A charitable trust is a type of purpose trust in that it promotes a purpose, and not just an individual. There are many benefits of investing in a charitable trust.

Courts are more relaxed in the approach for the need of there to be certainty of objects in a charitable trusts. While non-charitable trusts must have objects which are certain, gifts made exclusively for charitable purposes are valid even though the exact purposes may not have been identified. Thus a gift to trustees ‘for charity’ will be valid.

Charitable trusts are valid even though they may last for an infinite period of time. They are also exempt from the rule against inalienability. However, charitable gifts, like private gifts, are subject to the rule against remote vesting.

A variety of tax reliefs are enjoyed by both charitable bodies and members of the public who donate funds for charitable purposes. Charities are exempt from income tax on investment and corporation tax. They are also exempt from the capital gains tax, stamp duty tax, and national insurance surcharge.