Further Principles of Trust or Charities - Essay Example

Name: Professor: Institution: Course: Date: Further Principles of Trust (Charities) Introduction For anything to be considered charitable, there are principles that it is supposed to meet before is registered. Considering this application, the law that is implemented to choose what is to be considered charitable is frequently changing for the purpose of meeting the varying requirements within any given society, and this is taking place within the existing four heads of charity. It has been found out that the Charity Commission is put in place to take care of registration and also regulation of charities. They also determine the kind of activities that will be involved in by the registered charities (O'Halloran, McGregor-Lowndes & Karla, 125). Validity of Clauses 1 a) The Woodfall Hospice Charity number 190876 By law, any organization that is looking forward to involve itself in charity work must be in a position to practice their charitable mission as its principal and paramount purpose of providing services. Therefore, allocating £10,000 to Woodfall Hospice Charity creates a charitable mission that is aimed beyond the act of just giving or returning to the community. This includes a wider display of purposes, of each is perceived to look into matters that are lined together with the vision doing good. To be in a position of evaluating the efficiency of this charity, it is bond to response to various changing circumstances and possibly times, which in another way are to be in conjunction with the purpose of achieving the set mission. Despite such eventuality happening in the process of implementing various activities, the most significant part of the purpose, the mission, continue being the overall touchstone of what is Woodfall Hospice Charity. The only issue arising in this charity is that the standard of measuring and probably enforcing the resultant accountability to the mission is exceedingly hard to be achieved. This is believed to be a result from the public or external enforcements towards the mission, which will normally raise the specters that are quite uncomfortable (O'Halloran, McGregor-Lowndes & Karla, 112). To make sure that Woodfall Hospice Charity’s mission is legitimately evolved or maybe has gone off course, the IRS agents are supposed to be involved at some of the stages of its implementation. This will help in putting it the category of autonomy charities, which will provide Woodfall Hospice Charity with experiences that, will give them a chance of being innovative, and even take better positions of serving those who have not been effectively reached. 1 b) The Manor House hospice charity number 29874 The Manor House hospice, as a charity, it is supposed to ultimately be trusted when it comes to projecting its mission of existence. For Manor House Hospice Charity to achieve its mandate, it should therefore, be other-regarding charity, rather than self-regarding. This means that it should stand up and reinvest all of its outstanding income in its overall mission for the purpose of serving others, rather than placing most the earnings to other entities of even individuals who are considered to be outside the intended benefitted class of the charity (O'Halloran, McGregor-Lowndes & Karla, 118). Manor House Hospice Charity is supposed represent at least one of the fundamental levels of altruism. It is also supposed to maintain an orientation that is based on the “other-regarding” mission, which is one of the exact essential principles of any identified charity law. There is another essential legal principle that is designed to assist Manor House Hospice Charity to practically continue being accountable to its missions is the necessity for group governance. This means that the charity must be made up of and probably be administered by a group, and not by a single individual. Concerning the issues surrounding the family of Adam Jenkins, it is unfortunate that such a guideline will be followed, as the differences have already been experience during his burial, therefore, there is a huge chance of it being overlooked. There is an issue that is seen to happen with Manor House Hospice Charity, which is the pressure existing between the mission of the charity and the overall challenge of the enforcing the selected mission for operation to take place. A structural solution for controlling charitable mission in a better way should be sought, and this can be achieved by the collaboration and better dialogue means within the charity. 2 a) A trust to provide for the reintroduction of wild boar into the forests of England Adam Jenkins is a donor who has decided to use part of his wealth for nonprofit causes, and this involves giving out £200,000 for the reintroduction of wild boar into the forests of England. Concerning the enforcement put down by the government of the United States, such a trust meets the requirements of establishing a charitable trust that has the main cause affiliated to the conservation of the environment. As it is understood, the entire trust industry is directly synchronized by the United States government, and as opposed to all other forms of trusts that exist, charitable trusts are generally implemented by the United States government. Therefore, this indicates that the beneficiaries of the trust are in the position and legally protected to reclaim property entrusted to this trust if in one way or another, the trustees are found to be violating their fiduciary duty or the trust in general, and this could be in the form of making reckless or illegitimate investments. The charitable remainder annuity trust or just CRAT is from time to time assigned responsibilities of distributing a set sum of property to some of the non-charitable parties, and in this case are often the trust's grantor. In this case, this is not what is happening with Adam Jenkins’s contribution as the recipient is the act of reintroduction of wild boar into the forests of England. CRAT is all about the amount of the charity collected used by the selected charitable trust for its specific purposes and the remainder is redirected to other courses, of which is referred to as the charitable remainder annuity trust. 