Club Resources for Projects and Meetings
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Contents |
Project Ideas
Water Management
* Providing water treatment equipment for pure drinking water to schools, old age homes, villages * Rain water harvesting by building Kharif bandharas
Environment
* Effective tree plantation on big scale with participation of several clubs with emphasis on high survival rate * Disposal of bio degradable waste for communities, societies, households etc. * Promotion of Use of paper bags as a substitute for paper bags * Identifying and imparting training to needy persons in making of paper bags
Undertake Projects for creating awareness in society regarding
* Global warming, climate change and preserving planet earth * Pollution control – eco-friendly festivals * Traffic awareness initiatives and observing traffic rules * Use of non conventional energy * Use of CFL bulbs * Disposal of eWaste
Major Contribution by: Rtn.Ujwal Marathe & Rtn. Ali Asgar
Weekly Meetings
Recommended Topics
Protocols
Rotary Club Trust
Need for formation of a trust
Every Club is undertaking projects in community and vocational service. These projects are mainly for the purpose of medical relief, education and uplifting poor. All these projects are mainly in the nature of Charitable Activity. A club uses internal and external resources to undertake such projects.
As per Income Tax Act, a club is an Association of Persons and the income of the club is not taxable, if the funds are received from its members only. If funds are collected from outsiders then that income becomes taxable. However a club is required to mobilize funds from outsiders to undertake various projects. This objective can be achieved by way of formation of Charitable Trust, whose income is exempt from tax.
A club can collect donations from its members and/or outsiders for achieving the object of Community and Vocational Service. The donors to the Charitable Trust can claim deduction u/s 80G of the Income Tax Act. In short the Charitable Trust is a legal vehicle of a club that is used to execute service projects. Every club must form a Charitable Trust to enable fund raising from the members as well as the non-members.
Steps for formation of Trust
The board of directors of the club must pass a resolution to create a Trust. Decide the name of “the Settler” and the First Trustees of the Trust. Prepare Trust Deed. Special attention should be provided when drafting the Object clause and appointment of the Trustees every year. You may find a trust deed of an existing trust of a Rotary club useful while preparing this document for your proposed trust. Execute the Trust Deed. Complete the Form contained in Schedule II (Vide Rule 6)and submit the Schedule II to Charity Commissioner along with all the relevant documents within 3 months of creation of the trust. It is advisable to engage services of a lawyer to prepare the deed, to make an application to the Charity Commissioner and to get the registration completed, since this is a judicial process. Upon registration the Charity Commissioner issues “Registration Certificate” in the name of the Trust.
Registration with Income Tax
Prepare application as required by the Income Tax Act. Attach required documents and submit it to the Commissioner of Income Tax. The Commissioner of Income Tax will register the Trust and issue certificate of registration under income Tax Act. This certificate is mandatory to avail exemption of income from payment of Income Tax. Now you should apply for registration u/s 80G of the Income Tax Act. Both these registrations are of highly technical in nature. Therefore it is recommended that the services of a Chartered Accountant be availed to complete this procedure.
Governing a trust
Requirements under Bombay Charitable Trust Act, 1950 - The trustees must maintain books of accounts, prepare Income and Expenditure and Balance Sheet every year (year ending on March 31), get the accounts audited, maintain Register of movable and immovable property, intimate and obtain permission from Charity Commissioner for purchase, sale and mortgage of immovable property, spend funds only on the objects of the Trust, invest the funds with institutions approved by the BPT Act, file budget with the Charity Commissioner, intimate the changes in the Trustees to the Charity Commissioner, file audited accounts with Charity Commissioner together with contributions, issue receipt for every donation received either in cash or kind, hold at least two meetings of the Trustees in a year, maintain a book noting minutes of the trust meeting.
Requirements under Income Tax Act - The trustees must issue receipts to the donors bearing 80G ref No and date of Order, obtain name, address and PAN No. of the donor if the donation is in excess of Rs. 500, obtain Audit report required under Income Tax Act, prepare and file Return of Income together with audited accounts every year on or before due date, apply for renewal for 80G certificate before the expiry of the earlier certificate, spend 85% of the income every year, retain Books of Accounts for last 8 years.
Requirement under Foreign Contribution Regulation Act - The knowledge of this Act has become necessary as all the donations received from The Rotary Foundation for the Matching Grant and 3H Projects will be covered from the year 2009-2010. As per this Act a charitable trust has to take prior permission for receiving any donation from overseas donors directly or indirectly. The permission under this Act is given by the Home Ministry. This permission can be for specific project or a trust can obtain a general permission. The process for obtaining permission is very elaborate and time consuming. The expert advice is necessary for obtaining this permission. The offenses under this Act are of cognizable nature, therefore a strict compliance with the Act is very necessary. A club receiving grants under Matching Grant, 3H or WCS must be registered under FCRA.
Major Contribution by: Rtn. PP Vasudeo Yadwad
