1) Relief Of Poverty.2) Advancement Of Education.3) Advancement Of Religion.4) Other Purposes Beneficial To The Community.

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RELIEF OF POVERTYNo definition of poverty.It does not mean destitution.It means that there is a want, that a person

has ‘to go short’ of something.The trust must be within the spirit and

intendment of the Preamble.It must be for the relief of such persons and

not merely their benefit.

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A) Disjunctive construction

Joseph Rowntree Memeorial Trust Housing v A.G [1983] 2 WLR 284 : Peter Gibson J :

“ The words “ aged, impotent and poor must be read disjunctively. It would be absurd to require that the aged must be impotent as it would be require to impotent to be aged or poor to be aged or impotent.”

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B) Attributable Condition“What is essential to the charitable purpose

is that it should relieve aged, impotent and poor people. The word ‘relief’ implies that the persons in question have a need attributable to their condition as aged, impotent or poor people . . .”

For g : Aids sufferer, cancer patient etc

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C) Poverty is not destitutionPoverty is not destitution.Poor is a relative term.An individual need not be destitute in order

to qualify as a poor person within the preamble.

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d) Not subject to Public Benefit.Trust for the relief of poverty form an

exception to the principle that every charitable trust must be for the public benefit.

The exception covers both the poor employer and their families.

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However there must be primary intent to relieve poverty amongst a particular class of person. If primary intent is to benefit particular person the trust is a private one and not charitable.

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ADVANCEMENT OF EDUCATIONPreamble 1601 : “the maintenance of schools of learning, free

school and scholars in universities and the education and preferment of orphans.”

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• Does not limit to poor classroom teaching.• Broad definition: teaching of ethic,

research, arts etc.• Incorporated Council of Law of

Reporting From England and Wales v AG (1972) Ch. 73.

• Buckeley LJ: “It now extends to improvement of useful

branch of human knowledge and public dissemination.”

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Now the category has grown to cover a very wide range of educational, eg: schools, universities, nursery, museums, zoos, public libraries and cultural activities such as drama, literature and fine arts.

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a) ResearchRequires more than mere accumulation of

knowledge.Sharing or teaching : must show that public

will benefit.What about other than scientific or medical

research ; will it be considered as charitable?

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Re Hopkins (1965) Ch 669A gift to the Francis Bacon Society : to be

earmarked and applied towards finding the bacon Shakespeare manuscripts.

Valid charitable trust

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b) Artistic and Aesthetic EducationRoyal Choral Society v IRC (1943) 2 All

ER 613.Society : To form and maintain a choir in

order to promote the practice and performance of choral works by way of concert or choral pageant in the Royal Albert Hall

Charitable society.

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C) Extra Curricular ActivitiesLondon Hospital Medical College v IRC

(1976) 1 WLR 613Students union is considered as charitable –

part of educational purpose of college and university.

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d) Political Propaganda in Subtle FormTrust for political purposes is not

charitable.Trust for advancement of education must

not be political at all. Eg : Trust for the release of prisoners of

conscience, for alteration of the law relating marriage and also to promote the principles of a political party are not charitable

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Bowman v Secular Society [1945] Ch 16

Lord Parker ‘a trust for the attainment of political

object has always been held invalid not because it is illegal . . . but because the court has no means of judging whether a proposed change in law will or will not be for the public benefit.’

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e) Sports as part of EducationPromotion of sports per se is not regarded as

charitable.Except if the promotion takes place in school

and universities.

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f) Education and Public Benefit.The Court will not allow the trust if some

people to be escaped from tax in order to educate their children.

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OPPENHEIM V TOBACCO SECURITIES LTD. (1951) AC 297

Trust for the education of children of employee of British American Tobacco Co Ltd and any of its subsidiary.

Not charitable: no connection with the public

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RE KOETTGEN’S WILL TRUST ( 1954) Ch 252

Trust for the promotion of commercial education for those who could not afford to pay it for themselves, with a preference to be given of up to 75% of the income to the employees of a particular firm.

Charitable

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1) Advancement of Religion.2) Other Beneficial Purposes

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RELIEF OF RELIGIONNo absolute definition of religion.It basically refers to the higher unseen

power.Monotheistic belief was an essential

qualification.

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Meaning of ReligionBowman v Secular Society ( 1917) AC

406 : Lord Parker: “any form of monotheistic theism will be

recognised as religion. Religion requires a spiritual belief, a faith, a recognition of some higher unseen power which is entitled to worship. It may include ( bit greater than) morality or recommended way of life.”

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Ethic is not religion.RE SOUTH PLACE ETHICAL SOCIETY (1980)

1 WLR 1565.The Society’s object: the study and

dissemination of ethical principles and cultivation of a rational religious sentiment.

Issue: whether it is charitable?

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Dillon J “ Religion is concerned with man’s religion

with God and ethics concerned with man’s relations with man…. It seems to me that two of the essential attributes of religion are faith and worship.”

