Public benefit

The various charities acts define a charity as a body or trust which:

  1. is for a charitable purpose, and

  2. is for the public benefit.

Public benefit relates to:

  • the charity’s purpose and what it was set up to achieve

  • how the charity's purpose is beneficial

  • how the trustees will carry out the charity's purpose for the public benefit.

Public benefit is the legal commitment of charities and what the Charity Commissions or OSCR regulate. It also gives organisations the focus to demonstrate the benefits they bring to the public and their various stakeholders (Charity Commission, 2013). Decisions about whether a particular charity (in England and Wales) meets the requirement of public benefit is made by the Charity Commission and in law. In Scotland a broad definition of public benefit is enshrined in law (Charities and Trustee Investment (Scotland) Act 2005), and it is the role of the OSCR to decide whether the charity meets a charitable purpose and is for the public benefit.

1.1 Structure and regulation in the voluntary sector

Why do we have charities?