Legal requirement: the ‘public benefit requirement’ is the requirement in the Charities Act that, to be a ‘charitable purpose’, a purpose must be ‘for the public benefit’. There are two aspects of public benefit:
the ‘benefit aspect’
the ‘public aspect’
The ‘benefit aspect’ The ‘benefit aspect’ of public benefit is about whether the purpose is beneficial. Legal requirement: to satisfy the ‘benefit aspect’ of public benefit:
a purpose must be beneficial
any detriment or harm that results from the purpose must not outweigh the benefit
The ‘public aspect’ The ‘public aspect’ of public benefit is about who the purpose benefits. Legal requirement: to satisfy the ‘public aspect’ of public benefit the purpose must:
benefit the public in general, or a sufficient section of the public
not give rise to more than incidental personal benefit
Guidance on the public benefit requirement Legal requirement: in general, for a purpose to be ‘for the public benefit’ it must satisfy both the ‘benefit’ and ‘public’ aspects. However, if the purpose is to relieve or prevent poverty different rules apply. For guidance on the public benefit requirement (including the different rules for poverty charities) see:Public benefit: the public benefit requirement (PB1).