chapter  12
67 Pages

Charitable trusts

ByMohamed Ramjohn

A charitable trust is a type of purpose trust in that it promotes a purpose and does not primarily benefit specific individuals. However, in furthering a purpose the performance of the trust may result in individuals or members of the public deriving direct benefits. Under English law charity has always received special treatment. It often takes the form of a trust; but it is a public trust for the promotion of purposes beneficial to the community, not a trust for private individuals. Charities are not subject to the rule against excessive duration. Indeed, many charities continue indefinitely and rely heavily on donations. A variety of tax reliefs are enjoyed both by charitable bodies and by members of the public who donate funds for charitable purposes. An individual may promote a charitable purpose by donating funds inter vivos or by will to trustees on trust to fulfil a charitable objective.