Public benefit: the public benefit requirement

Question 1

Part 1: About this guide

Accepted Answer

Legal requirement: this guide explains the legal requirement that a charity바카라 사이트檚 purposes must be for the 바카라 사이트榩ublic benefit바카라 사이트�. This is known as the 바카라 사이트榩ublic benefit requirement바카라 사이트�.

This requirement affects whether or not an organisation is a charity.

This guide is relevant to you if you are thinking of setting up or registering a charity. It is also relevant if you are a trustee of an existing charity wishing to change your charity바카라 사이트檚 purpose.

It is written to advance the Charity Commission바카라 사이트檚 statutory public benefit objective which is 바카라 사이트榯o promote awareness and understanding of the operation of the public benefit requirement바카라 사이트�.

Other public benefit guidance

This guide is part of the commission바카라 사이트檚 set of 3 public benefit guides. It is about whether your organisation바카라 사이트檚 purposes are charitable.

Issues relating to carrying out those purposes for the public benefit, or when reporting on that, are dealt with in other public benefit guides:

Public benefit: running a charity (PB2) 바카라 사이트� This guide explains public benefit in the context of running a charity
Public benefit: reporting (PB3) -This guide explains the trustees바카라 사이트� duty to report on how they have carried out the charity바카라 사이트檚 purposes for the public benefit

For more on the commission바카라 사이트檚 public benefit guides see:

Public benefit: an overview

Having regard to the commission바카라 사이트檚 public benefit guidance

Legal requirement: the Charities Act says that charity trustees must 바카라 사이트榟ave regard바카라 사이트� to the commission바카라 사이트檚 public benefit guidance 바카라 사이트榳hen exercising any powers or duties to which the guidance is relevant바카라 사이트�.

바카라 사이트楬aving regard바카라 사이트� to its public benefit guidance means charity trustees should be able to show that:

they are aware of the guidance
they have taken it into account when making a decision to which the guidance is relevant
if they have decided to depart from the guidance, they have good reasons for doing so

References to other guidance

In some places in this guide links are provided to other relevant guidance to which readers of this guide may find it helpful to refer.

Where that other guidance does not form part of the commission바카라 사이트檚 set of public benefit guides, and so is not guidance to which charity trustees must 바카라 사이트榟ave regard바카라 사이트�, it says so.

The law relating to public benefit

The commission바카라 사이트檚 public benefit guidance is not the law on public benefit. The law on public benefit is contained in charities바카라 사이트� legislation and decisions of the courts.

The commission바카라 사이트檚 public benefit guidance is high level general guidance, written for charity trustees, to explain what the law says on public benefit and how it interprets and applies that law.

It makes decisions about public benefit in individual cases based on the law as it applies to the facts of the particular case, and not on this high level guidance. This is because its general guidance cannot cover all the complexities of the law relating to public benefit.

For more information about the commission바카라 사이트檚 view of what the law says on public benefit see:

Analysis of the law relating to public benefit

This analysis of the law may be of interest to charity trustees who wish to know more about the legal basis of the commission바카라 사이트檚 guidance. However, it does not form part of the commision바카라 사이트檚 set of public benefit guides, and so is not, as such, guidance to which charity trustees must have regard.

Use of 바카라 사이트榤ust바카라 사이트� and 바카라 사이트榮hould바카라 사이트橽u003c/h3>
The word 바카라 사이트榤ust바카라 사이트� is used where there is a specific legal or regulatory requirement that you must comply with. 바카라 사이트楽hould바카라 사이트� is used for minimum good practice guidance you should follow unless there바카라 사이트檚 a good reason not to.
The commission also offer less formal advice and recommendations that trustees may find helpful in the management of their charity.

The public benefit framework

The public benefit framework chart shows you where the public benefit requirement sits in the overall framework of what it means for your organisation to be a charity, to operate as a charity and to report on your charity바카라 사이트檚 work.

