Sections 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Charitable Endowments Act, 1890 is a Central Act that lets the Government vest property held for a charitable purpose in a Government officer, the Treasurer of Charitable Endowments, and settle schemes for its administration. Section 1 gives the title, extent and commencement, and section 2 says what "charitable purpose" means, including what it leaves out.
This article explains sections 1 and 2 of the Charitable Endowments Act, 1890 as amended up to the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), per the consolidated text consulted on 3 October 2026. Later amendments, State notifications under section 1 and the State law on public trusts should be checked before relying on it.
Where a State law governs public trusts (for example the Maharashtra Public Trusts Act, 1950, the Rajasthan Public Trusts Act, 1959 or the Madhya Pradesh Public Trusts Act, 1951), that State law must be checked first.
The Act extends to the whole of India and came into force on the first day of October, 1890 (section 1). In the Act, a charitable purpose includes relief of the poor, education, medical relief and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship (section 2). The Act does not register trusts; it deals with vesting orders, schemes and the Treasurer.
Section 1: title, extent and commencement
Sub-section (1). "This Act may be called The Charitable Endowments Act, 1890."
Sub-section (2). "It extends to the whole of India". The consolidated copy shows asterisks in square brackets after these words, which mark words omitted by later amendments; the copy's legislative history lists the amending laws, ending with Act 34 of 2019. This article relies on the printed words and does not restate what was omitted.
Sub-section (3). "It shall come into force on the first day of October, 1890."
The Act's preamble says it is "An Act to provide for the vesting and administration of property held in trust for charitable purposes". Two verbs carry the Act: vesting and administration. For a view on your own trust, ask for a legal consultation.
Section 2: "charitable purpose"
"In this Act, charitable purpose includes relief of the poor, education, medical relief and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship."
| Part of the definition | What it says |
|---|---|
| Relief of the poor | Included |
| Education | Included |
| Medical relief | Included |
| Advancement of any other object of general public utility | Included |
| A purpose which relates exclusively to religious teaching or worship | Excluded |
Three points about the exclusion deserve care:
- It excludes a purpose that relates exclusively to religious teaching or worship. A purpose that is partly religious and partly one of the included kinds is not shut out by these words alone.
- The Act does not define "religious teaching" or "worship", and this article adds no definition.
- The exclusion means a trust solely for worship cannot use this Act to vest its property in the Treasurer. For such trusts, see the State law and Private Trust vs Public Trust for the broad distinction between kinds of trust.
The meaning of "charitable purpose" in this Act is narrower than the income-tax meaning; for tax, see our income-tax guides and Charitable Trust vs Religious Trust: tax treatment. It also differs from the State Act in Maharashtra: section 9 of the Maharashtra Public Trusts Act, 1950 lists a further head, recreation and leisure facilities, which section 2 of this Act does not print.
A one-screen map of the Act
| Section | Subject | Explained in |
|---|---|---|
| 3 and 3-A | Treasurer of Charitable Endowments; appropriate Government | Sections 3 and 3-A |
| 4 | Orders vesting property in the Treasurer | Section 4 |
| 5 | Schemes for administration | Section 5 |
| 6 | How to apply for a vesting order or scheme | Section 6 |
| 8 and 9 | The Treasurer as a bare trustee; annual list | Sections 8 and 9 |
| 10 to 12 | Limits on the Treasurer; continuance; transfer | Sections 10 to 12 |
| 13 to 15 | Rules, indemnity and savings | Sections 13 to 15 |
Sections 7 and 16 are repealed and printed as such in the copy. Whether a trust's property fits this scheme depends on its deed and on the State law.
What the Act does not do
The Act does not register trusts, does not require accounts from trusts, and does not make the Government a trustee for every charity. It provides a route: on application, the appropriate Government may vest property held in trust for a charitable purpose in the Treasurer and may settle a scheme. The Treasurer's role is limited; he is a bare trustee who does not administer the trust. These points are explained in the later sections.
Worked example
An invented trust, Shri Savitri Vidya Nidhi, holds investments to give scholarships to poor students; its trustees wonder whether the Act could help them. Scholarships are education and relief of the poor, so the purpose is a "charitable purpose" under section 2. A second invented body, Shri Ganesh Pooja Mandal, wants a vesting order for a fund used only for daily worship in a temple. Because its purpose relates exclusively to religious worship, it falls outside the definition. In both cases the trustees must first check whether a State law on public trusts applies to them.
Practical points
- Read the purpose clause of the trust deed against section 2 before considering a vesting order.
- A purpose that relates exclusively to worship or religious teaching is outside the Act.
- Check the State law on public trusts first.
- Keep tax questions separate: for tax, see our income-tax guides.
- Use the map above to find the section that answers your next question.
Need help with the Charitable Endowments Act?
Before a trust applies for a vesting order, it helps to know whether its purposes qualify, which Government is the appropriate Government and whether a State law comes first. We can read your deed and set out the position. Start with a legal consultation.
Key takeaways
- The Act extends to the whole of India and came into force on 1 October 1890 (section 1).
- "Charitable purpose" includes relief of the poor, education, medical relief and any other object of general public utility (section 2).
- A purpose relating exclusively to religious teaching or worship is excluded.
- The Act provides vesting orders and schemes; it does not register trusts.
- Where a State law governs public trusts, check it first.
Read next
- Sections 3 and 3-A of the Charitable Endowments Act, 1890: the Treasurer and the appropriate Government
- Section 4 of the Charitable Endowments Act, 1890: vesting property in the Treasurer
- Section 9 of the Maharashtra Public Trusts Act, 1950: charitable purposes
- Private Trust vs Public Trust: key differences
Disclaimer: Based on the Charitable Endowments Act, 1890 and the Charitable and Religious Trusts Act, 1920 as amended up to the Jammu and Kashmir Reorganisation Act, 2019, as consulted on 3 October 2026. State laws on public trusts and religious endowments, State notifications under the 1920 Act and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.