Difference Between Charity And Charity

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Introduction Man is a social animal. It is but natural for human beings to think of others in need. In Indian culture and ethos, charity is so deeply engraved that it has become a basic factor in life. Charity is giving voluntarily to those in need. It covers the giving of both money, and of the self through service to the needy. Charity is defined as - relief of the poor, education, medical relief, and the advancement of any other object of general public utility not involving the carrying on of any activity for profit. The term is also used to denote an institution or organization, which helps those in need. 3 By ‘charity’ it is meant benevolence, and in its wide and popular sense it comprehends all forms of benefit, physical, intellectual, …show more content…

It was held in Trustees of Gordhandas Govindram Family Trust v Commissioner of Income Tax, Bombay that “The distinction between a private and a public trust is that whereas in the former the beneficiaries are specific individuals, in the latter they are the general public or a class thereof. While in the former the beneficiaries are persons who are ascertained or capable of being ascertained, in the latter they constitute a body which is incapable of ascertainment.” 8 Thus Public charitable trusts, as distinguished from private trusts, are designed to benefit members of an uncertain and fluctuating class. In determining whether a trust is public or private, the key question is whether the class to be benefited constitutes a substantial segment of the public. The beneficiary group must be substantially public and if the trust is formed to …show more content…

9 Private Charitable Trusts are trusts formed to benefit a specific group, limited by a number. This does not include special public charitable trusts which target specific group of individuals. It is important to note that in such charitable trusts even though the group is specific, the number of Russel, J. in Re Hummeltenberg gave two elements which are necessary for a trust to be called (1) That the gift will, or may be operative for the public benefit; and (2) That the trust is one, the administration of which the court itself could, if necessary, Moreover, in the immortal words of Tudor, “If the intention of the donor is merely to benefit specific individuals, the gift is not charitable, even though the motive of the gift may be to relieve their poverty or accomplish some other purpose with reference to those particular individuals which would be charitable if not so confined; on the other hand, if the donor’s object is to accomplish the abstract purpose of relieving poverty, advancing of the Stature of Elizabeth, without giving to any particular individuals the right to claim the funds, the gift is charitable.”

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