Question 2

Part 2: What &#48148;&#52852;&#46972; &#49324;&#51060;&#53944;榝or the public benefit&#48148;&#52852;&#46972; &#49324;&#51060;&#53944;� means

Accepted Answer

The 바카라 사이트榩ublic benefit requirement바카라 사이트橽u003c/h3>
The Charities Act gives a legal definition of the meaning of the term 바카라 사이트榗harity바카라 사이트�.
Legal requirement: part of that definition says that for an organisation to be a 바카라 사이트榗harity바카라 사이트� it must have only 바카라 사이트榗haritable purposes바카라 사이트�.
A charity바카라 사이트檚 바카라 사이트榩urposes바카라 사이트� are what it is set up to achieve.
Legal requirement: part of the Charities Act definition of a 바카라 사이트榗haritable purpose바카라 사이트� says that it must be 바카라 사이트榝or the public benefit바카라 사이트�. The Charities Act calls this the 바카라 사이트榩ublic benefit requirement바카라 사이트�.
This guide explains the public benefit requirement.
For more on the other aspects of the definition of a charitable purpose and on what makes a charity see:

What makes a charity (CC4) (This does not form part of the public benefit guidance)

The aspects of public benefit

There are two aspects of public benefit:

the 바카라 사이트榖enefit aspect바카라 사이트橽u003c/li>
the 바카라 사이트榩ublic aspect바카라 사이트橽u003c/li>

Legal requirement: In general, for a purpose to be 바카라 사이트榝or the public benefit바카라 사이트� it must satisfy both the 바카라 사이트榖enefit바카라 사이트� and 바카라 사이트榩ublic바카라 사이트� aspects. However, if the purpose is to relieve or prevent poverty, different rules apply. For more on this see Annex A 바카라 사이트� Different rules for poverty charities.

The 바카라 사이트榖enefit aspect바카라 사이트橽u003c/h3>
The 바카라 사이트榖enefit aspect바카라 사이트� of public benefit is about whether the purpose is beneficial.

Legal requirement: to satisfy the 바카라 사이트榖enefit aspect바카라 사이트� of public benefit

a purpose must be beneficial (see part 3 of this guide)

any detriment or harm that results from the purpose must not outweigh the benefit (see part 4 of this guide)

The 바카라 사이트榩ublic aspect바카라 사이트橽u003c/h3>
The 바카라 사이트榩ublic aspect바카라 사이트� of public benefit is about whom the purpose benefits.

Legal requirement: to satisfy the 바카라 사이트榩ublic aspect바카라 사이트� of public benefit the purpose must

benefit the public in general, or a sufficient section of the public (see part 5 of this guide)

not give rise to more than incidental personal benefit (see part 6 of this guide)

The commission바카라 사이트檚 decisions about public benefit

Each of a charity바카라 사이트檚 purposes must be for the public benefit.

Many charities have more than one purpose. Where that is the case, the commission will look at each purpose on its own to decide if it is for the public benefit. The public benefit of one purpose cannot be used to offset any lack of public benefit in another.

As the courts would, it will weigh up all the relevant factors and evidence to decide whether each purpose on its own:

is beneficial
benefits the public in general, or a sufficient section of it

In most cases this is likely to be clear.

The two aspects of public benefit can overlap. A factor can frequently be regarded as having an impact on both aspects.

Sometimes the commission might need to consider the relationship between what is beneficial and what is harmful, and public and personal benefit.

Some cases require fine judgment to consider whether all the factors, taken together, result in a purpose that is for the public benefit. The commission considers all cases in their own context.

In the majority of cases, it will be clear that an organisation바카라 사이트檚 purpose is for the public benefit. Where this is not clear, the commission will let the trustees or applicant for registration know where any difficulties lie.

In rare cases where it is not possible for the trustees or applicant to put things right and the commission decides that the organisation바카라 사이트檚 purpose is not for the public benefit, this would mean that, in its view, the organisation is not a charity.

Where it decides this is the case for an organisation applying for registration, it would decline to register it.

