Chapter 6 Multiple choice questions

. Which of the following trusts will be charitable?

The residue of my estate is to be dedicated to the support of activities which are charitable or beneficial to residents of Dinas Powys.

£100,000 to support poor asylum seekers and their families and to campaign for the abolition of detention centres in the UK.

£200,000 to help organize and encourage volunteering in Barry. Money should be set aside each year to pay for an annual dinner for community leaders to help develop stronger relationships and communication between different volunteering organizations.

£150,000 to provide guitar lessons for children living in Cheltenham, on the understanding that my own children and my family's children shall be guaranteed access to these lessons.

. Which of the following statements about the public benefit requirement is untrue?

Every charitable trust must satisfy the public benefit in the second sense.

The public benefit requirement varies from purpose to purpose.

Every charitable trust must satisfy the public benefit in the first sense.

An assessment of the public benefit can consider indirect benefits to the public.

. Which of the following statements about charitable trusts is correct?

Charitable trusts are private trusts.

Charitable trusts do not have to satisfy the test for certainty of subject matter.

Trustees of charitable trusts are exempt from the duties of trustees set out in the Trustee Act 2000.

A charitable trust can charge for its services.

. Which of the following statements about 'public benefit in the second sense' is true?

It relates to the nature of the benefits provided by the purpose.

The poor must benefit from the purpose.

It relates to the section of the public to benefit from the purpose.

A charity for the advancement of education that benefits employees of a local council will be for the public benefit in the second sense.

. Which of the following trusts would not satisfy the public benefit requirement?

A trust to provide shelters for the homeless in Bath.

A trust to provide educational grants for retired employees of Trinity Foodstuffs Ltd.

A trust to support an order of monks in Devon who do community work.

A trust to provide winter fuel grants to poor retired employees of Brill Financial Ltd.

. Which of the following is the odd one out?

£10,000 for the care and comfort of the Conrad family's pets.

£10,000 to support the saying of private masses for the Conrad family.

£10,000 for the maintenance and upkeep of the Conrad family gravesites.

£10,000 to support the saying of masses for the Conrad family in Malvern Chapel.

. Belinda's will contains the following provision:

"Having already generously provided for these leeches I have to call my relatives, the more avaricious of them will no doubt have spotted that there is still a significant amount of my fortune left. It is with a certain mischievous glee that I leave the residue of my estate for my executors to distribute amongst charitable and useful organisations of their choosing."

Belinda's lazy son, Humphrey, is furious that such a significant amount of property has not been left for him to squander and seeks to challenge the validity of this provision. How you would advise the feckless heir?

This bequest will not be upheld and the property will pass on intestacy to the next of kin. This is because the reference to a "significant amount of my fortune" is too vague to satisfy the test for certainty of subject matter.

This bequest will be a valid charitable gift. By leaving her property to "charitable and useful" organizations, the use of "and" allows the meaning of the latter to be included in the scope of the former.

This bequest would not be a valid charitable gift and consequently the executors would be able to claim the residue.

This bequest will be not be a valid charitable gift. By leaving her property to "charitable and useful" organizations, the bequest clearly distinguishes between organizations that have charitable purposes and those which are merely "useful".

. Which of the following reforms does the Charities Act 2011 accomplish?

i - The CA 2011 removes the presumption of public benefit previously enjoyed by the first three heads of charity in Pemsel.
ii - The CA 2011 gives the Charity Commission the power to define what is meant by "public benefit".
iii - The CA 2011 clarifies the meaning to be given to "religion" when determining what trusts will fall under s.3(1)(c) (the advancement of religion).
iv - The CA 2011 narrows the definition of "political purposes" permitted for charitable trusts.
v - The CA 2011 incorporates the Recreational Charities Act 1958 and reforms it to comply with the Human Rights Act 1998.
vi - The CA 2011 ends the validity of charities for the relief of poor relatives.

i, iv, and v

i, iii and v

ii, iii, and vi

ii, iv, and vi

. Which of the following cases is the odd one out?

Re Scarisbrack [1951]

Re Niyazi's WT [1973]

Dingle v Turner [1972]

IRC v McMullen [1981]

. Link the following charitable purposes with the appropriate section of the Charities Act 2011:

1 - £100,000 to support the elimination of discrimination against women in engineering.
2 - £100,000 to support help create a debt management advice centre in Hull.
3 - £100,000 to support an after-school study and activity group for the children of employees of Nanosoft Computers Ltd.
4 - £100,000 to support a service organizing hospital visitors in Chester for those in-patients who feel isolated or lonely.
5 - £100,000 to help promote the work of local craftsmen and women in Brighton.

i - Section 3(1)(d) Charities Act 2011
ii - Section 3(1)(a) Charities Act 2011
iii - Section 3(1)(f) Charities Act 2011
iv - Section 3(1)(h) Charities Act 2011
v - Section 3(1)(b) Charities Act 2011

1 = v ; 2 = iii ; 3 = iv ; 4 = i ; 5 = ii

1 = iii ; 2 = ii ; 3 = iv ; 4 = i ; 5 = v

1 = iv ; 2 = ii ; 3 = v ; 4 = i ; 5 = iii

1 = i ; 2 = v ; 3 = iv ; 4 = ii ; 5 = iii

. Which of the following statements about charities for the advancement of religion under s 3(1)(c) Charities Act 2011 is correct?

Charities for the advancement of religion only need to demonstrate public benefit in its first sense to satisfy the public benefit requirement.

Charities for the advancement of religion must have a place of worship dedicated to their religion.

Charities for the advancement of religion have to demonstrate public benefit in its second sense to satisfy the public benefit requirement.

Charities for the advancement of religion are presumed to satisfy the public benefit requirement because some religion is better than none.

. Which one of the following cases represents the best authority for the principle that a personal nexus is permitted for charities that seek to relieve poverty?

Re Segelman [1996]

Re Sanders [1954]

Re Coulthurst [1951]

Re Gwyon [1930]

. Which one of the following statements about cy-près is incorrect?

Cy-près can be used to combine charitable trusts.

Cy-près can be used to ensure a charity's assets can continue to be applied to a related charitable purpose.

Cy-près can be used to remove a restriction on a charitable gift which might result in it being refused.

Cy-près can be used to invalidate a charitable trust.

. Which of the following examples would be least likely to be considered a charity for the advancement of education under s 3(1)(b) Charities Act 2011?

A charity promoting the study of pop music from the 1980s.

A charity for a private school which provides a full financial scholarship for the three students who achieve the highest marks in the entrance examination.

A charity to encourage martial arts training for students studying at Cambridge University.

A charity to establish a school for blind children.

. Bethany wishes to establish a school for children who have deaf parents. Which of the following statements about this proposed charitable trust is correct?

This would be a valid charitable purpose under s 3(1)(j) Charities Act 2011.

This trust would not be considered charitable as its purpose is political.

This trust can only demonstrate public benefit in its first sense.

This trust does not involve a personal nexus which might prevent the satisfaction of the public benefit requirement.

Chapter 6 Multiple choice questions

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