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Topic 9- Purpose Trusts Purposes that of benefit to the community (s3(11)…
Topic 9- Purpose Trusts
Purposes that of benefit to the community
s3(11) 2009 Act
3(11) In this section “ purpose that is of benefit to the community ” includes—
(a) the advancement of community welfare including the relief of those in need by reason of youth, age, ill-health, or disability,
(b) the advancement of community development, including rural or urban regeneration,
(c) the promotion of civic responsibility or voluntary work,
(d) the promotion of health, including the prevention or relief of sickness, disease or human suffering,
(e) the advancement of conflict resolution or reconciliation,
(f) the promotion of religious or racial harmony and harmonious community relations,
(g) the protection of the natural environment,
(h) the advancement of environmental sustainability,
(i) the advancement of the efficient and effective use of the property of charitable organisations,
(j) the prevention or relief of suffering of animals,
(k) the advancement of the arts, culture, heritage or sciences, and
(l) the integration of those who are disadvantaged, and the promotion of their full participation, in society.
NOTE: For these purposes to be charitable, it must be 'of public benefit'
Commissioners for Special Purposes of Income Tax v Pemsel
: Lord Macnaghten described charitable trusts falling under these headings as being
as being 'for other purposes beneficial to the community, not falling under any of the preceding heads'
Such trusts are not less charitable in the eye of the law, because incidentally they benefit the rich as well as the poor, as indeed every charity that deserves the name must do either directly or indirectly
However,
Re MacDuff
: Rigby LJ commented that a trust that benefits rich people only will no be accorded charitable status under this heading
'Of benefit to the community'
Pre 2009 Act
In interpreting this courts may have regard to pre 2009 Act case law
Subjective v Objective
In Ireland, a purpose was regarded as beneficial to the community if the settlor was of the opinion that it was
Test= subjective
Settlor's view was determinative so long as it was rational and not contrary to either law or morality
Re Cranston:
Irish C of A considered whether certain gifts to vegetarian societies were gifts for a purpose beneficial to the community
Held: The benefit must be one which the
founder
believes to be of public advantage
his belief must be rational
Re Worth Library
The fact the testator's view as to the public utility of his favoured object is not shared by many people will not of itself prevent it from being, in the eyes of the law, a valid charitable object within the fourth category
provided it is not illegal, irrational or contra bonos mores
s3(11) categories (also recognized by common law in
Commissioner for Special Purposes of Income Tax v Pemsel)
The relief of the aged
s3(11)- relief of those in need by reason of age
Re Robinson
concerned a bequest to 'old people over 65' in certain district
Held: Accorded charitable status under this heading
Re Dunlop
: concerned a trust to found or assist in the founding of a home of 'old Presbyterian persons'
Held; Trust charitable under this heading- noted it relieved a need attributable to the condition of those to be benefited i.e. their advancing years
The relief of the sick and the maintenance of a Hospital
s3(11)(a): the relief of those in need by reason of ill health
s3(11)(d): he prevent or relief of sickness, disease or human suffering
Re Barrington's Hospital v Commissioner of Valuation
: Kingsmill Moore J said:
a rrust for the care of the sick or the maintenance of a hospital is a charity in the legal meaning of that term
The fact there are a number of fee-paying patients in a hospital does not alter the fact that a gift for its maintenance is charitable
HOWEVER- if a hospital is being conduced exclusively for the well-to-do gift to it ceases to be charitable
LATER MODIFIED- to read 'exclusively or predominantly'
GOOD CASE FOR BORDERLINE PQ
Gleeson v Attorney General
:
Facts: Concerned the charitable status of St Vincent's Hospital, Dublin
It operated in conjunction with a public hospital
Held: The private hospital was a charitable institution
There is much to be said for the view that a private nursing home which charges fees and which is run in conjunction with a hospital and whose profits are applied for the purposes of the hospital is a legal charity
The benefit of a locality
s3(11)(a) the advancement of community welfare
s3(11)(d) the promotion of health
Shillington v Portadown UDC
Facts: Concerned a gift to an urban council for the purpose of encouraging and providing 'means of healthy recreation' for the residents of an area
Held; Of Charitable status
The benefit and protection of animals
s3(11) (j): the prevention or relief of suffering of animals
Re Cranson
: Holmes LJ- if it is beneficial to the community to promote virtue and to discourage vice, it must be beneficial to teach the duty of justice and fair treatment to the brute creation, and to repress on of the most revolting kinds of cruelty
Armstrogn v Reeves
At one time it was thought that gifts for the benefit and protection of animals included gifts to organisations devoted to the abolition of vivisection
National Anti-vivisection society v IRC
This view ceased to prevail, as vivisection is regarded as beneficial to humankind
Would not be beneficial to the community
Re Grove-Grady
: Concerned a trust, the purpose of which was the creation of an animal shelter where animals were to be 'free from molestation or destruction by man'
Not 'beneficial to the community'- as it did not permit the destruction of sheltered animals even if it was necessary to do so'
The provision of recreational facilities
The provision of recreational facilities was implicitly recognised as beneficial to the community in
Clancy v Commissioner of Valuation
:
Facts: A hall had been built for the purpose of 'promoting temperance among the poor and laboring classes of the town of Sligo and neighbouring districts;
used for playing billards and cards and taking baths
Those using the hall for first time expected to pay entrance fee, thereafter they were put on their honour to make small contributions if they could afford to do so
More than half of the patrons made such contributions
Issue: Was the hall used for
exclusively
charitable purposes?
