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Charitable Purposes - The Advancement of Education - Public Benefit

Q: Dingle v Turner, Lord Cross agreed with Lord MacDermott:

He said that he did not consider the distinction between personal and impersonal relationship , when identifying a section of the public, to be satisfactory. He emphasised that, whether the class of potential beneficiaries did represent a section of the public was a matter of degree, having regard both to the numbers in the class and to the purposes of the trust . The other 4 judges agreed.

6 important questions on Charitable Purposes - The Advancement of Education - Public Benefit

Dingle v Turner [1972]

This case concerned the provision of benefits by an employer for employees, but the charitable purpose there related to the relief of poverty and, despite the personal nexus between the employees and their employer, the public benefit test was satisfied.

Dingle v Turner

The court extended this to where the nexus related to a common employer.

Oppeinhem, Lord MacDermott dissented:

The public benefit test should be satisfied in the case because of the large size of the class.

Dingle v Turner, Lord Cross agreed with Lord MacDermott:

He said that he did not consider the distinction between personal and impersonal relationship, when identifying a section of the public, to be satisfactory.

He emphasised that, whether the class of potential beneficiaries did represent a section of the public was a matter of degree, having regard both to the numbers in the class and to the purposes of the trust.

The other 4 judges agreed.

Dingle v Turner, Lord Cross went one stage further:

Not supported by three of the other judges.

Lord Cross suggested that, in determining whether the public benefit test is satisfied, the availability of fiscal privileges should be taken into account.

If the purpose of the creator of the trust is to obtain fiscal privileges, then the trust should not be charitable.

If the purpose is to advance education, but the motive is to attract fiscal privileges, the trust should be regarded as charitable.

However, if the purpose, or one of the purposes, is to attract fiscal privileges, this is not a charitable purpose.

IRC v Educational Grants Association Ltd [1967]

It concerned a company that was established for the advancement of education. The company had a close relationship with Metal Box Co Ltd and most of its income was applied for the education of children connected with that company.

Held: The company was not charitable because the income was not being applied for the benefit of a sufficient section of public.

Followed Oppenheim.

The question on the page originate from the summary of the following study material:

Equity & Trusts Text, Cases, and Materials | 9780199286157 | Richard Clements, et al

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