2.
Financial Management & Auditing:
Educational trusts have to keep correct financial records and also have frequent audits
to confirm appropriate use of funds. Strict accounting methods and economic reporting
standards have to be used and the audited financial statements must be made
accessible to the authorities and stakeholders. Regulations might also set guidelines for
investment methods, fund allocation and expenditure boundaries to safeguard the
trust’s resources.
3. Educational Standards & Assurance of Quality Assurance:
Educational trusts operating educational institutions are bound by prescribed
educational standards and quality assurance measures. They might include curriculum
guidelines, infrastructure requirements, teacher qualifications and student assessment
procedures. Conformity with such standards may be checked regularly by designated
authorities.
4. Non-Profit & Charitable Status:
Usually educational trusts are non-profit and charitable and enjoy many tax exemptions
and advantages. Still, to keep this status the trust must abide by strict rules limiting
personal gain or profit distribution amongst trustees or related parties. Any surplus
funds raised have to be reinvested in trust educational pursuits or objectives.
5. Transparency & Accountability:
Regulations also require educational trusts to be transparent in their operations and
decisions. This might include releasing annual reports, releasing financial statements
and alluring stakeholder participation and suggestions. Mechanisms for responding to
grievances or complaints from beneficiaries, workers or the wider community should
also be created to enforce accountability.
6. Conformity with Applicable Laws:
Educational trusts are governed by all regulations and laws impacting their operation,
including labour laws, environmental regulations, and discrimination laws. Infractions of
these laws might result in penalties, legal action or the suspension of the trust’s
registration or functional licences.
Process for Education Trust Registration
The founders should follow a prescribed registration procedure to establish an
educational trust.
Step 1: Draft a trust deed
The founders must draft a trust deed describing the objectives, management framework &
functional requirements of the educational trust.
This trust deed forms the foundation for the trust’s operations and should conform to all
regulations and laws impacting educational trusts.
Step 2: Know the laws & regulations
In India educational trusts are regulated by acts and laws like:
