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Char i t abl eTr ust( s s . 39–44TA1949)  Charities are public trusts that are exempt from taxation, both in Malaysia and the UK. Settlor to have a general charitable intent, so trust to be legally charitable not charitable and benevolent/ well-meaning/ kindly (Re Best, (1904)).  They do not have beneficiaries as the other express trusts do - trust property is set up for the benefit of the public or a section of the public.  The trustees of charities may be more than four in number, s.39(2) TA 1949.  The AG sues on behalf of the charitable trust: Section 9(1) of Government Proceedings Ordinance 1956 provides that only AG, or two or more persons having interest in the charitable trust having obtained the written consent from AG can bring an action on behalf of the Government or the public in a case of breach of charitable trust. Lectchumanan Nagappan v R Nadarajah & 2 Ors [1993] 4 CLJ 253 - S.9(1) is mandatory to be complied.  The trustees manage the trust property for a charitable purpose, called the ‘public benefit’. Commissioners of Special Purposes of Income Tax v Pemsel Lord MacNagthen classified the recognized purposes of charitable trust into four heads: i) relief of poverty ii) advancement of education iii) advancement of religion iv) other purposes beneficial to the communities Elements: 1) Public benefit 2) Exclusively charitable Public benefit – ‘personal nexus test’ -for benefit of public/section of public -no blood, employment nexus Oppenheim v Tobacco Securities Trust (1951) -“personal nexus test” or the “Blood and Contract Rule” -money was given to provide education for the children of employees of the British American Tobacco Corporation & its subsidiaries -The number of employees exceeded 110,000. H: even with these large numbers, the personal nexus between the employers and employees meant that there was not a sufficient public benefit. -personal nexus test: beneficiary should not have a relationship to a particular individual -a group of persons may be numerous but, if the nexus between them is their relationship to a single donor/organisation  not community for charitable purposes -The people who stood to benefit not constitute a section of the public if: -Beneficiaries are numerically negligible;

-Qualities that ties them apart from other members of the public is dependent on their relationship with a particular individual with personal nexus, either by blood relationship or contractual relationship.

Re Compton (1945) -requirement of public benefit to qualify as an educational charity Personal nexus: whether or not those who stood to benefit from the trust constituted a sufficient ‘section of the community’. Facts: a trust for education of the descendants of three named persons - not valid charitable trust -beneficiaries were defined by personal relationships -a family trust, not for benefit of the public or a section of public (lack public element) Gilmour v Coates – prayers in a camelite convent – no evidence that it benefits public Re Hummeltenberg -for a trust to be charitable, must be for public benefit. -opinion of settlor that the trust is for public benefit does not make it so - to be determined by the court on evidence - the trust must be capable of being administered and controlled by the court -charitable trust which goes against public policy/welfare is invalid. Ex: training in prostitution/ spiritualistic medium/ pick-pocketing are invalid charitable purposes. Ex c ept i on:pov er t ycas es Excl usi vel ychar i t abl e  The trust wholly and exclusively for charitable purpose.  If possible to benefit an object which is not charitable, then the trust will fail unless the court can severe the offending objects from the main corpus, or to declare the noncharitable purposes are merely subsidiary. Houston v Burns  The gift was made for “public, benevolent or charitable” purposes in a Scottish parish.  The court held that it failed to be charitable because the word are too wide to justify the trustees in disposing the fund for non-charitable purposes. Re Sutton -gift to ‘charitable and deserving purposes’ was held exclusively charitable -the word ‘and’ was interpreted that only deserving objects which were also charitable would benefit (if ‘or’, fail bc purpose can be deserving, but not charitable) Lee Chick Yet v Chen Siew Kee [1977] 2 MLJ 218 -for exclusive use & benefit of a school  If a specified part of funds is to be applied for charitable purposes & the rest to noncharitable purposes, the gift may be saved under charitable purpose by severing the part relevant to charitable purpose

Salusbury v Denton  The trust was set up in favour half to the school and half to the relatives.  The court applying the maxim equity in equality saved the charitable trust by dividend the fund into halves. Rel i efofpover t y Di ngl evTur ner  

