Advancing humanitarian, religious, educational, and social welfare objectives depends on trusts and trust management. In law, a trust is a relationship whereby a settlor puts assets or property under the direction of trustees who administer for the benefit of beneficiaries or the public good. Good trust governance guarantees openness and accountability as well as proper fund utilisation towards the achievement of the trust’s objective. It includes ethical decision-making, financial control, compliance with legal requirements, and formalised governance. Well-run trusts have public trust, can survive over the long run, and significantly help to advance community welfare and societal growth.
Who is The President of a Trust?
The President of a trust is the ultimate executive authority who ensures that the organisation runs with ease, morality, and in conformance with its foundational purposes. Although the duties and responsibilities vary with the deed of trust, law, and other regulations governing them, generally, the President takes up the leadership role as the first decision-maker and representative of the trust.
The President usually heads the Board of Trustees and is primarily responsible for the general management of the trust. Usually, under the trust deed, he is appointed or chosen. The President creates the vision of the trust, supervises governance activities, and sees to it that all legal and financial commitments are met. Consequently, his function encompasses strategic as well as administrative elements, guiding the trust towards the attainment of its religious, social, educational, or humanitarian goals.
Role and Responsibilities
1. Leadership and Administration
- Leads the Board of Trustees and guarantees that judgments reached fit the trust’s objectives.
- Ensures the committees, meetings, and internal procedures run as intended.
2. Administration & Management
- Oversees everyday operations and guarantees that the trust events are expertly handled.
- Collaborates with beneficiaries, staff, volunteers, and trustees.
- Carries out board-approved policies.
3. Legal and Regulatory Compliance
- Guarantees that the trust follows pertinent legislation, including the Indian Trusts Act and State Trusts Laws, together with the Income Tax Act, 1961.
- Manages legal documents, registration, renewal, and audit filings.
- Guarantees the authorised application of trust assets and money only.
4. Financial Control
- Among other financial activities, financial control oversees budgeting, spending, and allocation of funding.
- Approves audit results and financial reports; ensures suitable accountability and transparency in the management of gifts and contributions.
5. Representation and Public Engagement
- Functions as the trust’s official spokesperson and representative.
- Forms relationships with recipients, government agencies, funders, and other groups.
- Enhances public perception of the initiatives of the trust by raising awareness and visibility.
6. Decision Making
- Addresses problems inside the trust and encourages good internal communication via conflict resolution and decision-making.
- Helps with decision-making procedures and consensus-building.
Appointment of President
- By the Trust Deed: The important provisions that deal with the appointment or election of the President of a trust are contained in the trust deed, relating to eligibility, tenure, and manner of selection.
- By the founder/settlor: The founder/settlor normally appoints the first President of a trust by name, but even subsequent Presidents can be appointed based on his directions.
- The President is elected by the Board of Trustees through voting, either by a simple majority or as provided in the deed. The Board meets for the purpose of nomination and voting.
- Rotation or Tenure-Based System: Fixed-term appointments say 2–5 years can be adopted, at the end of which re-elections or fresh elections take place.
- Qualification Requirements: The deed can prescribe the age, experience, or membership requirements, among others.
- Filling Vacancies: In the event of resignation, removal, or death, the Board or the founder appoints an acting or permanent President according to the laid-down rules.
Who is The Secretary of a Trust?
Mostly, the Secretary of the Trust’s managerial and administrative responsibilities depend on guaranteeing the trust runs correctly, easily, and constantly with the objectives it was designed for. Day-to-day coordination, documentation, communication, and general administrative chores are delegated to the trust’s Secretary; the President or Chairman guarantees leadership and strategic push. This office upholds operational discipline, transparency, and sound management throughout the company.
Role and Responsibilities
1. Superintends the trust office’s daily operations, including administrative and operational duties.
- Arranges events, welfare programs, projects, and trust initiatives.
- As necessary, keep correspondence, registers, resolutions, meeting notes, and documents. Among the concerned stakeholders—trustees, staff members, and so forth—good communication is guaranteed.
2. Legality and Responsibility
- Make sure the trust meets relevant laws, including, but not restricted to, the Trusts Act, Societies Act, and Income Tax Act.
- Keep up statutory registrations, financial compliance records, and member directories.
- This also involves promptly returning, renewing, and auditing reports.
- On inspections and approvals, connect auditors, legal counsellors, and government authorities.
3. Help for the Board of Trustees
- Prepares board meeting agendas, notices, and documents.
- Assures delivery to relevant parties by taking notes during meetings.
