A charitable trust is a trust established specifically for charitable purposes. The main differences charitable trusts have with other types of trusts are:
1. Generally the "rule against perpetuities" does not apply to them so they may exist forever;
2. They are trusts for charitable purposes only (e.g., to relieve poverty) and therefore there are no specifically named beneficiaries;
3. Because of their public nature they are heavily controlled by the courts and legislation; and
4. There are significant tax concessions.
1) A 'charitable' entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997);
2) Division 30 allows for tax deductions for gifts made to certain entities endorsed by the Commissioner of Taxation as 'deductible gift recipients' (DGR).
If you would like more information on trust structures and want to learn more about the most appropriate type of trust or trusts for your situation, please click here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.