Charities #2

Charities #2

1. CHARITABLE PURPOSES cont.

   • Exclusively charitable purposes
     • Note - statutory def of 'charity' requires ALL purposes to be 'charitable' (but not same level of certainty required as in private Ts). Was always the case.
       • Morice v Bishop of Durham (1805)
         • Not all good purposes are C.
         • 'such objects of benevolence and liberality as the Bishop...shall most approve of'
           • Doesn't fall under legal def.
       • Re Macduff [1896]
         • 'charitable OR philanthropic' - like 'benevolent', but not C due to def.
       • Dunne v Byrne [1912]
         • 'to the Archbishop 'as he may judge most conducive to the good of religion'
           • Not C as actually a matter of law.
       • Re Chichester Diocesan Board of Finance v Simpson [1944] (Diplock's case)
         • Testator left huge amount of money to charities. Due to it not being exclusively C, it was void. Went to next of kin (who brought case up, the stingey bastards.) Sued Ts and proceeded against charities. One T committed suicide, another died of a heart attack...
         • 'such charitable institutions or other charitable OR benevolent objects in England as my executors shall select'
     • Incidental purposes are acceptable, as are incidental benefits to members
       • IRC v Yorkshire Agricultural Society [1928]
         • Promotion of agriculture. Little perks to members - incidental.
       • Funnell v Stewart [1996]
         • Faith healing; public healing but private religious service
     • And if there are both C and non-C ways of achieving the purposes, the courts will construe the disposition in favour of the C
       • Re Hetherington [1990]
         • Left residuary estate to Catholic Church. 'Repose of souls' = masses in public or private? Went for C interpretation.
     • In respect of instruments which take effect (not dated before; MUST take effect before) before 16th December 1952, the following statute might be applied to save a disposition which offends the principle that purposes must be exclusively charitable. (Limited effect.)
       • Charitable Trusts (Validation) Act 1954
         • Re Gillingham Bus Disaster Fund [1958]
           • Accident where 24 Royal Marine Cadets died, and some were very seriously injured. Funds were raised; letter drafted was unclear - 'other worthy causes' was problematic. Not C in law. Act used to try and save it, but it didn't :(
         • Ulrich v Treasury Solicitor [2005]
           • Didn't like interpretations of GBDF. T for employees, their widows and kids. Not for 'relief of poor' widows and kids. Not C? Saved under Act. If fund only used for C purposes, would anyone object? Test.
         • Cuppage v Lawson [2010]
       • Also note Administration of Justice Act 1982 s.21

2. PUBLIC BENEFIT

   • s.4(2) and 4(3) CA 2011
   • How do we know what pub. ben. means?
     • Case law
     • CC guidance (s.17 CA 2011)
     • Decisions of Upper Tribunal post-2006
   • Case law
     • Encapsulated two tests; purposes had to be 1. beneficial in a way the law regards as charitable and 2. directed at the public or a sufficient section of the public.
     • RULE 1 - Charity is defined according to a legal or 'technical meaning'
       • PRINCIPLE A - Poverty is not an essential element (so not all bens. have to be poor)
       • Morice v Bishop of Durham (1805)
       • Question of PURPOSES, not activities
       • Broad meaning, but not unlimited - not all public or beneficial purposes are C
         • Re Strakosch [1949]
       • Divorced from 'popular' meaning of charity - poverty not essential
         • Verge v Somerville [1924]
           • Education and religion do not need any qualification of poverty'
         • Attorney General v Earl of Lonsdale (1827)
           • School for Sons of Gentlemen. Courts concerned with other purposes, not bens?
         • Pemsel's case [1891]
           • Not C because not all heathens were poor? HoL said no need to include relief of poverty. Missionary for Heathens
         • Re Resch [1969]
         • Fee-charging for expensive services?
     • RULE 2 - An organisation's purposes must satisfy the following two tests of charitable status...
       • TEST 1 - They must be beneficial in a way the law regards as C
         • Within a recognised head of charity ot analogous theeto [and] within the spirit and intendment of the Preamble...
         • PRINCIPLE B - Not more detrimental than beneficial
           • National Anti-Vivisection Society v IRC [1948]
             • Tax exemptions. Promoting morality for mankind through no cruelty to animals (charitable on one hand?) BUT evidence of detriment through deprivation of research and medical advances. Not C due to detrimental effects. Refused tax exemptions.
         • PRINCIPLE C - Not political
           • Bowman v Secular Society [1917]
             • Promoting Tories.
           • Bonar Law Memorial Trust v IRC (1933)
         • PRINCIPLE D - Not illegal, immoral or otherwise contrary to public policy
         • PRINCIPLE E - Not for private gain
         • PRINCIPLE F - If any main purpose is non C, an institution cannot be C