- Follows up on action items and guarantees the execution of resolutions passed by the Board.
- Helps the President manage administrative decisions and policy execution.
4. Financial Harmony
- Assists the Treasurer with grants, accounts, donations, and budgeting.
- Guarantees appropriate fund use and documentation.
- Compiles annual reports, project reports, and fundraising proposals.
5. Maintains contact
- with beneficiaries, donors, volunteers, and partner organisations as part of public relations and outreach.
- Represent Trust in events, meetings, and public interactions as needed. Manages communication materials, newsletters, reports, and updates.
Appointment Process
1. Appointment by the Board of Trustees:
- The Trustees can appoint the Secretary when a resolution is passed to that effect in a meeting.
- The choice can be made through a majority vote or in relation to the custom and usage of the trust.
2. Some deeds of trust allow the settlor to appoint the first and future Secretaries.
3. Qualifications: The deed may include requirements like administrative experience, educational qualifications, or membership in relevant organisations.
4. In case of a vacancy, the Board shall appoint an acting or new Secretary.
Who is The Treasurer of a Trust?
The treasurer is the Chief Financial Officer for the trust, and he safeguards, controls, and directs the financial assets of the trust. He makes sure the funds are gathered, recorded, used, and reported transparently and credibly. Therefore, the Treasurer oversees the finances of the trust while the President chooses policies for it, and the Secretary handles administration. Retaining donor confidence, fulfilling legal minimum criteria, and being financially sustainable in the long run all call for his presence.
What Does a Treasurer Do?
- The Treasurer is in charge of trust funds, including bank accounts, contributions, grants, expenditures, and financial records.
- The treasurer guarantees that all financial activities advance the objectives of the trust and are carried out legally.
- With the Board of Trustees, auditors, funders, and regulatory agencies, the Treasurer collaborates.
Role and Responsibilities
1. Financial Management and Oversight
- Ensures all financial transactions are overseen, whatever the form may be – income, expenses, and distribution of funds.
- Maintains accounting records correctly, including ledgers, vouchers, and receipts.
- Ensures that funds are utilised only for those purposes delegated and authorised by the trust.
- Oversees projects related to spending for welfare, religious, educational, and charitable causes.
2. Budgeting and Planning
- Engages the trustees in formulating annual budgets.
- Evaluates funding requirements for existing and future projects.
- Ensures compliance with approved budgetary limits and highlights variances.
3. Fundraising Management
- Organises fundraising activities and ensures transparency in the collection of donations.
- Maintains detailed lists of donors, acknowledgements, and financial statements for supporters.
- Ensures that grants and sponsorships are correctly recorded and appropriately utilised.
4. Compliance and Reporting
- Ensures compliance with the Income Tax Act, the Foreign Contribution Regulation Act, if applicable, and Trust Laws.
- Prepares annual financial statements and audit reports in collaboration with auditors.
- Ensures timely filing of returns, financial disclosures, and statutory reports.
- Supports the Secretary in providing documentation for inspections or audits.
5. Banking and Investment Oversight
- manages the trust bank accounts, cheque signatories, and online banking systems.
- Ensures the safekeeping of trust funds and assets.
- Oversees permitted investments as per the trust deed or regulatory norms.
6. Advisory Role
- Advises the Board on the financial feasibility of projects or proposals.
- Helps formulate financial policies, controls, and procedures.
- Ensure that financial risks are identified and mitigated.
Appointment
- The Trust Deed specifies that it is appointment, qualifications and tenure as stated in the trust deed.
- Appointment by Board of Trustees: The Trustees will appoint a Treasurer by written resolution at any meeting. Selection may be by vote or by unanimous consent.
- Appointment by the Founder: The settlor may either appoint the first Treasurer or give directions for future appointments.
- Qualifications: This almost always requires a person with elementary knowledge in the fields of finance or accounting.
- The vacancy created owing to resignation, removal, or otherwise is filled by the Board with a new/interim Treasurer.
Conclusion
The President, Secretary, and Treasurer are the basic leadership elements of any trust, ensuring that the vision, administration, and financial integrity are preserved. Each is different, yet related, in developing a transparent approach to governance and the running of the entity. The President provides the strategic focus, while the Secretary ensures orderly and timely administration and adheres to the rules; the Treasurer ensures financial responsibility. If these three individuals act responsibly in their separate roles, the trust can achieve its goals, maintain public trust, and make a difference. Their combined leadership becomes the building block for maintaining trust, integrity, operational continuity, and long-term viability.
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