WILLS & TRUSTS 2000 Edition, VOLUME VII Chapter 6 p188
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THE TRUST PURPOSE - PUBLIC TRUSTS
Definition of Charitable Trust
A charity, in the legal sense, may be defined as a gift, to be applied, consistently with existing laws, for the benefit of an indefinite number of persons, either by bringing their minds or hears under the influence of education or religions, by relieving their bodies from disease, suffering or constraint, by assisting them to establish themselves in life, or by erecting or maintaining public buildings or works or otherwise lessening the burdens of government. It is immaterial whether the purpose is called charitable in the gift itself, if it is so described as to show that it is charitable in its nature. The essential idea of a charitable trust is that the benefit of the trust is to be for the whole public or some large class of public as distinguished from private persons.
History of Charitable Trusts
The English courts of chancery before the seventeenth century had in a number of cases taken jurisdiction of trusts for charity and had sustained them. In 1601 the English parliament passed, as the culmination of a series of statutes on the subject, the famous Statute of Charitable Uses. This statute enumerated in its preamble the charitable trusts in common use then and provided in its body means for the protection and enforcement of them. The preamble of this statute is often resorted to by modern courts to determine what purposes are at present valid charitable purposes,such as the relief of aged, impotent and poor people, maintenance of sick and maimed soldiers and mariners, schools of learning, houses of correction, repair of bridges, ports, havens, causeways, churches, sea-banks, and highways, education and preferment of orphans, relief or redemption of prisoners and captives, and aid or ease of any poor inhabitants concerning payments of taxes.
What Purposes are Charitable?
Charitable purposes may be roughly divided into four principal groups, as follows: (1) Religious purposes. It is universally conceded that trusts to aid directly or indirectly in the establishment or maintenance of religion are charitable trusts. Thus, a trust to build or keep in repair a church structure, or to distribute bibles or other religious literature, or to assist in the support of needy clergyman or theological students, or to aid in the conduct of missions is a valid charitable trust. A trust for the purpose of having masses said for the repose of souls is generally held to be a valid charitable trust for a religious purpose. (2) Educational purposes. The spread of knowledge and culture is a valid charitable purpose. Therefore, trusts to aid colleges or universities, or to found and maintain libraries, or distribute literature, or to endow scholarships or professorships are valid charitable trusts. (3) Eleemosynary purposes. The relief of poverty, sickness and other distress is a valid charitable purpose. Hence, a trust to found or maintain an asylum, hospital or home for the feeble-minded, sick, aged, needy or friendless, or to provide privately for the relief of the poor or distressed is valid as a charitable trust. (4) Governmental purposes. The object of assisting the government in carrying out its purposes is a valid charitable object.
