We published Final Report No. 80 on Trustee Investment Powers in February 2000. The purpose of restricting the investment powers of trustees is to prevent them from exposing the trust capital to undue risk. Certain corporate bodies are likely to receive donations of funds to assist them in carrying out their objectives.
Churches are another example.
In some cases, the person making the donation will stipulate the use to be made of the funds in a way that establishes a trust. Where the donor gives specific directions, those directions will govern the trustee investment powers. Where the donor is silent, the donated funds would be subject to the trustee investment powers considered in Report No. 80. In other cases, the donor may simply write a cheque to the organization without giving directions for the use of the funds. In this project, we will consider what investment standards must be met in cases of this sort.