Every legal entity (Society or Trust) is established by its promoters to carry out certain set aims, goals or objectives. The promoters have in mind a certain purpose to be achieved and this purpose is called as the objective/s of the entity. The purpose or objective is the reason for bringing the entity into existence. The object clause is very important and constitutes the heart of the constitution (memorandum of association or trust deed) of the entity.
Charitable & Religious Purposes
The Societies Registration Act 1860 was promulgated with an intention to enable members of the public to carry on literary, scientific and charitable activities by registering themselves into a Society. These activities included the promotion of literature, science, fine arts, diffusion of useful knowledge (including political education), charitable and religious purposes. The “charitable purposes” were: relief of poverty, education and other purposes beneficial to the community. “Religious purpose” covered the advancement of religion (Hindu Public v. Rajdhani Puja Samithee AIR 1999 Supreme Court 964). Accordingly, a society can be registered for carrying on any or all of the following objectives: military orphan fund; promotion of science, literature, fine arts; diffusion of useful knowledge; foundation and/or maintenance of public libraries or reading-rooms, public museums and galleries of paintings and art; collection of natural history, mechanical and philosophical inventions, instruments, or designs. These objects or purposes mentioned above are only illustrative and not exhaustive.
“Charitable”: Meaning and Seven Areas
The word, “charitable” has been widely defined, and is understood in many ways. The Gospel or Christian understanding of charity is very broad and captured in the all-embracing statements, such as, “love for neighbour” and “whatever you do to the least of my brothers / sisters you do it unto me.” The Supreme Court (in the case Lokashikshna Trusts Vs CIT) stated “Charity denotes altruistic thoughts and actions with the object of benefitting others, without benefitting oneself.” Further, various laws and courts in India have, from time to time, clarified the understanding of charity through the legal framework and decisions. Hence the legal understanding of the concept of charity is different from a personal or religious understanding. The legal definitions and decisions and not my personal or religious understanding will be the final word on charity, and this will be applicable to a Society or Trust.
Fr Trevor D’Souza OFM
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