Public Trusts - Charities Flashcards
Charities Act 2011, s1
gives the definition of a charity: an institution which is established for charitable purposes only
Charities Act 2011, s3(1)(a)-(m)
gives a list of all purposes which are considered ‘charitable’
What are the 3 main elements to consider when answering a question about charitable trusts?
- Charitable purpose
- exclusively charitable
- public benefit
What are the two elements of the public benefit?
- benefit aspect
2. public aspect
Charities Act 2011, s17
When showing the public benefit element has been complied with, you must have regard for the guidance put forward by the charity commission
The independent Schools Council v The Charity commission for England and Wales [2011]
found that the guidance around Public Benefit was ambiguous, and therefore in 2013 the guidance was updated
What is the benefit aspect?
The benefit itself must be identifiable, and you must be able to prove, with evidence, that the purpose is beneficial.
Re Shaws Will Trusts [1952]
Sometimes, the benefit is ‘So obvious’ that the trustees do not actually have to provide proof to show the benefit aspect
Re Hummeltenberg [1923]
shows that there is no single test to determine what evidence would be sufficient to show the benefit (college for mediums)
Re Pinion [1965]
shows that there is no single test to determine what evidence would be sufficient to show the benefit (contents of his studio for museum)
National Anti-vivisection Society v IRC [1948]
When showing the public benefit, the purpose of the benefit must be balanced against any harm
When showing the public benefit, the purpose of the benefit must be balanced against any harm
National Anti-vivisection Society v IRC [1948]
What two cases show that when determining the benefit aspect of the public benefit, there is no one test as to what evidence is required?
- Re Hummeltenberg [1923]
2. Re Pinion [1965]
In certain circumstances, an indirect benefit has been identified, and the trust has been deemed beneficial because of this.
Re Resch’s trust [1969]
Re Resch’s trust [1969]
In certain circumstances, an indirect benefit has been identified, and the trust has been deemed beneficial because of this.
What is the public aspect?
The benefit must be of benefit to the public in general, or for a sufficient section of the public.
Verge v Somerville [1924]
‘a first enquiry must be whether it is public – whether it is for the benefit of the community or of an appreciably important class of the community’
IRC v Basseley [1955]
Shows that if the class of people who will benefit is too narrow, it will not satisfy the public aspect of the public benefit test
What does exclusively charitable mean?
Must be for charitable purposes only – a charity cannot have both charitable and non-charitable purposes (unless such non charitable purposes are incidental)
Chichester Diocesan Fund and Board of Finances Incorporated v Simpson [1944]
Shows that mixing a non-charitable reason with a charitable one will not satisfy the ‘exclusively charitable’ element
A-G of the Bahamas v Royal Trust Co [1986]
Shows the word ‘welfare’ was considered to wide to be classed as ‘exclusively charitable’
Charities Act 2011 s3(1)(a)-(m)
gives a list of all charitable purposes
Which statute gives a list of all charitable purposes?
Charities Act 2011 s3(1)(a)-(m)
Charities Act 2011. s4(2)
Shows there is no presumption of a public benefit
Charities Act 2011, s4(3)
Shows there is no definition of a public benefit
What statute shows there is no presumption of a public benefit?
Charities Act 2011, s4(2)
What statute shows there is no definition of public benefit?
Charities Act 2011, s4(3)
Charity - an institution that is established for charitable purposes only
Definition - Charities Act 2011, s1
Charities Act 2011, s2(1)(a)
A charitable purpose is one which falls within section 3
Charities Act s2(1)(b)
Shows a charitable purpose must be for the public benefit,
