Application Of The Cy-Pres Doctrine To Alter A Charity’s Objects

The Cy-pres doctrine is a legal principle used for charitable trusts and donations when the original purpose of the charity/donation becomes impossible, impractical or illegal to fulfil.

Application of the doctrine allows for charities to continue operating or for donations to be made/received when the purpose would otherwise permit this. In order to operate, the doctrine allows the Court to modify the terms of a charity or donation to align as closely as possible with the original intent, within the bounds of practicality. For example, if a charity is no longer in operation, the funds of a donation may be redirected to a similar charitable cause that reflects the donor’s original intentions.

The Cy-pres doctrine is commonly applied when a testator leaves a charitable donation within their Will; however, at the time of death, the charity named no longer exists in its previous format. In this instance, the donation becomes impossible to fulfil and therefore the Court may direct the donation to a similar charity, providing it is found that the testator wished to make a general charitable gift.

On the other hand, the Cy-pres doctrine is also used where a charity’s work has adapted overtime and therefore its objectives are no longer being met as they were originally intended. Application on the latter basis was recently tested in the case of Keepers and Governors of the Possessions, Revenues and Goods of the Free Grammar School of John Lyon, Within the Town of Harrow-on-the-Hill v His Majesty’s Attorney General.

Free Grammar School of John Lyon v HM Attorney General [2024] EWHC 2857 (Ch)

Background

In this case, the Charity ran two schools in Harrow and submitted that the Charity’s objectives prevented the Charity from being able to operate outside of Harrow, which limited the public benefit it could otherwise achieve. The Charity applied to amend its objectives pursuant to the Cy-pres doctrine to provide further benefit outside of Harrow. In order to succeed, the Charity was required to satisfy the Court that their objective became impossible, impractical or illegal to fulfil.

Court’s Consideration and Decision

In considering the Charity’s objective, the Court noted that the objective was to provide perpetual support of the schools. This did not limit the Charity from being able to operate outside of Harrow, but instead required the Charity to continue operating towards the benefit of the schools. The judge provided specific examples of steps the charity may take, as they proposed, which remained within the Charity’s objectives. For example, if educational benefit conferred on children outside Harrow is properly to be regarded as conducive for the purposes of the Schools, then, in principle, there is no geographical restriction on where it occurs.

It was further noted that, even in the event that the Charity was restricted to operating in Harrow only, this was not impossible, and therefore the Cy-pres doctrine could not apply. The Charity’s application was therefore dismissed.

Comment

Although this case demonstrated that, in order for the Cy-pres doctrine to apply, the objective must be strictly impossible, impractical or illegal to fulfil, the comments made confirmed the steps the Charity wished to take remained within its objectives and therefore, the objectives did not prevent the Charity from acting as it wished.