Charitable Purpose Trusts

Question 0

Re Lord Stratheden and Campbell

Answer 0

Charitable trusts are not subject to the perpetuity rule but property is and must be vested in the charity within 125 years

Question 1

Gaudiya Mission

Answer 1

Charitable trusts are public trusts for the purpose of benefiting a community

Question 2

Moggridge v Thackwell

Answer 2

Certainty of purpose rules are much more flexible, sufficient that the property is intended to be applied charitably and it does not matter that the trust fails to provide with reasonable certainty what that purpose is

Question 3

RSPCA v AG

Answer 3

Charities can be subject to JR, but there are restrictions

Question 4

Independent Schools Council

Answer 4

No longer a rebuttal presumption that certain purposes are presumed charitable such as education
- Guidance on ‘public benefit’ given by the Ch. Commission was described as ambiguous

Question 5

Re Shaw

Answer 5

Whether the purpose is beneficial is a question of fact and down to the court to ascertain, it is irrelevant that the testator believed it to be so

Question 6

Anti-vivisection Society

Answer 6

Benefits are weighed up against detriments, where the latter outweighs the former the principle will not be satisfied - here the detriment to advancement of medical research was seen to outweigh it so not charitable - look at how ‘public benefit’ changes, the latter was for the same cause and held to be charitable 50 yrs earlier

Question 7

Re Resch’s WT

Answer 7

Sometimes, indirect benefits to the general public will be relevant, more so for medical things, not education - largely speculative

Question 8

Re Compton

Answer 8

‘Public’ must be satisfied, can be numerically negligible but must not be family, friends or related to a particular individual or contract

Question 9

The Abbey

Answer 9

Charities can charge fees, but these must not unreasonably restrict access - can also make profit providing this is furthering the charity’s aims

Question 10

Bowman v Secular Society

Answer 10

Charities cannot pursue political objectives

Question 11

McGovern v AG, Anti-Vivisection

Answer 11

An organization will be considered political where it its purpose is party-political, advocates or opposes a change in the law or policy in either England or abroad
Also do not want to infringe on legislature

Question 12

Stevens and Feldman (people)

Answer 12

They have criticised the law on charities not allowed to have a political aim as outdated and in Anti-Vivisection, it could be said that the HL did in fact judge the proposed change in the law to be bad - also difficult to draw the distinction - obvious caveats are where an aim is for racist change, e.g. also party-political should not be char.

Question 13

Pemsel’s Case

Answer 13

The prevention or relief of poverty and ‘those in need’

Question 14

Re Coulthurst

Answer 14

Poverty encompasses, but is not restricted to, complete destitution, funds for those who have fallen on financial hardship or the unemployed will be viable

Question 15

Re Sanders’ WT

Re Niyazi’s WT

Answer 15

A trust for ‘dwellings’ for the ‘working class’ was void as there was no requirement to be poor
However, in N the word ‘hostel’ suggested modest accommodation for those in need

Question 16

Re Gwyon

Answer 16

A gift cannot be manipulated to look like a CP trust

Question 17

Re Segelman, Re Lucas

Answer 17

The relief of poverty is given a much broader application and it is possible for the testator to leave a CPT for poor relatives, or a poor small geographical area

Question 18

Dingle v Turner distinguishing Oppenheim (Lord Cross)

Answer 18

A CPT was upheld for employees as it was for the relief of poor people, this therefore extended the relatives rule for poverty relief - the considerable size of this company helped
Oppenheim was for the provision of education, where there are more likely to be fiscal advantages so this employee trust was not charitable

Question 19

Incorporated Council of Law Reporting for E & W

Answer 19

Education is now widely defined to include not only schools but any improvement or dissemination of human knowledge

• the results of research need to be disseminated and private research will normally not qualify

Question 20

Case of Christ’s College, Cambridge

IRC v McMullen

Answer 20

Charitable purpose includes paying teachers

Not confined to classroom instruction but includes moral, spiritual, mental and physical elements

