Charities Flashcards
Advantages of charities
- enforceable with no beneficiaries
- tax and fiscal advantages
- public support
- cy-pres doctrine- money left at end of charity given to similar charity
Three ingrediants to a charity
For a charitable purpose
For the public benefit
Exclusively charitable
Impact of charities act 2006
- continued validity of charitable purposes
- extended the charitable purposes from 4 to 13
- removed presumption of public benefit re poverty, advancing religion and advancing education.
- did not define public benefit
Re Coulthurst (poverty)
Poverty need not mean destitution
Re Scarisbrick
The charitable purpose must be to prevent or elliviate poverty to poor people in general. Limits will create a private trust.
Re Cohen
Poverty could mean “in needy circumstance
Dingle v Turner
‘Poor employees’ trusts have been held as charities
Charity Commission (2011) (Poverty)
A restricted class may still benefit a large number of people
Re Delius (education)
The advancement of a music composer was charitable
IRC v McMullen (education)
physical education held as charitable
Re Shaw (education)
trust to create a 40 letter alphabet not charitable
McGovern v AG (education)
A trust for reserach allowed if:
- the research is useful
- the knowledge will be useful
- the trust benefits the public
Use this for human rights, political etc
Oppenheim v Tobacco Securities
Trust failed as you had to be an employee so was a private benefit
Independant Schools Council v Charity commission
Public benefit test for private schools passed as long as they had provisions to help some who could not afford the fees.
Charity Commission (2013) (Religion)
Needs to be a belief in a supreme being which is worshipped, venerated or revered.
Ex Parte Segerdal (Religion)
Judges suspictious of scientology
Gilmour v Coats (Religion)
Private religious groups not charitable
Re Rensch (health or saving lives)
non-profit private hospital held as charitable.
Re Pinion (preservation of arts)
no artistic value so not charitable
National Anti-Vivisection society (animal welfare)
Weigh the positives against the disadvantages
2 principles of new charities (public benefit)
- must be an identifiable benefit
- must benefit public (or a large section)
Double restrictions
IRC v Baddeley- Methodists in West Ham and Leyton too retsrictive
Biscoe v Jackson (case of initial failure)
Could not find a suitable place for soup kitchen but used the money for other charitable things (held charitable).
Cases of subsequent failure
Re Wright- ‘once charitable, always charitable’.
