Also known as:charitable uses · charitable purpose
Written by attorneys · grounded in primary & secondary sources — see below
A purpose for which property or funds may be held or transferred under trust law when the objective falls within recognized charitable categories such as relief of poverty, advancement of education or religion, promotion of health, or other community-beneficial ends.
Sources & Authorities
How it applies
Common Examples
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Trust Created for Agricultural Support
Clifford Cox transferred farmland and cash to a trustee with directions to provide low-interest loans to local farms and lifelong care for working animals. The arrangement qualified as a charitable trust because the stated objectives aligned with community-beneficial purposes under the governing statute. Horizon Livestock objected that the loans would confer private benefits, but the trust instrument's focus on sustaining family farming traditions satisfied the charitable-use requirement.
Court Selection of Charitable Beneficiary
Craig Caldwell created a trust to help people who depend on agriculture without naming specific recipients or regions. After the trustee proposed sponsoring a national expo, the settlor sued to redirect funds. The court selected local sustainable-farming programs as the beneficiary to align with the settlor's evident intention of preserving family farming traditions.
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Model Codes
Restatements
Dictionaries
Cy Pres Modification for Wasteful Purpose
Cecilia Cabrera funded a trust to subsidize brick-and-mortar leases for artisans on Main Street. Online commerce emptied the corridor and rendered the subsidies wasteful. The court redirected the remaining corpus to online platforms because the original purpose had become impracticable while remaining consistent with the settlor's goal of supporting local artisans.
Tax-Exempt Status for Charitable School
Carmen Choi operated a university that admitted students of all races but maintained racially discriminatory policies on dating and marriage. The IRS revoked the institution's tax-exempt status. The Supreme Court upheld the revocation because the policies violated established public policy against racial discrimination even though the school advanced educational goals.
Bob Jones University v. United States461 U.S. 574, 600, 103 S.Ct. 2017, 76 L.Ed.2d 157 (1988)
Cy Pres Application to Segregated Park
Charles Cunningham left land in trust for a park restricted to white persons only. After the restriction was held unconstitutional, the court applied cy pres to allow use by the general public. The modification preserved the charitable purpose of providing public recreation without reverting the property to the settlor's heirs.
Evans v. Abney396 U.S. 435 (1970)
Charitable Solicitation Regulation
Corinne Cho's organization solicited door-to-door donations for environmental causes but retained most funds for overhead. The village ordinance required at least seventy-five percent of proceeds to support charitable programs. The Supreme Court struck down the percentage requirement because it unduly burdened protected First Amendment speech even though the solicitation advanced a charitable use.
Village of Schaumburg v. Citizens for a Better Environment444 U.S. 620, 100 S.Ct. 826, 63 L.Ed.2d 73 (1980), reh. denied 445 U.S. 972, 100 S.Ct. 1668, 64 L.Ed.2d 250
Common questions
Frequently Asked
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When may a court select a charitable purpose or beneficiary under the Uniform Trust Code?+
If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection must remain consistent with the settlor's intention to the extent it can be ascertained.
Supporting sources
What happens when a charitable purpose becomes impossible or wasteful?+
If a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful, the trust does not fail and the property does not revert to the settlor. The court may instead apply cy pres to modify the trust in a manner consistent with the settlor's charitable purposes.
Supporting sources
Does the settlor of a charitable trust have standing to enforce its terms?+
The settlor of a charitable trust may maintain a proceeding to enforce the trust. This statutory grant of standing allows the settlor to seek judicial intervention when the trustee deviates from the trust's charitable objectives.
Supporting sources
396 U.S. 435 (1970)Constitutional Law
…Bacon provided an unusual amount of information in his will from which the Georgia courts could determine the limits of his charitable purpose. Immediately after specifying that the park should be for “the sole, perpetual and unending, use, benefit and enjoyment of the white women, white girls, white boys and white children of the…