 The High Court of Justice, along with the Charity Commission, has jurisdiction over disputes in charitable trusts. | |
| Type | Legal concept |
|---|---|
| Legal status | Active |
| Purpose | Express trust dedicated to charitable goals in English law |
Region served | England and Wales |
Official language | English |
Charitable trusts in English law are a form of express trust dedicated to charitable goals. There are various advantages to charitable trust status, including exemption from most forms of tax and freedom for the trustees not found in other types of English trusts. To be a valid charitable trust, the organization must demonstrate both a charitable purpose and a public benefit. Applicable charitable purposes are normally divided into categories for public benefit, including the relief of poverty, the promotion of education, the advancement of health and saving of lives, the promotion of religion, and all other types of trusts recognized by the law. There is also a requirement that the trust's purposes benefit the public (or some section of the public), and not simply a group of private individuals.
Such trusts will be invalid in several circumstances; charitable trusts are not allowed to be run for profit, nor can they have purposes that are not charitable (unless these are ancillary to the charitable purpose). Additionally, it is considered unacceptable for charitable trusts to campaign for political or legal change, although discussing political issues in a neutral manner is acceptable. Charitable trusts, like other trusts, are administered by trustees, but there is no direct relationship between the trustees and the beneficiaries. This results in two things: firstly, the trustees of a charitable trust have more freedom to act than other trustees, and secondly, beneficiaries cannot bring a court case against the trustees. Instead, the beneficiaries are represented by the Attorney General for England and Wales as parens patriae, who appears on behalf of The Crown.
Jurisdiction over charitable disputes is shared equally between the High Court of Justice and the Charity Commission. The Commission, as the first point of contact, is tasked with regulating and promoting charitable trusts, as well as providing advice and opinions to trustees on administrative matters. When the Commission feels that there has been mismanagement or maladministration, it can sanction the trustees, removing them, appointing new ones, or temporarily taking the trust property itself to prevent harm. In cases of flaws with a charity, the High Court can administer schemes directing the function of the charity, or even, under the Cy-près doctrine, change the purpose of the charity or gift entirely.