At r us twass etupt opr ov i depens i onf orpoorempl oy eesofapar t i c ul arcompany per s onalnex us( empl oy mentcont r act ualr el at i ons hi p)wasov er comebyr el i efof pov er t y ,i spr i maf ac i eav al i dchar i t abl et r us t-except i ont ot henexust est

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Howev er ,i ft het r us ti sonet or el i ev epov er t yamongnamedi ndi vi dual s ,t heni ti s notchar i t abl et r us t .( canbef oras peci ficgr oupofper s ons ,buty ouc annotname t hem)

Tes t :Pov er t ydoesnotnecess i t at epr oofofdes t i t ut i on. ReCoul t hur st–i nc l udesper s on‘ goi ngshor t ’ofs t h agi f tt obeappl i edf oror phansofabankwasuphel dt obechar i t abl e pov er t yxmean‘ dest i t ut i on’ ReScar i sbr i ck’ sWT r es i duar yest at ehel dont r us t‘ f orsuc hr el at i ons…s hal lbei nneedyci r cums t ances ’ Tr ustf orr el i eff orpov er t y-xneedt os at i s f ypubl i cbenefitt es t ,s ol ongast heset t l or hasagenui nechar i t abl ei nt ent i on( THI Si st hel awi nMal ay si a. ) ReCohen-‘ des er v i ng’doesnotf al li nt ot hecat egor y Bi scoevJackson-pr ov i s i onofasoupki t chenwashel dt obec har i t abl e ReGosl i ng–poorempl oy ee( wor noutc l er k)-f undwashel dv al i d ReNi yaz i-const r uct i onofahos t elwashel dt obechar i t abl e Fai l edcas es cannotbet oor emot eorv ague,mus ti ndi c at et hatt hec l assofpeopl ei sr eal l ypoor ReSander sWi l lTr ust gi f tmadef ort hewor ki ngc l ass–homesf orwor k er s&f ami l i es H:notgi f tf ort her el i efofpov er t y-t hatex pr es si ondi dnoti ndi cat et hatt heyar epoor per sons .

Asi t uat i onwher et her i chandt hepoorcanbenefit ,t her ei snopubl i ct r us t . ReGwyon

f oundat i onf orcl ot hi ngofboy-f ai l edt oex c l udemor eaffluentchi l dr en( nopr ef er ence i ndi cat edf orpoorc hi l dr en)-benefitmus tber es t r i ct edt ot hepoor–v oi df orr emot enes s &v agueness Concl usi onf orRel i efofPover t y:  Notonl yappl yt ot hos ewhoar el ac ki ngofbas i cnecess i t i es ,asl ongast heygo s hor tofsomet hi ng( poorempl oy eeal soc an)  Noneedt of ul fi l lper s onalnexust est  Cannotbet oov agueandr emot e Educat i onalt r ust s Pr obl emat i c:t r ust ss etupf ort hes t udyofmor eesot er i csubj ect s/t oadv ancean i deol ogi c alposi t i on,whi char enotannex edt oanyacc ept ededuc at i onali ns t i t ut i on I ncor por at edCounci lofLaw Repor t i ngvAG ( 1972) meani ngof‘ educ at i on’ ext endst o“ t hei mpr ov ementofausef ulbr anchofk nowl edge andi t spubl i cdi s semi nat i on” pr epar at i onofl awr epor t swaschar i t abl e( es sent i alf orst udyofl aw-educat i onal ) 1)Chor alsi ngi ng( Rai s et hemusi calt ast eandar t i st i ct ast eofacount r y ) RoyalChor alSoci et yvI RC Roy alChor al Soci et ywasf or medf ort headv ancementofchor als i ngi ngi nLondon. RCSwasac har i t abl et r us tbecausei twasest abl i shedf ort hepr omot i onofaes t het i c educ at i on/t or ai set hemus i calt ast eandar t i s t i ct ast eoft hecount r y . 2)Resear ch( I mpr ov et hel i t er ar yher i t age) Educ at i oni ncl udesr es ear chcar r i edoutout s i desc hool sanduni v er si t i es ,pr ov i dedt hat t her ei sani nt ent i ont opubl i s ht hatr es ear ch,ormak ei t sbenefitt ot hepubl i c ReHopki nsWi l lTr ust Tr ustmoneyusedt os ear c hf orBac onShak es pear emanus c r i pt s char i t abl e-r es ear chanddi s cov er yoft hemanusc r i pt swoul dbepubl i shedt ot hewor l d t oi mpr ov et hel i t er ar yher i t age. ‘ educat i on’mustbeusedi nawi desense,beyondt eachi ng Res ear c h i deasex c hange,t eac hi ng&di s semi nat i onofknowl edgebenefi ci alt o communi t y McGover nvAG  At r ustf orr es ear chwi l lor di nar i l yqual i f yasachar i t abl et r ust ,i fbutonl yi f : o Thes ubj ectmat t eroft her es ear c hi sausef ulsubj ectofst udy;and o I ti sc ont empl at edt hatt heknowl edgeacqui r edwi l lbe di ssemi nat ed t o ot her s ;and o Thet r us ti sf ort he benefitoft he publ i c orasuffic i ents ect i on oft he publ i c .

