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Charities (1)

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Equity and Trusts Lecture Notes - Charities

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  • September 30, 2018
  • 22
  • 2016/2017
  • Class notes
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Equity & Trusts Seminar 6 – Charities
PART A: CHARITIES AS A SPECIAL TYPE OF TRUST
 Purpose Trusts:
o Once upon a time the only way a charity could have a legal
form would be as a charitable trust; now quite common to see
incorporated charities
o Important thing is that these charitable trusts are not trusts
for people but trusts for purposes:
 Potential benefciaries have no rights:
 e.g. people attending a soup kitchen (the service
users) are not the legal benefciariess it is the
purpose which is the legal benefciary (the
provision of soup to the poor)
 Service users have no legal rights – they are not
the benefciary
 The purpose is the object of the charity
 Private benefciaries by contrast can enforce trusts:
 Private benefciaries can use their position as
object of the trust to make sure the trust is being
properly carried out
 Private trust has private benefciaries that can enforce
the trust in court – a charitable trust is for purposes and
those purposes cannot go to court
o Enforced by the Attorney General:
 Has the power to intervene in charity cases
 Can also bring cases to court against the trustees of a
charitable trust
 This is a very traditional and old-fashioned mechanism –
no longer the mainstream mechanism at all for
regulating trusts
 It is in some other jurisdictions  e.g. in New York
the Attorney General is very present in charitable
afairs
 A lot of theoretical power for the Attorney General to
intervene in charitable casess this does not actually
happen that frequently in practice
 The Attorney General is the Crown’s law ofcer:
 The Monarch has always been very interested in
charity and philanthropy
o Regulated by Charity Commission:
 Non-Ministerial Government department
 This department has a lot of regulatory powers over
charities:

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