Effect of the Charities Act 2006 Essay Example | Topics and Well Written Essays - 750 words

Effect of the Charities Act 2006 - Essay Example The designation of a charitable organization in the United Kingdom’s statute law, according to the Charities Act 2006, is an institution whose establishment is for charitable purposes alone. Some of the charitable purposes according to the Act include; the advancement of education, religion, and prevention of poverty. The charitable purposes also include the advancement of citizenship, health, animal welfare, arts, culture, heritage, and amateur sport, among others. However, for the purposes of convenience in classifying the aims of charity, Lord Macnaghten in 1891 when ruling the Commissioners for Special Income Tax v Pemsel [1891] AC 531 case put the aims under four heads. These heads are; the reprieve of poverty, the advancement of education, the advancement of religion, and any purposes that are of benefit to society. In order for an organization to be fully a charitable organization, one ought to be able to identify benefits rising from organizations to the advantage of t he society. The requirement is, also that the benefits that the charitable institution is providing must be directly related to the aims or purposes of the charity. Any harm that arises from the operations of the institution must be evenly balanced with the benefits that the institution provides. In addition to this, the institution ought to serve the general public or a target section of the public without any restrictions or discrimination. During the operations of the charitable institution, any private benefits ought to be secondary.... Any harm that arises from the operations of the institution must be evenly balanced with the benefits that the institution provides. In addition to this, the institution ought to serve the general public, or a target section of the public without any restrictions or discrimination. During the operations of the charitable institution, any private benefits ought to be secondary4. In the context of the law, it is essential to differentiate between the objects, the aims, and the means of a charity. A charitable trust’s objects, according to the Charity Commission of the United Kingdom, are the terms used to identify the purposes for which the institution wishes to serve the community5. As earlier stated, aims or purposes are the activities through which the charity will involve itself in trying to serve the community. The aims should not be profit oriented otherwise the charity commission will disapprove the institution of any charitable status. In addition to this, a charitable o rganization should state its means of income and how it plans to achieve its aims, where and how the organization will get the finances to effect their objects. The analogy in law is a process where judges have to establish a connection between the case at hand, and the provisions of the law. This involves a situation where a judge refers to a case or a provision in the law, which is not related to the case at hand, but there are similarities in the governing principles. In the process of identifying what category a charity’s purposes falls, it is vital to find out if there exists any analogy between the purposes of the organization, and the purposes set in