It cannot be used for any other purpose. Charities may have more than one purpose. If a charity is incorporated, the purposes are found in the corporation's Letters Patent. If the charity is not incorporated, they will be found in the document which creates the trust. If property is improperly used, directors or trustees may be required by a court to repay the money.
Some charities have funds or property that are supposed to be used for one specific purpose.
The directors or trustees must make sure that the property is used only for that one purpose. A conflict of interest arises when a director or trustee has a personal interest in the result of a decision made by the charity. Directors and trustees must always consider the interests of the charity and not allow their personal interests or preferences to affect their conduct and decisions. Directors and trustees must also avoid the appearance of conflict of interest. Certain investments, such as loans to donors, directors or trustees of the charity, or to companies in which they have shares can be a breach of the duty of a director or trustee.