Can an unregistered trust still function and receive donations legally?

A trust can technically come into existence and begin operating once the trust deed is properly executed, even before separate registration under certain other specific laws (like those governing tax exemptions for charitable entities), but registration is generally still very important for practical and legal reasons.

Without proper registration under applicable laws, your trust likely won't be eligible for tax exemptions on the income it receives or the donations it collects, and donors typically won't be able to claim tax deduction benefits for their contributions, which can significantly affect your ability to attract donations in practice.

Depending on your specific state, registration of the trust deed itself with the sub-registrar may also be required for the trust's ownership of any immovable property to be properly recognised. Given how much registration affects both your trust's practical fundraising ability and its long-term legal standing, it's strongly advisable to complete the appropriate registrations promptly rather than operating for an extended period without them — a lawyer experienced in trust and non-profit law can guide you through the specific registrations relevant to your charitable purpose.