LRC Reports

Non-Charitable Purpose Trusts (1992)

Keywords: trust; object; non-charitable; purpose; creation; enforcement; settlement; settlor; beneficiary; trustee; non-profit; foundation; funding; charity; charitable; donor; duration; perpetuity; cy-pres; scheme; variation; obsolescence; Re Denley’s Trust Deed

As a general rule, a trust that is framed for the benefit of a purpose rather than a person is invalid unless the purpose is charitable. In law, charity is a narrow concept that excludes many activities beneficial to the public. In this project the Commission examines the rule and anomalies that flow from the concept of a charity, and concludes that the current limitations that the law places on the creation of non-charitable purpose trusts should be abolished.

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