Re: NITK Alumni TRUST formation

[Shashi Alabur]

Hi everyone,

I seem to have missed out on the earlier threads in this discussion, but, anyway, here is what I personally feel on the issue of the NITK TRUST :

The first part - IT Benefits :

It looks like the primary reason for even thinking about converting the NITK Alumni Association into a Trust is to take advantage of the Income Tax exemptions available to Trusts.

However, the reality is that the benefit of IT Exemption being accorded to donations made to a Trust have been made very stringent of late and the chances of this benefit being extended to the NITK Alumni trust is extremely low. Every donation-to and distribution-from the Trust are examined very thoroughly by the IT Dept. I don't think that a Trust will be allowed to open multiple subsidiary Chapter Accounts which can be operated independently by the local chapters.

I am a Trustee in one of the Trusts formed by my School Alumni Association and hence I am aware of the limitations of a Trust and also the guidelines for the expenses made out of the funds in the Trust account. we have been told that there is no chance of getting the IT Exemption benefit for this trust !

The NITK Alumni trust, if it is formed, simply cannot undertake to meet the expenses of Global or Local Alumni meets from the funds in the Trust account. Every expense, if it is to be even considered for IT exemption, MUST be of a charitable nature to unrelated parties.

On the second part, if the Trust is formed as per the draft of the Deed circulated in the email, then the Alumni will have no say in the distribution of the trust's funds as the Director of the NITK is the supreme authority in deciding the merits of the funds' disbursements. I don't think this would be a welcome development or change ?

If instead, the conduct & administration of the various Chapters of the NITK Alumni are streamlined and a proper direction given to their activities, I am sure we all can achieve much more valuable outcomes worthy of the Alumni Association of a premier Institute like NITK !

Regards

Shashidhar Alabur

Treasurer - Bangalore Chapter

NITK Alumni Association

+91-9844004439

1977 E&C

On Tue, Feb 24, 2015 at 10:17 AM, Vijay <vijay...@gmail.com> wrote:

I agree with BV Rao's comments on formation of Trust in case that is needed . 

I just made a survey of 5 Alumni Associations 3 are Society , 1 Trust, 1 Company .see attachment

 

Also what is the need for any change from existing setup of association ? I do not see

BR/Vijay

On Mon, Feb 23, 2015 at 10:14 AM, harsha kestur <harsha...@gmail.com> wrote:

we can review after budget on tax implications for trust & society.

usually most of the trade associations are under society and educational bodies are under trust.

getting amendments to trust at later date will be difficult, hence during formation itself it should cover all aspects broadly.   

warm regards
Prof. Harsha Kestur

Director, RIMSR, EFS Academy.

dire...@rimsr.in 9845030683 www.rimsr.in, www.edufinserve.in  

Preparing Managers for Success in A Changing World.

Train and Certify one million students,professionals in IT/Soft Skills 

On Mon, Feb 23, 2015 at 9:43 AM, Rao B V <bvr...@gmail.com> wrote:

Dear All

I feel that trust is alright but we need to add clauses in trust deed to provide for-

1. President, Secretary and treasurer shall retire after three (or may be five) years and shall not be eligible for re-election. (to ensure that system will remain transparent and vested interests do not take over). 

2. Trustees should be of minimum 50 years age. (to ensure maturity in decisions). 

3. Trustees shall retire at the age of 65. (to ensure new blood) 

3. All meetings by skype/hangout shall be valid. The M.O.M. shall be recorded and circulated by emails for acceptance.

4. Trustees shall be elected by Alumni members present at the college only. (to ensure that they will be active.).

5. Presidents of chapters shall be trustees and can participate in meetings by emails. 

Most of the above  clauses can be provided in society also. Big draw back of society is the interference by state govt.

For model trust laws pl see www.bvpindia.com. It is functioning since last 52 years.

thanks

b v rao

On Sat, Feb 21, 2015 at 4:38 PM, A S Karanth <aska...@gmail.com> wrote:

Dear Mr Udupa, 

Ref our chat, yesterday, you mentioned , you had not received the first mail, so other response mails of ours, as you see below.

I am not sure why this is so.

I see Mr Krishna Murthy is in the loop and he could have shared with all Bangalore chapter people. 

I am resending the same. 

