CHARITY COMMISSION

Charities and Public Benefit

Public benefit is the legal requirement that every organisation set up for one of more charitable aims must be able to demonstrate that its aims are for the public benefit.

There are two key principles both of which must be met in order to show that an organisation's aims are for the public benefit.

Principle 1:  There must be an identifiable benefit or benefits

1a   It must be clear what the benefits are.

1b   The benefits must be related to the aims.

1c   Benefits must be balanced against any detriment or harm.

Principle 2:  Benefit must be to the public, or a section of the public

2a   The beneficiaries must be appropriate to the aims.

2b   Where benefit is to a section of the public, the opportunity to benefit must not be unreasonably restricted: 

• by geographical or other restrictions; or

• by ability to pay any fees charged.

2c   People in poverty must not be excluded from the opportunity to benefit.

2d   Any private benefits must be incidental.

Charity trustees must:

• ensure that they carry out their charity's aims for the public benefit;

• have regard to guidance we publish on public benefit (when they exercise any powers or duties where that may be relevant); and

• report on their charity's public benefit in their Trustees' Annual Report.