Where it decides this is the case for an existing charity, the charity trustees will need to consider changing the purpose and should seek advice.

For information about changing your charity바카라 사이트檚 governing document see Change your charity바카라 사이트檚 name or governing document (this does not form part of the commission바카라 사이트檚 public benefit guidance).

In the very rare case where changing the purpose is not possible, the commission would have to remove the organisation from the register of charities.

For more on what happens when it decides this see:

Maintenance of an accurate register (RR6) (This does not form part of the commission바카라 사이트檚 public benefit guidance)

Challenging a decision made by the commission

If the commission declines to register an organisation, or decides to remove an organisation from the register, and the trustees or applicants think its decision is wrong, they may be able to challenge it.

For more on this see:

Complaining about a decision by the Charity Commission (This does not form part of the commission바카라 사이트檚 public benefit guidance)

Question 3

Part 3: Beneficial purpose

Accepted Answer

What is beneficial

Legal requirement: for a purpose to be charitable it must be beneficial in a way that is identifiable and

capable of being proved by evidence where necessary
not based on personal views

Providing evidence of benefit

In some cases the purpose is so clearly beneficial that there is little need for trustees to provide evidence to prove this.

For example, the trustees of an organisation whose purpose is to provide emergency aid in the context of a natural disaster would not need to provide evidence that the purpose is beneficial.

Where it is not clear that a purpose is beneficial, the commission may need to ask for evidence of this.

For example, the commission may need to ask for evidence of:

the architectural or historical merit of a building preserved under an advancement of heritage purpose
the artistic merit of an art collection displayed under an advancement of art purpose
the healing benefits of a therapy provided under an advancement of health purpose
the educational merit of a training programme offered under an advancement of education purpose

Measuring what is beneficial

It should always be possible to identify and describe how a charity바카라 사이트檚 purpose is beneficial, whether or not that can be quantified or measured.

For example, developing a person바카라 사이트檚 artistic taste by viewing works of art can be beneficial even though it is difficult to quantify or measure.

Not beneficial

If it cannot be shown that an organisation바카라 사이트檚 purpose is beneficial (based on evidence that a court could accept where necessary) then it will not be a charitable purpose.

Question 4

Part 4: Detriment or harm

Accepted Answer

How detriment or harm might affect the public benefit requirement

Legal requirement: a purpose cannot be a charitable purpose where any detriment or harm resulting from it outweighs the benefit.

Evidence of detriment or harm

The commission take detriment or harm into account where it is reasonable to expect that it will result from the individual organisation바카라 사이트檚 purpose. This will be based on evidence, not on personal views.

Where the benefit of a purpose is obvious and commonly recognised, there is an even greater need for evidence of detriment or harm to be clear and substantial, if it is to outweigh that benefit.

Question 5

Part 5: Benefiting the public or a sufficient section of the public

Accepted Answer

The public

Legal requirement: for a purpose to be charitable it must benefit either

the public in general or
a sufficient section of the public

What 바카라 사이트榯he public in general바카라 사이트� means

This means that all of the public can benefit from the purpose.

The benefit of the purpose is not limited to people with a particular need or who have to satisfy some other criteria.

If a purpose does not specify who can benefit, it will generally be taken to mean that it will benefit the public in general.

An example of a purpose which is for the benefit of the public in general is one which is concerned with conserving an endangered species.

What a 바카라 사이트榮ufficient section of the public바카라 사이트� means

Legal requirement: a charitable purpose can benefit a section of the public, but the section must be appropriate (or 바카라 사이트榮ufficient바카라 사이트�) in relation to the specific purpose.

A sufficient section of the public are called a 바카라 사이트榩ublic class바카라 사이트� of people.

There is not a set minimum number of people who have to benefit in order to be a 바카라 사이트榩ublic class바카라 사이트�.

Whether a section of the public is or is not a 바카라 사이트榩ublic class바카라 사이트� is not the same for every purpose. What is sufficient for one purpose may not be sufficient for another.

