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Introduction to the law of charities

This guidance note is concerned with institutions which are considered to be charitable under the law of England and Wales. For institutions outside England and Wales please see the Foreign charitable trusts and other foreign charities guidance note.

Many western countries grant tax exemptions and incentives to donors to charitable organisations in recognition of the fact that the charitable services which they provide would otherwise fall to be provided by the state. The UK has provided for charity-related tax relief to one extent or another since 1799.

Definition of a charity (the English law definition)

As a matter of English law, an institution is a charity if:

1. •

   it is subject to the jurisdiction of the courts of England and Wales, and

2. •

   it is established for exclusively charitable purposes

The definition of 'charity' above does not apply for the purposes of a particular Act of Parliament if a different definition applies for those purposes. In particular, with effect from April 2012, there