If you think some more people are missed out from the e mail ids to whom this have been sent need to be sent, kindly do do.

This is an interesting subject, all need to participate & we need to give an answer as early as possible.

As said in the mail, Mr Goapla is looking for the response, so that he can take forward to process the registration of the same. 

 

Pl ack me. 

Look forward to hear from you. 

Thanks Karanth 

  

 

---------- Forwarded message ----------
From: A S Karanth <aska...@gmail.com>
Date: 19 February 2015 at 05:21
Subject: Re: Draft trust deed: Feedback
To: Balakrishna Salehittal <bsale...@gmail.com>
Cc: Shrinath Kulkarni <kulu_te...@hotmail.com>, bhupal gopala <bhupal...@yahoo.co.in>, "ajay....@quest-global.com" <ajay....@quest-global.com>, "amba_...@yahoo.co.in" <amba_...@yahoo.co.in>, "Aravind....@quest-global.com" <aravind....@quest-global.com>, Ashok Shetty <autofor...@yahoo.com>, "asho...@yahoo.com" <asho...@yahoo.com>, "ba...@unish.com" <ba...@unish.com>, "ben...@gmail.com" <ben...@gmail.com>, Bevin Mathew <bevin...@gmail.com>, "chittiba...@yahoo.com" <chittiba...@yahoo.com>, "drpre...@yahoo.com" <drpre...@yahoo.com>, "feka...@riesethiopia.com" <feka...@riesethiopia.com>, "fir...@totemint.com" <fir...@totemint.com>, gopal mugeraya <gopalm...@yahoo.com>, Registrar Govindraj <govind...@yahoo.co.in>, "jrp...@gmail.com" <jrp...@gmail.com>, KNBhat <kanb...@yahoo.com>, "krishna...@gmail.com" <krishna...@gmail.com>, KT SHEKAR <kt...@hotmail.com>, "ku...@briotree.com" <ku...@briotree.com>, "lawr...@stanfab.com" <lawr...@stanfab.com>, nageswar hegde <ud...@hotelswadesh.com>, NITK Alumni Association <nitka...@gmail.com>, Prathima Mia Rodrigues <prathima....@gmail.com>, Rahm Shastry <rahm.s...@gmail.com>, ram bhandari belgaum chapter <rambh...@akpfoundries.com>, "ramadas...@gmail.com" <ramadas...@gmail.com>, Ranjit <ranji...@yahoo.com>, "rohin...@gmail.com" <rohin...@gmail.com>, "s.bi...@live.in" <s.bi...@live.in>, saidutta maloor <saidu...@gmail.com>, "sdheg...@gmail.com" <sdheg...@gmail.com>, SG MAYA <sgm...@yahoo.co.in>, shenoy pune chapter <vima_...@yahoo.com>, srikanth rao professor <ssr...@gmail.com>, "suresh...@gmail.com" <suresh...@gmail.com>, Vijay Desai <vijayh...@gmail.com>, vittal das prabhu <prabhuv...@yahoo.com>, Yajna Kammaje <yajna....@gmail.com>, yeswanth hemraj from USA <yashw...@gmail.com>, "innac...@gmail.com" <innac...@gmail.com>, Kirtiraj Salian <saliank...@yahoo.co.in>, "vije...@gmail.com" <vije...@gmail.com>

Dear All,

I am glad the debate has started.

People have given time to review and make comment / their opinion.

I wish this continues.

I saw Gopala had asked us giving 20 days time to return.

He also had posted just before the Mumbai meeting , referring this is what is available in IIMs and also mentioned IIT Mumbai is going for the same. 

I have my opinion.Partly I expressed a bit in Mumbai meeting(AGM?) . I really appreciate the work done by Kulu.  

Just like Mr Kulkarni started doing a bit of research, on merits and demerits of this proposal, Alumni should present all facts and figures and sell this major change of  operating system.

Only reason of people who are very serious to give large funds (as might have heard from US ) and get the tax advantage can not be major criteria for a change, that too so fast. (planning to register the trust in the coming weeks etc.) 

The institution has been built over years and the operating practice (Society structure method) , whatever may be the result in this method, we need to ponder over deeply before we decide and act. 

