Charitable Objectives
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 is set out in other sections. There are significant tax advantages and reliefs. Charitable trusts are subject to far more liberal rules in relation to validity.
Charitable trusts may be of unlimited duration. Formerly, private trusts were subject to significant limitations on their duration, although these rules have been largely removed by recent reforms.
2009 Reforms
The legislation preserves the pre-existing definition of a charity as set out otherwise. It clarifies that certain gifts for religion which have the principal objective of making a profit or employing psychological manipulation are not deemed charitable.
The 2009 Act specifically clarifies that the following are deemed to be of public benefit and are thereby charitable:
- Advancement of community welfare including relief as those in need by reason of youth, age, ill health or disability;
- Advancement of community development rural or urban generation;
- Promotion of health including prevention of sickness, disease or suffering;
- Promotion of civic responsibility or voluntary work;
- Promotion of religious or racial harmony and harmonisation of commuter relations;
- Protection of the natural environment;
- Advancement of environmental sustainability;
- Advancement and sufficient effective use of charitable organisations property;
- Prevention of or relief of suffering of animals;
- Advancement of art and culture heritage of scientists;
- Integration of disadvantaged and promotion of their participation in society.
Categories & Definition
Many trusts will be patently charitable. It may, however, be difficult to classify charitable trusts at the margin. The relevant criteria and standards may change over time. The recognition of religious trusts is particularly difficult and the approach of the Courts has differed significantly in Ireland, to that in England and Wales.
The traditional categories/criteria come from the preamble to a long-repealed Statute, which reformed the law on charities, following the Reformation. The statute was passed in England in the 16th century and it was applied to Ireland in the 17th century.
The Statute does not define charitable purposes in itself and has long since been repealed. Nonetheless, the courts refer to the spirit and intention of the preamble, in deciding whether particular trusts are charitable.
Relief of Poverty
Trusts for the relief of poverty for the benefit of a particular group, class of persons or in a particular location, usually qualify, as charitable. Gifts for the relief of poverty may be for the poor generally or for a particular area, vicinity or neighbourhood.
Poverty is relative and the persons who are beneficiaries need not necessarily be destitute. It has been said that the trust may be made for the relief of gentile poverty.
A gift for the poor relations of a particular person has been upheld. More liberal rules apply in respect of public benefit in the case of gifts for the relief of poverty than in other cases.
Advancement of Education
In the case of advancement of education, a broad category of purposes having public benefit will qualify. Education is broadly defined. Gifts for educational purposes generally will also be upheld. The trust need not necessarily be limited to education in the conventional sense.
Trusts for the advancement of education include those for particular schools and educational institutions. The trust or charity must be for the education of the public generally or a particular class rather than a narrow class of individuals.
Gifts for the establishment of schools, universities, colleges etc. will usually qualify under this heading. Gifts for funding university chairs and scholarships are generally charitable. However, where it is limited to a particular class of persons, including particular members of the donor’s family, it is unlikely to have sufficient public benefit.
Broad Sense of Education
Trusts may be for such things as the promotion of the arts, promotion of self -control, oratory, theatres, art galleries, museums, music, literature. Whether a gift for an artistic purpose is for public benefit is a matter of fact for the court to determine. This may even involve passing judgment on the merit of particular works of art.
Education includes education for vocations or professionals. However, a gift for the members of a particular professional association or its educational faculty of itself would be too broad. It must be limited to the educational purposes of the society. The above relieving provision for mixed purpose gifts may apply.
Trusts for sporting and recreational purposes within a particular school will generally be upheld. However, trusts for sporting and recreational purposes in themselves may not qualify.
Advancement of Religion
A trust for the advancement of religion and religious purposes is generally charitable. Gifts to, for the advancement of religion and for particular religions are generally valid.
The traditional religions will readily qualify. There may be more controversy in relation to trusts for more controversial or modern “sects” and like bodies. Trusts will be less readily upheld, where they are for the benefit of new or controversial religions, particularly those with very small numbers of adherents.
Religion is not limited to the traditional established religions. It is not confined to Christian religions. It need not necessarily be limited to monotheistic religions. The courts do not inquire into the validity of particular religions.
Gifts for conversion whether domestically or abroad have been upheld in Ireland. Gifts for the training and instruction of clergy appear valid.
The objective must be for the public benefit. The Irish courts have allowed a subjective test in the context of religion. Where the person making the gift believes it is for the public benefit, this is generally upheld provided the belief is rational, moral and legal.
Masses
Gifts for the celebration of masses are upheld in Ireland. This is so, irrespective of whether the masses are said in public. Gifts to contemplative orders are also held charitable in Ireland.
In Ireland, trusts for saying masses for the repose of one person’s soul are upheld and valid under the Charities Act notwithstanding the absence of any public element.
This differs from the position in England and Wales where the test is more objective and there must be some proof of public benefit.
Statutory Reinforcement
The approach of the Irish courts to gifts for religious purposes has been reinforced by the Charities Act. The Act provides that in determining whether or not a gift for the purpose of advancement of religion is a valid, charitable gift, it is conclusively presumed that the purpose includes and will occasion public benefit.
It further provided that for the avoidance of difficulties in giving effect to the intention of donors for the purpose of advancement of religion and in order not to frustrate those intentions, gifts for the celebration of mass whether in public or private are valid, charitable gifts.
A valid charitable gift for the purpose of advancement of religion has effect and is construed in accordance with the laws, ordinances and tenets of the religion concerned.
Religious Offices Clergy & Tombs
Gifts to the holders of particular religious offices can cause difficulty. If the office carries charitable the duties and obligations, the trust will generally be charitable. Gifts for the support of clergymen have been upheld as valid.
Difficult questions of interpretation may arise as to whether the gift is intended to be made to the holder personally or in his capacity as holder of a particular office. The purposes must be charitable. If they are partly charitable and non-charitable, the Charities Act may apply to save the gift.
Gifts for clergymen’s houses have been denied charitable status for purpose of rating exemption. The exemption applies only to buildings exclusively dedicated to a religious purpose. On this basis, teaching colleges did not qualify for the rates exemption. However, the rating exemption has a narrower test than the general charitable purpose test and depends on the wording of the particular statute.
Trusts for the maintenance of churches, buildings, tombs, graveyards, etc. are upheld and valid.A gift for a tomb is valid provided it is limited to certain financial levels, notwithstanding that it is not a charitable trust in the strict sense.
A gift for the maintenance of a churchyard or a cemetery, even non-religious, has been upheld as charitable. If it is not religious, it will generally be for the benefit of the public and qualify under the residual heading.