Defining who can benefit on the basis of where people live

In most cases people living in any geographical area (local, national or international) will be a sufficient section of the public.

An example of circumstances in which it might not be sufficient is where the geographical area is too narrowly defined (such as people living in a few named houses)

The geographical area does not have to be in England and Wales. An organisation that is set up and registered in England and Wales can be a charity, even if its purpose is to benefit people entirely outside that area.

Defining who can benefit as people or communities with a particular charitable need

This is often a sufficient section of the public.

Defining who can benefit by reference to 바카라 사이트榩rotected characteristics바카라 사이트橽u003c/h3>
Legal requirement: the Equality Act permits charities to benefit people defined by reference to a 바카라 사이트榩rotected characteristic바카라 사이트�, provided the restriction of benefits to people having that characteristic is justified in relation to the purpose.

The following are 바카라 사이트榩rotected characteristics바카라 사이트�:

age

disability

sex

sexual orientation

gender reassignment

marriage and civil partnership

pregnancy and maternity

race or nationality

religion or belief

For more on the charities바카라 사이트� exception in the Equality Act see sections 4 and 5 of:

Restricting who can benefit from charities (This is not part of the commission바카라 사이트檚 public benefit guidance)

Defining who can benefit by reference to a person바카라 사이트檚 skin colour

Legal requirement: charities must not define their beneficiaries by reference to their skin colour. The law does not allow this.

Where a charity바카라 사이트檚 purpose defines who can benefit by reference to their skin colour, the purpose will be read as if that reference to skin colour did not exist.

Defining who can benefit by reference to a person바카라 사이트檚 occupation or profession

This can be a sufficient section of the public depending on the circumstances.

An example of a charity that could define who it benefits by reference to occupation or profession is a charity whose purpose is to relieve the sickness and disability of serving, former and retired teachers and their dependents.

Defining who can benefit by reference to a person바카라 사이트檚 family relationship, contractual relationship (eg employment by an employer) or membership of an unincorporated association

Legal requirement: in general, a charity must not have a purpose which defines who can benefit by reference to:

their family relationship
their employment by an employer
their membership of an unincorporated association

The law allows this only where the purpose is the relief (and in some cases the prevention) of poverty.

For more on this see Annex A: Different rules for poverty charities.

Defining who can benefit by reference to other sorts of personal characteristic, such as their employment status

Whether this is a section of the public depends on the purpose that will be advanced and the specific circumstances.

For example, 바카라 사이트榩eople who are unemployed바카라 사이트� can be a sufficient section of the public where the purpose is the relief of unemployment or the relief of poverty. But it may not be a sufficient section where the purpose is to advance religion.

Deciding what is a 바카라 사이트榮ufficient바카라 사이트� section of the public

This is decided on a case by case basis.

Decisions about this are informed by what the courts have or have not accepted in other cases.

For example, the courts will generally accept that a purpose benefits a sufficient section of the public if its beneficiaries are defined by:

where they live
a charitable need
a 바카라 사이트榩rotected characteristic바카라 사이트橽u003c/li>

Legal requirement: charities must not define their beneficiaries in the following ways as these will not benefit a sufficient section of the public:

