the school is run as a community service and not as a business and that commercialization does

not take place in the school in any shape whatsoever.

That no part of income from the institution shall be diverted to any individual in the
Trust/Society/Company registered under section 25 of the companies act, 1956 School
Management Committee or to any other person. The savings, if any, after meeting the recurring
and non-recurring expenditure and contributions to developmental, depreciation and contingency
funds may be further utilized for promoting the school

Not for Profit means the members of the managing committee of the society in No Way can
withdraw PROFIT coming out of the business of the society or the trust for their personal
gain. Money should be channelized within the ambit of society and its functional areas. Society’s
profit should be used only for the development and betterment of the objectives and aims of the
society/Trust/ Sec 8.

What is Non- Proprietary?

The Society / Trust / Section 8 company running the School should not be related to each other
via blood line. It means your siblings and parents or children. The majority of the members
of Society / Trust / Section 8 should be unrelated to each other.

Who can be members, Trustees, directors of Society / Trust / Section – 8 company? Can the
members of the same family become members of the Trust? Can the Blood Relations form a
Trust, Society etc?
The husband, wife, son, daughter singly or jointly can be the members of the Trust provided that
they do not vest control of the Trust. In other words, if the husband as well as the wife (2trustees),
are the members of the Trust, then the Trust should have another 3 to 4 trustees who are not
members of the same family, to prevent the husband-wife team vesting the control of the trust.
Thus the total membership of the Trust in this case will have to be enlarged to 5 or 6 Trustees, out
of which 3 to 4 Trustees should not be from the same family. Likewise, in case a trust is
constituted with husband, wife and son / daughter (three trustees), then the Trust will have to
have another 4 to 5 trustees, who are not the members of the same family.
Every organization has its own set of rules for formation as well as functioning. Each of the
above mentioned organization have some key players which I refer to as “Core Team”. This
team puts their funds in these organizations which are legally termed as donations. This
means, the funds they plunge in are no longer theirs. Shocked? Here comes a bigger shock:
All these members of a core team DO NOT HAVE RIGHT to sustain their positions. This
means, there is no guarantee for them to be the part of this core team permanently.