Charitable Trusts

• What are the main topics covered in the overview of Charitable Trusts?

  Advantages of charitable status, legal definition of charity, requirements to establish a valid charitable trust, charitable purposes, exclusively charitable, public benefit, and cy-pres doctrine.
• What is included in the legal definition of charity?

  Charitable purpose, public benefit, and exclusively charitable.
• What are the requirements to establish a valid charitable trust?

  The trust must have a charitable purpose, provide public benefit, and be exclusively charitable.
• What is the cy-pres doctrine in relation to charitable trusts?

  The cy-pres doctrine allows funds from a failed charitable trust to be redirected to a similar charitable purpose.
• What are the privileges enjoyed by charitable status?

  • Fiscal privileges: exemptions from income tax and corporation tax, tax advantages.
  • Legal privileges: no need for ascertainable beneficiaries, enforcement by the Attorney General.
  • Duration: trusts will not fail due to excessive duration, not subject to perpetuity.
  • Certainty of purpose: trusts won't fail due to uncertainty.
• What tax exemptions do charitable trusts enjoy?

  Charitable trusts are exempt from income tax and corporation tax.
• What is the significance of not needing ascertainable beneficiaries in charitable trusts?

  It allows for the establishment of charitable trusts without the requirement to identify specific individuals who will benefit.
• When does the cy-pres doctrine come into play?

  The cy-pres doctrine comes into play when a charitable trust fails.
• What does Section 193(2)(A) of the Equality Act 2010 state regarding charitable trusts?

  It removes discrimination and encourages equality, with limited exceptions for charitable trusts.
• What are the disadvantages of charitable status?

  • Charities are more heavily regulated by state agencies than private organizations.
  • They face scrutiny from the Charity Commission and HMRC.
  • Compliance with regulations can be time-consuming and costly.
• Who enforces charitable trusts in the name of the crown?

  The Attorney General enforces charitable trusts in the name of the crown.
• What is the role of the Charity Commission?

  The Charity Commission is responsible for registering charities and ensuring effective use of charitable purposes.
• What is the function of the Tribunals in relation to charities?

  The Tribunals can hear matters referred by the Charity Commission or Attorney General and determine legal issues.
• What is the role of the High Court concerning charities?

  The High Court provides directions related to the administration of charities and can hear appeals from the Tribunals.
• What are the key components of the legal definition of charity?

  • Charitable purpose
  • Public benefit
  • Exclusively charitable
• What is the significance of the Preamble to the Statute of Charitable Uses 1601?

  It marks the beginning of charity law and lists charitable purposes recognized by the courts.
• What charitable purposes are listed in the Preamble to the Statute of Charitable Uses 1601?

  Education, meals, relief, and support for various groups including the poor and orphans.
• What are the four heads of charity identified in Inland Revenue Commissioners v Pemsel?

  Relief of poverty, advancement of education, advancement of religion, and other purposes beneficial to the community.
• What is the presumption regarding public benefit for trusts meeting the first three heads of charity?

  If a trust meets the first three heads, it is presumed to provide a public benefit, but this presumption is rebuttable.
• What was the significance of the Charities Act 2006?

  It provided the first statutory definition of 'charity'.
• What does Section 1 of the Charities Act 2011 define as a charity?

  A charity is defined as an institution established for charitable purposes only.
• What does Section 3 of the Charities Act 2011 provide?

  Section 3 lists the charitable purposes recognized under the Act.
• What is the first charitable purpose listed in Section 3(1)(a) of the Charities Act 2011?

  The prevention or relief of poverty.
• Is there a statutory definition of poverty in charity law?

  No, there is no statutory definition of poverty in charity law.
• Who can benefit from a charitable trust focused on poverty?

  The charitable trust can only benefit the 'poor'.
• How do courts view the term 'poor' in charity law?

  The term 'poor' is recognized by the courts as a relative term.
• What does the case Re Coulthurst illustrate about charitable trusts?

  • Charitable trust set up for widowed officers.
  • Evidence showed some widows and orphaned children needed assistance.
  • It is not essential to use the word 'poverty' in the trust wording if relief of the poor is clearly intended.
• How did the court interpret the term 'distressed' in Re de Carteret?

  The court accepted that 'distressed' fell within the definition of 'poverty'.
• What does 'fallen on evil days' mean in the context of Re Young?

  'Fallen on evil days' was accepted by the court as falling within the definition of poverty.
• What is required for a charitable trust to be valid in terms of beneficiaries?

  Only the poor can benefit for the trust to be held valid.
• What was the outcome of Re Drummond regarding holidays for workers?

  The court held that people in the workplace could not be deemed as poor for the purpose of the trust.
• What did the court decide in Re Sander’s WT regarding dwellings for working classes?

  The court held that 'working class' did not indicate poverty at the time of the case.
• Why was Helena Partnership Ltd refused charitable status?

  It was refused charitable status because it did not clearly state that only the poor could benefit in its objectives.
• What does Re Niyazi’s WT illustrate about charitable trusts for the poor?

  • The trust was established to provide income for a worker's hostel in Cyprus.
  • The court held it was a valid trust for relief of poverty.
  • The decision considered the depressed nature of the area and the likelihood that only poor persons would live in a hostel.
• What is the spiritual connection between the people of the land and nature?

  It is a spiritual connection between people and nature.
• How is nature regarded in the context of the people of the land?

  Nature is regarded as a supreme being/entity.
• What does the Charity Commission say about the belief in a supreme being/entity?

  A belief in a supreme being/entity is a significant characteristic of a religion in charity law.
• What constitutes a religion in charity law according to the Charity Commission?

  A belief in a supreme being/entity constitutes a religion in charity law.
• What was the decision of the Charity Commission regarding the Temple of the Jedi Order in 2016?

  The Charity Commission concluded that Jediism was not an established religion in charity law.
• What was the purpose of the society of the Temple of the Jedi Order?

  The purpose was to advance the religion of Jediism for public benefit worldwide.