Save Sanctuary Sounds

The creation of the Sanctuary Sounds Trust is already underway. But what is a charitable trust?

A person or persons may decide by

Will,

entering a deed of trust, or

making a declaration

that certain property is to be applied in a particular way.

A person creating a trust while he or she is alive is called a 'settlor'. The persons entrusted with carrying out the wishes of the settlor are called 'trustees'. In family and other private arrangements, the persons who will benefit are called 'beneficiaries'. If someone declares publicly that they hold certain property for others, that person is equivalent to a trustee and those who will benefit are the beneficiaries. In all these – a Will, a deed of trust or a declaration – the beneficiaries might be named (for example, my children A and B) or might be identifiable by description (for example, my grandchildren living at the date of my death).

All trusts must make it clear what the purpose of the trust is, what property is the subject of the trust and who the trustees are to be.

What can a charitable trust do?

Charitable trusts are normally formed to undertake charitable activities and are less suitable for commercial activities. A charitable trust may make profits on their trading activities but the profits must be used for their charitable purposes and cannot be distributed to members.

A trust can operate in almost exactly the same way as an individual person can. A trust can hold property, raise mortgages, hold bank accounts and generally hold all types of assets and investments as long as it operates according to the powers set out in the trust deed.

This information and more can be found on: http://www.societies.govt.nz/