Question 21

Re Hopkins’ WT, Re Shaw

Answer 21

Research is included in education and it is for the court to have regard of its aims and utilities - it is not for the court to look at the outcome but rather whether the research itself was a legitimate area
Shaw’s alphabet did not qualify as its object merely tended to the increase of knowledge but no teaching or education - Hopkins qualified that academic research is okay, as it has future value

Question 22

Oppenheim (Lord Macdermot dissenting)

Dingle v Turner

Answer 22

Leading case on public benefit of educational purpose trusts - there must not be a negligible class of people but there must also not be a ‘personal nexus’ which links each object of the potential class to one individual or organisation – this case is at odds with D v T

Question 23

Lord Cross (obiter)

Answer 23

The courts should have regard of the motives for the CPT and if one of them is for fiscal immunity, as opposed to a mere by-product, then those motives should be regarded negatively when considering what the public benefit is

Question 24

The Independent Schools Council

Re Hopkins’ WT (Wilberforce J)

Answer 24

Just because there is no personal nexus it does not follow that a trust is for the public benefit
Research needs to be disseminated and not purely for a private researcher or members of a particular society

Question 25

Re Hopkinson

Answer 25

Political motives masqueraded as the advancement of education will not be charitable, here, it was adult education in the realm of the Labour Party

Question 26

Re Koeppler’s WT

Answer 26

Trust’s whose aims are less partisan will be deemed charitable, here it was educating on securing peace and avoiding war with no political stance

Question 27

Webb v O’Doherty

Answer 27

Funds of SUs must not be spent on political purposes which do not further the students’ general aims - e.g. the withdrawal of free milk and anti-Gulf War campaigns

Question 28

Thornton v Howe

Funnell v Stewart

Answer 28

The definition of religion has been significantly widened including a Joanna Southcote’s works who claimed she was with child and would give birth to the second messiah and faith-healing churches
NB also in the latter case that they need not be advertised but merely be open to the public

Question 29

Re South Place Ethical Society

Answer 29

A society disseminating information on ethical principles was not for the advancement of religion as it concerned man’s relationship with man, not god - was, however, an advancement of education - Dillon J also stated that it had to be a relationship with god but this is now inconsistent with statute

Question 30

The Gnostic Centre

Answer 30

There needs to be teaching and an identifiable moral framework for the advancement of religion, which is a new requirement

Question 31

United Grand Lodge

Answer 31

Although Freemasonry has a supreme being it does not spread or promote religious belief and is therefore not for the ADVANCEMENT of religion

Question 32

Gilmour v Coats

Answer 32

Re public benefit - faith and prayer are insufficient to constitute a public benefit in the advancement of religion

Question 33

Re Hetherington

Neville Estates Ltd

Answer 33

In contrast to Gilmour, a trust for the giving of mass was charitable as the public could attend - there was also a benefit to the RC Church as priests would be paid a stipend and the money could be used elsewhere
The members of the synagogue were a sufficient section of the public and they spent time in the community unlike Gilmour

Question 34

Re Resch’s WT (health)

Answer 34

The advancement of health or the saving of lives - fees are okay as long as they do not exclude too much, here they were at cost price so excluded the poor but benefited the general public still

Question 35

IRC v Oldham Training and Enterprise Council

Answer 35

It was sufficient that the organisation benefited the inhabitants of Oldham and that they aided the unemployed, which benefits the state - however, the council also conferred benefits on private individuals through promoting commerce and was therefore not exclusively charitable - not a charity

Question 36

Re Delius (Roxburgh J)
Re Pinion

Answer 36

The advancement of arts, culture, science, heritage - still needs to be of some utility to the public, of some artistic merit and satisfy the public benefit test
In the latter, the work would probably not be adequate as it was of ‘poor quality’, but how to know?

Question 37

Williams’ Trustees

Answer 37

Even if found to be of cultural value, it still must be exclusively charitable and available to a portion of the public - this would be probably be charitable today (Welsh in London) as not numerically small and no personal nexus, although it had other aims which were not exclusively charitable

Question 38

Re Durpee’s Trusts

Answer 38

Chess is considered a sport due to the mental exertion

Question 39

IRC v Baddeley

Answer 39

A trust for playing fields for members of a Methodist Church did not satisfy the public benefit requirement because it was for members of the church in a particular geographical area, which was a class within a class and therefore not for the public benefit

Question 40

Guild v IRC

Answer 40

It is sufficient that a community centre provides for the public at large and not for those who are suffering from disability, impoverished, etc.

