Charitable Trustone Margdarshan

The Jain text "Charitable Trustone Margdarshan" (Guidance for Charitable Trusts), published by Padarth Darshan Trust, serves as a comprehensive guide for managing charitable and religious trusts, particularly within the Jain community and in Gujarat. The book, authored by Noutambhai R. Vakil (CA) and Divyakantbhai K. Parikh (CA) and supported by the Jain Sansthan - Gujarat and Shri Jain Chartered Accountant Federation, addresses the increasing complexity of laws governing trusts in contemporary times.

Key Objectives and Content:

• Addressing Challenges: The book acknowledges the growing number of trusts, the increasing complexity of relevant laws, and the challenges faced by trustees, such as a lack of time and specialized knowledge. It aims to provide simple and clear guidance on trust administration.
• Legal Compliance: It delves into the legal framework governing trusts, including the Bombay Public Trusts Act, 1950, and the Indian Trusts Act, as well as pertinent provisions of the Income Tax Act, 1961.
• Financial Management: The text emphasizes the importance of meticulous record-keeping, adherence to accounting principles, and timely audits. It provides detailed information on:
  • Trust Registration: Steps for registering a trust with the Charity Commissioner and obtaining Income Tax registration (under Section 12A/12AA).
  • Income Tax Exemptions: Explaining provisions for tax exemptions under Sections 80G and 35AC, and the crucial distinctions between "charitable" and "religious" trusts in the context of tax benefits.
  • Utilizing Funds: Guidance on how to utilize trust funds for their intended purposes and the rules regarding the accumulation of income for future projects (up to 5 years).
  • Investment Guidelines: Detailing approved investment avenues for trust funds, adhering to legal provisions.
  • Auditing Procedures: Outlining the process of auditing trust accounts, the documents required, and the auditor's responsibilities.
  • Specific Accounts: Discussing the importance of maintaining separate accounts for various religious activities (e.g., dev-dravya, jnan, sadhu-sadhvi accounts) and adhering to their designated uses.
• Trustee Responsibilities: The book clearly defines the duties, powers, and restrictions of trustees, including the prudent management of trust property, avoiding conflicts of interest, and acting in the best interest of the trust.
• Organizational Structure: It introduces the concept of "Jain Sansthan - Gujarat" as a central body to organize and guide various Jain organizations and professional federations (like the Jain Chartered Accountant Federation) to promote societal welfare and uphold Jain principles.
• Jain Philosophy and Practice: The text subtly integrates Jain principles like Ahimsa (non-violence), Tyag (renunciation), love, and tolerance into the context of charitable work, emphasizing the spiritual merit of managing trusts with righteous intent.
• Practical Guidance: It offers practical advice on day-to-day trust operations, including the formation of trust deeds, maintenance of records, and the process of obtaining necessary approvals for property transactions.
• Forms and Appendices: The book includes formats for various applications, audit reports, and financial statements (like Statement A, Form 10G, etc.), providing practical templates for trustees.

Overall Purpose:

"Charitable Trustone Margdarshan" aims to empower trustees and administrators of Jain charitable and religious trusts by providing them with the necessary knowledge to manage their organizations legally, ethically, and effectively, ensuring the proper utilization of funds for the betterment of society and the continuation of Jain principles and traditions. It bridges the gap between religious commitments and the legal and financial requirements of running charitable entities.