Victorian Consolidated Legislation

Charities Act 1978 - SECT 7K

Distribution to certain eligible entities

7K. Distribution to certain eligible entities



(1) The powers of the trustees of a charitable trust include a power to
provide money, property or benefits to or for an eligible entity, or for the
establishment of an eligible entity, that, but for a connection to government,
would be a charity to or for which, or for the establishment of which, money,
property or benefits could be provided in accordance with the trust
instrument.

(2) Subsection (1) applies despite any provision to the contrary in the trust
instrument.

(3) Subsection (1) does not apply to the trustees of a charitable trust unless
there is in force a declaration to the effect of the form in the Schedule in
respect of the trust.

(4) The exercise of a power conferred by subsection (1) on the trustees of a
charitable trust does not affect the status of the trust as a charitable
trust.





(5) The provision, before the commencement day, by the trustees of a
charitable trust of money, property or benefits to or for an eligible entity,
or for the establishment of an eligible entity, that, but for a connection to
government, would be a charity to or for which, or for the establishment of
which, money, property or benefits could have been provided in accordance with
the trust instrument-

   (a)  is deemed to be, and always to have been, a provision for a valid
        purpose; and

   (b)  does not affect, and is deemed never to have affected, the status of
        the trust as a charitable trust.

(6) Subsection (5) applies despite anything to the contrary in the trust
instrument.

(7) For the purposes only of this section the factors that may be taken into
account in determining whether an eligible entity may be taken to be connected
to government include-

   (a)  the extent to which the eligible entity is under government direction
        or control; or

   (b)  the extent to which the eligible entity is required to implement
        government policy; or

   (c)  the extent to which a government can appoint, or direct or control the
        appointment of, the members of the governing body of the eligible
        entity-

whether or not the eligible entity receives government funding.

(8) In this section-

commencement day means the date of commencement of the Charities (Amendment)
Act 2006; eligible entity means a deductible gift recipient within the meaning
of the Income Tax Assessment Act 1997 of the Commonwealth; Note See section
30-227 of the Income Tax Assessment Act 1997 of the Commonwealth. government
means the government of the Commonwealth or of a State or Territory or of any
municipality of a State or Territory.