Definition and Requirements of a Charitable Trust

Definition Commissioners of Special Purposes of Income Tax v Pemsel [1891]

 Charity has 4 principle divisions (Lord MacNagthen)
 Relief of poverty
 Advancement of education
 Advancement of religion
 Other purposes beneficial to the communities

Purpose:
Charitable Nai Seng Hiang v The Trustees of the
Presbyterian Church in Singapore
Public Registered & Ors [1988]:
Benefit Benefit whole community/ a section of
community & not a small group/ private
individuals
Requirements
Gift = Wholly &
exclusively for
charitable

Exclusively Connecting Word:

Charitable
"Charitable or other purposes": Not
Charitable - Houston v Burns [1981]
"Charitable and other purpose":
Charitable - Re Sutton (1885)

Re Scarisbrick (1951) – Need not satisfy public benefit requirement

so long as the settlor has a genuine charitable intention.
Relief of
Re Gwyon (1930) – Foundation for clothing of boy but failed to
Poverty exclude more affluent children. Held, benefit must be restricted to
4 Principle Divisions (Lord MacNagthen)
the poor.

I. Research (must benefit the public) – Re Shaw [1957]: The

settlor left money for the development of a 40-letter alphabet
and the translation of one of his plays into this new alphabet.
Held, not charitable as there was no element of teaching or
education and the mere acquisition of knowledge would not per
se be a charitable object.
 Advancement of
Education

Advancement of
Religion

Re South Place
Ethical Society
[1980] – held:
“Religion” = Man’s
relation with God
“Ethics” = Man’s
relation with man
Thus, both are not
the same.
United Grand Lodge
of Ancient Free &
Accepted Masons of
England v Holborn
Other purposes Test: What the law treats as charitable Borough Council
and not what the testator thought was
beneficial to [1957] – Held:
charitable.
the Advancement of
EX: Welfare of animals – Re religion means to
communities Wedgwood (1915), Welfare of elderly, promote it and
Relief of sickness etc. increase religious
belief.

Effect: Enables trust property to be used for other purpose which

resembles the donor’s original purpose. – AG v Lim Poh Neo
(W) & Ors [1976]
2 situation of failure:
a. Initial failure (gift does not take effect due to donor’s
charitable purpose) – Biscoe v Jackson: there was
sufficient intention thus allowed cy-pres.
b. Subsequent Failure (gift failed after it has taken effect) – Cy-pres
Re Slevin Doctrine

Lavernya (A166528)