Write a 3 page essay on The presumption of public benefit was removed by the Charities Act 2006 with the effect that all charities must demonstrate that their purposes are for the public benefit. Disc

Write a 3 page essay on The presumption of public benefit was removed by the Charities Act 2006 with the effect that all charities must demonstrate that their purposes are for the public benefit. Discuss, with reference to relevant authorities, why it was necessary to place such.

e Charities Act 2006 now requires that the trusts for the advancement of religion, education, or the relief of poverty must now demonstrate that their operations amounts to public benefit as defined by section 3(2) of the Charities Act 20062. The case laws preceding the enactment of the Charities Act 2006 required that for any institution to obtain the status of a charitable trust, such an institution must have exclusive charitable purposes, and such purposes should be for public benefit3.

There are two valid reason why it was necessary to place such emphasis on public benefits test. First, the major purpose of the enactment and coming into force of the Charities Act 2006 was to differentiate between the purpose and the actual benefit realizable by the public, from the operation of such institutions designated as charitable organizations4.The balancing is such that, if the detrimental effect from the organization outweighs the benefits, then, the organization would no longer be considered a charitable organization under the Charities Act 20065. In this respect, there must be a balancing act between the benefits and the detriments derived from an organization. This principle was clearly demonstrated under the case. National Anti-vivisection society v IRC [1948] Ch 316. Simply put therefore, the necessity for the enactment of the Charities Act 2006 was to create a window for the scrutinizing of the actual activities of the organizations deemed charitable, for the purpose of establishing whether such activities actually deliver tangible benefit to the public.

For example, prior to the enactment of the Charities Act 2006, any institution that was established for the purpose of providing and advancing education to the public would have automatically qualified as a charitable organization, merely because its purpose was to advance education. However, the operations of such an institution could differ from the purpose, such that an institution could be established for