a purpose which defines who can benefit on the basis of a 바카라 사이트榩rotected characteristic바카라 사이트� but which does not satisfy the requirements of the Equality Act
a purpose which defines who can benefit by reference to their skin colour
a purpose which defines who can benefit on the basis of a personal connection (unless the purpose is for the relief, and in some cases the prevention, of poverty)
a purpose which excludes the poor from benefiting - charity law recognises that 바카라 사이트榯he poor바카라 사이트� is a relative term which depends upon the circumstances. However, 바카라 사이트榯he poor바카라 사이트� does not just mean the very poorest in society and can include people of modest means
a purpose which is confined to a closed religious organisation
a purpose where all the potential beneficiaries (now and in the future) are named, such as an individual or individuals or a fixed group of individuals
a purpose where the number of people who can benefit (now and in the future) is numerically negligible (unless the purpose is for the relief, and in some cases the prevention, of poverty)
a purpose which defines who can benefit in a manner which, when related to the purpose, is 바카라 사이트榗apricious바카라 사이트� (eg wholly irrelevant, irrational or without good reason)
a purpose which benefits members of a mutual benefit society
(unless the purpose is for the relief, and in some cases the prevention, of poverty) a purpose which exists for the benefit of an organisation바카라 사이트檚 members only unless:
- a sufficient section of the public can access those benefits by becoming members and
- the membership is a suitable way of carrying out the charity바카라 사이트檚 purpose for the public benefit
A private (or 바카라 사이트榮elf-regarding바카라 사이트�) members바카라 사이트� club generally exists for the benefit of its members only, and so cannot be for the public benefit. Even if it has an open membership, an organisation that is 바카라 사이트榠nward-looking바카라 사이트�, supported by its members for the purpose of providing benefits for the members, does not benefit a public class of people and so cannot be a charity.

If it is not clear whether your organisation바카라 사이트檚 purpose benefits the public, or a sufficient section of it, you will need to explain who may benefit and why that is a section of the public.

The commission will make a decision in each such case on the basis of its own facts.

If it remains unclear that the purpose will benefit the public, or a sufficient section of it, the commission cannot recognise your organisation as a charity in law, as the 바카라 사이트榩ublic benefit requirement바카라 사이트� will not have been met.

Question 6

Part 6: Personal benefit

Accepted Answer

Legal requirement: a charitable purpose may only confer personal benefits if these are 바카라 사이트榠ncidental바카라 사이트� to carrying out the purpose.

What 바카라 사이트榩ersonal benefit바카라 사이트� means

A 바카라 사이트榩ersonal benefit바카라 사이트� (sometimes also called a 바카라 사이트榩rivate benefit바카라 사이트�) means a benefit that someone receives from a charity. That 바카라 사이트榮omeone바카라 사이트� might be an individual or an organisation.

What 바카라 사이트榠ncidental바카라 사이트� means

Personal benefit is 바카라 사이트榠ncidental바카라 사이트� where (having regard both to its nature and to its amount) it is a necessary result or by-product of carrying out the purpose.

The possibility that a purpose may provide incidental personal benefit does not prevent the purpose being for the public benefit.

For examples of types of personal benefit which might arise from a charity바카라 사이트檚 purpose, or from running a charity, see:

Examples of personal benefit

Personal benefit in other contexts

For more on personal benefit where it arises:

Question 7

Part 7: Further information

Accepted Answer

This part provides links to other guidance which you may find of interest in relation to this guide.

The following are included in the commission바카라 사이트檚 set of public benefit guides:

Public benefit: running a charity (PB2)

This guide explains public benefit in the context of running a charity
Public benefit: reporting (PB3)

This guide explains the trustees바카라 사이트� duty to report in their trustees바카라 사이트� annual report on how they have carried out their charity바카라 사이트檚 purposes for the public benefit

The following are not included in the commission바카라 사이트檚 set of public benefit guides:

Public benefit: an overview

This guide gives an overview of the commission바카라 사이트檚 public benefit guidance. It explains:

how understanding public benefit will help a charity바카라 사이트檚 trustees
the trustees바카라 사이트� duty to 바카라 사이트榟ave regard바카라 사이트� to the commission바카라 사이트檚 public benefit guidance
some key points to know about the law relating to public benefit
Analysis of the law relating to public benefit

This analysis is a summary of the commission바카라 사이트檚 view of the law relating to public benefit
What makes a charity (CC4)

This guide explains what the law requires for an organisation to be a charity according to the law in England and Wales
Start up a charity

General guidance on setting up and registering a new charity
Descriptions of purposes

Guidance on the scope and meaning of the 13 descriptions of purposes in the Charities Act

