trusts Act and trust registration in their Indian states. The beneficiaries of these trusts are generally members of the specific groups, rather than the trustees or founders themselves.
What are Resolutions?
Resolutions are papers that document choices or steps made by an organization, group, or governing body. When it comes to profit organizations they can encompass decisions regarding the registration of NGO as a public charitable trust. This registration process is vital in establishing the organization’s philanthropic endeavors.
Resolutions serve several important functions:
Record-Keeping:
Resolutions provide a written record of important decisions or actions taken during meetings or discussions. This documentation is essential for maintaining transparency, accountability, and legal compliance.
Decision-Making:
Resolutions help formalize decisions made by a governing body or assembly. Typically these proposals are put forward in meetings where they are discussed and voted on. Once they receive approval they hold authority within the organization.
Authorization:
Resolutions have the power to grant authorization, for activities including entering into contracts making investments, hiring employees or implementing new policies and procedures. They provide clarity, on the individuals or entities entrusted with the authority to carry out these actions on behalf of the organization.
Policy Changes:
Organizations can use resolutions to amend their bylaws, articles of incorporation, or other governing documents. These resolutions are essential for making changes to the organization’s structure or rules.
Accountability:
Resolutions hold individuals or groups accountable for their decisions and actions. They serve as explicit documents that specify the responsible parties and outline the necessary steps or conditions required for implementation. When it comes to profit organizations resolutions can encompass various subjects. This includes making decisions about registration of NGO as a public charitable trust, which is an important process in establishing its charitable and philanthropic endeavors.
Communication:
Resolutions play a vital role in communicating decisions and actions to stakeholders, members, employees, and the public. They serve as formal documents that ensure everyone is aware of the organization’s official stance or course of action on specific matters. This transparency and clarity are particularly important in the context of non-profit organizations, where resolutions can encompass a wide range of topics, including significant decisions like the registration of NGO as a public charitable trust, which have a direct impact on the organization’s mission and objectives.
Legal Compliance:
Some decisions, especially those related to legal matters, financial transactions, or contracts, may require formal resolutions, such as when the NGO as a public charitable trust is changed and registered, to meet legal requirements and protect the organization’s interests. Resolutions serve as legally binding documents that provide clarity and evidence of the organization’s commitment and decision-making process in these critical areas. This level of formality and documentation is essential to ensure compliance with relevant laws and regulations, mitigate potential risks, and maintain transparency and accountability.
After Registering an NGO as a Public Charitable Trust
Here are some of the key resolutions that need to be passed after registering the NGO as a Public Charitable Trust:
Resolution regarding the Board members/Governing Council or Trustees:
- Determine the composition of the board or governing council.
- Specify the terms of office for trustees or board members.
- Define the process for adding, removing, or replacing trustees.
- Establish the frequency and format of board meetings.
Resolution regarding the Executive Committee:
- Appoint or elect members to the executive committee.
- Clearly outline the roles and responsibilities of executive committee members.
- Specify the duration of their terms.
Resolution to decide certain executive bodies or members for the long term:
- Determine if certain members or bodies, such as patronizing councils or managing trustees, will have long-term positions.
- Define their roles, responsibilities, and terms of service.
Resolution to open new branches or offices:
- Authorize the establishment of new branches or offices in specific locations.
- Outline the responsibilities and procedures for managing these branches.
Resolution to form any subcommittee or forum:
- Create subcommittees or forums to address specific areas of focus or regional needs.
- Specify the objectives, composition, and reporting structure of these groups.
Resolution to associate with other Trusts/organizations:
- Authorize collaborations, partnerships, or affiliations with other charitable trusts or organizations.
- Define the purposes and terms of these partnerships.
Resolution to conserve minutes of each meeting:
- Establish a formal process for recording and preserving minutes of all meetings.
- Ensure that minutes accurately reflect the decisions made by the Trust.
Resolution to prepare a legal seal and stamp of the Trust:
- Authorize the creation of an official legal seal and stamp for the Trust.
- Specify its design and authorized users.
Resolution to obtain a PAN Card in the Trust’s name:
- Apply for a Permanent Account Number (PAN) card in the name of the Trust, which may be required for taxation purposes.
Resolution to open a bank account:
- Authorize the opening of a bank account in the name of the Trust.
- Specify who is authorized to operate the account and provide their signatures.
- Clarify the banking procedures and account details.
Resolution to make any change in the Trust Deed:
- If changes are needed in the Trust Deed, pass a resolution to create a new Trust Deed, signed by all members, and register it with the relevant authorities.
The Bottom Line
In conclusion, the registration of NGO as a Public Charitable Trust is just the first step in a meaningful journey. The resolutions outlined here are crucial for effective governance and operations. It’s important to keep in mind that being adaptable, working together and having a dedication to your NGOs mission are factors for achieving success. By staying focused on your objectives and ensuring transparency and accountability you can create a long lasting positive effect on the communities you serve.
