14 Board may act on basis of reasonable assumptions in relation to charitable trusts

(1)

A trust is not prevented from being of a kind referred to in section 13(1)(a) merely because the trustees of the trust have not yet derived an amount of income in trust for charitable purposes if, in the opinion of the Board,—

(a)

an amount of income will be derived by the trustees in trust for charitable purposes; and

(b)

it is fit and proper to register the trustees of the trust as a charitable entity.

(2)

For the purposes of subsection (1), the Board may act on the basis of any assumptions concerning the future derivation of income for charitable purposes that, in the opinion of the Board, are reasonable in the circumstances of the case.

Example

A charitable trust has recently been created.

The trustees of that trust have not yet derived an amount of income in trust for charitable purposes. However, the Board is of the opinion, having regard to reasonable assumptions, that the trustees will derive an amount of income in trust for charitable purposes. The Board is also of the opinion that it is fit and proper to register the trustees. Accordingly, the Board is satisfied that the trust is of a kind referred to in section 13(1)(a).

The trust has a name that complies with section 15 and the trustees of the charitable trust are qualified to be officers of a charitable entity.

The trustees of the trust qualify for registration as a charitable entity.

Section 14 heading: amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).

Section 14(1): amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).

Section 14(2): amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).

Section 14 example: amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).