Question 8

Annex A: Different rules for poverty charities

Accepted Answer

What is required for a purpose to prevent or relieve poverty to be 바카라 사이트榝or the public benefit바카라 사이트橽u003c/h3>
Legal requirement: in general, for a purpose to be charitable it must satisfy both the 바카라 사이트榩ublic바카라 사이트� and 바카라 사이트榖enefit바카라 사이트� aspects of public benefit.
However, if the purpose is to prevent or relieve poverty, the position is different.
In the case of charities for the relief (and in some cases the prevention) of poverty the courts consider the public benefit requirement can be met by satisfying the 바카라 사이트榖enefit바카라 사이트� aspect only. In these cases there is no separate consideration of the 바카라 사이트榩ublic바카라 사이트� aspect.
Legal requirement: only charities with a purpose to relieve (and in some cases to prevent) poverty can define who can benefit by reference to:

their family relationship (that means their descent from one individual)

their employment by an employer

their membership of an unincorporated association

Legal requirement: a charity must not have a purpose which is for the benefit of named individuals, whether or not they are poor. This is so even if the motive is to relieve poverty and the named individuals happen to be poor.

Providing a service to people with a 바카라 사이트榩rotected characteristic바카라 사이트橽u003c/h3>
In general, charities for the relief (and in some cases the prevention) of poverty may be able to benefit a more narrowly defined section of the public than may be the case for charities with other purposes.
Legal requirement: however, even in the case of 바카라 사이트榩overty charities바카라 사이트�, where the purpose is to provide a service only to people defined by a 바카라 사이트榩rotected characteristic바카라 사이트� in the Equality Act (such as age, gender, disability, race) the requirements of the Equality Act must still be met. That means that limiting the service only to those people must be justified.
For more on this see:

Restricting who can benefit from charities (This is not part of the commission public benefit guidance)

Question 9

Annex B: Technical terms

Accepted Answer

The following terms are used in this guide, and should be understood as having the specific meanings given below:

The Charities Act: the Charities Act 2011.

Charity trustees: the people who serve on the governing body of a charity. They may be known as trustees, directors, board members, governors or committee members. Charity trustees are responsible for the general control and management of the administration of a charity.

Governing document: a legal document setting out a charity바카라 사이트檚 purposes and, usually, how it is to be administered. It may be a trust deed, constitution, articles of association, will, conveyance, Royal Charter, scheme of the commission, or other formal document.

Objects: A charity바카라 사이트檚 바카라 사이트榦bjects바카라 사이트� are a statement of its purposes. Usually these are found in the 바카라 사이트榦bjects clause바카라 사이트� of a charity바카라 사이트檚 governing document. However, not all charities have a governing document with an objects clause.

Usually a charity바카라 사이트檚 objects clause means the same as its purposes, but sometimes they are slightly different, such as when:

the objects clause does not adequately or fully express the organisation바카라 사이트檚 purposes
the clause contains more than just the objects, such as powers

Public benefit requirement: the legal requirement that, to be a charity, an organisation바카라 사이트檚 purposes must each be for the public benefit (legal requirement).

Purpose(s) and charitable purpose(s): we use the term 바카라 사이트榩urpose(s)바카라 사이트� to mean the purpose(s) of an individual organisation. A charity바카라 사이트檚 purpose is what it is set up to achieve.

To be a 바카라 사이트榗haritable purpose바카라 사이트� a purpose must fall within one of the descriptions of purposes in the Charities Act and be for the public benefit. This has to be demonstrated in each case (legal requirement).

The courts: the commission use this term to mean, collectively, the Tribunal, the Upper Tribunal and the courts.

The Tribunal: the First-tier Tribunal (Charity) is the first level of appeal against the decisions of the commission set out in Schedule 6 of the Charities Act.

The Upper Tribunal: The Upper Tribunal (Tax and Chancery Chamber) is the second level of appeal against decisions of the commission set out in Schedule 6 of the Charities Act.

Cookies on 바카라 사이트

Applies to England and Wales