What is a charitable purpose under which you can register a Charitable NGO ?
a) relief to the poor
b) education
c) medical relief, and
d) any other object of general public utility.
ngo charity india
The ‘raising of moral, intellectual, economic and social and political conditions of people’ is a charitable purpose being the advancement of an object of general public utility.
Relief to the poor: It is not essential that to be considered charitable, the service should be provided free or for less than the cost. An eleemosynary element is not essential nor is it necessary that the benefit be confined to the poor at the entire exclusion of the rich. [Goodman v. Mayor of Salfash (1889) 7 AC 633].
Education: But coaching classes run on pure commercial principle would not qualify for exemption as educational institution as they are not for a charitable purpose. (Bihar Institute of Mining and Mine Surveying v. CIT, 208 ITR 608 (Pat).
Medical Relief: Medical relief by way of establishing & running hospital or other medical institutions is a charitable purpose. On the same lines as ‘relief of the poor’, ‘medical relief’ also does not necessarily mean only the provision of free treatment or treatment on a concessional basis. A hospital or other medical institution may be considered as established for charitable purposes if, in order to provide itself with revenue for its maintenance, it runs special wards for the patients who pay the full price, over and above the voluntary donations and subscriptions it receives. [IRCv. Peebleshire 11 TC 335, 350]
Charitable purposes can be classified under four heads-
a) relief to the poor
b) education
c) medical relief, and
d) any other object of general public utility.
ngo charity india
The ‘raising of moral, intellectual, economic and social and political conditions of people’ is a charitable purpose being the advancement of an object of general public utility.
Relief to the poor: It is not essential that to be considered charitable, the service should be provided free or for less than the cost. An eleemosynary element is not essential nor is it necessary that the benefit be confined to the poor at the entire exclusion of the rich. [Goodman v. Mayor of Salfash (1889) 7 AC 633].
Education: But coaching classes run on pure commercial principle would not qualify for exemption as educational institution as they are not for a charitable purpose. (Bihar Institute of Mining and Mine Surveying v. CIT, 208 ITR 608 (Pat).
Medical Relief: Medical relief by way of establishing & running hospital or other medical institutions is a charitable purpose. On the same lines as ‘relief of the poor’, ‘medical relief’ also does not necessarily mean only the provision of free treatment or treatment on a concessional basis. A hospital or other medical institution may be considered as established for charitable purposes if, in order to provide itself with revenue for its maintenance, it runs special wards for the patients who pay the full price, over and above the voluntary donations and subscriptions it receives. [IRCv. Peebleshire 11 TC 335, 350]
Related listings
-
General Public Utility Meaning and DefinationGeneral Public Utility DefinitionIn order to make a purpose charitable it is not necessary that is should be beneficial to the poor only. What is required is benefit to a section of the public as distinguished from specified individuals. An object of... -
Amendment in the Definition of Charitable purposeAn amendment has been made in section 2 (15) by the Finance Act, 2008 with effect from 01.04.2009 that advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the ... -
Central & State Laws applicable to NGO’s in IndiaWho Can Form an NGO in India ?Any person competent to contract, be an individual, a body of individuals or an artificial person such as an association of persons, an institution, a limited company, a Hindu undivided family through its karta, can form... -
NGO Registration and Formation in India1. FORMS OF ORGANISATIONA non governmental organization (NGO) may be formed and registered as-i. Trust: As a public charitable trust. A public trust, whether relating to movable or immovable property, may be created by mere delivery of possession wit... -
NGO Trust Formation in India 2014What is a Trust ?A trust is a convenient method whereby a limited number of persons may hold property on behalf of other persons, who may be a large or fluctuating body or who may include persons not yet born. Once the property has been vested in the... -
Trust Deed Format India Sample 2014A trust may be created by any language sufficient to show the intention and no technical words are necessary.sample deed ngo trust 2014A trust-deed, generally, incorporates the following:i. the name (s) of the author(s)/settler(s) of the trust;ii. th...
Feedback / Rewiews
Leave your comment (spam and offensive messages will be removed)