ABSTRACT

If the purpose of a charitable gift becomes impossible or impractical to carry out, the fund is not held on an automatic resulting trust, as would be the case with a private trust. A cy-près scheme may be drawn up and the fund will continue to be applied for charitable purposes ‘as nearly as possible’ (cy-près) to the original charitable purpose or purposes. This principle requires two conditions to be satisfied, namely: (a) it has become impossible or impractical to carry out the original charitable purpose; and (b) the donor has manifested a general charitable intention.