JUBILEE MEMORIAL BIBLE COLLEGE

Research Paper on
Starting a Trust or Society and Church Administration of St. Thomas Evangelical
Church of India

Submitted to
Rev. Jacob John Mammen

In Partial Fulfilment of the

Requirements of the course
MCM 605- CHURCH ADMINISTRATION AND LEADERSHIP

Submitted By
Jerry Mathew Saji
M.Div. II
1st Semester

Submitted On
July 27th, 2024
TABLE OF CONTENTS
Introduction
1. Trust
1.1 Definition
1.2 Purpose and Objectives
1.3 Legal Framework
1.4 Financial management
2. Society
2.1. Definition
2.2. Purpose and Objectives
2.3. Legal Framework
2.3.1. Central Acts
2.3.2. State Acts
2.4. Financial Management
3. The Differences Between Registering a Church as a Trust Versus a Society
4. Church Administration according to the Constitution of St. Thomas Evangelical Church
of India (STECI)
4.1. Parish Administration
4.1.1 Parish Assembly
4.1.2 Office Bearers of the Parish: Parish Executive Committee
4.1.3 Management Practices
4.1.3.1 Parish Records
4.1.3.2 Voting and Election Procedures
4.1.3.4 Financial Management and Assets
4.2 Prathinidhi Sabha and Council

Conclusion
Bibliography

2
Introduction
Starting a trust or society in India involves navigating various legal and administrative
frameworks, each with distinct implications for governance and accountability. This research
paper examines the processes and requirements for establishing these entities. It examines the
comparative advantages of registering a church as a trust versus a society. And also, discusses
about the Church Administration of St. Thomas Evangelical Church of India (STECI).

1. Trust
A Trust is a special form of organisation that emerges from a will. The will maker exclusively
transfers the ownership of a property to be used for a particular purpose. If the purpose is to
benefit specific individuals, it becomes a private trust and if it concerns some purpose of the
common public or the community at large, it is called a Public Trust. 1 Trusts have been there
since Roman times and have become one of the most important innovations in property law.2
1.1 Definition
As per the trust act a trust is “an obligation annexed to the ownership of property, and
arising out of a confidence reposed in and accepted by the owner, or declared and accepted by
him for the benefit of another, or of another and the owner” 3 In simpler terms, a trust is an
arrangement where one person (the owner) holds against property for the benefit of another
person (the beneficiary), following the instructions set by the person who created the trust
(sometimes also the owner).
1.2 Purpose and Objectives
Trusts play a critical role in safeguarding and allocating assets following the original owner’s
passing. Their primary function includes protecting assets from creditors, ensuring privacy,
supporting individuals who struggle with financial management, facilitating charitable
activities, shielding assets from economic instability, and offering advantageous tax
implications.4

1
, A Study on Laws Governing Charitable Organisations in India (New Delhi: Committee
for Co-operatives & NPO Sectors, 2014), 12.
2
, A Study on Laws Governing Charitable Organisations in India, 18.
3
“Indian Trusts Act, 1882,” India Code,
https://www.indiacode.nic.in/bitstream/123456789/2327/3/A1882-02.pdf, clause 3.
4
, A Study on Laws Governing Charitable Organisations in India, 20 - 22.

3
 1.3 Legal Framework
Trust Act is an act to define and Amend the law relating to Private Trusts and Trustees. It
is also called Act 2 of 1882 because the Indian Trusts Act was the second act to be passed in
the year 1882.5
The preliminary chapter of the Indian Trusts Act of 1882 addresses the short title,
commencement, and extent of the Act. It also covers the repeal of previous laws listed in the
schedule and defines essential terms such as trust, trustee, beneficiary, and trust property. 6
The second chapter focuses on the creation of trusts, which must be for lawful purposes and
not against public policy. Section five specifies that a trust involving immovable property
must be declared by a written, signed, and registered non-testamentary instrument. Trusts are
established when the author indicates the intention, purpose, beneficiary, and trust property,
and transfers the property to the trustee. Trusts can be created by anyone competent to
contract and by minors with civil court permission, provided the trust property is clearly
defined and transferable. Any person capable of holding property can be a beneficiary or
trustee.7 The third chapter outlines the duties and liabilities of trustees, emphasizing that they
must fulfil the trust’s purpose and follow its terms. Trustees are required to be aware of the
condition of the trust property, maintain its title, and defend it, without claiming ownership
themselves. They must manage the trust’s assets with the care a prudent person would,
convert perishable property into permanent assets, act impartially, maintain accounts, and
provide information to beneficiaries.8 The fourth chapter deals with the rights and powers of
trustees, allowing them to possess title deeds, recover expenses, seek indemnity from
beneficiaries benefiting from a breach, obtain court guidance, settle accounts, and deal with
trust property according to the trust terms.9 The fifth chapter discusses the disabilities of
trustees, prohibiting them from resigning without court permission once they have accepted
the trust, delegating their duties unless permitted, and requiring co-trustees to act together
unless the trust deed states otherwise.10 The sixth chapter details the rights and liabilities of
beneficiaries, granting them rights to the trust property’s rents and profits, the ability to
compel trustees to perform, inspect and copy trust documents and accounts, and transfer their
interest in the trust property.11 The seventh chapter addresses the liability of trustees, holding

