Charitable trusts

Charitable trusts

1. How are charitable trusts different?

   • Gaudiya mission v brahmhary - it is therefore subject to special rules governing registration, administration, taxation and duration. Although not a state institution, at charity is subject to the constitutional protection of the crime

2. Advantages

   • Purpose trusts are allowed
   • Rule against alienation does not apply
   • More liberal rules for certainty
   • moggridge v thackwell - to dispose of to such charities as he shall think fit– held valid and doctrine of cy pres operates to save it
   • Tax advantages

3. What is a charitable trust?

   • No set statutory definition
   • First attempt was the preamble of charitable uses act 1601 which stated inter alia relief of the aged, Per-pupil, maintenance of sick, soldiers, skills of learning, repair of bridges/Churches,
     • Pemsils case - Lord macnaghten set out Four categories of charity which are still recognised
       • 1. Relief of poverty– 2. Advancement of education – 3. Advancement of religion– 4. Other purposes beneficial to the community

4. Charities act NI 2008

   • Established the charity commission from Northern Ireland– Established the charity tribunal–provides for charitable incorporated organisations– Provided new definition on charitable purpose based on that used in England and Wales
     • Section 2 (2) defines charitable purpose
       • Largely taken from the charities act 2006–prevention and relief of property– the advancement of education – advancement of religion – advancement of health– advancement of citizenship– Advancement of the art– advancement of amateur sports– Advancement of environmental protection –relief of those in need by reason of use each ill-health disability financial hardship or other disadvantage–advancement of animal welfare–any other purpose recognised as charitable under existing charity law.

5. Public benefit– Pre-requisite that the trust must be for the public benefit– Section 3 of the charities act Northern Ireland 2008 as amended by the charities act Northern Ireland 2013– No presumption that a purpose is for the public benefit– Two approaches in how to decide whether a trust is for the benefit of the public

   • Public benefit– 1. Requirement that the applicant only needs to show a genuine charitable intention for there to be valid charitable purpose trust– 2. Requirement that the applicant demonstrates that there is no personal nexus between the settlor and class of people to be benefited
     • Oppenheim v tobacco securities - no public benefit if there was a nexus between people who established the charity and the people who were intended to benefit
       • Dingle v Turner – help Nexus will do not apply in poverty cases