It sometimes happens that charity trustees or the executors of a will containing a gift for charitable purposes find themselves under a moral obligation to allow the charitable gift to be transferred either in whole or in part to someone who is not the named beneficiary and is not a beneficiary of the charity or charitable purpose. The most obvious situation where the practitioner may meet this is where a defect or illegality in a will means that a beneficiary is denied and the charity receives an unexpected larger gift if not the entire estate. What is an ex-gratia payment? The Charity Commission view an ex-gratia payment as one involving: • the waiver by trustees of rights to money or property to which the charity is legally entitled but may not yet have received • a payment of money by trustees out of the charity’s existing funds • a transfer of some existing charity property, other than money, by the trustees There is a distinction between an ex-gratia payment and other payments that a

Gifts to Specified Charities When drawing up a will which includes one or more gifts to individual charities, extra care and thought is needed. The last thing the testator would wish for, if making a gift to a charity, is for the amount involved to be dissipated in legal costs because, for example, an error in description and/or amount was made. Identification Of course it is important to identify the charity in question: • as there are many existing charities with similar names or purposes • so check and refer to the register of charities(if registered with the Charity Commission) with the charity’s own literature or website, or the Charity Commission’s database—many major charities publish model clauses which may prove helpful • and check and refer to the current address and also (if not a national or international charity) the geographical area where the charity operates The Law Society Gazette issues a Charity and Appeals Directory each year which is also a valuable source of information on the better known charities. Special purpose

Gifts to Specified Charities When there is a gift to a specified charity there are a number of areas that should be checked carefully and precautions taken. Identification It is important to ensure the identity of the charity in question: there are many existing charities with similar names or purposes. It is not unusual to find a charity’s name misdescribed in a Will. • check the Charity Commission’s register of charities, where applicable, to establish the charity’s identity, current status, registered name, charity number and other relevant details. Where the organisation is not registered with the Charity Commission, further enquiries may be required to establish its identity and charitable status • remember that the charity may have changed its name or address, changed its legal form, merged with another charity or otherwise undergone constitutional changes between the date of the Will and the date when the gift takes effect. These matters should be investigated before concluding whether the named charity remains entitled to the gift • where the named charity has ceased to exist or appears

Importance of charity in Islam Charity in Islam is considered a private donation between the donor, Allah subhanahu wa ta'ala (swt) (Allah, the most glorified, the most high) and those who have received the kind gesture. It should not be seen as a means of seeking appreciation from others and therefore giving charity privately is the best form of giving. In some situations, public display of charitable donations are preferred to be given in public so it can encourage others to follow suit. Charity in Islam is something more substantial and meaningful than a simple monetary donation. The term charity in Islam has a deeper meaning and therefore it is not only something of a monetary value but can take many forms. A person's character can be considered as a charitable deed if he was to do something good based on his character. This can include giving sincere advice, giving a helping hand, visiting and caring for the sick, praying for others, talking gently to others, sharing food, being kind to animals and spreading knowledge.

A body corporate created pursuant to the Charities Act 1993, as amended by the Charities Act 2006 and consolidated by the Charities Act 2011.

A charitable incorporated organisation (CIO) is a form of legal entity that is only available to charities. A CIO is an incorporated entity with its own legal personality (ie it is a 'body corporate', but not a company), that has to be registered with the Charity Commission (not with Companies House). The CIO form was first introduced in the Charities Act 2006 (which has mostly been repealed by the CA 2011). There was a six year delay before The Charitable Incorporated Organisations (General) Regulations 2012 (SI 2012/3012) (CIO Regs) came into force on 2 January 2013 and it became possible to incorporate a CIO.

