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There are 2 approaches towards the validity of

charitable purpose.
1) The applicant needs to show a genuine charitable
intention.
2) There is no personal nexus between the settlor
and the class of people to be benefited, but that
there has to be sufficient public benefit.

1) The applicant needs to show a genuine charitable


intention
Looks at the intrinsic merits of the trust purpose.
Even if only a small number of people will take a benefit from
the trust, the court may still find that it is a valid charitable
trust if the settlors intention are genuinely charitable.
Dingle v Turner.
In truth the question whether or not the potential beneficiaries of a
trust can fairly be said to constitute a section of the public is a
question of degree and cannot be by itself decisive of the question
whether the trust is a charity. Much must depend on the purpose of
the trust

2) There is no personal nexus between the settler and the class of people
to be benefited, but that there has to be sufficient public benefit

Looks at how the trustees are running the trust and


whether it achieves the charitable effects.
Concern with demonstrating the intention behind the
trust is going to affect the public rather than to attract
the tax benefits of charitable status.
Whether or not the company can prove that a
sufficiently large proportion of the public will benefit
from the trust
Re Compton

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