2 b) A trust to provide for the eradication of grey squirrels in North Yorkshire One of the twelve purposes which are prima facie charitable is the advancement of environmental protection or improvement. Therefore, eradication of grey squirrels in North Yorkshire passes it as a charitable trust. Eradication may seem to be away of destroying than advancing the protection or improvement of the environment, but in this case, if the main purpose is to further enhance the life of human beings and protect what they are working on then it passes being a charitable trust. In combination with a charitable gift wealth replacement trust is applied for the purpose of replacing the main assets that had been issued to a given charity, and this is provided while benefiting specific non-charitable parties (O'Halloran, McGregor-Lowndes & Karla, 132). Such benefits may come in a way of allowing the grantor to receive valuable tax benefits that are mainly related to the overall gifts, capital gains, and probably estate taxes. It is by law that charitable lead trusts dispense income to philanthropic entities of their choice for a fixed term. Therefore, this is a fact that Adam Jenkins’s family needs to agree and live with, since the dead man wishes, as indicated in his Will, are supposed to be followed right to the brim. His family should understand that at the end of the agreed term, the outstanding trust will be transferred to any non-charitable beneficiary, and this could wife of a child. A pooled income fund will be a trust that is supposed to be maintained by a charitable organization, but in this case, since there is only one person who has transferred his income for the selected course, he will be eligible to get considerable deductions in estate tax benefits, income tax and gift-tax. Effect of each Clause 1 a) The Woodfall Hospice Charity number 190876 One of the main reasons that people normally gives back to the society is to play a big role in ensuring that the touched communities are improved by having better places to live. This happens by helping to provide goods and services to the same society that in one way or another could have not accessed them on their current grounds (O'Halloran, McGregor-Lowndes & Karla, 141). Therefore, having this charity means that the lives of those people involved are going to be raised, in the long run the standards of the firm involved; Perkins & Sloane, will also be improved. Ultimate satisfaction comes from things that are done with a clear impact to the selected objectives. In this case, having Woodfall Hospice Charity will not only create a positive impact to the involved parties but also turn out to be a motivating ground of involving in various corporate activities, as part of the corporate responsibility. 1 b) The Manor House Hospice Charity number 29874 Another objective of any given charity is to act as a reminder to others to understand the interdependence to one another on various issues in life. This will act as a motivator to others to follow the example and come up as a team to forge their way in helping the society at large. Therefore, establishment of the Manor House Hospice Charity can turn out to have a viral effect and basically motivate limitless people to follow the example. Another effect of this charity is based on the fact that anything that is given out to charity definitely has a reward at the end. This can be rewarded in part by the government, and can be in the form of a waived or reduced tax liability. Therefore, this will be better for Perkins & Sloane business owners as they will benefit greatly through this charity. 2 a) A trust to provide for the reintroduction of wild boar into the forests of England Establishment of this charitable trust will help the owners of Perkins & Sloane firm to reduce their constitutional requirements of paying estate taxes, and this can move to a level where they are entirely waived. In response to this, the owners of the firm will be in a position to and leave their estate intact so that it can be passed on to anyone they fell will be competent enough to take good care it, and this will not include the United States government (O'Halloran, McGregor-Lowndes & Karla, 150). This will be a relatively breakthrough for the firm, since it will exclude the overall need of paying capital gains tax on assets or property of the firm that have been disposed. It will as well lead to reduction of the need to pay income tax on the disposed assets, and this only applies as long as the selected trust is launched within the same financial year. 2 b) A trust to provide for the eradication of grey squirrels in North Yorkshire It has been established that in most cases, the charitable trust support is mainly established and funded from property which may be carrying a fairly intense capital gains tax or maybe shares and stocks. Establishment of a charitable trust enables the founder to continue increasing the value of its assets, but this does not give the founder any chance of removing any of the issued assets from the trust. If such an act happens, then the person will be liable for fairly significant tax charges. Establishment of this charitable trust will lead to the application of the Inland Revenue, which directs that all assets or capital that are provided in the charitable trust are supposed to be focused into charities and/or any other foundations that find them applicable, and this is irrespective of their location in the World. Work Cited O'Halloran Kerry, McGregor-Lowndes Myles, and Karla W. Simon. Charity law & social policy: national and international perspectives on Charities. New York: Read Books Publishers, 2008, pp. 102-156.   Read More