Sl i tJuphel dt hatr esear chwor kwoul dbehel dt obec har i t abl ei ft her esear c h and r es ul t s wer ei nt ended t o be publ i s hed,whet herornotcar r i ed on i n an i nst i t ut i onofeduc at i on r es ear chi seducat i onbutt her emustbemor et hananacc umul at i onofknowl edge ReShaw Shawl ef tmoneyf ordev el opmentofa40l et t eral phabet&t r ans l at i onofoneofhi s pl ay si nt ot hi snewal phabet ementoft eachi ngor H:mer eacqui si t i onofknowl edgenotchar i t abl e-noel di ss emi nat i on 3)Musi calWor k Notpr omot i onofal lmusi calwor ki schar i t abl e-dependsoni t squal i t ywhet heri tcan r eal l ybenefitt hepubl i c ReDel i us( wor t happr eci at i ng) wi f es etupat r us tf ort headv ancementofherhusband’ smus i calwor ks . Hel d:educ at i onalandc har i t abl e–gotev i denc et hathi smus i chasav er yhi ghs t andar d &wor t happr ec i at i ng.I tspr eadt heknowl edgeandappr ec i at i ont hr oughoutt hewor l d RePi ni on( wor t hl ess) Ar t i stl ef thi sst udi oandc ont ent st obeusedasamus eum t odi s pl ayhi scol l ect i onofar t Exper t s :t hecol l ect i onwasvi r t ual l ywor t hl es s ,ofnoar t i st i cmer i twhat ev er . -xc har i t abl e-ev i dences howedhi sc ol l ect i onf ore xhi bi t i onwaswor t hl es s,no educ at i onalv al ue 4)Spor t s( i ns chool s) I RC vMcMul l en t r us tt opr ovi def ac i l i t i est opl ayf oot bal lf orpupi l s( sc hool s&uni )i nanypar tofUK v al i d-encour agepupi l st opl ays por t s ,gi v eat t ent i ont ophy si cal educat i onand dev el opment . ReMar i et t e( v al i d) At r us tf orpr omot i ngofspor t i ngf aci l i t i eswashel dt obechar i t abl e squas hcour tandpr i ce LondonHospi t alMedi calCol l egevI RC ( v al i d) conduc tf orspor t sact i vi t i esatuni v er s i t i eswashel dt obechar i t abl e Spor t i ngpur pos esout si desc hool sorcol l egeswi l lnoti nt hemsel v esbec har i t abl e. ReNot t age At r us tf orpr ov i di ngacupf oray acht i ngcompet i t i onwasnotchar i t abl e 5)Pr of essi onalBodi es

