In our last Charity Subtypes post, we noted that there are special requirements for a charity to be considered an ‘institution’. Today we look closer at what organisations can be considered an institution for the purposes of Public Benevolent Institutions and Health Promotion Charities.
🔶 What is an institution? 🔶
1️⃣ An institution is an establishment, organisation or association, that exists to promote some object, especially objects of public utility, or religious, charitable or educational objects.
2️⃣ To be an institution the charity must not be merely a fund.
ℹ️It must do more than just distribute funds to other organisations or individuals, or simply make the property available for others (as a fund may do).
ℹ️It must have its own activities, engage others to undertake activities on its behalf or be part of a relationship of collaboration (such as being part of a structure of organisations) that is organised and conducted for or promotes benevolent relief.
3️⃣ The charity may need to have a separately identifiable structure to be an institution, but it does not need to have a particular legal structure to fit the definition.
ℹ️However, its size and permanence are also relevant to whether the charity is an institution. If you need legal advice about a charity or not-for-profit, get in touch with us for a free 15-minute consultation: legal@littlecfo.com
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