Charitable Trust Structure

March 14th, 2010

Charitable Trust Structure

Question: Can money be donated for a specific purpose, and that purpose only, to a non-charitable association?

For a charity, if someone donates money to be used for a specific purpose, it has to be used solely for that purpose. Does this apply solely to donations given to charities? Can the same thing happen with donations given to other groups such as a company, and I&PS structures, which are not charities, but which are working in the social and voluntary and co-operative sector?
If not, is this because the donation is considered to be a little individual trust type donation. used by the charity trustees for the use of specific beneficiaries? And is there a way, an alternative mechanism, can be used, like a contract, or some kind of promissary note, that can be used to produce the same effect, of binding the recipients of the donation to use the money for the purpose for which it was given?

Answer: Yes, it can be dome. Ted Turner donated 1 billion dollars to the UN with the clause that it be used for feeding the hungry.

Leadership Speaker Series: Glenn Dubin