6. Charitable Trusts

Author(s):  
Graham Virgo

This chapter examines charitable trusts in England. It discusses the advantages and disadvantages of being a charitable trust and explains the conditions that must be met in order for a trust to be considered charitable. The chapter considers the different meaning of a charitable purpose as it has been defined in cases and by statute, such as for the advancement of education or religion and the relief of poverty. It examines the meaning of the public benefit requirement and also considers the requirements that purposes must be exclusively charitable. This chapter also considers the cy-près doctrine which applies where a charitable purpose has failed initially or subsequently.

Author(s):  
Graham Virgo

This chapter examines charitable trusts in England. It discusses the advantages and disadvantages of being a charitable trust and explains the conditions that must be met in order for a trust to be considered charitable. The chapter considers the different meaning of a charitable purpose as it has been defined in cases and by statute, such as for the advancement of education or religion and the relief of poverty. It examines the meaning of the public benefit requirement and also considers the requirements that purposes must be exclusively charitable. This chapter also considers the cy-près doctrine which applies where a charitable purpose has failed initially or subsequently.


2020 ◽  
pp. 77-101
Author(s):  
Iain McDonald ◽  
Anne Street

Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses charitable trusts. Charitable trusts differ from private trusts in a number of ways. A charitable trust must be: for a recognized charitable purpose; for the ‘public benefit’; and for exclusively charitable purposes. The public benefit requirement raises different issues under each head of charity. Legislation related to charities and their regulation has recently been consolidated by the Charities Act 2011. Cy-près is a power which allows failing charitable trusts to be applied to other related charities.


Author(s):  
Iain McDonald ◽  
Anne Street

Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter discusses charitable trusts. Charitable trusts differ from private trusts in a number of ways. A charitable trust: must be for a recognized charitable purpose; for the ‘public benefit’; and for exclusively charitable purposes. The public benefit requirement raises different issues under each head of charity. Legislation related to charities and their regulation has recently been consolidated by the Charities Act 2011. Cy-près is a power which allows failing charitable trusts to be applied to other related charities.


2021 ◽  
pp. 172-211
Author(s):  
Gary Watt

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. Charitable trusts are not subject to the objections against private purpose trusts and enjoy certain privileges. Charities are not public institutions, but are nevertheless subject to judicial control, to the constitutional protection of the Crown as parens patriae (acting through the Attorney-General) and to the supervision of the Charity Commission. Moreover, they are not subject to the beneficiary principle and to the rule against inalienability of capital. This chapter deals with charitable trusts and discusses the distinction between legal and ‘everyday’ notions of charity. It also examines a charitable purpose, the advantages and disadvantages of charitable status, limits on the recognition of charitable trusts, what happens when a charitable purpose fails, whether the purpose of a charitable status is sufficiently beneficial to the public and the administration of charitable trusts. The chapter furthermore considers trust law and tax law privileges; the roles of charities, such as the prevention or relief of poverty and the advancement of education and religion; the public benefit requirement in educational trusts; recreational charities; the exclusivity requirement; the doctrine of cy près; and the disposal of surplus donations.


Author(s):  
Gary Watt

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. Charitable trusts are not subject to the objections against private purpose trusts and enjoy certain privileges. Charities are not public institutions, but are nevertheless subject to judicial control, to the constitutional protection of the Crown as parens patriae (acting through the Attorney-General) and to the supervision of the Charity Commission. Moreover, they are not subject to the beneficiary principle and to the rule against inalienability of capital. This chapter deals with charitable trusts and discusses the distinction between legal and ‘everyday’ notions of charity. It also examines a charitable purpose, the advantages and disadvantages of charitable status, limits on the recognition of charitable trusts, what happens when a charitable purpose fails, whether the purpose of a charitable status is sufficiently beneficial to the public and the administration of charitable trusts. The chapter furthermore considers trust law and tax law privileges; the roles of charities, such as the prevention or relief of poverty and the advancement of education and religion; the public benefit requirement in educational trusts; recreational charities; the exclusivity requirement; the doctrine of cy près; and the disposal of surplus donations.


2020 ◽  
Vol 70 (4) ◽  
pp. 445-465
Author(s):  
Lara McMurtry

The Charities Act 2011 requires that charitable purposes must fit within one or more of the statutory descriptions of ‘charity’ and, demonstrably, be in the public benefit. From the perspective of the now dismantled fourth Pemsel head of charity, this article examines the elusive concept of a charitable purpose and the misconceived statutory public benefit requirement. The guidance and decision-making roles of the Charity Commission are appraised and problems in applying the current law exposed. As few charity cases reach the courts or Upper Tribunal, this work analyses the limited, but important, registration appeals that have reached the First-tier Tribunal. It will explore the emerging trends in charity appeals, the divergent approaches adopted by the Commission and the Tribunal and the lamentable degree of unpredictability facing prospective charity trustees. It concludes that an absence of clear-thinking pervades this vital aspect of charity law and invites reworking and revision.


2019 ◽  
pp. 173-281
Author(s):  
Paul S Davies ◽  
Graham Virgo

All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing able students with a stand-alone resource. This chapter discusses the charitable trust — its definition and the consequences of its failure. A charitable trust is defined as a public trust for purposes that provide a benefit to the public or a section of the public and is a trust subject to supervision by the Charity Commission. A trust is only considered charitable if it is established for a purpose that the law regards as charitable. The purposes of the trust must be wholly and exclusively charitable otherwise the trust will be void. The consequences of the charitable trust failing depend on whether the failure occurs initially or subsequently. If the purpose fails initially and the settlor had a general charitable intention, the trust property can be applied for a similar charitable purpose through the application of a body of rules known as the cy-pres doctrine. If the purpose fails subsequently the cy-pres doctrine will apply automatically.


1999 ◽  
Vol 27 (2) ◽  
pp. 202-203
Author(s):  
Robert Chatham

The Court of Appeals of New York held, in Council of the City of New York u. Giuliani, slip op. 02634, 1999 WL 179257 (N.Y. Mar. 30, 1999), that New York City may not privatize a public city hospital without state statutory authorization. The court found invalid a sublease of a municipal hospital operated by a public benefit corporation to a private, for-profit entity. The court reasoned that the controlling statute prescribed the operation of a municipal hospital as a government function that must be fulfilled by the public benefit corporation as long as it exists, and nothing short of legislative action could put an end to the corporation's existence.In 1969, the New York State legislature enacted the Health and Hospitals Corporation Act (HHCA), establishing the New York City Health and Hospitals Corporation (HHC) as an attempt to improve the New York City public health system. Thirty years later, on a renewed perception that the public health system was once again lacking, the city administration approved a sublease of Coney Island Hospital from HHC to PHS New York, Inc. (PHS), a private, for-profit entity.


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