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  • Created by: Hope
  • Created on: 25-05-16 20:22
Who can enforce charitable trusts?
The attorney general
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Which case stated that purposes must be exclusively charitable?
Chichester Diocesan Board
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How do public purpose trusts reconcile with perpetuity?
They aren't subject to perpetuity as long as the property doesn't vest in the future
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How does perpetuity affect gifts from one charity to another? Example?
They aren't bound by it, Christ Hospital v Granger
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What is the Cy Pres doctrine? When does it apply?
If you leave money to a charity that no longer exists, the courts will give it to a charity with a similar purpose
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Why must a charity prove public benefit?
It is a legal requirement
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How has the number of charitable purposes evolved?
There was 11 in 1601, then 4 in 1888 and stayed that way for ages, but this was criticised in Scottish Burial Soc.
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What was the case regarding public benefit before the 2011 act?
A benefit was always presumed to exist under poverty, education and religion, the "other purposes" category had to be proven
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What is the case now?
We don't presume any more, so we have to consult cases in which it has already been proven
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What is the definition of poverty?
Its a relative term, and Parliament and the courts have never tried to define it. Many academics think it should be the job of the state to define
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What did Lord Evershed say about poverty? In which case?
That is does not mean destitution, Re Coulthurst's WT
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What does Gary Watt say about the approach of the courts?
That they have degrees of poverty
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How does the charity commission define poor?
"Anyone who does not have access to the normal things in life which most people take for granted"
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Which case stated that just because you're working class, doesn't mean you're poor?
Re Drummond
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What effect does charging for services have on charitable status?
None, it is not a bar to finding a purpose as for the relief of poverty
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Which case said that a trust for poverty must in no way benefit rich people?
Re Gwynon
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Have we completely abandoned the 1601 preamble?
No, the courts still refer to it often
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What do the Charity Commission say about what is covered by advancement of education?
It is not limited to formal school or university. It can cover most types of instruction, cultural advancement, industrial and technical training, zoos, museums and most types of research
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When can fee paying schools be charitable? Authority?
When they are not for profit. Joseph Rowntree Housing Association
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What was the rule in Re Girls Public Day School trust?
The fact that shareholders could liquidate the company in order to collect any arrears was enough to deny it charitable status
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What can this be contrasted with?
Abbey v Malvern & Wells Ltd, which was a case of a fee-charging school which was charitable
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What examples have the charity commission given under advancement of education?
education, training, research, individual capabilities, competences, skills, understanding, educational prize funds, student's unions, training for the unemployed, physical and out of school education
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Which kind of research is likely to be charitable?
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What else does education include? Authority?
Dissemination of knowledge, Incorporated Council for Law Reporting in England and Wales
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What has the charity commission said about the heading of "arts, culture, heritage and science"
It would cover a wide range of activity, including promoting all types of art a professional or amateur level, advancing heritage and preservation of historic land and buildings and observing and maintaining traditions
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What is the problem with the case law under this heading?
It is quite new, so there isn't any, but some of the old cases on education can be re-interpreted under this heading
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What was the rule concerning music? Case?
Courts seemed to be making a value judgement. We have to presuppose that the composer's work is worth appreciating- Re Delius
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What can this be contrasted with?
Re Pinnion, not charitable because collection was ****, court got an expert to make a value judgement
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When is the advancement of sport normally accepted?
In the context of education. It is unlikely that a sports team not associated with a school will get charitable status
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What is a case example of this? Rule?
IRC v McMullen- Sport as part of an education system is OK, not for its own sake
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When can sport be charitable?
When it satisfies the requirement for healthy recreation or community participation
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What was the unusual rule in Re Dupree's Trust?
Chess counted because it was "more than a mere game"
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What are the requirements of sports?
It must have health benefits, and be open to all
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Which sports are not ok according to the CC?
Angling, ballooning, billiards, pool, snooker, crossbow, shooting, flying, gliding, motor sports, parachuting
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What does the case law on religion show of the attitudes of the court?
They have a diversity and tolerance of religion
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What is a case example of this? What was said?
Neville Estates v Madden - Lord Cross "as between different religions, the law stands neutral but it assumes that any religion is at least better than none."
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What is the first characteristic for a purpose to be charitable for religion?
Belief in a god, gods, goddess, goddesses, supreme/divine/transindental being or entity or spirtitual principle which is the object/focus of the religion
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What is the status of this requirement now? Authority?
R (on the application of Hodkin and another) v Registrar general- courts seem to be departing from strict need for a deity and replaced it with any spiritual or non-secular belief system held by a group of adherents
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What are the other 3 characteristics?
Worship or some veneration of that deity, a degree of cogency, cohesion, seriousness or importance, an identifiable moral or ethical framework.
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What was the rule concerning faith healing?
It is charitable, Fulham v Stewart
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Which case illustrated self-contained nuns? Was that charitable?
Gilmour v Coates- no, because there was no public benefit
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Which case shows the leniency of the court? Why?
Thornton v Howe- woman thought she was giving birth to the 2nd messiah, her writings were considered charitable
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What is the status regarding organisations which support religious societies or provide public benefit? Example?
They now come under the heading of advancement of religion- Scottish Burial Reform and Cremation Society v Glasgow Corporation- maintenance of a crematorium was on par with cemetery so charitable
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What examples of other purposes has the charity commission given?
Things like provision of public work or amenities, relief of unemployment, promotion of agriculture and horticulture, beautification of towns, mental health and moral improvement
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What is the rule in the case law concerning "other purposes"?