RoyalCol l egeofSur geonsvNat i onalPr ovi nci alBankLt d[ 1952]A. C.631  obj ectofRCS:pr omot el i t er ar y ,sc i ence & c ul t ur e- t r ustr ecogni z ed as v al i d ‘ educ at i on’f orchar i t abl et r ust .  Pr of es si onalbodi esmaybechar i t abl ei ft hei robj ecti sf ort headvancementof educat i on;buti ft heobj ectoroneoft heobj ect soft hes oci et yi st opr omot et he s t at usoft hepr of es si onort hewel f ar eofi t smember s ,i twi l lnotbec har i t abl e. Cf .ReKoet t gen’ sWT at t empt swer emadet os i des t ept heper sonal nexusr ul e Cangi v epr ef er encet oar es t r i ct edgr oup t r us tt of ur t hereduc at i onamongpubl i c–pr ef er encegi v ent oempl oy eesofacompany f orupt o75% oft hef und v al i dc har i t abl et r ust ( onl ypr ef er enc e,t hegr ouphasnoex c l usi v er i ghtt ot hef und) * Thecour t swi l lr es er v et ot hemsel v est her i ghtt oex c l udet hi ngswhi cht heyr egar das har mf ul :ReShaw:Har manJs t at edt hats chool sf orpr ost i t ut es/ pi ck pock et swoul dnot ber egar dedaschar i t abl e. Pol i t i calpur pose–nonchar i t abl e Educat i onalt r ust st hatc hal l engegov er nment alpol i c i esandpr omot epr opagandaar e s ai dt obenotc har i t abl ei nnat ur e BowmanvSecul arSoci et y( mor eonr el i gi ouspur pos e) Pol i t i c alt r us t sar enotchar i t abl easc our tcannotdet er mi nei t spubl i cbenefit( whet hera c hangei nl awwi l l / wi l lnotbef orpubl i cbenefit ) ReHopki nson at r ustt oeducat et hepubl i ci nt heai msofapol i t i cal par t y( t heLabourPar t y )coul dnot bec har i t abl east hatwaspol i t i cal pr opagandaandnotex c l us i v el yeducat i onal McGover nvAG Tr ustf orAmnest yI nt er nat i onalnotav al i dchar i t abl et r ust-pur posesmus tbesol el y c har i t abl e. Campai gni ngf orobl i t er at i onoft or t ur e,r el eas epr i soner sofcons ci ence Seeki ngt o al t erl aw,pol i cyandadmi ni s t r at i v edec i s i ons-pol i t i cal obj ect s . *advancing a change in the law as a core aim of the trust will disqualify that trust from being a charity AG vRoss anc i l l ar ynonc har i t abl epur pos esmaybeal r i ght anc i l l ar ypur pos esi ncl udepr ov i di ngshopsandr unni ngabar Fact s :t heuni onwasf or medandex i s t edf ort hec har i t abl epur poseoff ur t her i ng educ at i onf unct i onoft hepol y t ec hni c t henonc har i t abl eact i vi t i eswer emer el yt heanc i l l ar ymeansbywhi cht heov er al l c har i t abl epur pos ec oul dbepur sued