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UNITED GRND LODGE OF ANCIENT FREE AND ACCEPTED MANSONS OF ENGLAND AND WALES V HOLBORN BOROUGH COUNCIL (1957) 1 WLR 1080

An organisation known as masonry: directed towards the leading of a good moral life and at the same time insisted on the belief in supreme creator.

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Donovan J : to advance religion means ‘to promote it, to

spread its message ever wider among mankind; to take positive steps to sustain and increase religious belief

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KAREN KAYEMETH LE JISROL V IRC [1932] AC 650

- an organisation set up to facilitate the settlement of Jews in Palestine and neighbouring lands was not considered as advancement of religion.

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Position in the 17th centuryRecognition of other Christine Sects such as

Catholic, Baptists, Methodists and Executive Brethren

All these come under/ within Christianity

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RE WATSON ( 1973) 1 WLR 1472Trust for the continuance of the work of God

in propagating the Holy Truth as in the Bible by financing the continued publication of the work of Hobbs – a leading member of a small group of undenominal Christians.

Held : It is charitable

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THORNTON V HOWE (1862) 31 Beav. 14

A trust for the publication of the writing of Joanna Southcott who claimed that she was pregnant with a child by the Holy Ghost and would give birth to the new Prophet.

Held : Charitable and the object was for the advancement of religion.

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No Priority Among Various Religions NEVILLE ESTATES LTD V MADDEN (1962)

Ch 832.As between different religions, the law stands

neutral, but it assumes that any religion is at least likely better than none.

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SATELLITE PUTPOSESRefers to the main activity of the

advancement of religion.Eg : trusts for the upkeep and maintenance of

religious building.Trust for benefit of priests, provision of

church bells, for retired missionaries, sick and aged clergy.

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Public Benefit and Religious TrustIt can be fulfilled by 2 ways, namely;A) Provide activities which are available to

the publicB) The presence among the public at a place

of worship have been improved.

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CasesRe Hetherington Gibbs v Mc Donnell

(1989) 2 All ER 129.A trust for the celebration of a religious rites.Held : Charitable. It does confer a sufficient

public benefit and improves those who attend it.

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Gilmour Coats [1949] AC 426. A trust of £500 for the benefit of Carmelite

Priory convent at Notting Hill. The Priory was a community of strictly

cloistered nuns which devoted their lives to prayer, contemplation and self-sanctification.

The nuns had no contact with the outside world.

Held : Lacked of the element of public benefit.

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Nerville Estates v Madden (1962) Ch 852

A trust for a synagogue which was not open to the public, only to the member of Catford Synagogue.

Held : Charitable for the advancement of religion.

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Other Purposes Beneficial To The CommunityThis is a very wide category.The list is not exhaustive.It comprises trust which the Court have held

charitable but do not come within the other three heads.

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The testThe test is what the law treats as charitable

NOT what the testator thought was charitable

Need to be within the spirit and intendment of the Preamble.

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Benefit1) Anti-vivisectionNational Anti Vivisection Society v

Inland Revenue Commissioner (1948) AC 31

A society claimed exemption from tax. The object was the suppression of vivisection. In England there was a strong lobby to stop the elements of experimenting on animals

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The Court had to consider two thingsA) The protection of animals from cruelty is a

charitable purposesB)Vivisection a necessary part of medical

research : it will benefit the communityHeld : The society was not established for

charitable purposes

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Lord Simmonds : “ . . .in order to abolish vivisection it would be necessary to repeal the Cruelty of Animals Act 1876 and replace it with a new enactment prohibiting vivisection altogether.”

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ii) Protection and benefit of animalsTrust for the welfare of animals generally are

charitable except if it is made for specified animals.

The charitable status of gifts to animals was originally limited to the welfare of animals which were useful to man.

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CASESRe Wedgwood (1915) 1 Ch 113A testatrix by her will gave her residue upon

trust to be applied for the protection and benefit of animals.

Held : There was a charitable trust. To promote public morality and prevent cruelty to animal

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London University v Yarlow (1857) 1 DE & G 72

A trust to establish a hospital in which animal useful to mankind will be treated and cured.

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Re Grove Grady [1929] 1 Ch 557 A trust for the benefit of birds and other

animal to build a sanctuary for them ; this is to free them from human molestation.

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Social Sporting and Recreational TrustIRC v City of Glasgow Police A.S (1953)

AC 380.An association was established and the

object is to encourage and promote all forms of atheletic sports and general pastimes.

Whether the Association was entitled to exception form income tax on the ground that it was a body of persons established for charitable purposes only.

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OthersTrust for promotion of efficiency of the

fighting forces through promotion of physical efficiency, a gift to my country, promotion for a voluntary fire brigade, a gift for the general promotion of agriculture have all been held as valid charitable trust under the fourth head.

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