Equity LG/WS 8 - Charitable trusts

  • Created by: Emma13
  • Created on: 22-06-18 11:18
What is the Charity Commission and what does it do?
Quasi Judicial functions, ensures charities must register and charities must submit annual reports
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What are the advantages of charitable status?
Ben principle, b's = public, AG enforces, rules against inalienability of capital doesn't apply, certainty of objects - charities purposes can be vague
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What happens if there is a failed gift to a charity?
If failed gift to charity the residue will go to a similar charity unless specified.
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What are the tax benefits of charitable status?
Benefits for donor Capital given to charity is exempt from IHT Benefits for charity No tax on income and gains from fund investments Reclaim on gift aid donations
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What does the Charity Commission Guidance do ?
Aids interpretation of Charities Act but is not binding
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What are the 3 conditions that a charitable trust must be?
For a charitable purpose, exclusively charitable, for public benefit
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What is for a charitable purpose and where is it defined?
As defined in s3 Charities Act 2011
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Where is exclusively charitable defined?
s1(1)(c) Charities Act 2011
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What is for public benefit and where is it defined?
s4 Charities Act 2011 The trust purposes must have identifiable benefit or benefits (no longer presumed) and The benefit must be to the public, or a section of the public
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What did Damsel establish?
Preamble to charities uses before Charities Act - 4 heads; relief of poverty,advancement of religion/education, other purposes beneficial to the community
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What does s3(1)(a)-(m) Charities Act 2011 include?
Purposes recognised under old rules, purposes analogous to these and to those in s3(1) and s5
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What is exclusively charitable?
S1(1) CA 2011 - The stated purpose(s) of the trust must not include anything that is not charitable
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What is Public benefit?
s4 CA 2011 - Purpose must provide identifiable benefit, Purpose must benefit public or section of it
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What did Re Pinion establish?
Public benefit is not presumed
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What is the prevention/ relief of poverty?
s3(1)(a) Charitable purpose - poverty does not mean destitute
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What did Re Coulthurst establish?
Poverty 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”
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What does the Charity Commission Guidance say in regards to poverty?
it is likely to be charitable to relieve the financial hardship of anyone who does not have the resources to provide themselves, either on a short or long term basis, “with the normal things of life which most people take for granted”.
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What did Re Gwyon establish?
Exclusively charitable - The trust must not benefit people who are in no sense, poor
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What did Dingle v Turner establish?
Public benefit for poverty; The settlors relations are a sufficient section of the public in trusts for the relief of poverty
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What did Re Scarisbrick establish?
distinguished trusts to relieve poverty among a class of person (charitable) and a gift to individuals (not charitable)
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What did HM AG v Charity Commission establish?
the Upper Tribunal Tax and Chancery Chambers confirmed that trusts to relieve poverty among relations, employees of the same employer and members of a club of society were charitable
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What did Re Niyazi’s Will Trust establish?
Public benefit;To provide hostel for “working men”
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Where is the advancement of education defined?
s3(1)(b) CA 2011
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What did Re Hopkins establish?
Charitable purpose of advancement of education? Francis bacon shaspear
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What did Re Besterman's Will Trust establish?
Trust for research are charitable if the subject matter of the research is useful and the results of the research are to be published
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For advancement of education what is a sufficient section of the public to satisfy public benefit?
People linked by a personal nexus test are not a sufficient section of the public
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What did Re Compton establish?
a trust for the education of the descendants of three names persons was not charitable
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What did Oppenheim establish?
A trust to apply the trust income to provide for the education of the children of employees or ex-employees of British American Tobacco was not charitable.
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How do you constitute a section of the public for advancement of education?The Class of B's must..
Not be numerically negligible+The quality which distinguishes them from other members of the community, must be a quality which does not depend on their relationship to a particular individual or company or several individuals/companies
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Do a class within a class test apply to education?
The scope of this test is uncertain
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What is the Independent School Council establish?
2 issues: are the purposes exclusively charitable and are the people who can afford the fees, a sufficient section of the public.
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In relation to ISC what did the Charity Commission do?
CC issued guidance on meaning of public benefit in light of new legislations. Purpose does not benefit public if it excludes the poor from benefitting or does not make reasonable provision for the poor to benefit.
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When will a education trust meet the public benefit requirement?
If states purpose does not exclude the poor, allows for more than minimal provision for poor to benefit
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Where is the advancement of religion defined?
s3(1)(c) Charities Act 2011
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For charitable purpose of advancement of religion what does religion include?
s3(2)(a) religion includes - A religion which involves belief in more than one god and A religion which does not involve belief in a god
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What did Re South Place Ethical Society establish?
