Gift to Specified person not Charitable
The testator left part of his property on charitable trusts for the relief of the poverty of ‘the poor employees’ of a company. The appellant argued that it was not a charitable gift, and that the gift failed.
Held: The purpose will not be charitable if the intention is to make a gift to a specified person, even if it is a gift to alleviate poverty. Here, the intention of the gift was to benefit the poor generally who fell within a certain description, rather than certain individuals. Since they were a ‘section of the public’, the gift was charitable and did not fail. (Majority) The fiscal advantages obtained by making a gift charitable should not be taken into account in assessing its motives and charitable status.
Lord Cross of Chelsea said: ‘In truth the question whether or not the potential beneficiaries of a trust can fairly be said to constitute a section of the public is a question of degree and cannot be by itself decisive of the question whether the trust is a charity. Much must depend on the purpose of the trust. It may well be that, on the one hand, a trust to promote some purpose, prima facie charitable, will constitute a charity even though the class of potential beneficiaries might fairly be called a private class and that, on the other hand, a trust to promote another purpose, also prima facie charitable, will not constitute a charity even though the class of potential beneficiaries might seem to some people fairly describable as a section of the public . . To establish a trust for the education of the children of employees in a company in which you are interested is no doubt a meritorious act; but however numerous the employees may be the purpose which you are seeking to achieve is not a public purpose.’
Viscount Dilhorne, Lord MacDermott, Lord Hodson, Lord Simon of Glaisdale and Lord Cross of Chelsea
[1972] 2 WLR 523, [1972] UKHL 2, [1972] AC 601
lip, Bailii
England and Wales
Citing:
Approved – In re Scarisbrick’s Will Trusts, Cockshott v Public Trustee CA 1951
Possible Charity for poor persons within an area
The court was asked whether a trusts for poor persons within a restricted category, the testator’s descendants, not meeting the usual requirement that the benefits be available to a wider section of the community, may be held charitable.
Held: . .
Cited – In re Compton; Powell v Compton CA 1945
The court considered the charitable status of a trust ‘for the education of Compton and Powell and Montague children’.
Held: It was not charitable. If the group of beneficiaries is distinguishable from other members of the community by a . .
Criticised – Oppenheim v Tobacco Securities Trust Co Ltd HL 13-Dec-1950
Trustees were directed to apply certain income in providing for ‘the education of children of employees or former employees’ of a British limited company or any of its subsidiary or allied companies. The number of eligible employees was over . .
Lists of cited by and citing cases may be incomplete.
Charity, Wills and Probate
Leading Case
Updated: 10 November 2021; Ref: scu.174317