Unit 5 Charitable Trusts Flashcards
Advantages of charitable trusts
Enforceable even tho no identified beneficiaries.
Tax and fiscal advantages
Can go on forever.
Public support.
Who is enforcer
Attorney general- charity commission
3 vital ingredients of charitable trust
- For charitable purpose
- For public benefit
- Exclusively charitable
Preamble to charitable uses act 1601
“Relief of middle aged, impotent and poor people, maintenance of sick…”
Commissioner of income tax v pemsel 1891
“Charity in its legal sense comprises four principle divisions”
- trust for relief of poverty
Trust for advancement of education
Trust for advancement of religion
Trust for other purposes beneficial to community, not falling under any of the preceding headings
Scottish burial reform and cremation society v Glasgow corporation
Courts have to keep the law as to charities moving according as new ideas arise or old ones become obsolete or satisfied.
Impact of charities act 2006
- continued validity of charitable purposes upheld by pre-2006 case law.
- extends the categories of charitable purposes from 4-13.
- removes presumption of public benefit re poverty, advancing religion and advancing education
- requires charities commission to give guidance re public benefit requirements
Charitable purposes- charities act 2011 s.3 (1)
“Prevention or relief of poverty”
Re coulthurst 1951 “poverty does not mean destitution.., person has to go short”
- charities act section 3(1)(b)
Advancment of education
Re Delius 1957:
Trust for promotion of the works of the composer Delius, held to be charitable
IRC v MCMULLEN
Football considered charitable purpose
McGovern v A-G 1982
Research will qualify as charitable trust if it is useful and going to be made available to public.
Demonstrating public benefit
If all intended beneficiaries are linked in a personal way (nexus) means it is likely to be considered private trust not charitable
Oppenheim v Tobacco Securities Trust 1951
Trust to advance education of the children of employees of British American tobacco company. 110,000 workers but Alll were employees so failed public benefit requirement
Advancement of religion
CA s.3(1)(c) religion includes:
(I) a religion which involves belief in more than one god
(II) a religion which does not involve belief in god
Re south place ethical society
Court said religion needs faith in a god and worship of the god
Charity commission 2011-2013
Relationship between believer and supreme being or entity by showing worship of supreme being.
Identifiable positive ethical frameowkr
Scientology
Courts did not recognise it as religion for charitable purposes
Demonstrating public benefit under religion
- need for engagement with public
Advancement of amateur sport
“Sport” means sports or games which promote health by involving physical or mental skills or exertion
Re duprees deed trusts 1945
Mental exertion can count- chess
If facilities are
Provided for social welfare basic conditions are:
(a) facilities provided to improve conditions of life
(b) (i) persons have to have need for facilities because of youth age disability or poverty
(ii) facilities are to be available to member of public at large
Guild v IRC
Recreational charities are not just for deprived people if they are improving lives of the community generally then it will be considered charitable
Advancement of animal welfare: re grove Grady
Animal sanctuaries intended to be reserve for animals and people excluded completely. Failed public benefit test
