Private Trust vs NGO#
Comparison#
| Feature | Private Trust | NGO |
|---|---|---|
| Registration | Trust Act | Societies/Section 8 |
| Tax Exemption | UnderTrusts Act | 12A, 80G |
| Compliance | Minimal | Higher |
| Donor Benefit | Limited | Full (80G) |
When to Choose Trust#
- Family charity
- Limited operations
- Privacy preferred
When to Choose NGO#
- Public donations
- CSR funds
- Government grants
- Larger scale operations
Tax Benefits#
NGO (12A + 80G)#
- Full income exemption
- Donor deduction 50%/100%
- Foreign funds (FCRA)
Private Trust#
- Beneficiary deductions limit
- No 80G benefit
- Limited foreign funds