Charitable trust

A charitable trust (or charity) is a trust organized to serve private or public charitable purposes.

Legal distinctions

A legal definition of a charitable purpose includes the relief of poverty, the advancement of education, the advancement of religion, or other purposes considered beneficial to the community.

Related Topics:
Legal - Poverty - Education - Religion

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Because of the benefits provided by charitable trusts, they are subject to certain benefits under the law. For example, transfers of property to a charitable trust are usually exempt from the rule against perpetuities, which would otherwise operate to void a transfer made after a certain period. Furthermore, charitable trusts come under the doctrine of cy pres, which holds that if the charity designated in the trust ceases to exist or otherwise becomes unable to carry out the purpose of the trust, then the trust property can be transferred to another charity with a similar purpose.

Related Topics:
Rule against perpetuities - Cy pres

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