Purpose and Public Benefit

Abstract

This chapter examines the fundamental role that purpose plays in charitable governance and, indeed, in charitable accountability and legitimacy, before considering Barker's assertion of the subordination of public benefit to purposes. Requirements of public benefit and charitable purpose are key elements of charity regulation and core distinctive features of charities. Charities comprise a distinctive part of the not-for-profit sector due to their specific character as organisations that produce public benefit that the state has decided is especially worthy and due to the voluntary and altruistic way in which these public benefits are produced. In light of these inherent complexities and also due to the altruistic and voluntary nature of much participation in charities, regulation of charities must strike a delicate balance between ‘disproportionate focus on legal and financial accountability' and sufficient accountability. The public benefit requirement that forms part of charitable status in many jurisdictions embodies the public aspect of charities.