Are trusts allowed to generate profit?
A. Yes. Trusts are often referred to as “non-profit organizations”. The term “non-profit” or “not-for-profit” means “non-profit distributing”. “Non-profit” does not mean the trust should not generate a profit and run in perpetual loss. Profit, if any, should be ploughed back into the organization for “charitable purposes” and not distributed by way of dividends, etc., to trustees or members of the organizations. Q. What are the sources of income for a trust? A.
