10 Questions
What are the three essential elements for a trust or gift to be considered charitable?
A charitable nature, general public benefit, and being wholly and exclusively charitable.
What was the original wording in the 1601 Preamble regarding trusts for the relief of poverty?
Trusts for the relief of aged, impotent and poor.
In the case of Re Lewis, what was the outcome of a gift of £100 cash to ten blind girls and ten blind boys in Tottenham?
The gift was held valid, even though it was not restricted to the poor impotent.
What is the significance of the word 'relief' in the context of charitable trusts for the relief of poverty?
The word 'relief' implies that the person in question has a need attributable to their condition as aged, impotent, or poor, which requires alleviating, and which they could not alleviate, or would find difficulty in alleviating themselves from their own resources.
What is the interpretation of the word 'poverty' in the context of the law of charity?
Poverty is not restricted to destitution, but rather refers to persons who have to 'go short' in the ordinary acceptation of that term, due regard being had to their status in life and so forth.
What is the significance of the Charities Act 2011 in the context of charitable trusts?
The Charities Act 2011 provides a legislative framework for charitable trusts, building upon earlier legislation and case law.
What was the outcome of the case of Joseph Rowntree Memorial Trust Housing Association v AG?
A provision of special accommodation relieving a particular need of the elderly of limited means was upheld under the poverty head.
What is the distinction between the concepts of 'relief' and 'benefit' in the context of charitable trusts?
The word 'relief' implies alleviating a specific need or burden, whereas 'benefit' is a more general concept of advantage or improvement.
What are the four types of approved charity, according to Lord MacNaghten's classification?
Not specified in the provided text, but Lord MacNaghten's classification includes trusts for the relief of poverty, advancement of education, advancement of religion, and other purposes beneficial to the community.
What is the significance of public benefit in the context of charitable trusts?
A charitable trust must be of general public benefit, meaning that it benefits the community as a whole or a significant section of it.
Study Notes
Charitable Trusts
- A charitable trust must be for public purposes beneficial to the community or for the public welfare and be charitable within the 'spirit and intendment' of the Preamble to the English Statute of Charitable Uses 1601.
Key Characteristics
- A charitable trust must be beneficial to the community or of general public utility.
- If a purpose is shown to be beneficial to the community or of general public utility, it is prima facie charitable.
- The onus is on those who oppose its charitable status to show that the object is not within the 'spirit and intendment' of the Preamble.
Four Types of Approved Charity
- Trusts for the relief of poverty.
- Trusts for the advancement of education.
- Trusts for the advancement of religion.
- Trusts for other purposes beneficial to the community.
Benefits of Charitable Trusts
- Certainties of objects/Validity: No requirement for the objects of the trust to be certain.
- Tax advantage/Fiscal policy: Donors can enjoy tax exemption (charities are exempt from income tax).
- Rule against perpetuity: Charitable trusts are not subject to the perpetuity rule of 21 years.
Trusts for the Relief of Poverty
- In the 1601 Preamble, the wording was trusts for the relief of aged, impotent, and poor.
- The words "aged", "impotent", and "poor" have been interpreted disjunctively.
- The gift must be for the relief of the aged or impotent.
- Poverty, in the context of the law of charity, is not to be restricted to destitution, but rather means persons who have to "go short" in the ordinary acceptation of that term.
Learn about the key characteristics of charitable trusts, including their purpose and benefits to the community. Understand the 'spirit and intendment' of the English Statute of Charitable Uses 1601.
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