The Law & Ethics of Donations- John Picton, University of Liverpool

Feb 4, 2020

In episode 65, we chat to John Picton from the Charity Law & Policy Unit at the University of Liverpool about charity law and the ethical and legal challenges surrounding certain kinds of charitable donations. Including:

 

Charity Law

• What are some of the key principles of UK charity law? (e.g. public benefit, charitable threshold etc.)

The “Dead Hand” & Cy Pres

• Why have some critics argued that perpetually endowed charitable institutions are problematic?
• What does legal theory have to say about the balance between respecting donor intent and avoiding “zombie” trusts?
• What is the practical process for freeing up money from an endowed structure whose purposes are no longer deliverable? How difficult is this?
• What is the legal status of charitable gifts made in wills? When heirs challenge donations, what issues does it raise?

Tainted Donations

• Why are some donations seen as “tainted”? What is it about them that is “bad”?
• What powers and responsibilities do charity trustees have when it comes to assessing whether or not to accept a donation?
• Is it possible to give donations back? Or is this harder in practice than you might think?
• Can charities keep donations on the basis of “turning them to good purposes”? If so, how do they ensure the donor doesn’t get benefit (e.g. social status, reputation, warm glow)?
• Should there be any sort of statute of limitations on tainted donations (e.g. those stemming from proceeds of slavery etc)?
• If institutions have assets that are tainted and want to do something about it, is it enough to give them to any “good cause”, or do they need to be directed at a cause related to the nature of the taint? (I.e. is it a case of making reparation?)

Nationalising charitable assets?

• There have recently been proposals that the charitable assets of private schools should be seized by the government, and similar ideas have been floated in the past. Is this feasible in practice? Are there broader issues of principle in terms of charity law?

Academia & Practice

• How well does academia informs practice (and vice versa) when it comes to philanthropy?
• Where might there be gaps?
• How can we getter stronger links between academics and practitioners?

Related Links:

 

• The University of Liverpool’s Charity Law & Policy Unit
• John’s blog for The Conversation, 'Sackler donations: why museums and galleries can be stuck with gifts – even if they don’t want them'
• John’s blog for The Conversation, 'Supreme Court Legacy Ruling: Leaving A Gift To Charity Can Be Egoistic As well As Altruistic'
• John’s Third Sector article 'Purely Academic: The Rare, Gruesome Nature Of Failed Charitable Gifts By Will'
• Picton, A. J. (2017). Egoism and the Return of Charitable Gifts. In R. Hickey, & H. Conway (Eds.), Modern Studies in Property Law (Vol. 9, pp. 175-194). Oxford: Hart.
• CAF Giving Thought podcast on “Tainted donations”
• CAF Giving Thought podcast on “Philanthropy, Death and Taxes”
• CAF Giving Thought blog, “When should charities say no to donations?”