Chapter 6 Scenario Questions

A student union organizes a demonstration campaigning against an increase in university tuition fees.
Does this breach the rule that charities cannot pursue political objectives?

No. There is a special exception for student unions which allows them to campaign politically.

Yes. Charities cannot pursue political objectives.

No. The student union's purpose is the advancement of education and the political objective is incidental to this main purpose.

No. The students are entitled to campaign for changes in the law as they are the beneficiaries of the charity.

Jessica creates a charity which is a youth centre for underprivileged children. She charges 20p for each lesson and activity, and the profits go towards paying the staff and maintaining the building.
What is the consequence for the charity?

Charities cannot charge for their services and so the charity is void.

Charities can charge for their services, but the profit must be spent on the children themselves. Spending the money on maintenance renders the charity void.

The 20p charge restricts who can benefit from the charity and so the charity does not benefit a sufficient portion of the public.

Charities can charge for their services and as long as the profits are spent on the charitable work, such as funding activities and maintaining the building, it is fine.

A fund is held on trust for a charity for the prevention of cruelty to animals. Provision is made for £500 to be spent on a dinner for all the charity trustees who attend the quarterly meetings.
What is the consequence of the addition of a non-charitable purpose? There might be more than one correct answer.

The trust is void as it is not exclusively charitable.

The trust is void because the non-charitable purpose is not a means to a charitable end.

The trust is valid because the non-charitable purpose is incidental to the main charitable purpose of the trust.

The trust is valid because the non-charitable purpose may lead to better administration of the trust.

A testator makes a bequest of £10,000, with £6,000 to be for the charitable purpose of assisting the homeless by purchasing land on which to build a shelter, and £4,000 to be for the testator's children. The £6,000 is not enough to buy the land and so the charitable purpose fails.
Can the fund be applied cy-près and what is the effect of the non-charitable purpose?

The addition of the non-charitable purpose in favour of the testator's children causes the charitable trust to fail.

The non-charitable purpose can be severed from the charitable purpose, but the charitable purpose has failed and there was no general charitable intent so the £6,000 cannot be applied cy-près.

The non-charitable purpose can be severed from the charitable purpose, and the £6,000 can be applied cy-près as the testator had a general charitable intent to assist the homeless.

The entire £10,000 can be applied cy-près as the testator had a general charitable intent which outweighed the intent to benefit the testator's children.

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