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VARIATION OF TRUSTS ACT 1994 - SECT 11 Application cy-près of gifts of donors unknown or disclaiming

VARIATION OF TRUSTS ACT 1994 - SECT 11

Application cy-près of gifts of donors unknown or disclaiming

(1)  Property given for specific charitable purposes which fail is subject to this Part as if given for charitable purposes generally, if the property belongs to –
(a) a donor who, after such advertisements and inquiries as are reasonable, cannot be found; or
(b) a donor who has executed a written disclaimer of any right to have the property returned.
(2)  For the purposes of this section, property is to be taken (without any advertisement or inquiry) as belonging to donors who cannot be found, in so far as the property consists of –
(a) the proceeds of cash collections made by means of collecting boxes or by other means not adapted for distinguishing one gift from another; or
(b) the proceeds of any lottery, competition, entertainment, sale or similar money-raising activity, after allowing for property given to provide prizes or articles for sale or otherwise to enable the activity to be undertaken.
(3)  The Court, by order, may direct that property not referred to in subsection (2) is, for the purposes of this section, to be taken (without any advertisement or inquiry) as belonging to donors who cannot be found, if it appears to the Court –
(a) that it would be unreasonable, having regard to the amounts likely to be returned to the donors, to incur expense with a view to returning the property; or
(b) that it would be unreasonable, having regard to the nature, circumstances and amount of the gifts, and to the lapse of time since the gifts were made, for the donors to expect the property to be returned.
(4)  If property is applied cy-près by virtue of this section, the donor is taken to have parted with all interest in the property at the time when the gift was made.
(5)  If property is so applied as belonging to donors who cannot be found, and is not so applied by virtue of subsection (2) or (3) –
(a) the scheme is to specify the total amount of that property; and
(b) the donor of any part of that amount is entitled, if making a claim within 6 months after the date on which the scheme is made, to recover from the charity for which the property is applied an amount equal to that part, less any expenses properly incurred by the charity trustees after that date in connection with claims relating to the gift; and
(c) the scheme may include directions as to the provision to be made for meeting any such claim.
(6)  For the purposes of this section, charitable purposes are taken to fail if, by reason of any difficulty in applying property for those purposes, that property is available to be returned to the donor.
(7)  In this section –
(a) a reference to a donor includes a reference to any person claiming through or under the original donor; and
(b) a reference to property given includes a reference to the property for the time being representing the property originally given or property derived from it.
(8)  This section applies to property given for charitable purposes notwithstanding that it was so given before the commencement of this Act.