Unit 5 Charitable Trusts

Question 1

Advantages of charitable trusts

Answer 1

Enforceable even tho no identified beneficiaries.
Tax and fiscal advantages
Can go on forever.
Public support.

Question 2

Who is enforcer

Answer 2

Attorney general- charity commission

Question 3

3 vital ingredients of charitable trust

Answer 3

1. For charitable purpose
2. For public benefit
3. Exclusively charitable

Question 4

Preamble to charitable uses act 1601

Answer 4

“Relief of middle aged, impotent and poor people, maintenance of sick…”

Question 5

Commissioner of income tax v pemsel 1891

Answer 5

“Charity in its legal sense comprises four principle divisions”
- trust for relief of poverty
Trust for advancement of education
Trust for advancement of religion
Trust for other purposes beneficial to community, not falling under any of the preceding headings

Question 6

Scottish burial reform and cremation society v Glasgow corporation

Answer 6

Courts have to keep the law as to charities moving according as new ideas arise or old ones become obsolete or satisfied.

Question 7

Impact of charities act 2006

Answer 7

• continued validity of charitable purposes upheld by pre-2006 case law.
• extends the categories of charitable purposes from 4-13.
• removes presumption of public benefit re poverty, advancing religion and advancing education
• requires charities commission to give guidance re public benefit requirements

Question 8

Charitable purposes- charities act 2011 s.3 (1)

Answer 8

“Prevention or relief of poverty”
Re coulthurst 1951 “poverty does not mean destitution.., person has to go short”

Question 9

• charities act section 3(1)(b)

Answer 9

Advancment of education

Question 10

Re Delius 1957:

Answer 10

Trust for promotion of the works of the composer Delius, held to be charitable

Question 11

IRC v MCMULLEN

Answer 11

Football considered charitable purpose

Question 12

McGovern v A-G 1982

Answer 12

Research will qualify as charitable trust if it is useful and going to be made available to public.

Question 13

Demonstrating public benefit

Answer 13

If all intended beneficiaries are linked in a personal way (nexus) means it is likely to be considered private trust not charitable

Question 14

Oppenheim v Tobacco Securities Trust 1951

Answer 14

Trust to advance education of the children of employees of British American tobacco company. 110,000 workers but Alll were employees so failed public benefit requirement

Question 15

Advancement of religion

Answer 15

CA s.3(1)(c) religion includes:
(I) a religion which involves belief in more than one god
(II) a religion which does not involve belief in god

Question 16

Re south place ethical society

Answer 16

Court said religion needs faith in a god and worship of the god

Question 17

Charity commission 2011-2013

Answer 17

Relationship between believer and supreme being or entity by showing worship of supreme being.
Identifiable positive ethical frameowkr

Question 18

Scientology

Answer 18

Courts did not recognise it as religion for charitable purposes

Question 19

Demonstrating public benefit under religion

Answer 19

• need for engagement with public

Question 20

Advancement of amateur sport

Answer 20

“Sport” means sports or games which promote health by involving physical or mental skills or exertion

Question 21

Re duprees deed trusts 1945

Answer 21

Mental exertion can count- chess

Question 22

If facilities are
Provided for social welfare basic conditions are:

Answer 22

(a) facilities provided to improve conditions of life
(b) (i) persons have to have need for facilities because of youth age disability or poverty
(ii) facilities are to be available to member of public at large

Question 23

Guild v IRC

Answer 23

Recreational charities are not just for deprived people if they are improving lives of the community generally then it will be considered charitable

Question 24

Advancement of animal welfare: re grove Grady

Answer 24

Animal sanctuaries intended to be reserve for animals and people excluded completely. Failed public benefit test

Question 25

Public benefit requirement

Answer 25

All charities must demonstrate they are for public benefit both when being formed and constantly throughout operation of their activities

Question 26

“Benefit aspect”

Answer 26

Purpose must be beneficial- identifiable and capable of being proved by evidence where necessary
Any detriment or harm resulting from it must not outweigh the benefit

Question 27

“Public aspect”

Answer 27

Benefit public in general or sufficient section of public
Not give rise to
More than incidental benefit

Question 28

Re pinion

Answer 28

Left paintings to national trust but they did not want it as not very good. He wanted to establish trust to build a museum to make his paintings available to public. Court of appeal said no clear identifiable benefit

Question 29

National anti-vivisection society v IRC

Answer 29

Anti-vivisection not allowed as it was outweighed by the benefit to the public

Question 30

Gilmour v coats 1949

Answer 30

Cloistered community of nuns never had public services to charitable trust failed

Question 31

London borough of Merton v Nuffield health

Answer 31

Merton abbey gym membership £80
Nuffield health registered charity and uses Merton gym for charitable purposes
Primarily benefits the rich
Even tho the poor might not benefit from the Merton gym they benefit from charity’s overall activities

Question 32

McGovern v A-G 1982 political purposes

Answer 32

Trusts for political purposes not considered charitable
Examples:
- furthering interests of political party
- seeking changes in laws of country
Attempting to change laws in foreign country