Housing trust not charitable, High Court rules

The chairman of the Queenstown Lakes Community Housing Trust, David Cole, is the latest disappointed appellant against the Charities Commission decision to deregister the trust.

The High Court has dismissed the appeal against the Charities Commission action in deregistering the trust. It is one of 10 trusts that have been deregistered for failing to comply with the spirit of the legislation.

The High Court ruling noted that of the 32 beneficiaries to date three are individuals, living alone with no spouse or dependants, and another six are couples with no dependants. Ten of the beneficiaries have household incomes of $80,000 or more; 11 have made deposits of $80,000 or more, five of these greater than $100,000 and the highest is $205,000; two beneficiaries have both income and deposit over $80,000; three beneficiaries have household incomes of $40,000 or less. A further six beneficiaries are below the national median Income of $64,000. The Trust has made four exceptions to the requirements for a 5% deposit.

Two of these were households with incomes of $90,000 or more, one for a household with $76,000 and one with $63,000.

“The Commission considers that the beneficiary details show that the trust is providing assistance to many people who may struggle with the costs associated with buying and owning a house with a large mortgage, but many of these people would be able to meet their housing needs through renting or purchasing a house in an alternative location,” the ruling says.

The ruling also said that to qualify as a charitable trust the purpose must be within the spirit and intendment of the purpose set out in the Preamble to the Charitable Uses Act 1601 (The Statute of Elizabeth).

These include relief of aged, impotent, and poor people; maintenance of sick and maimed soldiers and mariners; schools of learning ; free schools and scholars in universities; repair of bridges, ports, havens, causeways, churches, sea banks, and highways; education and preferment of orphans; relief, stock or maintenance of houses of correction; marriage of poor maids; supportation, aid and help of young tradesmen, handicraftsmen, and persons decayed; and relief or redemption of prisoners or captives.

As at July 2010, more than 30,000 applications were received by the Commission since the Register opened on 1 February 2007. It has declined to register around 1350 applications and removed approximately 1040 organisations from the register.

About 450 requested removal because they had wound up and were no longer operating. Another 560 were removed for failing to file an annual return as required by the Charities Act. Around 10 have been removed because they do not comply with the charitable test set out in the Charities Act.

The list of removed trusts is online here.

It includes Greenpeace and civic development trusts such as the Canterbury Development Corporation