If a substantial part of the objects of a body of persons is to benefit its own members, the body of persons is not established for charitable purposes only. Atkin LJ considered the problems arising from the fact that the Association had more than one purpose: ‘First of all it is said: No, this Society was in fact formed for the purpose of giving benefit to its members; it is nothing but a club for the mutual advantage of the members of the club. If that were so, I agree that the claim of the Society would fail, both because it could not be said that the Society was established for a charitable purpose and because it certainly could not be said that it was established for a charitable purpose only. There can be no doubt that a society formed for the purpose merely of benefiting its own members, though it may be to the public advantage that its members should be benefited by being educated or having their aesthetic tastes improved or whatever the object may be, would not be for a charitable purpose, and if it were a substantial part of the object that it should benefit its members I should think that it would not be established for a charitable purpose only. But, on the other hand, if the benefit given to its members is only given to them with a view of giving encouragement and carrying out the main purpose, which is a charitable purpose, then I think the mere fact that the members are benefited in the course of promoting the charitable purpose would not prevent the society being established for charitable purposes only.’
Judges:
Atkin, LJ
Citations:
[1928] 1 KB 611
Cited by:
Cited – Inland Revenue Commissioners v Glasgow Police Athletic Association HL 9-Mar-1953
The House was asked whether the taxpayer association was established for ‘Charitable purposes only’ so as to benefit from tax exemptions. The association promoted sporting activities among members of the Glasgow police.
Held: Though the . .
Lists of cited by and citing cases may be incomplete.
Charity
Updated: 14 May 2022; Ref: scu.251604