Purpose Trust A “purpose trust” has the objective of promoting a particular purpose. It may or may not be for the benefit of a person or a class of persons. A purpose trust is enforceable if it is for charitable purposes. An objection is that a purpose trust may endure indefinitely. A purpose trust would tie up property for prolonged periods […]
Privileges of Charities Charities enjoy some significant legal privileges. They are entitled to operate under a perpetual trust potentially accumulating funds indefinitely for the defined purposes provided in the charitable trust. The other significant advantages are in the areas of taxation. They enjoy various exemptions from rates, income and corporation tax, capital gains tax and gift tax. In order to obtain […]
Categories of Charitable Trust The classes of trusts which were potentially recognised as charitable are divided into four categories; trusts for the relief of poverty; trusts for the advancement of education; trusts for the advancement of religion; and trusts for other purposes, beneficial to the community. The importance of the identification and characterisation of a trust as a charitable trust […]
Residual Category The fourth or residual class of recognised charitable object, refers to trusts for other purposes beneficial to the community. Whereas trusts for education, relief of poverty and religion are presumed to be for the public benefit, this does not apply to this latter category. It is not enough that the purpose is for the benefit of the public. […]
Courts and Statute Seek to Uphold In contrast to the position with a private trust, a charitable trust for undefined beneficiaries or broadly defined purpose will be readily upheld and given effect. When a trust/gift is made for the benefit of a charity and it is impossible and impracticable to discern the intention of the donor, the court on the applications […]
Administrative The Authority, as successor to the Commissioners of Charitable Donations and Bequests, has a range of functions in relation to charities. In addition, the Charities Act conferred a much wider range of regulatory functions on the new Authority. Where a gift or bequest for charitable purposes is made, the Authority must be notified. It has powers to appoint new […]