A trust is not charitable unless it is within the spirit and intendment of the 1601 preamble
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What do the charity commission say comes under the relief of sickness?
"The prevention or the relief of sickness, disease or human suffering, the promotion of health incl. conventional, alternative and holistic methods... concerned with healing mind, body and spirit, alleviation of symptoms... and cure..."
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What are the requirements of the method?
There has to be sufficient evidence of its efficacy
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What was the rule in Re Resch's WT?
It is not a limitation for a trust for the relief of the sick that they also be poor
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What is wrong with the advancement of citizenship heading?
Many academics brand it as meaningless
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What examples of advancement of citizenship does the Charity Commission give?
Good citizenship reward schemes, urban and rural regeneration, promotion of volunteering
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What is the rule of political purposes? Example?
It a purpose wants to change a law it can't be charitable, political activity is ok, not purposes. National Anti-Vivisection society v Inland Revenue
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What is the caveat to allowing political purposes?
They should not be the dominant method by which the organisation will pursue its purposes
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What does the charity commission say is included in conflict resolution?
The relief of suffering, poverty and distress arising through conflict, national or international, by identifying the causes of conflict and addressing it.
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What does the promotion of religious/racial harmony/equality/diversity include?
Purposes to lessen conflict between people from different races, religions, belief systems, eliminating discrimination and promoting diversity in society
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What does environmental protection have to show?
That the species in question is worth preserving
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What case is important under advancement of animal welfare? What does it say?
Re Wedgewood - to promote kindness to animals and to ameliorate the condition of the brute creation and thus to stimulate humane and generous sentiments in a man toward lower animals
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What is the case concerning trusts for efficiency of the armed forces?
Trusts to increase the efficiency of the armed forces were always charitable - IRC v City of Glasgow Police Athletic Association
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What happens if part of a trust is not exclusively charitable?
It will fail
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What about trusts for charitable and benevolent purposes? Authority? Controversy?
Re Best- held to be charitable despite Morice which said that "benevolent purposes" was not exclusively charitable
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What can this be contrasted with? Why?
Chichester Diocesan Fund v Simpson- charitable or benevolent purposes failed because there was an option for benevolence instead of charity, which means something different in law
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What is another example of a trust failing for not being exclusively charitable? What happened?
AG of the Bahamas v Royal Trust Co "welfare" could possibly not be exclusively charitable
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What about provisions which could possibly give remuneration to trustees? Authority?
Re Coxen- if something can be regarded as remuneration for trustees, it won't fail the trust
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What do we ask of public benefit for purposes?
That they be beneficial in a way which is identifiable
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What if there is some detriment/harm in the purpose?
It must be outweighed by the benefit
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What is the rule concerning public benefit?
The purpose must benefit the public in general, or at least a sufficient section of the public
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What is normally ok?
People living in any geographical area, local, national or international will be sufficient
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What else could be enough?
People defined by relevance to a protected characteristic
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How do we assess public benefit?
Its quite hard to assess, because the test used to be slightly different for each heading
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What about relatives? Authority?
There is a long history of this being ok, which is controversial. You can leave money to relatives if you want to, but you have to make sure its for the relief of poverty not just a gift - Re Scarisbrick
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What did Gary Watts note about cases for relatives?
Presumably, they were noted to be indirectly beneficial to the public by reducing the welfare burden of the state, which is an argument made in many of the cases
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What about employees? Authority?
This presents a problem, because it could just make a company more attractive to work for, because of tax advantages. The courts are aware of this, but employees are just a natural extension of the relatives cases - Dingle v Turner
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What does the case law say about employees?
The fact that a beneficiary class is defined in relation to a relationship to a common employer makes it a private trust, not public.
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What else has been said about employees and relatives?
There have been cases where the courts have allowed public benefit where the trustees have been able to prefer up to 70% of the class as being relatives/employees
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What did we used to do? Authority?
We used to just presume public benefit under certain headings, but AG v Charity Commission confirmed the removal of that presumption
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What qualifies as protected characteristics?
age, disability, sex, sexual orientation, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, nationality, religion or belief
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What is the rule concerning the size of a group of people who can benefit from a gift under poverty?
It doesn't matter how small the group is, but individuals aren't ok
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What is the rule concerning public benefit for relief of poverty? Has the legislation changed this?
It is a purpose which has public benefit inherent, that is all that is necessary.The law hasn't changed this
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What does charity commission guidance say about excluding the poor?
the purpose cannot exclude the poor, but this creates a problem with fee paying schools, which exclude the poor but have been charitable, this is questionable after 2011 leg
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Can fee paying schools have public benefit? Authority?
Yes according to R (on the application of ISC) v Charity Commission
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What does public benefit of religion depend on?
Whether the religion is inward or outward looking
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What about other purposes? Example?
It has never been presumed, but "if a charity falls within the last class, it must be for the benefit of the whole community, or at least all the inhabitants of a sufficient area"- Viscount Simmonds in IRC v Baddely
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What was the test concerning public benefit of education? Case?
The possible beneficiaries must not be numerically negligible and the quality which distinguishes them from other members of the community must not depend on their relationship to a particular individual- Oppenheim v Tobacco Securities
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Card 2


Which case stated that purposes must be exclusively charitable?


Chichester Diocesan Board

Card 3


How do public purpose trusts reconcile with perpetuity?


Preview of the front of card 3

Card 4


How does perpetuity affect gifts from one charity to another? Example?


Preview of the front of card 4

Card 5


What is the Cy Pres doctrine? When does it apply?


Preview of the front of card 5
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