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Charities Act 2006

Commentary on Sections

Section 17: Application cy-près of gifts made in response to certain solicitations

66.This section inserts a new section, section 14A, into the 1993 Act. Section 14A applies to property (which includes money) given for specific charitable purposes in response to an appeal which contains a certain type of statement. The statement is described in subsection (2) and is to the effect that unless, at the time of making his donation, the donor asks (by making a “relevant declaration” as described in subsection (3)) to be given the chance to reclaim his donation if the specific purposes for which he is giving it fail in future, the donation will be applied cy-près.

67.Subsections (4)-(6) set out the process to be followed where the purposes have failed and where the donor has made a relevant declaration. The trustees holding the property must notify the donor that the purposes have failed and ask him whether he wants the property (or a sum equal to its value) returned. If he does, the trustees must return it to him. If either the trustees cannot find the donor, or the donor indicates that he does not wish the property returned, then the property can be applied cy-près as if the donor had disclaimed his right to have it returned to him.

68.Subsection (7) applies where the purposes have failed and where the donor has not made a “relevant declaration”. It allows the property to be applied cy-près as if the donor had disclaimed his right to have it returned to him.

69.Paragraph (b) of subsection (8) makes clear that this section applies both where the donor has received something of value in return for his donation and where he has not. Paragraph (c) makes clear that where an appeal consists of some solicitations which contain the statement described in subsection (2) and some which do not contain that statement, the donor (unless he proves otherwise) will be regarded as having responded to a solicitation containing the statement.

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