Held: Hall open to rich and poor alike
regarded hall's use by those not falling within ambit of charitable purpose i.e. rich people, as being not 'insignificant and insubstantial'
Hall not used for exclusively charitable purposes
IMPLICATION: if poor people only used the hall- would have been for exclusively charitable purposes
The Relief of the disabled
s3(11)(a): the relief of those in need by reason of disability
Re Lewis
: Concerned a gift to 10 blind girls and 10 blind boys resident in certain area
Held: to have charitable status under this heading
Other categories
The promotion of sport
National Tourism Development Authority v Coughlan
:
Issue: Charleton J considered whether or not a trust, the purpose of which was
the promotion of tourism in Killarney by maintaining three golf courses there
should be accorded charitable status as being a trust for a purpose beneficial to the community
Identified THE INDICIA of a charity as including:
:'
it is disinterested in commercial return for intestors
:
is of genuine benefit to the community at large and
:
that whatever benefit it dispenses is widely available to the community in the sense that it does not need to be bought into at exclusive levels of finance
Re Trusts for sporting objects- he said the importance of exercise is widely recognised as conferring a benefit to general health
Thus, one would imagine, trusts for sporting objects would be held to be beneficial to the community
Gift to promote a sport outside a school, college or other educational institution will be not accorded a charitable trust under this heading
Re Nottage:
Cited with approval
Concerned a trust to provide a prize for the most successful yacht of the season in order to encourage the sport of yacht racing
Held: A gift to promote sport for its own sake is not in itself a charitable one
Held: THE LAW HAS TRADITIONALLY REGARDED SPORT AS A FORM OF RECREATION AND IN CONSEQUENCE , TRUSTS AND BEQUESTS FOR SPORTING PURPOSES ARE NOT RECOGNISED AS CHARITABLE
Note s3(11) does not list sport as a purpose that is of benefit to the community
The promotion of tourism
National Tourism Development Authority v Coughlan
Charleton J also considered whether or not the promotion of tourism could be a charitable purpose
Noted: Tourism has never been held to be a charitable purpose
A golf club is not there to benefit anyone other than its members and those who can afford to pay the green fees as visitors
Under this payment structure, this facility is far more exclusive than joining in the work of a charity by paying a modest fee
Were tourism on its own to be recognised in law to be a sufficient basis, then any recreation, activity or attraction that would bring tourists into an area, or keep them there for a long say, would thereby assume charitable status
Exclusivity in the terms of the benefit to be conferred is an indication against charitable status. The more particular the benefit, the less likely it is that an enterprise is charitable
Subject matter of this trust is a golf course, cannot be subject of trust under ordinary circumstances
An exception might arise re the setting up of a trust for the use of a golf course by members of the army or by people with disabiliies
Note s3(11) does not list tourism as a purpose that is of benefit to the community
Political purposes
Pre 2009: political purposes were not regarded as charitable
Re Snowcroft
: Aberrant authority
Facts: Concerned a gift the purpose of which was the maintenance of a village club and reading room 'for the furtherance of Conservative principles and religious and mental improvement'
Held; Charitable status
CONTRAST
Re Hopkinson
Facts: Concerned a trust for the advancement of adult education with particular emphasis on doctrines of the Labour Party
Held: Refused to accord trust charitable status
Bowman v Secular Society
: Lord Parker explained why political trusts are not charitable
' The court has no means of judging whether a proposed change in the law will or will not be for the public benefit and therefore cannot say that a gift to secure the change is a charitable gift'
McGovern v AG
Facts: Concerned a gift to amnesty International some of purposes of which were
the relief of needy persons who were or recently had been prisoners of conscience
attempting to secure the release of prisoners of conscience
Procuring the abolition of torture or inhumane treatment or punishment
Promotion of research into observance of human rights
Held: A trust for political purposes falling within spirit of Bowman CAN NEVER BE REGARDED AS BEING FOR THE PUBLIC BENEFIT IN THE MANNER WHICH THE LAW REGARDS AS CHARITABLE
Such trusts include trusts to further
: Interests of a particular political party
: To procure changes in the laws of this country/foreign country
Re Collier
: The Promotion of world peace was held not to be a purpose beneficial to the community
2009 Act and Political Purpose Trusts
s3(11)(e): recognises the advancement of conflict resolution or reconciliation as being a purpose that is of benefit to the community
Does the act potentially expand and leave these categories more open?
3(11)(g): The promotion of religious or racial harmony and harmonious community relations
3(11)(h): The protection of the natural environment
3(11)(i): The advancement of environmental sustainability
could all have political dimension