5
“Indian Trust Act,” Preamble.
6
“Indian Trust Act,” Sections 1- 3.
7
“Indian Trust Act,” Sections 4 – 10.
8
“Indian Trust Act,” Sections 11- 30.
9
“Indian Trust Act,” Sections 31- 45.
10
“Indian Trust Act,” Sections 46 – 54.
11
“Indian Trust Act,” Sections 55 – 69.

4
them accountable for any loss to the trust property due to a breach of trust. 12 The eighth
chapter covers the appointment and discharge of trustees, which should be specified in the
trust deed, with the court appointing trustees if necessary. 13 The final chapter deals with
obligations in the nature of trusts, stating that if the beneficiary is unclear, the property is held
in trust for the transferor.14
1.4 Financial management
To manage its finances, a Trust needs to open bank accounts, Demat accounts, and other
necessary financial accounts in its name. These accounts are used for all money-related
transactions such as receiving funds, making investments, and distributing assets. Funding the
Trust involves transferring ownership of assets from the Settlor or other sources into the
Trust’s name. In India, Trusts are subject to specific tax regulations based on their structure,
objectives, and income nature. The tax liability of a Trust depends on whether it’s a specific
Trust, with predetermined beneficiaries and shares, or a discretionary Trust, where the
Trustees decide the income distribution among beneficiaries. Trusts earning income through
investments, property rentals, or other sources must file tax returns in India similar to
individuals and companies. Trusts engaged in charitable or religious activities can qualify for
deductions and exemptions under sections 11 and 12 of the Income Tax Act, provided they
use their income towards their objectives and adhere to prescribed conditions.15

2. Society
A society may be defined as a company or an association of persons united together by
mutual consent to deliberate, determine and act jointly for the same common purpose. A
society is a distinct legal entity entirely independent of the members constituting it. The term
society comes from the Latin word societas.16
2.1. Definition
A society is a group of people who join together to work on something they all want to
achieve. It’s like a team with a shared goal, and it’s officially recognized by the law. 17

12
“Indian Trust Act,” Sections 70 – 76.
13
“Indian Trust Act,” Sections 77 – 79.
14
“Indian Trust Act,” Sections 80 – 96.
15
“Funding A Trust in India: A Comprehensive Guide,” Yellow Will,
https://getyellow.in/resources/funding-a-trust-in-india-a-comprehensive-guide.
16
, A Study on Laws Governing Charitable Organisations in India, 11.
17
J. S. Anbu, et al (eds), Basic Management Handbook, (Chennai: Christian Institute of Management,
2011), 73.

5
 2.2. Purpose and Objectives
The purpose of formulating a society is diverse. The primary objective is to promote and
further the spirit of science, literature, art, or any other work of charity that does not have a
monetary motive. The Act mentions that a Society can be formulated to promote charity,
collect funds for military orphans, promote science, literature, fine arts and beneficial
knowledge of related subjects, Dissemination of political education, Establish and maintain
libraries, reading rooms, public museums, or art galleries.18
2.3. Legal Framework
2.3.1. Central Acts
In India the earliest enactment was the Societies Registration Act of 1860 was passed by
the Government of India. Then various state governments enacted their own Amended Acts.19
The Preamble sets out the Act’s primary objective, which is to enhance the legal status and
governance of societies with charitable, literary, and scientific goals. 20 Section one introduces
the requirement for societies to create a Memorandum of Association (MoA) and register it
with the Registrar of Societies.21 This MoA must include the society’s name, objectives, and
details of the governing body members, along with a copy of the society’s rules and
regulations.22 Section three outlines the registration process and associated fees, ensuring that
societies follow a standardized procedure to gain legal recognition. 23 Each year, societies
must submit a list of their managing body members to the Registrar, as mandated in Section
Four.24 The property of the society, according to Section Five, is vested in its trustees or the
governing body if no trustees are appointed.25 Legal provisions for the society’s interactions
with the law are detailed in Sections Six and Seven, allowing the society to sue or be sued in
the name of its principal officer and ensuring that legal proceedings continue despite any
changes in the society’s leadership.26 Enforcement of judgments against the society is covered
in Section Eight, enabling such judgments to be applied to the society’s property. 27 Section
nine addresses the recovery of penalties imposed on the society or its members through legal

