Charitable trust ii

1) Relief Of Poverty
2) Advancement of Education
23/12/15Equity & Trust II

 No definition of poverty
 It does not mean destitution.
 It means that there is a want, that a person has ‘to
go short’ of something.
 The trust must be within the spirit and intendment
of the Preamble
 It must be for the relief of such persons and not
merely their benefit.

 Joseph Rowntree Memeorial Trust Housing v
A.G [1983] 2 WLR 284 : Peter Gibson J :
 “ The words “ aged, impotent and poor must
be read disjunctively. It would be absurd to
require that the aged must be impotent as it
would be require to impotent to be aged or
poor to be aged or impotent.”

 B) What is essential to the charitable purpose is
that it should relieve aged, impotent and poor
people. The word ‘relief’ implies that the persons
in question have a need attributable to their
condition as aged, impotent or poor people . . .”
 For g : Aids sufferer, cancer patient etc

 Re Lewis ( 1955) Ch 104 : A testator made a
bequest : “I leave t o10 blind girls, Tottenham
residents if possible the sum of £100 each. I leave
“ to each 10 blind boys Tottenham residents if
possible the sum of £100 .
 Held : A valid charitable bequest

 Re Bradbury (1950) 2 All ER 1150
 A trust for the maintenance of aged persons in a
nursing home.
 Held : charitable

 C) Poverty is not destitution.
 Poor is a relative term
 An individual need not be destitute in order to
qualify as a poor person within the preamble

 Re Coulthurst (1951) Ch 661
 A fund to b applied for the benefit of the widows
and orphaned children of deceased officers and
deceased ex-officers of Coutts and Com
 Held : It is a relative term. The court will look at
the lifestyle of the people who will benefit

 Re Niyazi ‘s Will Trust (1978) 1 WLR 910.
 £15,000 for the construction of or as a
contribution towards the cost of working
mens’hostel, to be created in Famagusta Cyprus
 Held : Charitable trust

 Re Sander’s Will Trust ( 1954) Ch. 265
 A codicil “ to provide or assist in providing
dwellings for the working classes and their
families resident in the area of Pembroke
Dock . . . Or within a radius 5 miles there from.
 Held : Not charitable. “working class” did not
indicate poor person.

 Trust for the relief of poverty form an exception to
the principle that every charitable trust must be for
the public benefit.
 The exception covers both the poor employer and
their families.

 However there must be primary intent to relieve
poverty amongst a particular class of person. If
primary intent is to benefit particular person the
trust is a private one and not charitable.

 Dingle v Turner (1972) AC 601
 Trust to apply income in paying pensions to
poor employees of a company.
 HOL reaffirmed the Court of Appeal’s decision
that it was charitable
 If the trust is one to relieve poverty among
named persons it is not charitable

 Lee Chick Yet v Chen Siew Kee [1977] 2 MLJ
218.

 Preamble 1601 :
 “the maintenance of schools of learning, free
school and scholars in universities and the
education and preferment of orphans.”

 Does not limit to poor classroom teaching.
 Broad definition : teaching of ethic, research
arts etc.
 Incorporated Council of Law of
Reporting From England and Wales v
AG (1972) Ch. 73.
 Buckeley LJ : It now extends to improvement of
useful branch of human knowledge and public
dissemination.”

 Now the category has grown to cover a very wide
range of educational, eg : schools, universities,
nursery, museums, zoos, public libraries and and
cultural activities such as drama, literature and
fine arts.

 Requires more than mere accumulation of
knowledge
 Sharing or teaching : must show that public will
benefit
 What about other than scientific or medical
research ; Will it be considered as charitable

 Re Hopkins (1965) Ch 669
 A gift to the Francis Bacon Society : to be
earmarked and applied towards finding the bacon
Shakespeare manuscripts.
 Valid Charitable trust

 Re Shaw ( 1957) 1 WLR 729.
 Residuary of George Bernard Shaw to be devoted
for the research : Advantages to be gained by
substituting the present 26 letter by a new
proposed British alphabet of 40 letters.
 Held :Gift not charitable

 Royal Choral Society v IRC (1943) 2 All
ER 613.
 Society : To form and maintain a choir in order to
promote the practice and performance of choral
works by way of concert or choral pageant in the
Royal Albert Hall
 Charitable society.

 Re Delius (1957) Ch 299.
 Widow of a composer – Frederick Delius gave
her residuary estate for the advancement of
Delius’s musical works “.. To apply the
royalties income and income form the residual
trust fund towards the advancement of musical
works of my late husband..”
 A valid charitable trust.

 London Hospital Medical College v IRC
(1976) 1 WLR 613
 Students union is considered as charitable – part
of educational purpose of college and university.

 Trust for political purposes is not charitable
 Trust for advancement of education must not be
political at all.
 Eg : Trust for the release of prisoners of
conscience, for alteration of the law relating
marriage and also to promote the principles of a
political party are not charitable

 Bowman v Secular Society [1945] Ch 16
 Lord Parker : ‘a trust for the attainment of political
object has always been held invalid not because it
is illegal . . . but because the court has no means
of judging whether a proposed change in law will
or will not be for the public benefit

 Re Hopkinson ( 1949) 1 All R 346
 Vaisey J : ‘political propaganda
masquerading . . . As education is not education
for the purpose of charity.

 Re Scowcroft (1898) Ch 638
 The gift of income to be applied for the
furtherance of conservative principles and
religious and mental improvement
 Charitable Trust

 Re Koepller’s Will Trust ( 1986) Ch 423
 A gift to further the work of educational project
was held charitable even though the testators
express aspiration were not regarded as
charitable.
 The project involved conferences with political
flavour but it did not further the interest of a
particular political party

 Promotion of sports per se is not regarded as
charitable.
 Except if the promotion takes place in school and
universities.

 In Re Marriette (1915) 2 Ch 284
 £ 1000 for building a squash court in a school and
£ 100 to provide price money in the school for
athletic events.
 Held : Charitable

 IRC v Mac Mullen (1915) 2 Ch 284
 Trust for the furtherance of education in schools
and university in UK and encouraging and
facilitating the students playing football and other
games and sports at such institution.
 Held : A Valid Charitable Trust. Education is not
restricted to classroom teaching

 Trust of sport outside educational facilities and are
not charitable unless they come within the scope
of the Recreational Charities Act 1958
 Re Duprees Deed Trust (1945) Ch 16
 £ 5000 to establish annual chess tournament for
young boys under 21
 Held : CT. Purposeful activities for the young

 The Court will not allow the trust if some people to
be escaped from tax in order to educate their
children.

 OPPENHEIM V TOBACCO SECURITIES
LTD (1951) AC 297
 Trust for the education of children of employee of
British American Tobacco Co Ltd and any of its
subsidiary
 Not charitable: no connection with the public

 RE KOETTGEN’S WILL TRUST ( 1954) Ch
252
 Trust for the promotion of commercial education
for those who could not afford to pay it for
themselves, with a preference to be given of up to
75% of the income to the employees of a
particular firm.
 Charitable

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