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Charitable purpose examples
"Charitable purpose" has a special meaning in law. We use examples to illustrate the treatment of charitable purpose under the Charities Act. Click on each purpose (below) to view more detail.
Beneficial to the community
Not all organisations which have purposes that benefit the community will be charitable. The purposes must benefit the community in a way that the law regards as charitable.
To be charitable under this category, the organisation’s purpose must be —
- very similar to the spirit and intent of those purposes listed in the Preamble to the Statute of Elizabeth (see the box alongside) or very similar to a charitable purpose as decided by the courts and
- beneficial to the community.
The Statute of Elizabeth (otherwise known as the Charitable Uses Act 1601) was passed in England to protect and prevent the misuse of charitable funds.
The preamble to the Statute contained the following list of purposes considered charitable at that time:
- relief of aged, impotent, and poor people
- maintenance of sick and maimed soldiers and mariners
- schools of learning
- free schools and scholars in universities
- repair of bridges, ports, havens, causeways, churches, sea banks, and highways
- education and preferment of orphans
- relief, stock or maintenance of houses of correction
- marriage of poor maids
- supportation, aid and help of young tradesmen, handicraftsmen, and persons decayed
- relief or redemption of prisoners or captives and
- aid or ease of any poor inhabitants concerning payment of fifteens, setting out of soldiers and other taxes.
Over the years, courts have recognised many new charitable purposes that are very similar to those categorised in 1601, acknowledging that what is accepted as a "charitable purpose" must change to reflect current social and economic circumstances.
The courts have considered whether:
- the new purpose is very similar to a purpose previously accepted as charitable, and whether it satisfies the requirement that the purpose benefits the public.
Courts have found the following purposes to be "beneficial to the community":
- promoting public health (such as providing education, counselling, and rehabilitation services)
- providing public works and services (such as building roads, maintaining a water supply, and providing cremation or burial services)
- providing public amenities and recreational facilities (such as public halls, libraries, museums, statues, fountains, playing fields, gymnasiums, swimming pools, parks, and botanical gardens)
- protecting the environment (such as revegetation, afforestation, and conservation)
- protecting human life (such as providing emergency rescue services)
- preventing cruelty to, and protecting the welfare of, animals (such as providing animal shelters or sanctuaries)
- facilitating social rehabilitation (such as integrating people back into the community who have a disability or some form of deprivation)
- promoting the efficiency of the armed forces.
As well as development of the law through the Courts, section 61A of the Charitable Trusts Act 1957 says that it is charitable to provide, or help to provide, facilities for recreation or other leisure-time occupation, if the facilities are provided in the interests of social welfare, and there is a public benefit.
"In the interests of social welfare" means that:
a. the facilities must be provided to improve the conditions of life for the people for whom the facilities are primarily intended and
b. either:
- those people need those facilities because of their youth, age, infirmity, disability, poverty, race, occupation, or social or economic circumstances; or
- the facilities are available to all members of the public, or to all male or all female members of the public.
Among other things, this applies to providing facilities at public halls, community centres, and women’s institutes, and to providing and maintaining grounds and buildings to be used for recreation or leisure-time activities. It also extends to the organising of any activity. There must always be a public benefit from any of these activities.
The Courts have said that it is not necessary to establish that the facilities are primarily intended for people who are socially disadvantaged in some way in order to be "in the interests of social welfare". It is enough that the facilities are provided with the aim of improving the conditions of life for members of the community in general.
Advancement of education
To be charitable under this category, your organisation's purpose must -
- provide some form of education, and
- ensure learning is passed on to others.
The modern concept of "education" covers formal education, training and research in specific areas of study and expertise. It also includes less formal education in the development of individual capabilities, competencies, skills and understanding. It does not include propagandist or political purposes.
To "advance" education, learning must be passed on to others. If research is to be conducted, it must be in an objective and impartial way and the useful results made available, or accessible, to the public.
Courts have found the following purposes to "advance education" —
- providing education through early childhood centres, schools and universities
- providing scholarships and prizes for academic achievement
- founding and supporting schools, technical colleges, and universities
- providing or improving sporting facilities for schools or universities
- providing museums and libraries
- developing the character of young people (for example some youth groups)
- delivering vocational training
- publishing and selling law reports.
Advancement of religion
To be charitable under this category, your organisation's purpose must -
- be for the benefit of a religion and
- ensure a religious faith is passed on to others.
- The term "religion" includes many different faiths and belief systems (for example, Christianity, Judaism, Islam, Hinduism, and Buddhism).
Generally, to be religious there needs to be -
- a belief in a supernatural being, thing, or principle, and
- an acceptance of conduct in order to give effect to that belief.
To "advance" religion, the faith must be passed on to others by promoting it, spreading its message, or taking positive steps to sustain and increase the religious belief.
For example, a court has said that religion is not advanced by an entirely enclosed religious order where the activities consist only of private prayer. (Alternatively, a court has said that offering public prayers for the soul of a deceased person gives benefit to all who hear them.)
Courts have found the following purposes to "advance religion" —
- celebrating religious services in public
- conducting foreign missionary work
- providing and maintaining grounds and buildings to be used by churches or other religious organisations
- maintaining cemeteries or burial grounds for a particular religion
- providing superannuation schemes for the retirement of ministers of religion
- supplying religious literature
- providing religious education through Sunday schools, theological colleges, and conducting religious retreats.
Relief of poverty
To be charitable under this category, your organisation's purpose must -
- be directed at people who are poor, in need, aged, or suffering genuine hardship, and
- provide relief.
"Poverty" is interpreted broadly in law. People who are in need, aged, or who are suffering genuine financial hardship from a temporary or long-term change in their circumstances are likely to qualify for assistance.
Generally, this includes anyone who does not have access to the normal things of life that most people take for granted.
To provide "relief", the people who benefit should have an identifiable need arising from their condition that requires support. These people should have difficulty in addressing that need themselves. Courts have found the following purposes to "relieve poverty" —
- caring for the aged, children, or orphans
- caring for the infirm, blind, war veterans, or disabled
- caring for the intellectually disabled, discharged prisoners, or alcoholics
- providing accommodation for elderly people, patients’ relatives, staff at hospitals and emergency shelters
- helping other needy persons (for example, refugees) or providing disaster relief.