ABSTRACT
Charitable trusts like private trusts are subject to a test of certainty of objects. We have already examined the tests for certainty of objects in respect of private trusts (fixed trust – IRC v Broadway Cottages Ltd; discretionary trusts – McPhail v Doulton). A charitable trust is subject to a unique test for certainty of objects, namely, whether the objects are exclusively charitable. In other words, if the trust funds may be used solely for charitable purposes the test will be satisfied. Indeed, it is unnecessary for the settlor or testator to specify the charitable objects which are intended to take the trust property, provided that the trust instrument manifests a clear intention to devote the funds for ‘charitable purposes’ the test will be satisfied. Thus, a gift ‘on trust for charitable purposes’ will satisfy this test. The Charity Commissioners and the court have the jurisdiction to establish a scheme for application of the funds (that is, the court will make an order indicating the specific charitable objects which will benefit).