18
“Indian Societies Registration Act,1860,” India Code,
https://www.indiacode.nic.in/bitstream/123456789/2262/1/AA1860-21.pdf, section 20.
19
Sunder Ebe Raj, S. D. Jeyakumar, and Varghese Jacob, eds., Management of Christian Services in
India, (Chennai: Christian Institute of Management, 2004), 170.
20
“Societies Registration Act,” Preamble.
21
“Societies Registration Act,” section 1.
22
“Societies Registration Act,” section 2.
23
“Societies Registration Act,” section 3.
24
“Societies Registration Act,” section 4.
25
“Societies Registration Act,” section 5.
26
“Societies Registration Act,” section 6 – 7.
27
“Societies Registration Act,” section 8.

6
processes.28 Sections ten and eleven clarify that members can be sued individually if they
misappropriate society’s property and will be punished for offences as if they were not
members of the society. societies are granted the flexibility to alter their objectives in Section
Twelve by following the procedures in their MoA and by-laws. 29 Dissolution of societies is
covered in Sections Thirteen and Fourteen, requiring agreement from three-fifths of the
members and ensuring that remaining assets are used for charitable purposes, prohibiting any
profit distribution to members upon dissolution.30 Membership definitions and qualifications
are specified in Section Fifteen, emphasizing the need for adherence to the society’s rules and
timely payment of dues.31 The governing body, described in Section Sixteen, comprises
individuals designated by the society’s rules to manage its affairs. 32 Societies formed before
the Act can also register under it, as stated in Section Seventeen. 33 And must submit specific
documents, including the society’s name, objectives, and rules, to the Registrar of Joint-Stock
Companies, as outlined in Section Eighteen. 34 Section Nineteen ensures public access to the
society’s official documents, allowing inspection and obtaining certified copies for a fee. 35
The final Section Twenty clarifies the scope and applicability of the Act, ensuring
comprehensive governance of societies under this legal framework.36
2.3.2. State Acts
The Societies Registration Act of 1860 was originally created by the Government of India
and has been adapted by different state governments to fit local requirements. The Andhra
Pradesh Societies Registration Act of 2001 allows for the registration of societies that aim to
promote literature, science, fine arts, charity, and other purposes. This includes provisions for
managing society affairs, maintaining accounts, and conducting audits. The Tamil Nadu
Societies Registration Act of 1975 emphasizes the yearly submission of accounts and
managing committee details to ensure transparency and accountability. The Karnataka
Societies Registration Act of 1960 focuses on regulating societies for charitable, religious,
and educational purposes. It requires annual returns and audit reports for better governance.
The Maharashtra Societies Registration Act of 1971 provides comprehensive guidelines for
the formation, regulation, and dissolution of societies, emphasizing the significance of audits
28
“Societies Registration Act,” section 9.
29
“Societies Registration Act,” section 12.
30
“Societies Registration Act,” section 13 – 14.
31
“Societies Registration Act,” section 15.
32
“Societies Registration Act,” section 16.
33
“Societies Registration Act,” section 17.
34
“Societies Registration Act,” section 18.
35
“Societies Registration Act,” section 19.
36
“Societies Registration Act,” section 20.

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and annual report submissions to the Registrar. The West Bengal Societies Registration Act of
1961 streamlines the registration and regulation process, including provisions for property
management and legal proceedings. The Gujarat Societies Registration Act, adapted from the
central act with state-specific changes, ensures compliance with state regulations regarding
annual filings and audits. The Uttar Pradesh Societies Registration Act, modified from the
central act, includes provisions for the dissolution of societies and property management. The
Punjab Societies Registration Act retains the central act’s structure with minor amendments,
focusing on maintaining transparency in society administration. Lastly, the Delhi Societies
Registration Act follows the central act with local changes for effective governance,
emphasizing regular audits and the submission of annual returns.37
2.4 Financial Management
A society’s reputation and trust depend on how it handles its money. All its money matters
must be checked by a qualified accountant. The money records must be clear and accurate.
Every donation should have a receipt, and all spending should be approved and easy to
understand. Societies must submit details about their elected members, financial reports, and
auditor’s findings to government authorities after each annual meeting. They also need to
register with the income tax department to avoid paying taxes on their income. If a society
receives money from foreign countries, it must report this to the government as well.38