To be charitable the trust must advance religion i.e take positive steps to sustain and increase religious belief.
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What did Thorton v Howe establish?
The trust or institution must not be ‘adverse to the very foundations of all religion and...subversive of all morality”
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What did Neville Estates establish?
Public benefit for relgion; Public benefit results from ‘the attendance at places of worship of persons who live in the world and mix with their fellow citizens’ per Cross J
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What did Gilmour establish?
A close community of Roman Catholic nuns, who had no contact with the outside world, was not charitable. There was insufficient public benefit.
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Does the personal nexus test and 'class within a class' restriction apply to religion?
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Can a trust for political purposes be charitable?
if stated purpose has a political aspect it cannot be charitable
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What are examples of political purposes?
Further interest of particular political party/procure changes in laws of UK/procure changes in law of foreign country/procure reversal of Gov policy/decisions of gov authorities in UK
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What did McGovern establish?
To procure a reversal of Gov policy or decisions of governmental authorities in the UK or abroad = political purpose
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What did Amnesty International Pilot trust establish?
A trust or other institution can be charitable if its political purpose is identical or ancillary to it’s main charitable purpose.
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What did Re Smiths Wills trust establish?
The advancement of health/saving lives s3(1)(d) COA held that a gift to be applied to the benefit of such hospitals as the trustees in their absolute discretion thought fit was charitable.
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What did Funnel v Stewart establish?
the court held that a trust to further the work of a group offering faith healing was charitable.
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Are private hospitals charitable?
Hospitals which charge fees for the treatment they provide can be charitable, even if as a result their services are only available to those who are capable of paying or have insurance.
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What did Re Resch establish?
Gift to private hospital was held charitable as public benefit for nurses/doctors to provide beds
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What did Re Wokingham Fire Brigades establish?
Trusts for the protection of human life and property have been held to be charitable as falling within the ‘spirit and internment’ of the preamble.
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What did Bernstein establish?
surgeons gift of part of his residuary estate to provide extra comforts at Christmas for the nurses of a specified hospital was held charitable. (Analogous/ancillary purposes)
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What did Joseph Rowntree establish?
the relief of unemployment was not historically a charitable object in itself, though organizations that have helped unemployment people have been considered charitable under the categories of advancing education or relieving poverty.
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What did Williams Trustees and Glasgow Police establish?
HOL held that the provision of recreation for the members was not purely incidental to the charitable purpose of promoting the efficiency of the force, and therefore the association was not entitled to charitable status.
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What did Baddeley establish?
The HOL held that this was not a gift made exclusively for charitable purposes, following Williams’ Trustees.
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What is a class within a class restriction?
Viscount Simmonds Baddely - ‘a form of relief extended to the whole community yet by its very nature advantageous only to the few and a form of relief accorded to a selected few out of a larger number equally willing and able to take advantage of it
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What is the fundamental principle behind the definition of charity?
purposes that are charitable must be for the public benefit It will not be charitable if it is for political purposes
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What did Lord Parker say regarding political purposes in Bowman?
equality had always refused to recognise as charitable ‘purely political objects’
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What did Slade J in McGovern say a trust will be political?
According to Slade J, a trust will be regarded as political if it has a direct or principal purpose supporting a political party, changing the law, or changing government policy. Test approved in Ex p Bull
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What did Re Ogden establish?
a trust to promote ‘Liberal principles’ was held not to be charitable
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What did NAV establish?
It was held it would not be charitable Slade J said ‘the court will not regard as charitable a trust which the main object it to procure an alteration of the law of the UK’
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What did Ex p Bull establish?
it was held that even the attempt to persuade countries to implement human rights in accordance with their obligations through international treaties was political
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What did Re Hopkinson establish?
Vaisey J held that the purpose was ‘political propaganda masquerading as education’ and therefore not charitable
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What did Re Bushnell establish?
a trust for the promotion of socialized medicine through the publishing and distribution of books was held to be political, rather than for the provision of medical care
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What did Re Koeppler establish?
a gift to ‘Wilton Park’ an institution which was not party political and sought to promote greater cooperation in Europe was charitable
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What did Slade J say about political activity within a trust?
Slade J recognised that a limited agree of political activity was permissible provided that it was not the main purpose of the trust
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What did the Commission say about legitimate political activity?
organisation can never be a charity if it is established solely for political purposes, so long as a charity is engaging in campaigning/political activity solely in order to further/support its charitable purposes, it can be effective + carry out PA
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Can charities support a political party?
charities may not support a political party, they may support specific policies advocated by political parties if the policy would help them to achieve their charitable purpose
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