H:t r ust sex cl us i v el yc har i t abl e

Rel i gi on Rel i gi oncannotbes ubv er s i v eofmor al i t y ,cont r ar yt ot hepubl i ci nt er es toradv er s et o t hev er yf oundat i onsofal lr el i gi on. BowmanvSecul arSoci et y ‘ monot hei s m’ i ssai dt obear el i gi on Gi l mourvCoat s HoLt ookt hev i ewt hatmer er el i gi ousobser v anc ewasi nsuffic i entt oconst i t ut ea c har i t abl epur pos e unl es st her ewassomedemons t r abl epubl i cbenefit ReSout hPl aceEt hi calSoci et y( 1980) Dy l anJ:Rel i gi oni sc oncer nedwi t hmen’ sr el at i onswi t hGod. Ther ef or e,ont hef ac t s,t hest udyoft hedi ss emi nat i onofet hi cal pr i nci pl esdoesnot const i t ut er el i gi onbec auseet hi csar econc er nedwi t hmen’ sr el at i onswi t hmen,andnot wi t hGod. Nevi l l eEst at esvMadden( 1962) whet hermember soft heCat f or dSy nagoguecanbeconsi der edt obeas uffic i ent s ect i onoft hepopul at i onsoast ocons t i t ut eapubl i cbenefit hel dt hatbecaus et her el i gi ouspr act i cesandobs er v ancei nt hes y nagoguewasatl east i nt heor yopent ot hepubl i c ,t her equi r ementofpubl i cbenefitwoul dbesat i s fied. * mass esi napubl i cset t i ng–canbecons i der edaschar i t abl e ReHet her i ngt on say i ngofmass esf ort hesouloft het es t at or H:v al i d–1)s ayi ngofmas sesf ort hedeadwaspr i maf ac i echar i t abl easar el i gi ous pur pose, 2)publ i cbenefitwaspr ov i dedbyt hef actoft hemass esbei ngs ai di npubl i c-publ i c nat ur epr ov i dedanedi f y i ngex ampl eofr el i gi ousobs er v ance * t hes er vi cesc oul dbeconduc t edei t heri npubl i cori npr i v at eandt hej udgewasent i t l ed t ot ak eabeni gnantvi ewoft hegi f tandas sumet hatt heywoul dbehel di npubl i c

AG vThi r poor eeSoonder ee gi f tt oaper s onf ort hebenefi tofat empl e-goodc har i t abl egi f t( t obui l dat empl e/ mai nt enance) agi f tofmoneyt oani dol ‘ Di et y’ i naHi ndut empl ei sv oi dasachar i t y ReLow Ki m Pong’ sTr ustSet t l ement Gi f tt oaBuddhi stpr i es tt osetupat empl eofwor shi p–v al i dc har i t abl et r us t

Ot herpur posesbenefici alt ot hecommuni t y I ncor por at edCounci lf orLaw Repor t i ngf orEngl andandWal esvAG ( 1972) benefic i al t ot hecommuni t yasnoot hershadesofmeani ngwasposs i bl e sot hegi f twasav al i dc har i t abl egi f t Rel i efofDi s t r es s Cov ermai nt ai ni ngfir ebr i gades /anol df ol k’ shome/hos pi t al s /pr omot ear medf or ce ReWoki ngham Fi r eBr i gadeTr ust( 1951) v al i dchar i t abl egi f tf ort hefir ebr i gade Ani mal wel f ar e ReWedgwood( 1915) v al i dchar i t abl et r us tf ort hepr ot ec t i onofani mal sgener al l ywher et heypr omot eand encour agehumanki ndness At t emptt opr ot ectani mal si ni s ol at i onf r om humansl ack st henecess ar ybenefi t CfReGr oveGr ady( 1929) t es t at orl ef tmoneyt opr ov i dear ef ugef orani mal sonl y ,i ni sol at i onf r om humans si ncehumanswer eent i r el yex cl uded–nopubl i cbenefit H:notav al i dc har i t abl et r us tani mal s ’ownbenefi ti si r r el ev ant–humanbenefi t out wei ghsani malwel f ar e( ex :vi v i sec t i on) * cour tmaynotfindi tbenefic i al t os t oppeopl ef r om har mi ngani mal s ast her ei sapot ent i albenefi tt oal l ev ent houghonl ysomemember soft hepubl i c act ual l yt ak eadv ant ageofi t * Val i dani malchar i t i es-or gani sat i onss uchasani malhos pi t al sandhomes or gani sat i onsi nv ol v edi nwi l dl i f epr es er v at i on&nat ur er es er v ess at i s f yt hebenefi t r equi r ement sbecaus ehumani t y ,t houghc ont r ol l ed,i snotex c l uded.Ther ei sal so commonl yas t r ongeducat i onal el ement .

