digplanet beta 1: Athena
Share digplanet:


Applied sciences






















A charitable trust is an irrevocable trust established for charitable purposes, and is a more specific term than "charitable organization".


In India, trusts set up for the social causes and approved by the Income Tax Department, get not only exemption from payment of tax but also the donors to such trusts can deduct the amount of donation to the trust from their taxable income.[1] The legal framework in India recognizes activities including "relief of the poor, education, medical relief, and the advancement of any other object of general public utility" as charitable purposes.[2] Companies formed under Section 25 of the Companies Act, 1956 for promoting charity also receive benefits under law including exemption from various procedural provisions of the Companies Act, either fully or in part, and are also entitled to such other exemptions that the Central Government may accord through its orders.[3]


In the Islamic Republic of Iran religious charitable trusts, or Bonyads, make up a substantial part of the country's economy, controlling an estimated 20% of Iran's GDP. Unlike some other Muslim-majority countries, the bonyads receive large and controversial subsidies from the Iranian government.[4]

United Kingdom[edit]

In England and Wales, charitable trusts are a form of express trust dedicated to charitable goals. There are a variety of advantages to charitable trust status, including exception from most forms of tax and freedom for the trustees not found in other types of English trust.[5] To be a valid charitable trust, the organisation must demonstrate both a charitable purpose and a public benefit.[6] Applicable charitable purposes are normally divided into four categories; trusts for the relief of poverty, trusts for the promotion of education, trusts for the promotion of religion and all other types of trust recognised by the law, which includes trusts for the benefit of animals and a locality. There is also a requirement that the trust's purposes benefit the public (or some section of the public), and not simply a group of private individuals.[7]

Such trusts will be invalid in several circumstances; charitable trusts are not allowed to be run for profit,[8] nor can they have purposes that are not charitable (unless these are ancillary to the charitable purpose).[9] In addition, it is considered unacceptable for charitable trusts to campaign for political or legal change, although discussing political issues in a neutral manner is acceptable.[10] Charitable trusts, as with other trusts, are administered by trustees, but there is no relationship between the trustees and the beneficiaries.[5] This results in two things; firstly, the trustees of a charitable trust are far freer to act than other trustees and secondly, beneficiaries cannot bring a court case against the trustees. Rather, the beneficiaries are represented by the Attorney General for England and Wales as a parens patriae, who appears on the part of The Crown.[11]

Jurisdiction over charitable disputes is shared equally between the High Court of Justice and the Charity Commission.[12] The Commission, the first port of call, is tasked with regulating and promoting charitable trusts, as well as providing advice and opinions to trustees on administrative matters.[13] Where the Commission feels there has been mismanagement or maladministration, it can sanction the trustees, removing them, appointing new ones or temporarily taking the trust property itself to prevent harm being done.[12] Where there are flaws with a charity, the High Court can administer schemes directing the function of the charity.[14]

United States[edit]

In the United States, many individuals use charitable trusts to leave all or a portion of their estate to charity when they die, both for philanthropic purposes and for certain tax benefits.[15]

Charitable trusts may be set up inter vivos (during a donor's life) or as a part of a trust or will at death (testamentary). There are two basic types of US charitable trusts. The first is a "lead" trust, wherein the charity is paid first, and the remainder, after trust termination, goes to beneficiaries, such as heirs or back to the donor. The second is a "remainder" trust, wherein the charity is paid last after termination of the trust, after other beneficiaries have received payments. Payments may be fixed amount, annuity trust, or a percentage of principle, which is called unitrust.

Charitable remainder trusts are irrevocable structures established by a donor to provide an income stream to the income beneficiary, while the public charity or private foundation receives the remainder value when the trust terminates. These "split interest" trusts are defined in §664 of the Internal Revenue Code of 1986 as amended and are normally tax-exempt. A section 664 trust makes its payments, either of a fixed amount (charitable remainder annuity trust §664(d)(1)(D)) or a percentage of trust principal (charitable remainder unitrust), to whomever the donor chooses to receive income. Normally, the donor may claim a charitable income tax deduction, and may not have to pay an immediate capital gains tax when the charitable remainder trust disposes of the appreciated asset and purchases other property as it diversifies its portfolio of trust property. At the end of the trust term, which may be based on either lives or a term of years, the charity receives whatever amount is left in the trust. Charitable remainder unitrusts (§664(d)(2)(D)- paying a fixed percentage) provide some flexibility in the distribution of income, and may be helpful in retirement planning, while charitable remainder annuity trusts paying a fixed dollar amount are more rigid and usually appeal to much older donors unconcerned about inflation's impact on income distributions who are using cash or marketable securities to fund the trust.

Parents who have a child with a disability should ensure that the inheritance they leave for their child does not affect their child's eligibility for social assistance programs. A Henson trust can be useful to ensure this.

Charitable lead trusts make payments, either of a fixed amount (charitable lead annuity trust) or a percentage of trust principal (charitable lead unitrust), to charity during its term. At the end of the trust term, the remainder can either go back to the donor or to heirs named by the donor. The donor may sometimes claim a charitable income tax deduction or a gift/estate tax deduction for making a lead trust gift, depending on the type of a charitable lead trust. Generally, a non-grantor lead trust does not generate a current income tax deduction, but it eliminates the asset (or part of the asset’s value) from the donor’s estate.

If the trust has qualified under laws such as Internal Revenue Code section 501(c), donations to the trust may be deductible to an individual taxpayer or corporate donor.

