Essay on The Prevention And Relief Of Poverty

Essay on The Prevention And Relief Of Poverty

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The first category of charitable trust under the leading case of Pemsel is trust for the relief of poverty. It has been revised by the Charities Act 2006 stating that it should be “the prevention or relief of poverty”. Dingle v Turneris the leading case in this category. The trust in this case involved a donation of £10,000 to be paid to poor employees of the company in forms of pensions. The arguments for invalidity of the gift relied on two important cases of Oppenheim v Tobacco and Re Comptonin which it was held that charitable status cannot be granted in the cases where the benefits are limited to the descendants of a named individual or company. Lord Cross refused to allow the appeal and explained that the decision which was made in the case of Re Compton cannot be applied in every case in the law of charities especially in regards to trusts for the relief of poverty. This was based on the two main points, firstly, principles set up in the case of Re Compton was erroneous in itself, and secondly, there was a different test required for the relief of poverty from other forms of charitable trust that public benefit was not a requirement. In the 1601 Act it was stated that charities benefitting the aged, important and poor people could receive the charitable status due to having an appropriate charitable purpose. Sir Raymond Evershed in the case of Re Coulthurst stated that “poverty does not mean destitution…it may not unfairly paraphrased for present purposes as meaning persons who have to “go short”, due regard being had to their status in life and so forth”. This statement seems to indicate that where a person is not able to have the lifestyle that he had before losing his income may possibly be considered poor. The gift mu...

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.... The Act lists the purposes considered to be charitable and retain the recognition of purposes under the existing law. Charities Act removes the presumption of public benefit, and requires evidence to prove that the benefit is recognised by existing law. Personal nexus must not define the identity of the members of the class. One important point to bear in mind is the fact that for policy reasons, purposes which are political cannot gain the status of charitable. The main aim of the case laws over the last decade as well as the Charities Act was to improve the monitoring of charities, to make sure public benefit requirement is met, the meaning or purposes recognised as charitable has not changed. In other words, purposes and definitions recognised under existing law are retained. There are some minor changes to allow new purposes to be added to the modern world.

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