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A B C D E F G H I J K L M N O P R S T V W Y

Permanent endowment and special trust property

Permanent endowment and special trust property

Permanent endowment is property of a charity which the trustees may not spend as if it were income.  It must be held permanently, sometimes to be used in furthering the charity’s purposes, sometimes to produce an income for the charity. Permanent endowment could be a piece of land, a building, cash or investments.

Historically, charity trustees could not spend permanent endowment without the Charity Commission’s authority. However, the charities legislation now includes powers enabling charity trustees to free permanent endowment from the restrictions that apply to it, provided certain conditions are met. Many charities have been able to use these powers to access capital for significant improvement works or to help in their general day to day operation following reductions in their income.

Special considerations must also be taken into account regarding permanent endowment where charitable companies are concerned as it is not possible for a charitable company to hold permanent endowment as part of its corporate property.

Special trust property is funds or property held and administered on separate trusts by or on behalf of a main charity for any special purposes of that charity. In some cases, special trust property may be separately registered with the Charity Commission as a linked charity.

Our Charity Law solicitors can advise you upon the existence and terms of any permanent endowment held by your charity and whether or not taking steps to free such funds from the restrictions that apply to it is possible or advisable.

Charities Newsletter

Our team of Charity solicitors publish a quarterly newsletter covering the latest legal news and developments in the world of Charities and Social Enterprises. To find out more please visit the CSE News page in the Publications section.

Charity Blog

Our Charity Law Solicitors regularly write blogs on issues affecting the sector, click here to read our Charity Law blog.

Useful downloads

Charities and Social Enterprises leaflet

Charities - Services for the Non-Domiciled Philanthropist

 

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