Trusts under Trusts Act 1882

Many non-profit organisations prefer to establish a trust under the Trusts Act, 1882 because it affords relatively greater flexibility in terms of registration and management and there are fewer regulatory requirements.

Generally an organization creates a trust through a trust deed.

A trust may be created for any lawful purpose which is not prohibited by law or does not defeat the provision of any law or is not fraudulent or does not injure any person or property of another person or is not considered by any court as immoral or opposed to public policy (S.4 of the Trusts Act, 1882).

A trustee is bound to keep clear and accurate accounts of the trust-property, and at all reasonable times, at the request of the beneficiary, to furnish him with full and accurate information as to the amount and state of the trust-property (S.19 of the Trusts Act, 1882).

Trusts may have shareholding in for profit companies.