See also[edit]


  1. ^ Section 2(15) read with Sections 11 and 12, Income Tax Act, 1961
  2. ^ Section 2(15), Income Tax Act, 1961
  3. ^ Section 25, Companies Act, 1956
  4. ^ Mackey, Sandra, Iranians, Persia, Islam, and the soul of a nation, New York : Dutton, c1996 (p. 370)
  5. ^ a b Hudson (2009 p. 1004
  6. ^ Edwards (2007) p. 205
  7. ^ Edwards (2007) p. 206
  8. ^ Edwards (2007) p. 211
  9. ^ Edwards (2007) p. 229
  10. ^ Edwards (2007) p. 217
  11. ^ Edwards (2007) p. 233
  12. ^ a b Edwards (2007) p. 236
  13. ^ Dollimore (2007) p. 155
  14. ^ Edwards (2007) p. 239
  15. ^ Clifford, Denis. "The Charitable Remainder Trust: Do Good and Get Tax Breaks.". NOLO. 


  • Dollimore, Jean (2007). "The Charities Act 2006: Part 1". Private Client Business (Sweet & Maxwell) 2007 (2). ISSN 0967-229X. 
  • Edwards, Richard; Nigel Stockwell (2007). Trusts and Equity (8th ed.). Pearson Longman. ISBN 978-1-4058-4684-4. 
  • Hudson, Alastair (2009). Equity and Trusts (6th ed.). Routledge-Cavendish. ISBN 0-415-49771-X. 

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Charitable_trust — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
124327 videos foundNext > 

What Is A Charitable Remainder Trust

http://www.theannuitythinktank.com Charitable Remainder Trust Annuity. Using an annuity inside a charitable remainder trust. How can you put an annuity insid...

Charitable Trusts

http://www.documentsonadisk.com/ Documents On A Disk Sample Documents For Just About Anything You Can Think Of... Call us Today 1-888-InsMark (467-6275) Near...

Adarsh Kala Sandhya Charitable Trust Event

Adarsh Kala Sandhya Subscribe to Asianet Official YouTube Channel for more videos: http://www.youtube.com/subscription_center?add_user=asianetindia For Asian...

Breakthrough T1D Technology Funded by The Helmsley Charitable Trust

This film explores the early stages of development of a potentially game-changing technology for people with type 1 diabetes. The "Bionic Pancreas" will enab...

Rehmatein Hosted By Sangeetam Charitable Trust | Anup Jalota, Javed Akhtar

Geetam Charitable Trust Iniciateive in aid of musical fetranity Rehmatein An Musical Evening With Anup Jalota,Hariharan,Javed Akhtar,Talat Aziz,Jaspinder Nar...

Anup Jalota, Javed Akhtar @ Rehmatein Hosted By Sangeetam Charitable Trust !

Geetam Charitable Trust Iniciateive in aid of musical fetranity Rehmatein An Musical Evening With Anup Jalota,Hariharan,Javed Akhtar,Talat Aziz,Jaspinder Narula,Javed Ali & many more celebreties....

Vathsalya Charitable Trust

Donate to this NGO on LetzChange here: About this NGO: Vathsalya Charitable Trust provides extensive medical care, food, shelter, and informal education to o...

Muscial night AD by kandi charitable trust.

Om Charitable Trust

Shree Vijayalakshmi Charitable Trust Scholarships Coimbatore - Shri. O. Arumugasamy Speech.

How can College students qualify for Shree Vijayalakshmi Trust Scholarship even if they have missed previous year scholarships ? Watch out the video excerpts...

124327 videos foundNext > 

8742 news items

The Express-Times
Sat, 12 Jul 2014 13:35:19 -0700

Warren County's charitable trust received open space and historic preservation requests that more than double the amount the county has to give. The county's Municipal and Charitable Conservancy Trust received nine applications this year totaling just ...
Scoop.co.nz (press release)
Thu, 24 Jul 2014 15:18:45 -0700

The Rotorua Energy Charitable Trust has announced its annual result for the year ending 31 March 2014 at its annual general meeting (AGM) held yesterday (24 July). The Trust's income was $14.7 million, a 15.7% increase on its $12.7 million income last ...
Heritage Florida Jewish News
Fri, 18 Jul 2014 07:26:15 -0700

JERUSALEM—The Helmsley Charitable Trust has announced 1.75 million dollars in grants to two Israeli institutions that help disabled children and adults, as well as their families. These grants are part of a continuing effort to invest in Israel's ...
India West
Mon, 21 Jul 2014 11:33:45 -0700

Buffalo, New York — An abstract by University of Buffalo faculty member Nitesh D. Kuhadiya on his research on Type 1 diabetes and liraglutide has won the Helmsley Charitable Trust Abstract Award. The Indian American assistant professor in the ...
JD Supra (press release)
Mon, 21 Jul 2014 22:37:30 -0700

The foregoing rules illustrate the qualifications of a valid charitable trust. Once a testamentary CRAT or CRUT has been validly established, a client's estate becomes entitled to a charitable estate tax deduction equal to the actuarial value of the ...
Mon, 21 Jul 2014 09:52:30 -0700

A southern social services provider made misleading and deceptive statements during collective pay bargaining, an Employment Court decision says. The Dunedin-based Pact group, a registered charitable trust, has lost its appeal in the Employment Court ...
NoCamels - Israeli Innovation News
Sun, 20 Jul 2014 02:56:15 -0700

Helmsley July 20, 2014 | The Helmsley Charitable Trust donated $1.75 million in grants to two Israeli institutions that aid disabled children and adults as well as their families. One million dollars was granted to Shalva, an Association for Mentally ...


Thu, 03 Jul 2014 14:56:15 -0700

A first-floor space in the Nerman Museum of Contemporary Art will become the Kansas Focus Gallery, thanks to gifts from the Barton P. and Mary Davidson Cohen Charitable Trust, as well as the donation of the Barton P. Cohen and Mary Davidson Cohen art ...

Oops, we seem to be having trouble contacting Twitter

Talk About Charitable trust

You can talk about Charitable trust with people all over the world in our discussions.

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!