Charity tribunal sets date to examine the public benefit of benevolent funds

08 Jun 2011 News

The charity tribunal will hold a hearing in November to determine whether benevolent funds satisfy public benefit requirements.

Attorney General, Dominic Grieve

The charity tribunal will hold a hearing in November to determine whether benevolent funds satisfy public benefit requirements.

Attorney General Dominic Grieve made reference to the charity tribunal to provide clarification on the issue However, the clarification is not sought with regard to every type of benevolent fund, only to those whose beneficiaries are defined narrowly by membership of a certain family or by having been employed by an individual company or by membership of an organisation. An example would be a charity established to relieve need among descendents of a certain individual or a charity to relieve poverty among the members of an operatic society.

Six charities, including the Professional Footballers' Association Benevolent Fund and the Royal Bank of Scotland Group Benevolent Fund, will give evidence at the hearing, while a further 17 have the opportunity to provide written evidence.

Before the Charities Act 2006 was enacted, it was assumed that public benefit did apply to trusts that sought to relieve the poverty of a restricted pool of beneficiaries defined by a relationship to an individual or a company, such as those trusts described above.

But since the Act came in, all trusts now have to prove they are for the public benefit if they are to have charitable status.

The Charity Commission has welcomed the reference, as it recognises that the Act may have changed the law so far as these charities are concerned.

To see the full list of charities involved in the hearing click here.

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