Charities - Public Benefit

Question 0

Dingle v Turner

Answer 0

Trusts for the relief of poverty was not affected by ruling in Oppenheim
L Cross – did not consider distinction between personal and impersonal relationships when identifying the section of the public to be satisfactory
-whether class of potential beneficiaries did represent a section of public was matter of degree - regard to both numbers in the class and purposes of the trust
-fiscal privileges should be taken into account (not agreed by other judges) – if purpose of trust is to obtain fiscal privileges the it should not be charitable

Question 1

Oppenheim

Answer 1

H of L denied charitable statue to a trust to educate the children of employees of named company

• L MacDermott : although common link test is of value it should not be an overriding consideration
• other relevant factors include: size of class, needs of members of class, advantage to public of having need met, purpose of the trust, scope and value

-concluded that – PB test was satisfied because of the large size of the class

Question 2

Radcliffe commission 1995

Answer 2

Fiscal privileges should be allowed to certain charities - just a recommendation and not law!

Question 3

Fiscal privileges should be taken into account - L Cross

Solution to this problematic statement

Answer 3

Whether purpose/motive of creator of trust is to attract fiscal privileges

Ie. purpose = advancement of education, motive = fiscal privileges then Trust = charitable
-if purpose is to attract fiscal privileges = not charitable

Question 4

Hayton (academic commentator) on Oppenheim

Answer 4

It was decided wrongly (consequence from comments from Dingle v Turner) but nothing from the case suggests that it should have been decided differently

Question 5

Re Delany

Answer 5

Charity is altruistic and it involves benefitting others

Question 6

Poverty exception

Answer 6

Trust for the relief of poverty for a small class (with personal nexus) was upheld as charitable even though it wasn’t in the public interest

Question 7

Re Compton

Answer 7

Charitable only if class forms an appreciable section of the community
2 criteria
A) not numerically negligible
B) quality if the public benefit must not depend on relationship to particular individual

Question 8

Gilmour v Coats

Answer 8

Nuns praying was not held to be in the public benefit

Question 9

Thornton v Howe

Answer 9

Even though the situation obscure (new messiah publication) it was still held to be in the public benefit

Question 10

Verge v Somerville

Answer 10

Depends on whether benefits available for community at large or just appreciable section