Introduction

Question 1

Can charitable trusts fail for uncertainty of objects? Why?

Answer 1

No. Because there are no beneficiaries.

Question 2

What is the Doctrine of Cy-pres?

Answer 2

Gifts to charity that fail can be saved and applied for other charitable purposes, as close as possible (cy-pres) to the original gift.

Question 3

What is the administrative benefit of charities?

Answer 3

Charities receive support from the state usually through the powers of the Charity Commissioners.

Question 4

What are the financial benefits of charities?

Answer 4

Charities are exempt from most taxes e.g. income tax, capital gains tax, inheritance tax and corporation tax.

Question 5

What is the definition of a charity & which piece of legislation defines it?

Answer 5

“Charity” means an institution which is “established for charitable purposes only.”

s.1(1) of the Charities Act 2011.

Question 6

What are the three criteria of a charitable purpose (and which piece of legislation outlines it)?

Answer 6

It must fall within any of the descriptions of s.3(1) of the Charities Act 2011.

It must be for the public benefit.

It must be exclusively charitable.

Question 7

Which case highlighted the four heads of charitable purposes and what are the four heads?

Answer 7

Special Purposes Commissioners v Pemsel (1891) AC 531 (”Pemsel’s Case”)

Poverty

Education

Religion

Other purposes beneficial to the community