Lecture notes
Equity and Trust 2
- Module
- Equity and Trusts 2 (M6027)
- Institution
- University Of Sussex (UoS)
This is for the second half of the year for Equity and Trusts
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Equity and Trusts 2Charities 1
Key points
- Trusts for public purposes – Enforceable by the Attorney General/Charities Commission
o Public purpose doesn’t really have an object
- Not all charities are trusts
o Companies limited by guarantee – Directors and Trustees
- Tax privileges – Donations, Housing…exempt from capital gains tax
- Governed by the Charities Act 2011 and the Charity Commission (Quasi-judicial, civil service)
Private Trust vs Charitable Trust
- Private trusts need to have a definite object
- For a charitable trust, you don’t have to work out the specifics – “The poor of Brighton”
- The purpose needs to charitable but it needs to be wholly and exclusively charitable
o Chichester Diocesan Board v Simpson – It has to be exclusively charitable
- The Charity Commission has different tiers – First tier, Upper tier, the Court of Appeal – Quasi
judicial
- Perpetuities rule – You can’t tie property for 125 years (Private trust)
o For charitable trusts, you can tie up property forever
- Cy Pres doctrine – Money that is left over would go to a charity with a similar purpose
o Different than a resulting trust where it goes back to the settlor
o Different than a bona vacantia where it goes the Crown
- Administration issues – The AG (in conjunction with the Charities Commission) can take the
trustees to court
Charities Act 2011 – The main act that is used
Charities 2
What is a charity? – The 12 Heads of Charity
1) Prevention or relief of poverty
2) Advancement of education
3) Advancement of religion
4) Advancement of health or the saving of lives
5) Advancement of the arts, culture, heritage or science
6) Advancement of amateur sport
, 7) Advancement of human rights, conflict resolution or reconciliation of the promotion of religion
or racial harmony or equality and diversity
8) Advancement of environmental protection or improvement
9) Relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other
disadvantage
10) Advancement of animal welfare
11) Promotion of efficiency of armed forces, or police, fire and rescue services or ambulance
services
12) Any other purposes within subsection (includes recreational trust s5)
What to consider
- The old case law must be considered
- The Charities Act 2011
- Consider changing times
- The Charity Commission guidance on the 12 heads and the public benefit
Public Benefit
- Two major elements
o Socially useful
o Available to the public – Different for the different heads and types
Whether the purpose is beneficial
Who does it benefit?
- Gilmour v Coats
o There will be different standards depending on the charity and depending on what
category it is – The nuns must be going out and helping people
o Religion – Trust 500 pounds – Gilmour wanted to know if this was charity
o Nuns in convent – Not going out into the world, they were cloistered
- The Independent School Council v The Charity Commission
o Who do they benefit?
- Incorporated Council of Law Reporting for England and Wales v AG
o Does law reporting satisfy charitable requirements?
o The whole point is for it to be accessible to the public
- Charities Act 2011
o Section 4 – There is no longer a presumption that just because the description matched
the heads, it was charity
o Charity Commission gets to
determine whether it’s a
charity – Public Benefit website
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