Also known as: charitable trusts
Written by attorneys · grounded in primary & secondary sources — see below
A trust created for a charitable purpose. The purpose must fall within relief of poverty, advancement of education or religion, promotion of health, governmental or municipal purposes, or other purposes beneficial to the community.
Marie transferred farmland and cash to Dakota as trustee. The instrument directed use of the property for low-interest loans to local farms and care for working animals. Dakota proposed loans only to selected family farms. Horizon Livestock objected that the plan conferred private benefits. The arrangement qualifies as a charitable trust because its purpose advances community interests in sustaining agriculture.
Eleanor accepted a building in trust subject to a covenant requiring exclusive use for charitable programming serving disadvantaged youth. Youth Voices proposed workshops teaching immigrant teens to organize and meet officials. The foundation objected that the sessions constituted political advocacy. The trust remains charitable because the workshops advance education and community benefit without violating the covenant's core purpose.
Select any source to read its text and confirm it supports the definition.
A charitable trust held assets dedicated to care for incurables. University Hospital sought to redirect the assets after the original facility closed. The court examined whether the trust purpose had become impossible. The assets remained subject to charitable trust rules requiring application of cy pres to a similar purpose.
A testator created a trust to distribute income to pupils in primary grades. Heirs claimed the trust violated the rule against perpetuities. The bank as trustee defended the arrangement as charitable. The court upheld the trust because its purpose advanced education for a broad class of children.
A senator devised land to a city for a park limited to white persons. After the Supreme Court barred enforcement of the racial restriction, the city sought to close the park. Heirs argued the trust failed. The Court held that the charitable trust purpose could not be fulfilled under the illegal condition and the property reverted.
A university maintained a charitable trust funded by tax-exempt contributions. The IRS revoked exemption because the university enforced racially discriminatory policies. The university argued its educational purpose remained charitable. The Court held that the trust lost charitable status when its operations violated public policy against racial discrimination.
A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
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The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.
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A private express trust benefits specific individuals or carries out non-charitable purposes. A charitable trust benefits a segment of the public at large and therefore receives special treatment including standing for the attorney general and possible application of cy pres.
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If a charitable purpose becomes unlawful, impracticable, impossible, or wasteful, the court may apply cy pres to modify or terminate the trust and direct the property to a purpose consistent with the settlor's charitable intentions.
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…Court of Georgia affirmed, holding that Senator Bacon had the right to give and bequeath his property to a limited class, that charitable trusts are subject to supervision of a court of equity, and that the power to appoint new trustees so that the purpose of the trust would not fail was clear. 220 Ga. 280, 138 S. E. 2d 573.” The…