3. The Differences Between Registering a Church as a Trust Versus a Society

Societies must file annual returns with the registrar of societies, unlike trusts. Societies have
better accountability and governance structures, and their management is more democratic.
Legal procedures are more stringent for societies, and board members cannot accept
remuneration for their service. New board members or trustees can only be appointed through
election.39
So, In my opinion, registering a Church as a Society is better than registering as a Trust
because societies offer more accountability and structured governance, ensuring regular
oversight, and providing more balanced decision-making. Additionally, societies have more
checks and balances, which can lead to better transparency and less risk of monocratic
management.
37
Sunder Ebe Raj, S. D. Jeyakumar, and Varghese Jacob, eds., Management of Christian Services in
India, 171 – 175.
38
Sunder Ebe Raj, S. D. Jeyakumar, and Varghese Jacob, eds., Management of Christian Services in
India, 158 – 159.
39
J. S. Anbu, et al (eds), Basic Management Handbook, 76 – 77.

8
4. Church Administration according to the Constitution of St. Thomas Evangelical
Church of India (STECI)
STECI was established by St. Thomas, one of the twelve apostles of Jesus Christ, on
January 26, 1961.40 This Church is an Evangelical Episcopal Church.41
The president of this church will be the Presiding Bishop elected by the Prathinidhi Sabha.
There can be Bishops, Vicar Generals, and Division Administrators for administrative
convenience in the Church as need be. Under the supervision of the Presiding Bishop,
Bishops or in the absence of Bishops, Division Administrators shall have administrative
responsibility over the Districts and the Vicar will have charge over the parishes. For the
general administration, there will be a Representative Assembly (Prathinidhi Sabha) and as
its executive a Council elected by the Prathinidhi Sabha All these Committees will be under
the control of the Sabha Council ordinarily. Even so, matters relating to their work can be
referred to the consideration of the Prathinidhi Sabha whenever it becomes necessary.42
4.1. Parish Administration
4.1.1 Parish Assembly
Anyone over 21 who regularly attends church services, takes part in the Lord’s
Supper and donates to the parish can be a member of the Parish Assembly. The vicar keeps a
list of all members. This list is updated when people join or leave the parish. Members can
check this list with the vicar’s permission. The Parish Assembly can make rules, form
committees, and decide on parish matters. The Vicar is the head of the assembly, and there
are other leaders. The assembly meets twice a year to discuss the parish’s finances and elect
leaders. Members can request meetings, and the assembly has the power to approve the
budget and choose representatives. Any new ways to earn or spend money need approval
from higher authorities.43
4.1.2 Office Bearers of the Parish: Parish Executive Committee
The parish will have a Vicar and one or more Assistant Vicars appointed by the
authorities. It will also have one or more lay Vice-Presidents, two Trustees, and a Secretary,
who are elected by the parish and confirmed by the authorities. The Trustees, including the
Treasurer and Accountant, are elected for one year. After election and confirmation by the
District Administrators, the Vicar will have them sign an agreement, which is then confirmed

40
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, (Thiruvalla:
STECI Publication Board, [n.d.]), clause 2.
41
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 3.
42
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 13
43
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 57.

9
and published in the parish church. Only then do the new Trustees take charge. Trustees can
resign, or the authorities or Parish Assembly can remove them according to the trust
agreement terms. If the Parish Assembly cannot meet or hold elections due to a deadlock, the
Administrative Authority will appoint a Treasurer and Accountant from the parish members
to protect the parish’s financial interests.44
Each parish has a Parish Executive Committee to manage parish affairs, follow decisions
made by the parish members, plan meetings, and help the parish leaders. The committee
includes parish leaders, representatives from parish groups, and members chosen by the
parish. Members are elected yearly and vacancies are filled by the group that originally chose
the member or by the committee itself. The committee meets at least four times a year, and
decisions are made by a majority vote. Members can be removed if they miss three meetings
without a good reason. The committee can form smaller groups to handle specific tasks.45
4.1.3 Management Practices
4.1.3.1 Parish Records
The following written records shall be kept in the Parish:- 1. Parish Register:
register of members of the Parish Assembly 2. Baptismal Register 3. Register of the
dedication of children 4. Bans Register 5. Marriage Register 6. Birth Register 7. Burial
Register 8. Sunday Services Register 9. Day Book 10. Ledger 11. Stock Register 12. Minutes
book of the Parish Assembly and of the Parish Executive Committee 13. Inward and Outward
Register 14. Pastorals and Letter Files46
4.1.3.2 Voting and Election Procedures
In the elections of the Parishes, Institutions, Prathinidhi Sabha and in all other
elections it shall be held by single transferrable vote. 47 All church members can vote to
choose representatives for the church council. The vicar will announce the election date and
details. Members can suggest names for the council. If there are too many candidates, a secret
vote will be held. The elected representatives will take an oath before joining the council. If a
representative leaves or dies, a new election will be held. The list of council members will be
publicly displayed.48
4.1.3.4 Financial Management and Assets

44
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 61, 63 – 69.
45
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 70.
46
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 73.
47
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 53.
48
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 76 – 88.