Question 41

Re Strakosch

Answer 41

The appeasement of Dutch and English speaking sections of the South African community was too vague although it could have been upheld if this hadn’t been the case

Question 42

McGovern v AG

R v Radio Authority, ex p Bull

Answer 42

Trusts for the advancement of HR must still not have a political end in and of themselves, although they may achieve a charitable end with political means - these was not charitable - they must also be exclusively charitable

Question 43

Pemsel’s Case

Answer 43

The relief of those in need - now separated from poverty - includes the relief of those in need by reason of age, ill-health, disability, financial hardship or other disadvantage - since this is now distinct from poverty they therefore do not need to be poor

Question 44

Joseph Rowntree Memorial Trust

Answer 44

Relief by virtue of ‘age’ - this was charitable even though the Bs had to make a substantial financial contribution and the trust made profit if they sold the lease - this was outweighed by the suitable accommodation for aged people, community services and a warden

Question 45

Re Moss

Answer 45

The advancement of animal can be of a particular animal
or to all animals
or to the improvement of the slaughter of animals

Question 46

Re Grove-Grady
Hanchett- Stamford
Re Wedgwood

Answer 46

• A trust to be buy a sanctuary for creatures was not charitable as it had no public benefit
• the benefit can be indirect
• the indirect benefit is for the elevation of public morality and the promotion of humanity

Question 47

Re Good

Answer 47

Efficiency of public services means physical efficiency which can include academic endeavours (a library in Good) or outdoor sports area in Gray

Question 48

Chichester Diocesan Fund

Answer 48

A CPT must be exclusively charitable NB or or and being used- benevolent can be wider than charitable as here

Question 49

Re Sutton
Re Macduff
AG of Cayman Islands

Answer 49

‘Charitable and deserving objects’ was held to be charitable but not

• Charitable or philanthropic or
• public good

Question 50

Latimer (Lord Millett)

Answer 50

Distinctions need to be drawn between ends, means, and consequences of charitable purposes - the charitable status will not be lost providing the non-charitable benefits are merely means to a charitable end OR incidental of a charitable end

Question 51

Re Coxen

Answer 51

Severance is possible where the language allows for such a division and the amount allocated can be quantified

Question 52

Biscoe v Jackson

Answer 52

General charitable intent

Question 53

Re Finger’s WT

Answer 53

NB distinction between incorporated and unincorporated bodies - former will usually be valid as it is a gift for a purpose whereas the latter is for an institution but can then be fulfilled cy pres

Question 54

Re Slatter’s WT

Re Harwood, Re Spence

Answer 54

Cy-pres doctine for initial failure - must look very carefully at testator’s intention - e.g. a specific hospital like here - Martin has criticised
- there have been anomalies where it seems that there is no general charitable intent but it has still been construed as being such

Question 55

Re Spence

Answer 55

Charity by association - a number of similar gifts left, one of which fails, will be applied cy-pres providing it would have been charitable and is similar to the other institutions

Question 56

Re Jenkin’s

Re Satterthwaite

Answer 56

Distinction between failure of one of several trusts for non-existence and one for non-charitable - former cy pres

Question 57

Re Slevin

Re King

Answer 57

A CPT becomes subsequent on the death of the testator, where the purpose has not failed but it becomes impractical e.g. the tenant of a convalescent home dies
Also where a purpose has been fulfilled but there are leftover trust funds

Question 58

Varsani v Jesani

Re JW Laing

Answer 58

s62 jurisdiction to alter the purpose of the gift by virtue of the cy-pres doctrine – important as it involves altering the original purposes of the charity to enable the property to be applied in another way than intended
NB the CL jurisdiction if s62 rejected,spirit must not be altered - admin