Definition
Public benefit is the legal requirement that a charity's purposes must be beneficial and must benefit the public or a sufficient section of it. Trustees have to report each year on how their charity has met it.
The two parts
| Part | What it means |
|---|---|
| Benefit | The purpose must be beneficial in a way that can be identified, and any harm it causes must not outweigh the benefit. |
| Public | It must benefit the public in general or a sufficient section of the public, and any private benefit must be no more than incidental. |
A charity can serve a limited group, such as people in one town or with one medical condition. It cannot be restricted in a way that has nothing to do with its purpose, and it cannot exclude people who are poor.
What trustees must do
Trustees must have regard to the Charity Commission’s guidance on public benefit when they make decisions. The trustees’ annual report must explain what the charity did in the year to carry out its purposes for the public benefit, and confirm that the trustees have had regard to the guidance.
See also charitable purposes.