Charities Act 2011

[F1 63A Failure of specific charitable purposes: application cy-près E+W

(1) Property given for specific charitable purposes which fail is applicable cy-près as if given for charitable purposes generally, if—

(a) the court or the Commission by order so direct, or

(b) the condition specified in subsection (3), (4) or (6) is met.

(2) An order may be made under subsection (1)(a) if it appears to the court or the Commission—

(a) that it would be unreasonable, having regard to the amounts likely to be returned to the donors, to incur expense with a view to returning the property, or

(b) that it would be unreasonable, having regard to the nature, circumstances and amounts of the gifts, and to the lapse of time since the gifts were made, for the donors to expect the property to be returned.

(3) The condition in this subsection is met if—

(a) the property is a single gift of £120 or less, and

(b) the charity trustees reasonably believe that during the financial year of the charity in which it is given the total amount given by the donor to the charity for the specific charitable purposes is £120 or less,

unless at the time of giving the gift the donor states in writing that the gift must be returned if the specific charitable purposes fail.

(4) The condition in this subsection is met if the property is given by a donor who, after the agreed actions are taken, is not identified or is not found.

(5) The “agreed actions” are those agreed in writing between the charity trustees and the Commission as being reasonable in all the circumstances of the case to identify and find donors.

(6) The condition in this subsection is met if the property consists of—

(a) the proceeds of cash collections made—

(i) by means of collecting boxes, or

(ii) by other means not adapted for distinguishing one gift from another, or

(b) the proceeds of any lottery, competition, entertainment, sale or similar money-raising activity, after allowing for property given to provide prizes or articles for sale or otherwise to enable the activity to be undertaken.

(7) The Secretary of State may by regulations amend subsection (3)(a) or (b) by substituting a different sum for the time being specified there.]

Textual Amendments

F1 S. 63A substituted for ss. 63-65 (31.10.2022) by Charities Act 2022 (c. 6), ss. 6(1), 41(4) (with s. 6(3)); S.I. 2022/1109, Sch. para. 3 (with reg. 5)