I even suggest adding to circulate to few members in the e mail process, this subject with all the input both pros and cons for the change need to be highlighted to all the chapters, incl Dubai and USA, request for the chapters to have this subject as one of the agenda in their forthcoming  meetings , get the inputs slowly, apart from exchanging more thoughts from many members. 

Many people might not have had the opportunity even to study both the systems - Society & Trust. These points need to be prepared by professionals even at cost to Alumni and share for debate by all.

Let this momentum carry on until we meet in Global convention and we take the decision as what is appropriate. After current democratic system running shall have the privilege of carrying out this process and succeed. 

Let us also look at some of the trusts currently  running in College already and what is its score and satisfaction levels to members, not to the committee. I am sure Institution members shall be able to comment on their experience.  We add to our review and take everything forward.              

Such a proposal - let this be tossed to all the members who can be accessed by e mail and through Chapters mailers. 

let us say Bangalore Chapters also circulate --- 

of course after getting the right package: (and not limited to Trust draft.) for people to express their willingness to go which way?  

• Experts opinion
  
• Merits & demerits
• Detailed purpose for the change today other than Tax angle etc.

Look forward for more and more participation 

    

Karanth 

1970 Ele. 

 

On 18 February 2015 at 18:30, Balakrishna Salehittal <bsale...@gmail.com> wrote:

For our activities society is better in my opinion. if you make Trust it will be private body and not flexible like society. please take advise from experts who are running similar Alumina activities .

B S Salehittal

On Wed, Feb 18, 2015 at 2:41 PM, Shrinath Kulkarni <kulu_te...@hotmail.com> wrote:

Hi Gopala,

Thanks for sharing. Since this is a subject that is beyond my expertise, I did check with few people. I would like to understand if there is a clear understanding of the various options that we have.  What are the merits & demerits of these options.

Given below are some immediate high-level differences between Trust & Society. Both have tax-leverage. Trust does offer certain advantages. 

However, I am leaning towards Society, rather than a trust. Mainly because it encourages a democratic system for nature of control. Given the level of the corpus, I am uncomfortable with the nature of control in a Trust. I will be happy to change my mind - if - I find reasonable level of control in management of the corpus. 

Also attaching another document for ready reference for all. 

Basis of Difference	Trust	Society
Statute/Legislation	Private trusts are governed by Indian Trust Act, 1882. Public charitable trusts do not have a national level governing law.	Societies Registration Act, 1860
Minimum number of members	Two	Seven
Geographical area of activities	All India (no need to mention this in the Trust Deed)	A separate registration for All India level is required (8 members from different states required)
Nature of control	One man control, i.e. Settler	Democratic system. Decisions are made by voting.
Amendments	Can easily be done via a supplementary trust deed	Relatively more difficult. Both Memorandum of Association and Rules and Regulations need to be changed
Names	Easily available	A bit difficult to get the desired name
Bank a/c operation	Controlled by one person, Settler	Two persons, either President or Secretary and Treasurer
Office holders’ tenure	Trustees generally hold office for the whole life	Members hold office for a period of time and may stand for re-election
Winding-up	Trust is generally irrevocable, Can not be wound-up.	Can be wound up if 3/5th of the members so desire
Family members	Can become trustees	Registrar objects on family members becoming part of the Governing Body
Governed by	Board of Trustees	Governing Body
Main documents	Trust Deed	Memorandum Of Association Rules and Regulation
Objectives	Can be general	Have to be specific

Best Regards

Kulu

---

Date: Wed, 4 Feb 2015 05:45:09 +0000
From: bhupal...@yahoo.co.in

Subject: draft trust deed is enclosed. pl go through and send offer within 20 days from this date of e mail. otherwise i take from the members it is ok pl

dear friends

it is proposed to convert our alumni association to trust to get income tax benefit and it is understood from various sources it is advantages to have trust rather than alumni association. i request you to go through and offer your advice and suggestion and further i request to complete this process within 20 days from today, so that it can be registered

 with warm regards

B GOPALA
PRESIDENT GOVERNING COUNCIL OF NITK ALUMNI ASSOCIATION
SURATHKAL

MY ADDRESS
HYDERABAD
09440054603
www.karthikgroup.com

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Thanks & Best Regards
V Udupa

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9844004439
1977 E&C