Nat i onalAnt i Vi vi sect i onSoci et yvI nl andRevenueCommi ssi oner s r ol eoft hes oc i et ywast ot ot al l ysuppr es sv i vi sec t i on H:notc har i t abl e-det r i mentt omedi cal sc i enc eandr es ear c h,c ons equent l yt opubl i c heal t h-ov er wei ghadv ancementofmor al sandeducat i on * pol i t i calpur pos e:soc i et y ’ sai mst obet oopol i t i cal t oqual i f yasachar i t yont hebas i s t hatanai mt ochangel egi s l at i oni snecess ar i l ypol i t i c al .

I RC vBaddel ey( 1955) at r ustwhi chpr ovi dedout l etf ormember swoul dbemember soft heMet hodi stchur c h, i nWestHam notchar i t abl e-notas ect i onoft hecommuni t ybutac l asswi t hi nacl as s. wher et heusei sconfi nedt oapar t i c ul arc l ass ,c al l edt he‘ cl as swi t hi nt hec l ass ’r ul e,i t wi l lnotber egar dedasac har i t y . -t het r usti sconfi nedt omember sofapar t i c ul arar eawhower eal s oc l as sofa par t i c ul archur c hi nanar eacal l edWes tHam ReSahal ’ sWi l lTr ust At r ustwass ett of undt hechi l dr en’ shome. Hel d:agi f tf ort hegener albenefi twel f ar eoft hechi l dr enf ort het i mebei ngi nahome pr ov i ded and mai nt ai ned bya l ocalaut hor i t ywasnotc har i t abl e ast he f und mi ght pr obabl ybeusedf ornonc har i t abl epur pos es( ex :t obuyTV) Nat i onalSecur i t y i fy ouwantt opr ot ects ecur i t yofanat i ont opr ev entpeopl ef r om i nfi l t r at i ngy ournat i on– c har i t abl e( asoppos edt opol i t i cal ,whi chi swi t hi nt henat i on) Fai l ur eofChar i t abl eTr ustandDoct r i neofCyPr ès -Cy-Près enables the court to give effect to otherwise invalid or impossible purposes and this validates charitable -if charitable trust fails/ impossible or impractical or illegal to perform, the funds will be applied to some charitable purposes as similar to the settlor’s original intention as it practical CyPr èsdoct r i ne  I fachar i t abl et r us tf ai l s ,i tmaybes av edbyc y pr es ;buti fc y pr esf ai l sduet o abs enceofgener alc har i t abl ei nt ent i on,t hent hepr oper t ywi l lber es ul t edbackt o t hes et t l or .  The s et t l ormus thav ei nt ended t os et t l e pr oper t yf ora genui nel yc har i t abl e pur pose Bi scoevJackson F:Tes t at oral l ocat edmoneyt oes t abl i shas oupki t c heni nt ownbutt hei nt endedl and bec ameunav ai l abl euponhi sdeat h. H:Tes t at orhadagener alchar i t abl ei nt ent i ont obenefi tt hepoorands i cki nt hat ar ea.Thusc y pr esdoct r i neappl i edandt hemoneywasut i l i z edbyot hermeans.

ReLysaght F:Thet est at ormadegi f tt oacol l egebutwasr es t r i ct edt obenefitt hosewhower enot J ewsorCat hol i c .Thecol l eger ef us edt oac cepts uchgi f t . H:Thec our thel dt hatt hepar amounti nt ent i onwast obenefi tt hecol l ege.I tr emov ed t hecondi t i onont heex c l usi onr el at i ngt oJewsandCat hol i cs t udent sandagr eedt oa c y pr essc heme. ReWi l son( Fai l ed) F:Theset t l orl ef ts omemoneyt opr ov i depar tofasc hool mas t er ’ ss al ar y .I nr et ur nt he s chool mas t erbenefi t edwast ot eachi nasc hoolt obebui l tonas peci ficl oc at i onwi t h f undsr ai sedf r om t hel ocal r esi dent s .Thedet ai l soft hesc hool t obebui l twer eout l i ned byt hes et t l or .Lat ert hes choolf ai l edt obebui l t . H:Ther ewasnol i k el i hoodoft hes choolbei ngbui l t .Henc et heg...