Public trusts are formed by the soft heartened people to help the poor and needy. Charitable or public trusts are normally developed by some people to undertake the charitable activities. A charitable or Ngati Paoa public trust can make profits on some trading activities and the profits it earned should be used by the charities and it cannot be used by the members. A trust can function in the same way as that of an individual can do. A public or charitable trust can raise mortgages, hold bank accounts, hold property and hold all kinds of investments and assets. In order to run a charity, a trust should be properly registered as per the charitable trust act of the nation. The purpose of the trust may also vary such as some of the trust performs for the welfare of the children and some of the trusts work for the welfare of women. Whatever be the purpose of the trust, it should be registered properly and legally as per the act.
The purpose of the charity may be the objective of the trust or purpose for forming a society. Some of the purposes that are the basis of charity registration as a public trust or charitable trust are as follows. It can be formed to promote education to the needy people who are economically backward. It may be formed on the basis of promoting the religion. Even some of the trusts are formed on the basis of making the people to get relived from the poverty line. Even there are some other reasons and purposes for forming the charitable trust. These trusts may also be formed to establish the facilities for recreation. These charitable trusts are not suitable for involving commercial activities.
Some of the people set up this type of trusts for the purpose of involving in the charitable activities and obtaining some benefits for them and their successors in the future. In general, the charitable trusts are also called as non-profit organizations. Some people start the charity in order to get escape from huge tax. In order to enjoy all the benefits, one who likes to start the charity must have legal entity for the charitable trust. The legal entities can be conferred as per the charitable trust registration under the federal laws and trust act. Needy people who could not sustain in the society can get help from these types of public trust. They can get support in leading their life with more confidence.