A charitable incorporated organisation (CIO) is a form of legal entity that is only available to charities. It is a ‘body corporate’ but not a company. This Practice Note summarises the legal framework that applies to CIOs and the potential advantages of a charity forming a CIO instead of a trust, an unincorporated association or a company limited by guarantee. It has been possible to form a CIO since 2 January 2013. The statutory regime governing CIOs is contained in: • Part 11 of the Charities Act 2011 (CA 2011) as amended by the Charities Act 2022 (CA 2022) • Charitable Incorporated Organisations (General) Regulations 2012, SI 2012/3012 (the General Regulations 2012) • Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012, SI 2012/3013 • Charitable Incorporated Organisations (Consequential Amendments) Order 2012, SI 2012/3014 The Charity Commission has also issued detailed guidance on CIOs. The CIO form was created in response to requests for a more appropriate legal structure for charities that want to operate using an incorporated entity, but do not want to be subject to dual

It has been Government policy for centuries to encourage charitable giving. Tax relief plays a key role in this policy. Charities (defined as either corporate bodies with exclusively charitable objects or bodies of trustees holding assets on charitable trusts which have no legal personality of their own) are relieved from tax on the income and capital gains they receive provided that the income or gains are ‘applied to charitable purposes only’, ie used directly to further the purposes of the charity or invested for the charity. Gifts to charity are therefore often worth considering in the context of lawful tax planning. Gifts made during the donor’s lifetime may be free from income or corporation tax (in the case of cash under Gift Aid and in relation to works of art, land or shares under Qualifying Investment Donation Relief (QIDR)) and capital gains tax (or corporation tax on chargeable gains). Where the gift is made by Will (or otherwise as a transfer of value) it is exempt from inheritance tax. In addition, where more than 10% of the value

Charitable appeals are commonplace, but it is often not appreciated that when members of the public contribute to an appeal for a purpose which is charitable in law, a trust for that purpose is automatically created. This applies even if the written terms of the appeal are extremely brief, eg ‘Save the Rembrandt for the Nation!’ or ‘Little Snoring Village Hall Roof Appeal’, or indeed if there is no written appeal but merely an oral announcement such as ‘A retiring collection will be made for Cancer Research’. The donation of funds for a charitable purpose places those receiving the funds under a fiduciary duty to use them for that purpose and only for that purpose. In other words, they hold them as charitable trustees. The purposes and types of appeal, the target audience and the sum which it is intended to raise (and which is actually raised) vary considerably. They can range from a modest local effort to a national campaign, and the amounts collected can range from a few pounds to a few million pounds.

Despite ambitious and wide-ranging reforms in, first, the Charities Act 1993 and, more recently, the Charities Act 2006, none of which has been brought into force or is likely to be brought into force in the foreseeable future, the law relating to public charitable collections, ie the collection of money from members of the public for charitable or similar purposes, is still governed by legislation dating back to 1916 and 1939. The Charities Act 2022, which was brought into force by stages beginning in the Spring of 2023, does not affect charitable public collections. Charitable public collections—current legislative framework Section 5 (as amended) of the The Police, Factories, etc (Miscellaneous Provisions) Act 1916 (PFE(MP)A 1916) and the Street Collections (Metropolitan Police District) Regulations 1979, SI 1979/1230 and any other regulations made under that section, apply to collections in the street (including a shop doorway or a shopping precinct). This has the effect of disapplying regulations relating to street trading, even where the collection consists of the sale of goods if accompanied by a representation that

If an organisation is to be a charity, its purposes must be exclusively charitable purposes.

Unless an institution is established for charitable purposes only, it will not be a charity. Legislation (Charities Act 2011 (CA 2011)) assists in that: For the purposes of the law of England and Wales, a charitable purpose is a purpose which—(a) falls within section 3(1), and (b) is for the public benefit (see section 4) There is thus a two-pronged approach to the definition of a charitable purpose, the first being that a proposed purpose must fit within a defined list. This list is far more substantial and encompassing than earlier lists. • the prevention or relief of poverty • the advancement of education • the advancement of religion • the advancement of health or the saving of lives • the advancement of citizenship or community development • the advancement of the arts, culture, heritage or science • the advancement of amateur sport • the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity • the advancement of environmental protection or improvement • the