10
 The parish treasurer must collect all required fees and put them into the
parish’s money account.49 They must follow the existing rules for this. The parish members
decide how to manage the parish’s money and property. They can buy or sell things only with
everyone’s agreement and the approval of the higher church authorities. The Vicar looks after
items used in church services, while the Treasurer handles money and important documents.
The Treasurer can keep some money for small expenses but must save most of it in a bank.
They must send some money to the main church office and pay people who work for the
parish. The Treasurer must show the parish leaders how the money is being spent every three
months. At the end of the year, they must show everyone a full report of the parish’s money.
This report needs approval from higher authorities before it can be kept as an official
record.50
4.2 Prathinidhi Sabha and Council
The Prathinidhi Sabha is the highest authority in the St. Thomas Evangelical Church of
India and is responsible for making decisions on spiritual and temporal matters. It includes
presbyters, parish representatives, representatives from recognized church institutions, and
members nominated by the Church Council. Elections for a new Prathinidhi Sabha are held
three months before the current term ends or if it is dissolved. The Sabha has specific election
rules ensuring that at least 51% of its members are elected parish representatives and 65% are
lay members. The Church Council can nominate members, not exceeding 5% of the total
parishes. Members must be at least 24 years old, declared believers, and witnesses for Christ.
The Prathinidhi Sabha elects a President, Vice-President, Secretary, and Treasurer, and
Trustees. Office bearers serve until the Sabha’s term ends unless they resign, die, or are
removed. The Sabha meets annually, and special sessions can be summoned by various
entities. Decisions require the Presiding Bishop’s approval and are communicated officially.
Published decisions bind the whole Church. The Council sets the agenda for Sabha meetings.
Sabha members can question the Secretary about annual reports and financial matters.
Special committees can be appointed for specific purposes, and the Council can fill vacancies
by nomination, subject to the Sabha’s approval.51
A group called the Council will be formed to make decisions for the church. Its members will
be chosen by another group called the Prathinidhi Sabha. The Council will follow the
decisions of the Prathinidhi Sabha and handle other church matters. The Council will have

49
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 71.
50
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 72.
51
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 14 – 45.

11
members from different parts of the church. Important church leaders like the Presiding
Bishop, other Bishops, and the head of the Prathinidhi Sabha will also be part of the Council.
There will be more elected members than appointed ones. Most of the elected members
should be new. Council members can only be on the Council for two terms. The Council will
meet regularly, and the Presiding Bishop will be its leader.52

Conclusion
As discussed in this paper, When establishing a trust or society in India, one must carefully
consider the legal frameworks and administrative structures inherent in each option. The
Trusts Act, The Society Registration Act, and its state-specific adaptations offer strong
governance and accountability mechanisms. Comparatively, societies provide a democratic
and transparent management system, essential for maintaining integrity and trust. Also
through this paper, the researcher tries to portrays the Church administration of St. Thomas
Evangelical Church of India.

Bibliography
Books
52
Publication Board, The Constitution of the St. Thomas Evangelical Church of India, clause 46 – 52.

12
 . A Study on Laws Governing Charitable Organisations in India. New Delhi:
Committee for Co-operatives & NPO Sectors, 2014.
Anbu, J. S. et al (eds). Basic Management Handbook. Chennai: Christian Institute of
Management, 2011.
Board, Publication. The Constitution of the St. Thomas Evangelical Church of India.
Thiruvalla: STECI Publication Board, [n.d.].
Raj, Sunder Ebe, S. D. Jeyakumar, and Varghese Jacob, eds. Management of Christian
Services in India. Chennai: Christian Institute of Management, 2004.

E-source
“Funding A Trust in India: A Comprehensive Guide,” Yellow Will,
https://getyellow.in/resources/funding-a-trust-in-india-a-comprehensive-guide
“Indian Trusts Act, 1882.” India Code.
https://www.indiacode.nic.in/bitstream/123456789/2327/3/A1882-02.pdf
“Indian Societies Registration Act, 1860.” India Code.
https://www.indiacode.nic.in/bitstream/123456789/2262/1/AA1860-21.pdf

13